Shenzhen Clou Electronics Co.Ltd(002121)
Feasibility report on the use of funds raised by non-public offering of A-Shares in 2022 I. plan for the use of funds raised this time
The total amount of funds raised from this non-public offering of A-Shares does not exceed 1385815600 yuan (including this amount). After deducting the issuance expenses, it is planned to be used to repay interest bearing liabilities, so as to optimize the asset liability structure of Shenzhen Clou Electronics Co.Ltd(002121) (hereinafter referred to as “the company”), improve the asset quality, reduce financial risks and improve the financial situation.
If the time when the funds raised in this offering are in place is inconsistent with the progress of the company’s actual repayment of corresponding bank loans and other interest bearing liabilities, the company will repay them with its own funds first and replace them after the funds raised in this offering are in place. 2、 Feasibility analysis of the board of directors on the use of the raised funds (I) necessity analysis of the use of the raised funds
1. Reduce the company’s asset liability ratio, optimize the capital structure and improve the ability to resist risks
The energy industry to which the company belongs is a capital intensive industry. In particular, the fixed asset investment amount of smart meters and energy storage project production facilities is large. In addition to its own funds, the company’s investment funds also come from bank loans and other channels, so that the company’s asset liability ratio has always been high in recent years. At the end of 2019, 2020, 2021 and March 2022, the asset liability ratios of the company’s consolidated statements were 89.37%, 82.34%, 88.25% and 88.91% respectively, much higher than comparable companies in the same industry.
2022/3/31 202112/31
Company name asset liability current ratio quick ratio asset liability current ratio quick ratio (%)
Xj Electric Co.Ltd(000400) 40.60 2.29 1.80 42.51 2.17 1.76
Jiangsu Linyang Energy Co.Ltd(601222) 27.32 3.18 3.01 29.41 3.08 2.90
Ningbo Sanxing Medical Electric Co.Ltd(601567) 36.60 1.60 1.34 39.87 1.63 1.40
Hangzhou Sunrise Technology Co.Ltd(300360) 17.29 4.17 3.47 19.52 3.68 3.12
Sungrow Power Supply Co.Ltd(300274) 61.10 1.55 1.01 61.01 1.54 1.09
Mean 36.58 2.56 2.13 38.47 2.42 2.05
2022/3/31 202112/31
Company name asset liability current ratio quick ratio asset liability current ratio quick ratio (%)
Median 36.60 2.29 1.80 39.87 2.17 1.76
Shenzhen Clou Electronics Co.Ltd(002121) 88.91 0.55 0.42 88.25 0.56 0.45
202012/31 201912/31
Company name asset liability current ratio quick ratio asset liability current ratio quick ratio (%)
Xj Electric Co.Ltd(000400) 45.26 2.07 1.70 42.50 2.15 1.82
Jiangsu Linyang Energy Co.Ltd(601222) 44.53 2.42 2.23 40.94 2.74 2.44
Ningbo Sanxing Medical Electric Co.Ltd(601567) 35.86 1.60 1.46 40.61 1.46 1.31
Hangzhou Sunrise Technology Co.Ltd(300360) 17.50 4.65 4.22 18.39 4.66 4.21
Sungrow Power Supply Co.Ltd(300274) 61.20 1.55 1.29 61.63 1.51 1.24
Mean 40.87 2.46 2.18 40.82 2.50 2.20
Median 44.53 2.07 1.70 40.94 2.15 1.82
Shenzhen Clou Electronics Co.Ltd(002121) 82.34 0.72 0.58 89.37 0.78 0.62
It can be seen from the above table that at the end of March 2022, the average asset liability ratio of comparable listed companies in the same industry in China was 36.58%, the current ratio was 2.56 and the quick ratio was 2.13, while the asset liability ratio of the company in the same period was 88.91%, the current ratio was 0.55 and the quick ratio was 0.42. Compared with comparable listed companies in the same industry, the company has higher asset liability ratio, lower asset liquidity and certain financial risks. The high asset liability ratio limits the company’s future debt financing space to a certain extent. Timely and appropriate adjustment of the high asset liability ratio is conducive to the company’s stable operation, improve the company’s capital structure and realize the company’s sustainable development.
By using the funds raised from this non-public offering to repay interest bearing liabilities, it is expected that the asset liability ratio of the company will be greatly reduced. This non-public offering of shares can effectively optimize the company’s capital structure, improve the company’s financial situation, improve the company’s anti risk ability and sustainable operation ability, so as to further enhance the company’s ability to continuously repay shareholders, which is in line with the goal of maximizing the interests of shareholders.
