In April 2020, he Hengjian, the actual controller of Midea Group, won the controlling interest of Hekang Xinneng (300048) with more than 700 million yuan in cash. Now, after a year of “name change”, what is the current situation of Hekang Xinneng? Throughout the announcement of Hekang Xinneng, over the past year, the listed companies have taken frequent actions to divest Hekang power, Hekang intelligent and other subsidiaries. In order to eliminate the competition in the same industry, they have also transferred the Mitsubishi technology, which is mainly engaged in the servo system business, to Midea Group, and the listed companies have begun to focus on the industrial manufacturing field. However, in terms of performance, due to asset impairment and other reasons, Hekang Xinneng’s performance is not ideal, and the company’s maximum pre loss in 2020 is 600 million yuan. On April 12, the share price of Hekang Xinneng was 4.68 yuan / share, with a total market value of 5.182 billion yuan. According to the calculation of Beijing business daily, the stock market value of he Hengjian increased by 149 million yuan compared with when he became the owner.
The market value of shares increased by 149 million yuan
By the end of April 12, the value of he’s stock market had increased by 149 million yuan.
The trading market showed that Hekang Xinneng opened 0.22% lower on April 12. After the opening, the company’s share price fluctuated upward, rising nearly 3% for a time, and then fell back. As of the close of the day, the company’s rise narrowed to 0.86%, and its share price was 4.68 yuan / share, with a total market value of 5.182 billion yuan.
It is understood that Hekang Xinneng is a listed company of he Hengjian. In April 2020, Guangdong Midea heating and ventilation equipment Co., Ltd. (hereinafter referred to as “Midea heating and ventilation”) became the controlling shareholder of Hekang Xinneng by means of equity transfer and voting rights, Midea Group became the indirect controlling shareholder of the listed company, and he Hengjian became the actual controller of the listed company. After the completion of the transaction, Midea held 209 million shares of Hekang Xinneng, accounting for 18.73% of the total share capital of the listed company; Midea held 264 million voting shares, accounting for 23.73% of the total share capital of the listed company.
According to the calculation of Beijing business daily, on the day of the completion of the share transfer, Midea HVAC held 18.73% of the equity of Hekang Xinneng, with a corresponding total market value of 822 million yuan. As of the closing of April 12, the corresponding total market value of the above equity was 971 million yuan, which also means that the value of he Hengjian’s stock market increased by 149 million yuan compared with that before he became the owner.
Looking at the performance of he Hengjian’s share price after he became the owner, Hekang Xinneng started a slow rising trend. Until September 9, 2020, the company hit a high of 7.21 yuan per share on that day. At that time, the total market value of the listed company was nearly 8 billion yuan. After that, the share price of Hekang Xinneng began to fall continuously. According to the statistics of Dongfang wealth, from September 9, 2020 to April 12, 2021, the cumulative decline of Hekang Xinneng was more than 20%.
In an interview with Beijing business daily, economist song Qinghui said that when a general listed company changes owners, if the receiving party has huge strength, it will usually boost the company’s stock price, but ultimately the company’s stock price will return to the fundamentals of the listed company.
Divestiture of several subsidiaries
Since he Hengjian came into power, Hekang Xinneng capital has taken frequent actions and divested a number of subsidiaries.
It is understood that before he Hengjian came into power, Hekang Xinneng mainly formed three major sectors: high-end manufacturing industry of energy-saving equipment, construction and operation industry of energy-saving and environmental protection projects, and assembly supporting and operation industry of new energy vehicles. Its main business includes R & D and production of a full range of inverter products, servo products, new energy vehicles and related products, including high, medium and low voltage and explosion-proof inverter And sales.
In April 2020, when he Hengjian joined Hekang new energy, it was once interpreted by the market as Midea’s return to the field of new energy vehicles. However, Beijing Business Daily reporter found that in the past year, Hekang Xinneng has not vigorously developed the company’s new energy vehicle business, but gradually stripped off the new energy vehicle business.
Specifically, the related businesses of Hekang new energy vehicles mainly include core parts of new energy vehicles, charging piles and operation of Hechang, mainly including subsidiaries of Hekang power, Hechang intelligent and Wuhan Changde.
