After the loss of the former big loss sun, the GCL integration experienced a three-year climbing period, looking for new profit opportunities after the haze of historical problems has gradually dissipated.
On the evening of July 9, GCL Integrated announced that it intends to invest as a limited partner with its own funds of 561 million yuan to invest in Xuzhou Ruixin Electronic Industry Fund (Limited Partnership) (hereinafter referred to as “Ruixin Fundâ€). 25.38% of the shares became the largest shareholder, expanding the second main business.
As a result of the unfulfilled performance commitments, GCL integration has caused Zhu Gongshan, the head of the Xie Xin department, to break the heart and walk behind the scenes. After the strategic layout, Zhu Gongshan was once again “invisibleâ€. However, just beginning to get on the right track and encounter the 5.31 PV New Deal, can GCL integration continue to grow? Where is the way out for GCL integration?
561 million yuan investment in semiconductor funds
According to the announcement, GCL integration intends to be transferred to Nanjing Xinneng Sunshine Industry Investment Fund Enterprise (Limited Partnership) (hereinafter referred to as “Nanjing Xinnengâ€) and Xuzhou Industrial Development Guide Fund Co., Ltd. (hereinafter referred to as “Xuzhou Guidance Fundâ€). Corresponding Core Fund's 500 million yuan subscription share and 51 million yuan subscription share, while investing 10 million yuan to Rui core funds to increase capital. After the completion of the transaction, GCL Integration will hold a 25.38% share of Core Fund.
It is understood that Ruixin Fund has a scale of 2.21 billion yuan. The investment field is semiconductor industry with a duration of 5 years. It is owned by Suzhou Guotai Xinneng Investment Management Co., Ltd. (hereinafter referred to as “Guotai Xinnengâ€), Nanjing Xinneng and Xuzhou Guidance Fund. The Jiangsu Xuzhou Old Industrial Base Industry Development Fund and the Xuzhou Kaixin Industry Fund Partnership were jointly established on November 27, 2017. After the transfer, the above-mentioned partners subscribed for the capital ratios of 0.05%, 13.53%, 24.84%, 18.1% and 18.1%, respectively.
For the investment of Ruixin Fund, GCL integration said that “it is based on the overall strategic transformation and layout considerations. It is planned to participate in the investment in semiconductor industry funds and integrate all the advantageous resources to further enhance the company's investment and acquisition capabilities in the semiconductor industry. To promote the company's active and steady exploration of the second main business."
The GCL integration department reorganized ST Super Day in October 2014. It is the layout of the “Xinxin Department†in the middle of the photovoltaic industry. The current business mainly covers the research and development of high-efficiency batteries, differentiated components, energy engineering, energy storage and other related products. Design, production, sales and one-stop service. In addition, “GCL†has the largest polysilicon and wafer producer in the photovoltaic industry, GCL-Poly Energy and GCL New Energy, which is engaged in the development and operation of downstream PV power plants.
As for why the semiconductor industry was chosen as the second main business of the layout, the reporter interviewed the GCL Integrated Securities Department via email, and was not responding because it was in the quiet period of the semi-annual report.
There is a close person who knows about the integration of GCL, the company has a layout in the middle and lower reaches of the photovoltaic field. The development of GCL in photovoltaics has limitations. The main business can only be component production and system integration.
From the perspective of the entire GCL, GCL-Poly Energy also lays out semiconductors. According to public information, in December 2015, the National Integrated Circuit Industry Investment Fund and GCL-Poly jointly established Jiangsu Xinhua Semiconductor Materials Technology Co., Ltd. to build the first domestic 5,000-ton electronic grade polysilicon special line. After nearly two years of construction and commissioning. , has produced qualified electronic grade polysilicon products by the end of 2017.
Some people in the Xinxin Department told this reporter: "The semiconductor investment of GCL will remain at the level of equity investment, such as the already announced fund shares, and GCL-Poly and the big fund will cooperate to promote the 5,000-ton semiconductor polysilicon project. And subsequent chip projects, these are industrial-level investments, and the two are different."
However, GCL integration is tilting towards the semiconductor industry, and the development of the second main business is not to stop investing in the relevant funds. As early as May of this year, GCL Integrated said that it is planning major asset purchases, and the underlying assets are a semiconductor material company supported by the state. However, due to the fact that the acquisition involves multiple counterparties, all parties are required to perform internal approval procedures, and there is uncertainty in the trading time, schedule and links.
Survival
An important reason for GCL's integration of the second major semiconductor industry is to improve its own risk resistance and sustainable profitability.
In 2017, GCL's integrated revenue was 14.447 billion yuan, up 20.12% year-on-year, net profit was 23.85 million yuan, up 188.63% year-on-year, and turned losses into profit, but this time the loss was not complete, GCL integrated 2017 is not net The profit increased from -760,137,700 yuan in 2016 to -170 million yuan, which means that the company's main business losses, and therefore received an inquiry letter from the Shenzhen Stock Exchange.
In the inquiry letter to the Shenzhen Stock Exchange, GCL Integrated explained that the main reason for the company’s continued negative net profit after two consecutive years of deduction was that the asset impairment losses in 2016 and 2017 were 82.224 million yuan and 2.41 respectively. 100 million yuan, including bad debt reserve losses, inventory price loss, and goodwill impairment losses.
