Central shares were kidnapped by the world's largest power station

When the entire photovoltaic industry was in the cold winter, Central shares (002129) maintained a strong desire to expand. The company announced in August this year that it will be the largest shareholder in Inner Mongolia to participate in the construction of a 7.5 GW installed capacity photovoltaic power station known as the "World's Largest PV Power Plant Project." At that time, it immediately triggered market attention. However, the "Golden Securities" reporter found that despite the state-owned assets, the company's future "money scene" is erratic compared to its ambitious investment plans and operating methods.

Photovoltaic “kidnapping”: The debt ratio soared. When the company landed on the small and medium-sized board in April 2007, it was still a company specializing in the production of semiconductor discrete devices. However, the company's total investment of 610 million yuan in the IPO project - "6-inch 0.35 micron power semiconductor device production line" has a continuous loss. It is reported that the project began mass production in the 4th quarter of 2009, but lost RMB 61,310,600, 36,190,900 and 39,950,500 respectively in 2009-2011.

China Central Securities Co., Ltd. has pledged its investment in photovoltaics. In 2009, it established and invested in Inner Mongolia Zhonghuan Photovoltaic Materials Co., Ltd. to produce monocrystalline silicon for solar cells. It was the most glorious time for the photovoltaic industry. The "Halfway" Zhonghuan shares also followed.

The "Golden Securities" reporter found that in 2010, Central achieved 1.309 billion yuan in revenue for the year, an increase of 135%; and a net profit of 97.53 million yuan, a year-on-year increase of 207%. In the first half of 2011, the company's business performance further broke out, with revenue of 1.475 billion yuan and net profit of 185 million yuan, a year-on-year increase of 215% and 1114%, respectively.

The sweetness has made Zhonghuan shares more confident and inflated, defying risks. In May 2011, the company issued a private placement plan to raise up to 1.1 billion yuan to invest in “R&D and industrialization projects of IGBT and optoelectronic devices for melting monocrystalline silicon materials” and “Green renewable monocrystalline silicon for solar cells. Material Industrialization Project Phase II Project."

However, in the second half of last year, the deteriorating demand triggered by the financial crisis and the overcapacity in the domestic market caused the situation in the photovoltaic industry to deteriorate. The sudden price crash and the surge in inventories broke out. The issuance of Central shares has collapsed.

"The central bank's capital expenditure for the expansion of monocrystalline silicon wafer production is very high, and it has invested more than 2 billion yuan, resulting in extremely tight funding." An industry researcher who did not want to be named told the "Golden Securities" reporter that "at the time last year, the company used to Consider issuing bonds, and later planned to re-sell from the secondary market, but all failed."

The Central shares that had been "abducted" by the PV office had to obtain ** from a series of guarantees and commissions provided by the controlling shareholders, but the result was a sharp rise in debt. The “Golden Securities” reporter noted that at the end of 2011, the company’s consolidated assets and liabilities ratio was as high as 70.77%, far higher than the average of 45% in the industry.

Thirty-three banks lined up: In the financial crisis of debt repayment, China Central quickly sold out new non-public offerings. In June this year, the company announced that it would issue no more than 155 million shares, the issue price would not be less than 12.29 yuan/share, and the raised capital would not exceed 1.9 billion yuan, of which 1.222 billion yuan would be used to repay the bank**, and the remaining raised capital was supplemented. Liquidity.

The repayment pressure of Zhonghuan’s shares was unusually heavy. The repayment details of 12.22 billion yuan listed the total amount of loans owed to the Central Bank shares and subsidiaries by as many as 33 banks.

The "Golden Securities" reporter found that the 1.222 billion yuan loan was calculated based on the expiry date. The company had 1 bill in June 2012, 2 bills in July, 7 bills in August, 10 bills in September, and 1 bill in October. There are 3 singles in November and 1 single in December. The rest of the bank’s arrears, the latest repayment period is February 2013.

Zhonghuan said that "if the non-public issuance of stocks raise funds, the company's asset-liability ratio will drop to 47.12%, close to the average level of the industry, improve short-term solvency, and financial conditions will be greatly improved."