However, in August 2020, Hekang Xinneng transferred 90% of its equity in Wuhan Chang to the company’s shareholder Shanghai Shangfeng and the original actual controller Ye Jinwu at a transaction price of 28.0328 million yuan. In February this year, Hekang Xinneng also disclosed that it transferred its 60% equity of Hekang power to Shanghai Shangfeng and ye Jinwu at 1 yuan, and transferred its 64% equity of Hekang intelligent to Shanghai Shangfeng and ye Jinwu at 32.06 million yuan. This also means that the new energy vehicle related business company of Hekang Xinneng will be stripped off.
In addition, in order to eliminate the problem of horizontal competition in servo system business, Hekang Xinneng transferred 74.085% equity of its holding subsidiary, Mitsubishi technology, to Midea Group.
In addition, Hekang Xinneng also sold 65% equity of its holding subsidiary Hekang Ruima motor (Ningbo) Co., Ltd. and 75% equity of Hekang International Financial Leasing Co., Ltd.
For the purpose of selling the equity of the above companies, Hekang Xinneng said that due to the poor management of the target company, in order to reduce the company’s operational risk, integrate and optimize the company’s existing resource allocation, focus on the industrial manufacturing field, and enhance the company’s profitability.
It is worth mentioning that in terms of inverter products, Hekang Xinneng has carried out business integration with Midea. Ning Yu, general manager of Hekang Xinneng, a mechanical and electrical business group of Midea Group, has publicly said that Hekang Xinneng has been incorporated into Midea’s mechanical and electrical business group. With Midea’s huge purchasing advantages, Hekang Xinneng has reduced its purchasing cost.
Net profit loss in advance of RMB 500-600 million
With the help of he Hengjian, Hekang Xinneng’s performance in 2020 fell to the “freezing point” since its listing due to the provision for asset impairment and other reasons, with an advance loss of 500-600 million yuan.
According to the 2020 performance forecast disclosed by Hekang Xinneng, the company is expected to achieve a net profit of about – 600 million to – 500 million yuan in the reporting period, from profit to loss on a year-on-year basis; it is expected that the net profit of about – 627 million to – 527 million yuan after non deduction; and the operating revenue is expected to be about 1.2 billion to 1.3 billion yuan.
As for the reasons for the company’s performance changes, Hekang Xinneng said that during the reporting period, the company stripped off a number of subsidiaries and was affected by the epidemic, and the company’s operating revenue decreased compared with the same period of last year; the company conducted impairment test on the assets of each company in 2020 within the scope of the consolidated financial statements, and the assets of the company and its subsidiaries in 2020 were mainly accounts receivable Other receivables, inventory, goodwill, etc. are estimated to be about 588 million yuan; the impact of the company’s non recurring profit and loss on net profit in 2020 is about 27 million yuan.
According to the data, Hekang Xinneng landed on the growth enterprise market in January 2010. Since its listing, the company has only been in a loss state in 2018, with a net profit loss of 237 million yuan in that year and a profit in the rest years. It is not difficult to see that the pre loss of Hekang Xinneng in 2020 also reached a new high.
According to Wang Chikun, an independent economist, the main reason for Hekang Xinneng’s large pre loss in 2020 is that it has made provision for asset impairment. After stripping off other assets, the listed company will go into action light in 2021. As long as the company’s industrial manufacturing business is well operated, there will be little pressure to turn around the loss.
It should be pointed out that Hekang Xinneng received the first supervision letter from he Hengjian after he became the owner this year because of the violation of guarantee. In December 2018 and January 2019, the listed company provided guarantee for the debts of its holding subsidiary, Hekang power, with a total amount of 21.3191 million yuan.
In response to the relevant problems, Beijing Business Daily reporter sent an interview letter to the office of the Board Secretary of Hekang Xinneng. The other party said in the reply, “the company will explain the above problems in the 2020 annual report issued on April 20, 2021. Please pay attention to the regular reports issued by the company.”. In addition to holding Midea Group and Hekang Xinneng, the he family has a huge asset distribution.
According to the report of Beijing business daily, he Hengjian, through Midea Group, controls 94.55% of the shares of KUKA Aktiengesellschaft, a listed company on the Frankfurt Stock Exchange in Germany, which is KUKA Aktiengesellschaft’s actual controller; he also controls about 12.06% of the shares of Saiyi information; he Jianfeng, the son of he Hengjian, actually controls Yingfeng environment and Warner Bailu, the A-share listed companies; Lu Deyan, the daughter-in-law of he Hengjian, controls about 81.26% of the shares of Midea real estate, the listed company of Hong Kong stock exchange, and is the actual controller of Midea real estate.
Beijing Business Daily reporter Dong Liangma
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