In the feedback, the CSRC asked the Beijing Shanghai high speed railway to explain whether it is an asset management company rather than a high-speed rail passenger transport company, whether the company has a complete business system, whether it meets the requirements of the initial offering method and has a complete ability to operate independently in the market.
According to the prospectus of Beijing Shanghai high speed railway, as of September 30, 2019, the total assets of Beijing Shanghai high speed railway is 187.08 billion yuan, but the number of employees is only 67 (including secondees), and the average assets under management is 2.792 billion yuan.
Beijing Shanghai High Speed Railway said that the company is the main body of investment, construction and operation of Beijing Shanghai high speed railway and stations along the line. Through the entrusted transportation management mode, Beijing Bureau Group, Jinan Bureau Group and Shanghai Bureau Group along the Beijing Shanghai high speed railway are entrusted to carry out transportation management of Beijing Shanghai high speed railway, and the traction power supply and operation and maintenance of power facilities are entrusted to China Railway Electrification Bureau Group for management.
In fact, the entrusted transportation management mode is a reform and innovation of railway system management mode. In an interview with the Securities Daily, the insiders said that the existing stock of employees in Chinas traditional railway is very large, including a large number of production and management personnel, who are a guarantee for the development of high-speed railway. From the perspective of operation and management, the Beijing Shanghai high-speed railway controls the whole chain of product design, quality supervision, quality acceptance, etc., but only entrusts the pure production links, such as train drivers, stewards, etc., to the railway bureaus along the line. After the training of the original traditional railway stock personnel, they put them on the high-speed railway posts. In fact, they make use of the stock personnel, greatly reducing the number of people Personnel cost, but also improve efficiency.
According to the above insiders, the Beijing Shanghai high-speed railway has advanced both in technical level and management mode, playing a leading role in Chinas high-speed railway lines. At present, the mode of Beijing Shanghai high-speed railway has been copied in the national high-speed railway lines, and the mode of entrusted transportation management has been adopted.
It is the mode of entrusted transportation management that makes the operation benefit of high-speed railway in China much higher than that of traditional railway. According to the prospectus of Beijing Shanghai high speed railway, the gross profit rates of the company from January 2016, 2017, 2018 and 2019 to September are 42.33%, 46.08%, 47.69% and 52.58% respectively, far higher than the average of Daqin Railway, Guangzhou Shenzhen railway and the industry listed companies in the same industry.
According to the prospectus, the raised funds from the listing of Beijing Shanghai high speed railway will be used to acquire 65.0759% of the equity of Beijing Fuzhou Anhui company, with a price of RMB 50 billion. The difference between the purchase consideration and the raised funds will be solved by self financing.
According to the prospectus, Jingfu Anhui Co., Ltd. was jointly initiated and established by Shanghai Bureau Group and Anhui investment. Its main business is high-speed railway passenger transportation. It is the main body of investment, construction and operation of Hefei Bengbu passenger dedicated line, Anhui section of Hefei Fuzhou railway, Anhui section of Shanghe Hangzhou railway and Anhui section of Zhengzhou Fuzhou railway.
According to the prospectus, at present, the Anhui section of Hebeng passenger dedicated line and Hefu railway under operation is still open for a short time, the Anhui section of Shanghe Hangzhou railway and Zhengfu railway is still under construction, and the company is still in the period of market cultivation. From January to September of 2018 and 2019, Jingfu Anhui company realized operating revenue of 1.766 billion yuan and 1.38 billion yuan respectively, and net profit of - 1.2 billion yuan and - 884 million yuan.
In its feedback, the CSRC asked the Beijing Shanghai high speed railway to explain the reasons for the loss of the company and its future benefits, the impact on the companys financial situation and operating results after the acquisition, as well as the necessity and feasibility of the acquisition, and whether it has synergy with the existing business.
The above insiders told the Securities Daily that at present, due to the concentration of cross line trains, the passenger flow of Xuzhou Bengbu section of Beijing Shanghai high-speed railway is nearly saturated, while the Shanghe Hangzhou line under the Anhui Company of Beijing Fuzhou is parallel to the Xuzhou Bengbu section of Beijing Shanghai high-speed railway. After the acquisition, we can free up the most tense transportation capacity of the Beijing Shanghai high speed railway and increase the operation of trains on this line. On the one hand, we can improve the performance of the Beijing Shanghai high speed railway immediately, on the other hand, we can also improve the performance of the acquisition target and achieve the balance of passenger flow.
Beijing Shanghai High Speed Railway said that the acquisition of Beijing Fuzhou Anhui company with the raised funds will help the company expand network coverage, optimize network structure, give full play to network synergy, enhance the backbone role, and form a high-speed railway network with Beijing Shanghai channel as the skeleton and regional connecting lines.
Source: responsible editor of Securities Daily: Yang qian_nf4425