"Investor Network" Xie Yingjie
"In 2020, the company will continue to focus on the 'one-stop' strategic goal, actively increase production capacity and improve product structure." Change of ownership in 2019 Later, Zhejiang Star Technology Co., Ltd. (hereinafter referred to as "Star Technology", 300256.SZ) prepared to enter the entire consumer electronics industry chain, although the conditions are not yet mature.
The third quarterly report shows that the company needs to repay 3.144 billion yuan in loans within a year, and monetary funds can only cover 17 of them. Against this background, Xingxing Technology not only asked its subsidiary to provide a loan of 240 million yuan to its controlling shareholder, but also planned a number of reorganizations, including a capital increase for a real estate company that had suffered losses.
A series of actions triggered reactions. The Shenzhen Stock Exchange issued 6 inquiry (supervision) letters, and each transaction was aborted as a result. However, the company does not seem to have stopped. On the evening of November 9, the company announced that it plans to use 1.5 billion yuan for the construction of 3D curved glass cover production line projects, among which the controlling shareholder subscribes for 700 million yuan.
This time, is Xingxing Technology determined to focus on its main business? Or are you planning another "quasi backdoor"?
The equity changed hands and finally turned around
One year after the change of ownership, Xingxing Technology finally got out of the shadow of losses, and its performance began to stabilize and rebound.
In 2019, the company's operating income was 6.34 billion yuan, a year-on-year increase of 66.12%; the net profit attributable to the parent company was 174 million yuan, a year-on-year increase of 110.26%.
In the first three quarters of this year, the company's operating income reached 5.1 billion yuan, a year-on-year increase of 40.36; net profit attributable to the parent company was 115 million yuan, a year-on-year increase of 415.9; non-net profit after deduction was 65 million yuan, a year-on-year increase of 522.
On the one hand, the performance explosion stems from the rebound in industry prosperity. "According to Techweb research forecasts, within five years starting from 2019, global 5G smartphone shipments will increase from 13 million units to 774 million units, with a compound annual growth rate of more than 180. The rapid growth of the new display device market will drive market demand for window protective screens Increase. ”
On the other hand, it is also related to the low base of performance. In 2018, Star Technology’s revenue fell by 3.24 billion yuan year-on-year to 3.82 billion yuan, and net profit attributable to the parent company dropped by 2650 yuan year-on-year to -1.7 billion yuan.
Public information shows that Xingxing Technology was established in Taizhou City, Zhejiang Province in 2003 and went public in 2011. As a long-established manufacturer of window protection screens, the company rose to fame in the era of traditional mobile phone manufacturers such as Nokia and BlackBerry, but subsequently declined with the decline of its major customers.
In order to solve the chronic problem of a single customer and a single industry, the company chose to transform into a "one-stop solution provider for intelligent terminal components". After 2013, Star Technology successively acquired subsidiaries such as Shenyue Optoelectronics, Shenzhen Lianmao, Jinsanjia Precision, Zhuhai Lite-On Mobile, Guangzhou Lite-On Mobile, and Shenzhen Lite-On Mobile, and extended its business to touch display modules, Precision structural parts and other fields.
As a result, Star Technology’s debt has increased, and its performance has not only failed to improve. On the contrary, many subsidiaries have not met their performance commitments, resulting in large impairments of goodwill.
In 2019, Xingxing Technology’s original shareholder Xingxing Group “abdicated”, Jiangxi Pingxiang Economic and Technological Development Zone Management Committee became the actual controller, and Pingxiang Fantech Network Technology Co., Ltd. was the controlling shareholder.
The debt crisis is high
Although performance has improved, institutions are more of a short-term investment in Xingxing Technology.
Wind data shows that E Fund increased its holdings by 7.482 million shares in the second quarter and reduced its holdings significantly in the third quarter, withdrawing from the top ten tradable shareholders; China Shengshi Hybrid Fund increased its holdings in the first quarter It held 5.58 million shares and exited in the second quarter.
As of the end of the third quarter, there are no institutions among the company’s top ten tradable shareholders.
Some shareholders are also reducing their holdings. Wind data shows that since the beginning of this year, the company's two shareholders (Mao Xiaolin and Demao Investment) have reduced their holdings by a total of 13.73 million shares due to personal capital needs, with a market value of approximately 85.6456 million yuan.
This cannot be blamed on the impetuousness of institutions. The current investment value of Xingxing Technology is not enough to attract capital to follow it in the long term.
In the first three quarters of 2020, the company's return on net assets (weighted) was 6. During the same period, half of the 154 companies in the electronic components sector had an ROE of more than 8, and Star Technology ranked 92nd; the company's net market price The ratio is 3.7 times, and the earnings per share is 0.12 yuan/share, ranking 94th and 120th respectively.
Star Technology’s high-hanging debt has to serve as a warning.
As of the end of the third quarter of 2020, the company's short-term borrowings and non-current liabilities within one year reached 2.365 billion yuan and 779 million yuan, and the monetary funds of 544 million yuan on the book could not be covered at all; current ratio and quick ratio Only 0.9 times and 0.67 times, far lower than the normal values ??of 2 and 1, and this situation has lasted for 5 years.
