Shenhua holdings itself has no continuous hematopoietic ability. After deducting non-profit, the net profit attributable to the parent company has been in a continuous loss for 10 years, and the net profit attributable to the parent company is also in an unstable state of profit and loss. It is in a loss state in 2019 and the first three quarters of this year. At the same time, the companys short-term debt is high, facing certain debt pressure.
Huachen group has four listed companies. In addition to Shenhua holding, the A-share market also has Jinbei Automobile (600609.sh), while the Hong Kong stock market includes Brilliance China (01114.hk) and Xinchen power (01148.hk).
Jinbei Automobile and brilliance group are also involved in the debt problem. The companys accounts receivable from brilliance group are RMB 50.07 million, and the balance of guarantee provided to brilliance group and its related parties is 530 million yuan. Brilliance group for bankruptcy restructuring, Jinbei Auto may draw large amount of bad debt reserves.
In addition, brilliance groups bankruptcy reorganization process may have a certain impact on the equity structure of Jinbei Automobile and Shenhua holdings.
Deep in the whirlpool, reselling assets
Shenhua holdings main business is divided into four sectors, namely automobile consumption service business, new energy business, a small amount of real estate business and financial sector.
In terms of new energy business, Shenhua holding said in its 2020 semi annual report that the companys six wind farms and one photovoltaic power plant operated smoothly with stable profit level and sustainable dividend paying ability.
This time, Shanghai Shenhua wind power new energy Co., Ltd., a wholly-owned subsidiary of Shenhua holding company, intends to transfer the equity of seven new energy power generation project companies, which are: 51% equity of Taipusi Banner Shenhua Xiehe Wind Power Investment Co., Ltd., 49% equity of Wuchuan Yihe Wind Power Generation Co., Ltd., 49% equity of Taipusi Banner United Wind Power Generation Co., Ltd., and Fuxin United Wind Power Generation Co., Ltd The company has 51% equity, 51% equity of Fuxin Shenhua Xiehe Wind Power Generation Co., Ltd., 49% equity of Fuxin Huashun Wind Power Generation Co., Ltd., and 51% equity of shenhuatou New Energy Investment Co., Ltd.
Among them, the performance of the first six companies without consolidated statements are disclosed in the regular reports. In the first half of 2020, the revenue is between 20 million and 31 million yuan, and the net profit is more than 5 million yuan; the net profit in 2019 is between 8 million and 31 million yuan. The seventh company is relatively small in scale.
According to the announcement, the operating income (consolidated statements, the same below) of the above-mentioned seven companies in 2019 is RMB 333 million, and the total net profit attributable to the parent company is RMB 49.82 million; in the first three quarters of 2020 (without audit), the total operating income is RMB 221 million, and the total net profit attributable to the parent company is RMB 31.2 million.
According to Shenhua holdings plan, the company plans to pre list the shares of the above-mentioned seven project companies in the property right exchange without marking the transaction price. After the audit and evaluation results of the seven project companies are issued, the company will work out the listing price of the above assets based on the principle of no less than the evaluation report results, and carry out the subsequent formal listing after the review and disclosure process.
The purpose of the resale of wind power assets by Shenhua holdings is to recover the funds needed for its operation and development, which is also interpreted by the industry as a result of the bankruptcy of brilliance group. So, how short of money is Shenhua holding? In other words, how much influence does Shenhua holdings have on the bond default of brilliance group?
Shenyang intermediate peoples court ruled on November 20, 2020 to accept the creditors application for reorganization of brilliance group. This marks that brilliance auto has officially entered the bankruptcy reorganization procedure. The restructuring plan of brilliance group may have an impact on the companys annual performance. Shenhua holding said.
According to the announcement, as of November 21, the accounts receivable by Shenhua holdings from brilliance group and its related parties amounted to 140 million yuan, mainly due to daily automobile purchase and sale; the guarantee balance provided by Shenhua holding to brilliance group and its related parties was 446 million yuan, of which 400 million yuan was the counter guarantee provided by Shenhua holding to brilliance group for financing guarantee of Shenhua holding, and 45.6548 million yuan was for Shenhua holding Existing guarantee provided by Shanghai brilliance Automobile Leasing Co., Ltd.
By the end of the third quarter of this year, Shenhua holdings had 591 million yuan of monetary capital, 1.177 billion yuan of short-term loans, 169 million yuan of non current liabilities due within one year, and 171 million yuan of contractual liabilities. This means that Shenhua holding has certain debt pressure.
Debt is involved, and the aftereffect is constant
Like Shenhua holdings, Jinbei Auto and brilliance group are also involved in the debt problem.
After brilliance group enters the reorganization procedure, there is uncertainty about whether the guarantee of brilliance group and its related parties can be smoothly relieved, and large amount of estimated liabilities may be withdrawn. The restructuring of brilliance group may have some impact on the companys equity structure and accounts receivable JinBei Auto reminds investors to pay attention to risks.
According to the announcement, as of November 21, Jinbei Autos accounts receivable from brilliance group were RMB 50.07 million, which were formed by the daily purchase and sale of auto parts; the balance of guarantee provided by Jinbei Automobile to brilliance group and its related parties was 530 million yuan, and brilliance group entered into bankruptcy reorganization. There was uncertainty whether the relevant guarantee could be smoothly relieved.
Jinbei Automobile said that the company and brilliance group have no other creditors rights and debt relationship except the above accounts receivable and guarantee; the company and brilliance group have no non operating capital exchanges, non operating capital occupation, illegal guarantee and abnormal asset transactions that infringe the interests of listed companies.
On the evening of November 16, brilliance group announced that brilliance group had constituted a debt default amount of 6.5 billion yuan and overdue interest amount of 144 million yuan. Due to the shortage of enterprise funds, the approval of extension credit is not completed, resulting in the inability to repay. The debt default of brilliance group has a significant impact on the production and operation of the headquarters of brilliance group, leading to the deterioration of financial situation and greatly affecting the solvency.
The main business of Jinbei Automobile is the design, production and sales of auto parts. The main products include car interior parts, seats, rubber parts, etc. The main customers include BMW Brilliance, Renault brilliance, Brilliance China and other automobile manufacturers.
In addition to the performance may be affected, the restructuring of brilliance group may also have a certain impact on the equity structure of Jinbei Automobile and Shenhua holdings. Up to now, brilliance group has indirectly held 266 million shares of Jinbei Automobile through its wholly-owned subsidiary, accounting for 20.32% of the total equity of Jinbei Automobile. Among them, 100 million shares have been used for margin trading, accounting for 37.53% of its total shares. 73.6 million shares are in judicial freeze state, accounting for 27.63% of its total shares. At the same time, brilliance group directly and indirectly holds about 446 million shares of Shenhua holding, accounting for 22.93% of the total share capital of Shenhua holdings. Among them, the number of shares in the frozen state is about 108 million, accounting for 24.13% of its total shares and 5.53% of the total shares of Shenhua holding. Source: Chen Hequn, editor in charge of Finance and Economics_ NB12679
In addition to the performance may be affected, the restructuring of brilliance group may also have a certain impact on the equity structure of Jinbei Automobile and Shenhua holdings.
Up to now, brilliance group has indirectly held 266 million shares of Jinbei Automobile through its wholly-owned subsidiary, accounting for 20.32% of the total equity of Jinbei Automobile. Among them, 100 million shares have been used for margin trading, accounting for 37.53% of its total shares. 73.6 million shares are in judicial freeze state, accounting for 27.63% of its total shares.