However, "Golden Securities" reporter noted that the company's capital chain continues to deteriorate. China Central’s third quarterly report in 2012 showed that its short-term borrowings amounted to RMB 2.515 billion, a 126% increase from the RMB 1.109 billion at the end of 2011; the combined asset-liability ratio further increased to 74.06%.

"The SFC strictly limits the use of reinvestment, and generally does not allow additional liquidity and bank reimbursement." The above-mentioned researcher said that only two investors, the majority shareholder Zhonghuan Group and Bohai Information*, were issued by the Central Securities Co., Ltd. *, And all promised a three-year lock-in period, so passed the review by the Securities Regulatory Commission. According to the issuance plan, the Central Group has subscribed for 3,254.68 million shares and Bohai Information has subscribed for 122 million shares. The two companies have subscribed for a total of about 155 million shares. The actual controllers are the Tianjin SASAC.

On November 19, the Central share finally received the issuance approval for the newly issued plan.

State-owned assets are finally urgently rescued: whether or not they can stand up unhappily. "The Central Securities Co., Ltd. has a huge debt repayment pressure and the company should complete the increase as soon as possible." The above-mentioned researcher frankly stated to "Gold Securities."

Sun Juanhong, a representative of Zhonghuan Securities, told the “Securities Securities” reporter. “This additional issuance is a way to lock in investors in advance. The company has signed a subscription agreement with the subscriber, and the additional issuance should be no problem and will be implemented as soon as possible.”

However, the problem is that Tianjin SASAC took out 1.9 billion gold and silver to rescue listed companies. Can it turn the tide?

The third quarterly report showed that the company’s operating profit was -60,290,900 yuan, and the third-quarter loss continued to expand. The Central shares in operating difficulties will bet on downstream photovoltaic power plants.

For the latest development in the industry as "the world's largest photovoltaic power station project", "Gold Securities" reporter learned from the company that Central shares will be jointly funded with SunPower Corporation, Inner Mongolia Electric Power (Group) Co., Ltd. and Hohhot Jinqiao Urban Construction Development Co., Ltd. 400 million yuan was set up as the initial investment to establish "Chinaxia Concentrate (Inner Mongolia) Photovoltaic Power Co., Ltd.". Among them, Zhonghuan shares invested 160 million yuan, accounting for 40% of the capital injection of the joint venture company.

"This is only a preliminary investment, build a photovoltaic power plant with an installed capacity of 100MW, and the total investment is at the level of 1 billion yuan." A person in the photovoltaic industry in Shanghai pointed out that "the investment in photovoltaic power plant planning is huge, and the current cost of building a photovoltaic power plant is about 9 yuan. /Watt, even the industry's lowest cost is 7-8 yuan/W. According to the conservative estimate, the total investment of 7.5GW installed PV power plant is about 60 billion yuan. Zhonghuan will invest 40% of its capital, and its capital needs will reach a scale of 24 billion yuan.

As of the end of September this year, the net assets of China Central Securities were 1.906 billion yuan. Even if we count the 1.9 billion yuan to be added to the bag, we have only net assets of 3.8 billion yuan. The investment of 24 billion yuan is equivalent to the reconstruction of 6 Central shares. Will the tight capital chain of Central shares be under pressure?

“The company currently only wants to complete the increase as soon as possible. Further considerations have not yet been taken into account. It is necessary to look at the progress of investing in power plants in the future.” Sun Juanhong responded.

Zhonghuan said that its photovoltaic power plant project will preferentially use the company's self-produced solar cell monocrystalline silicon wafers, but it is currently unable to accurately measure the number of 7.5GW power station procurement silicon wafers, and cannot accurately measure the company’s revenue, The impact of profits. "Funding, land grants, environmental impact assessment, and especially the roads for generating electricity are not easy things to do. The world's largest photovoltaic power station is just a lively event." The photovoltaic industry sources said frankly that currently the industry's power station for Central The plan remains skeptical.