2. Reduce financial expenses and improve the profitability of the company
In 2019, 2020, 2021 and January March 2022, the company’s financial expenses were 4470253 million yuan, 3293958 million yuan, 3121594 million yuan and 864304 million yuan respectively, and the proportion of financial expenses in operating revenue was 13.99%, 9.87%, 9.76% and 14.90% respectively. The higher financial expenses restricted the company’s business upgrading and development.
Unit: 10000 yuan
January March 20222021 20202019
Operating income 5802294319816193337288931953251
Financial expenses 864304312159432939584470253
Financial rate: 13.99%
By using the funds raised from this non-public offering to repay interest bearing liabilities, it will help to reduce the company’s financial expenses, effectively improve the company’s profitability, make the company’s financial structure more stable, improve the company’s overall profitability, and lay the foundation for the company’s sustainable and stable development in the future.
3. Relieve the pressure of cash flow and ensure the operation and development of the company
The company’s main business has the characteristics of large capital investment scale, so sufficient capital supply is a necessary condition for the company to further expand business scale and improve operation efficiency. With the continuous expansion of the company’s business scope and business scale, the company’s overall demand for working capital is gradually increasing. Since 2021, affected by the continuous rise in the price of lithium battery materials and the superposition of the double factors hindering the implementation of the project caused by the epidemic, the whole energy storage industry chain has been greatly impacted, posing a great challenge to the overall liquidity and anti risk ability of enterprises in the energy storage industry. Through this non-public offering of a shares, the use of raised funds to repay interest bearing liabilities will help reduce the company’s liquidity risk and provide a strong guarantee for the company’s operation and development. (II) feasibility analysis of the use of the raised funds
1. The use of the funds raised in this non-public offering complies with the provisions of laws and regulations
The company’s non-public offering of A-Shares to raise funds to repay interest bearing liabilities complies with the provisions of relevant policies, laws and regulations, in line with the current actual development of the company, and is feasible. After the funds raised from the non-public offering of A-Shares are in place, the company’s net assets and working capital will increase, which will help alleviate the pressure of cash flow, reduce the company’s financial expenses, optimize the company’s financial structure, improve the company’s anti risk ability and promote the sustainable and healthy development of the company’s business.
2. The use of the funds raised in this non-public offering has the implementation subject of standardized governance and perfect internal control
According to the relevant requirements of listed corporate governance, the company has established a modern enterprise system with the corporate governance structure as the core, and formed a more standardized corporate governance system and a perfect internal control environment through continuous improvement and perfection.
In terms of the management of raised funds, the company has formulated the measures for the management of raised funds in accordance with the regulatory requirements, and made specific and clear provisions on the storage, use, supervision and management of the company’s raised funds. The company will ensure the reasonable and standardized storage and use of the raised funds and prevent the use risks of the raised funds in strict accordance with the measures for the administration of the raised funds of listed companies of Shenzhen Stock Exchange, the guidelines for the supervision of listed companies No. 2 – regulatory requirements for the management and use of the raised funds of listed companies and other relevant laws, regulations and company systems. 3、 The impact of this issuance on the company’s operation and management and financial situation (I) impact on operation and management
After deducting the issuance expenses, the total amount of funds raised by the company in this issuance will be used to repay interest bearing liabilities. The capital strength and asset scale of the company will be improved to alleviate the capital demand pressure of the company’s daily business activities. At the same time, the availability of raised funds will help consolidate the company’s business development foundation, enhance the company’s core competitiveness and profitability, promote the sustained and rapid growth of the company’s main business, and provide financial guarantee for the company’s further expansion and strength. (II) impact on financial position
After the completion of this offering, the total share capital and net assets of the company will increase, and the overall asset liability ratio will be reduced; At the same time, the company’s current ratio and quick ratio will be improved and its solvency will be enhanced. In conclusion, this issuance will optimize the capital structure, improve the solvency, reduce financial risks and lay a solid foundation for the further development of the company’s business. 4、 Conclusion of feasibility analysis on the use of raised funds
To sum up, the use plan of the funds raised by this non-public offering of A-Shares complies with relevant policies, laws and regulations. This non-public offering is conducive to improving the company’s overall operating capacity, in line with the company’s actual situation and strategic needs, and is necessary and feasible. The use of the raised funds is conducive to meeting the capital needs of the company’s business development, improving the company’s core competitiveness, optimizing the asset structure, improving the company’s financial situation, improving the profitability and sustainable development ability, which is in line with the interests of all shareholders.
Shenzhen Clou Electronics Co.Ltd(002121)
Board of directors
May 23, 2002