An important reason for the loss of GCL's integration is also inseparable from the decline in the price of the main business components. According to public reports, the price of components has dropped from around RMB 3/W at the beginning of 2017 to about RMB 2.5/W.
The above-mentioned people close to GCL integration told this reporter that “component products are the thinnest link in the photovoltaic industry chain. Most of the money is upstream wafers or downstream power plants. The profit margin of component products has been pushed to the limit. Industry is the most 'painful'."
It is worth noting that the debt of GCL Integrated is also high. In 2017, GCL's integrated asset-liability ratio reached 79.31%, short-term loans were 3.081 billion yuan, non-current liabilities due within one year were 1.557 billion yuan, and other payables were 1.592 billion yuan, totaling 6.230 billion yuan.
"GCL's reorganization took over the day, and there are many historical problems. Because the super-day debt was bankrupt at the time, it hurt a lot of financial institutions, and was pulled into the 'blacklist' by many financial institutions. After the integration of GCL, the bank financing It's very difficult, most of them are non-bank financing, and the financing cost is very high, which is very unfavorable for the development of a company.†The above-mentioned people close to the integration of the company said that this year, the GCL integration will be lifted from the “blacklistâ€. Financial aspects will play a very good supporting role.
In fact, taking over the Sun in the Sun is also taking over a mess. When GCL integrated and reorganized the Super Sun, the major shareholder Jiangsu GCL (now renamed “GCL Groupâ€) made a performance commitment, and the audited returning net profit realized by GCL in 2016 was not less than 800 million yuan. If the actual realized net profit is lower than the promised net profit, Jiangsu GCL will compensate the GCL integration in the part of the profit forecast that is not in cash. In the case of GCL, the net profit of the returning home in 2016 was -69.116 million yuan. In the end, in July 2017, GCL Group compensated GCL in an amount of 8.2691 million yuan.
In order to reverse the performance of the integration of GCL, Zhu Gongshan had personally played. On January 18, 2017, GCL Integrated announced that Zhu Xinshan, the chairman of GCL Group, was a candidate for the board of directors and served as the chairman of GCL Integrated after being reviewed and approved at the shareholders meeting.
After Zhu Gongshan served as the chairman of GCL Integrated, on December 8, he invested HK$1.05 billion (approximately 886 million yuan) to acquire a 10.01% stake in GCL New Energy held by HTNE and STHL. The integration of GCL New Energy and GCL is a world of difference. GCL New Energy’s 2017 mid-year report showed that its net profit was 548 million yuan, up 219.36% year-on-year; and 2016 net profit was 141 million yuan, up year-on-year. 1009.64%. Therefore, GCL integration is considered by the market as a gradual extension of the PV industry chain, which will also improve GCL's integrated market resilience, risk resilience and continued profitability.
Going out to sea to find new opportunities
After Zhu Gongshan, as the chairman of the board, completed the strategic adjustment mission of GCL, he returned to the background, and this seems to indicate the development of GCL.
On January 6 this year, GCL Integrated announced that due to strategic deployment and internal work adjustment needs, Chairman Zhu Gongshan resigned from the position of chairman of the board, and general manager Shu Hua took over the position of chairman. Meanwhile, Shu Hua resigned as general manager of the company. Luo Xin served. It is understood that Luo Xin was a member of GCL New Energy, a Hong Kong stock company affiliated to GCL, and served as vice president and president of North American company.
The above-mentioned people close to GCL integration told reporters that “the chairman is generally grasping the strategy, and the general manager is going to rush out to open up the market. Luo Xin has a very strong overseas market expansion capability, and GCL integration needs to break through overseas business.â€
The direction of expanding to overseas markets can also be seen in the earnings report. In 2017, GCL's overseas business income was 3.81 billion yuan, a year-on-year increase of 210.37%, and the proportion of the company's total business revenue increased from 2.07% in 2016 to 26.37%.
On July 12, GCL Integrated released the announcement of the first half of the performance forecast, which adjusted the net profit attributable to shareholders of the listed company from RMB 100 million to RMB 10,000 to RMB 20.41 million to RMB 30.2 million. According to the integration of GCL, the second quarter is the cyclical peak season of the photovoltaic industry. The company has sufficient orders and both production and sales are booming.
However, after the 5.31 PV New Deal, the photovoltaic industry, especially the manufacturing side, is under tremendous pressure. In the announcement, GCL said that before the release of PV “5·31 New Dealâ€, the company locked in the price of some orders in advance. When the market demand decreased, the raw material price of the upstream products of PV products fell rapidly, and the company’s gross profit improved. The company has strengthened budget management and cost control, and related expenses such as sales and finance have been reduced to some extent.
More importantly, GCL integration has already shifted its focus to overseas markets. The sales ratio in overseas markets has rapidly increased from 14% in the first half of 2017 to the current 50%. The overseas market orders are full, which is more volatile for the photovoltaic industry. Good stability.
"The EPC business will also go overseas in the future," said the person close to GCL integration. According to the plan of GCL integration, the proportion of sales in overseas markets will reach 70% by 2020.
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