According to public media reports, on July 10 and July 13, 2020, hundreds of employees and suppliers launched two consecutive collective debt collection actions in the factory of Xingxing Precision Technology (Dongguan) Co., Ltd. Collect the salary and project payment that have been owed for several months.
Tianyancha data shows that this year alone, there are 32 court announcements for Xingxing Technology as a defendant, mostly arising from sales contract disputes and debt contract disputes; its subsidiary Dongguan Xingxing Technology has been sued five times this year. The court enforced enforcement, and Xingchi Optoelectronics enforced it once.
Investment and mergers and acquisitions encountered obstacles one after another
Faced with the caution of the capital market, Xingxing Technology did not dismantle the debt "bomb" in time, but did the opposite.
In March this year, Xingxing Technology planned to spend 1.6 billion yuan to acquire 48.75 shares of Jiangxi Xingxing held by Huisheng Industrial through the issuance of shares and payment of cash. At the same time, the original shareholder Xingxing Group also released the voting rights entrustment to the new shareholder Pingxiang Fan Tike.
Qichacha data shows that on the eve of the change of ownership of Xingxing Technology, it joined hands with HSBC to invest in Jiangxi Xingxing, and has since increased its capital in large amounts. On the eve of the above announcement, HSBC Investment transferred its equity interests in Jiangxi Xingxing to Huisheng Industrial for free.
The Shenzhen Stock Exchange quickly issued a letter of inquiry, requesting clarification on whether the essence of the transaction was a non-public issuance and refinancing behavior, and whether there was such a way to avoid that the number of non-public issuance shares must not exceed 30% of the total pre-issuance share capital. and other relevant restrictions, is there a package deal to avoid restructuring and listing?
On August 21, Xingxing Technology announced the termination of the above-mentioned major asset restructuring.
The other two transactions started in the middle of this year. The company announced that it planned to increase capital of 880 million yuan to Shenzhen 1234, and its subsidiary Star Precision Technology (Shenzhen) Co., Ltd. planned to purchase the equity of China Rubber 51 .
Tianyancha data shows that Shenzhen 1234’s main business is real estate, and it suffered net profit losses in both 2019 and the first half of 2020.
The Shenzhen Stock Exchange once again issued a letter of inquiry, requesting explanations of the reasons for Shenzhen’s 1234 appraisal value appreciation rate reaching 228.8; in August this year, the Zhejiang Securities Regulatory Bureau also issued a "Notice of Talk" in this regard . The deal ended again with termination.
What puzzles investors even more is that from March to June this year, some subsidiaries of Star Technology provided loans of 240 million yuan to the major shareholder Pingxiang Fantech and its related parties, 9 On March 19, the Shenzhen Stock Exchange issued a letter of inquiry in this regard.
"In order to reorganize certain assets that do not meet the review standards, some listed companies openly carry out major asset reorganizations and secretly cover up actual backdoor activities. This may cause abnormal fluctuations in stock prices and cause damage to small and medium-sized shareholders." A brokerage person told "Investors Network".
So how does the company understand the reasons why recent transactions have been blocked? Star Technology said: “Due to certain changes in the external market environment and the implementation of the GEM registration system, the company and its controlling shareholders have fully demonstrated the restructuring and future capital market operation processes and other matters, and believe that the restructuring will continue to be promoted at this stage. The relevant conditions are not mature enough.”
Plans to raise 1.5 billion to expand production
After being “beaten” by the Shenzhen Stock Exchange many times, Star Technology has not stopped its pace and is preparing to plan. The largest expansion of production is coming to the market. On the evening of November 9, Xingxing Technology disclosed its private placement plan. The company plans to issue shares to no more than 35 specific targets and raise no more than 1.5 billion yuan.
Of which 420 million yuan will be used to supplement working capital, 342 million yuan will be used to raise funds for the construction of a 3D curved (vehicle, wearable) glass cover production line project with an annual output of 11 million pieces, and 738 million yuan will be used for annual Construction of a production line project to produce 20 million pieces of 3D curved (mobile phone) glass cover.
According to the private increase plan, the above-mentioned projects will achieve an average annual sales revenue of approximately 733 million yuan and 1.261 billion yuan respectively after reaching production, and a total average annual sales revenue of 1.994 billion yuan.
This production expansion plan has been highly recognized by the controlling shareholders. Pingxiang Fantech promised to invest no less than 700 million yuan to participate in the subscription. If the lower limit of capital contribution is used, the proportion of shares subscribed by the controlling shareholder also reaches 46.67, which is nearly half.
But the problem is that Xingxing Technology is still under great debt pressure. Previous transactions have been frequently blocked. How to ensure that the private placement proceeds smoothly and that the project investment plan will not be changed in the future?
"The raised funds management system formulated by the company clearly stipulates the application for the use of raised funds, hierarchical approval authority, decision-making procedures, risk control measures and information disclosure procedures. The company will regularly check the use of raised funds , to ensure that the raised funds are used reasonably and legally." Star Technology told "Investor Network", "The disclosure of fixed placement does not represent the substantive judgment, confirmation or approval of the approval authority. Investors are advised to pay attention to investment risks." (Produced by Thinking Finance)