On January 13, Hongrun Construction Group Co.Ltd(002062) (002062. SZ) announced that the company planned to merge and integrate Ningbo Shanshan Co.Ltd(600884) (600884. SH) photovoltaic new energy assets and business, and both parties planned to complete the cooperation of photovoltaic module assets and business by transferring Ningbo Shanshan Co.Ltd(600884) shares of Ningbo Eureka Cecep Solar Energy Co.Ltd(000591) Co., Ltd. (hereinafter referred to as Eureka) to the company.
The reporter of the daily economic news noted that the revenue of Hongrun Construction Group Co.Ltd(002062) mainly comes from the construction business, accounting for more than 90%. The proportion of new energy development business related to photovoltaic is only about 1%. The business entities mainly include the acquired subsidiary Shanghai Jiaotong University Taiyang Green Energy Co., Ltd. and Qinghai 80 MW photovoltaic grid connected power station, but the former has continued to suffer losses in recent years.
introduce Ningbo Shanshan Co.Ltd(600884) as a strategic cooperative shareholder
This is not a simple acquisition.
Hongrun Construction Group Co.Ltd(002062) said that the company and Ningbo Shanshan Co.Ltd(600884) planned to make use of the advantages of industry and capital, promote the combination of equity and industry through the “industry + capital” two wheel drive, establish a strategic cooperative relationship, and jointly promote the development of photovoltaic new energy industry.
In terms of industry, Hongrun Construction Group Co.Ltd(002062) plans to acquire Ningbo Shanshan Co.Ltd(600884) holding subsidiary Eureka, whose main business is Cecep Solar Energy Co.Ltd(000591) , manufacturing, processing and sales of wind power generation equipment and accessories and semiconductor materials. In 2020, the annual operating revenue of Eureka was 687 million yuan, the net profit was 1575800 yuan, and the net assets at the end of 2020 was 276 million yuan.
However, the Hongrun Construction Group Co.Ltd(002062) announcement mentioned that Eureka’s existing photovoltaic power station assets and business are not included in the transfer scope of both parties, Ningbo Shanshan Co.Ltd(600884) will complete the stripping of power station asset business from Eureka before the completion of the above equity transfer and delivery.
In terms of capital, after the completion of the transaction, Ningbo Shanshan Co.Ltd(600884) will become the strategic cooperative shareholder of Hongrun Construction Group Co.Ltd(002062) and plans to recommend one director to Hongrun Construction Group Co.Ltd(002062) and Hongrun Construction Group Co.Ltd(002062) Eureka after the acquisition. In addition, both parties will formulate and improve the medium and long-term development plan of Hongrun Construction Group Co.Ltd(002062) photovoltaic new energy industry according to the actual situation in the future, so as to further develop Eureka’s photovoltaic new energy business.
Another reason for this strategic cooperation was announced or disclosed on January 6. Ningbo Shanshan Co.Ltd(600884) in recent years, the company has focused on the development of lithium battery cathode materials and polarizer business. Previously, the company sold the controlling rights of its lithium salt product business company and cathode business company.
the proportion of new energy development business is about 1%
Hongrun Construction Group Co.Ltd(002062) said that while maintaining the healthy and sustainable development of the main business of construction, the company will actively expand its business in the field of new energy.
Hongrun Construction Group Co.Ltd(002062) is a construction company. Its revenue mainly comes from construction business, accounting for more than 90%. But Hongrun Construction Group Co.Ltd(002062) is not unarmed to cross-border new energy business.
The reporter of the daily economic news noted that Hongrun Construction Group Co.Ltd(002062) new energy development business accounted for about 1%, and the revenue has declined in recent three years. The revenue from 2018 to 2020 was 138 million yuan, 122 million yuan and 105 million yuan respectively.
The new energy development business of Hongrun Construction Group Co.Ltd(002062) originated from an acquisition in 2011. That year, Hongrun Construction Group Co.Ltd(002062) acquired 76.07% equity of Shanghai Jiaotong University Taiyang Green Energy Co., Ltd. (hereinafter referred to as Taiyang green). “Through this acquisition, the company will directly participate in the development, production and sales of Cecep Solar Energy Co.Ltd(000591) photovoltaic cells, modules and Cecep Solar Energy Co.Ltd(000591) photovoltaic systems, bringing new growth points to the company’s future performance.” Hongrun Construction Group Co.Ltd(002062) indicates.
Since then, in order to digest the solar cell module capacity of the green part of Taiyang and release the capacity of the company’s Cecep Solar Energy Co.Ltd(000591) industry, in 2012, the company announced that it planned to invest 130 million yuan to build a grid connected photovoltaic power generation project with a total installed capacity of 10 MW in Gonghe County, Hainan prefecture, Qinghai Province. In 2013, the company plans to invest 800 million yuan to build a grid connected photovoltaic power generation project with a total installed capacity of 70 MW in Gangcha County, Qinghai Province. In 2015, the company plans to invest 115 million yuan to build a grid connected photovoltaic power generation project with a total installed capacity of 10 MW in Gangcha County, Qinghai Province.
At present, Hongrun Construction Group Co.Ltd(002062) 80 MW photovoltaic grid connected power station in Qinghai is in normal operation. According to the third quarter report of 2021, 103.84 million kwh of power generation was completed in the first three quarters. However, the loss of Taiyang Green has been expanding in recent years. The net loss from 2018 to 2020 was 5.6074 million yuan, 8.7712 million yuan and 17.2465 million yuan, and the net loss in the first half of last year was 1.3479 million yuan.
Whether Hongrun Construction Group Co.Ltd(002062) can make it a new performance growth point depends on the actual development of bilateral cooperation.
