Entering 2023, Transart's performance continued to decline, with revenue and net profit attributable to the parent company in the first three quarters declining year-on-year respectively. 21%
Dong Lin, a researcher at the Investment Times
After 8 months and two rounds of inquiry, Jiangsu Chuanyi Technology Co., Ltd. (hereinafter referred to as Chuanyi Technology) 002866SZ) took the initiative to stop the 3 billion yuan fixed increase plan.
According to public information, Transart's main business is the research and development, production and sales of notebook computers and other electronic consumer product components. In June 2022, the company announced a cross-border new energy sodium-ion battery business and established a strategic route and goal for the integrated development of products.
At the end of March this year, in order to further seize the opportunity of sodium-ion battery industrialization, expand the company's sodium-ion battery production capacity, and consolidate the company's profit growth momentum in the new energy sector, Transart Technology threw out a fixed increase plan with a total amount of funds raised of no more than 3 billion yuan, which will be used for the second phase of sodium-ion battery manufacturing 55GWh projects and replenishment of liquidity.
Investment Times researchers noted that as of the end of the third quarter of this year, the company's monetary funds were 59.2 billion yuan, short-term borrowings amounted to 92.1 billion yuan, and non-current liabilities due within one year were 03.2 billion yuan. In the case that it is difficult for its own funds to cover short-term debt, this private placement is particularly important for Transart.
In terms of performance, since the listing of Transart Technology in 2017, although the company's revenue scale has been expanding, the growth rate has gradually slowed down, and the profitability has not been greatly improved. According to the financial report data, in 2022, the net profit attributable to the parent company of Transart Technology will decrease by 30% year-on-year while the revenue will increase slightly04%。Entering 2023, the company's performance will continue to decline, with revenue and net profit attributable to the parent company in the first three quarters declining year-on-year respectively. 21%。
In response to questions such as "whether the second phase of the project can be carried out as scheduled after the termination of the private placement", "whether the company will adopt other financing channels to alleviate the pressure on the capital chain" and "how to improve the current profitability", the researcher of "Investment Times" emailed the outline of communication to the relevant departments of Transart, but has not received a reply as of press time.
The main accounting data of the third quarter report of 2023
Data**: Company earnings report.
The fixed increase of 3 billion yuan was terminated
On March 30 this year, Transart Technology issued an announcement titled "2023 Issuance to Specific Targets", and disclosed the prospectus a month later. According to the content of the prospectus, the company plans to issue ** to no more than 35 specific objects through bidding, and the number of issues ** does not exceed 8685670,000 shares (including the number of shares), and the total amount of funds to be raised does not exceed 3 billion yuan. Among them, 2.4 billion yuan will be used for the second phase of sodium-ion battery manufacturing5For the 5GWh project, 600 million yuan will be used to supplement working capital. If the project reaches production, the company is expected to achieve annual sales revenue of about 310.5 billion yuan, with an additional net profit of about 44.3 billion yuan.
In response to the above-mentioned fundraising plan, the Shenzhen Stock Exchange launched two inquiries on Transart Technology in May and July respectively. The "Investment Times" researcher noted that in the second round of inquiry, the Shenzhen Stock Exchange asked the company to explain whether the refinancing meets the requirements of the main investment of the raised funds to the main business, and whether there is an implementation risk and capacity digestion risk of the fundraising project.
In the reply to the inquiry, Transart disclosed the capacity utilization rate and revenue of sodium-ion battery products in the first phase. As of July 15, the semi-monthly (July 1 to July 15, 2023) output of the company's 18650 and 26700 cylindrical battery production lines in the first phase of the project was 130400,000 units, and the equipment capacity utilization rate is 1852%。In terms of revenue, from January to June 2023, the company's sodium-ion battery products achieved operating income of 323360,000 yuan, accounting for only 041%。
On November 22, Transart Technology and the sponsor Soochow ** Co., Ltd. applied to the Shenzhen Stock Exchange to withdraw the issuance application documents. Two days later, the company received the "Decision on Terminating the Review of Jiangsu Chuanyi Technology Co., Ltd.'s Application for Issuance to Specific Objects" issued by the Shenzhen Stock Exchange.
As for the reason for withdrawing the application, Transart Technology said that considering many factors such as the company's financing plan and market environment, the company intends to adjust the investment projects of the raised funds. In addition to the above reasons, the market has also analyzed and speculated that the voluntary withdrawal of the private placement application may be related to the company's previous information disclosure violations.
At the beginning of October this year, Transart Technology was taken by the Jiangsu Securities Regulatory Bureau to issue a warning letter, along with Zou Weimin, chairman of the company, Xu Xiaoli, then secretary of the board of directors, and Xu Zhuang, the current secretary of the board of directors. It is worth noting that the violations of the letter disclosure of Transart Technology all involve the company's sodium-ion battery business. One of them includes, in July this year, in the announcement of the reply to the Shenzhen Stock Exchange's letter of concern, the company said that the company's sodium-ion battery business has sufficient orders in hand. After investigation, a large amount of orders in hand (accounting for 79 of the order amount in hand03%) has not been executed according to the contract, has exceeded the agreed delivery time for 3 months, and there is a risk of uncertainty in the subsequent implementation.
In this regard, on November 23, the Shenzhen Stock Exchange issued a "Regulatory Letter" to Transart Technology. According to the content of the regulatory letter, according to the facts ascertained by the Jiangsu Securities Regulatory Bureau, Transart Technology has inaccurate disclosure of important temporary announcements and insufficient risk warnings.
Sluggish performance and tight funds
Back to a year ago, on June 22, 2022, Transart Technology announced a high-profile cross-border sodium-ion battery field. As soon as the news came out, the company's share price in the secondary market closed 7 consecutive daily limits from June 23 to July 1. Since then, the stock has continued to **, and on December 5, 2022, the share price of Transart Technology hit 5444 yuan shares all-time high, compared with the company's stock price half a year ago when it did not cross the board sodium-ion battery shares, an increase of 449%. But after entering 2023, the company's share price has been declining, and the stock closed at 2243 yuan shares, down nearly 60% from the all-time high a year ago.
At the same time, the performance growth of Transart Technology continued to be sluggish. According to the financial report, in 2022, the company will achieve an operating income of 199.9 billion yuan, an increase of only 4 percent year-on-year07%, which is the lowest revenue growth rate since 2013. During the period, the company achieved a net profit attributable to the parent company of 11.5 billion yuan, a year-on-year decrease of 3004%, which is also the largest decline in net profit attributable to the parent company in 10 years.
As of 2023, Transart's performance will continue to be negative. In the first three quarters of this year, the company achieved revenue of 126.5 billion yuan, a year-on-year decrease of 1673%, and the net profit attributable to the parent company was 06.7 billion yuan, down 2821%。
Researchers from the Investment Times also noted that due to the construction investment of the two phases of sodium-ion battery projects, Transart's solvency has declined. Wind data shows that the company's current ratio has increased from 177, down to 1. at the end of the third quarter of this year04, the quick ratio of current assets also increased from 145 down to 085。
As of the end of the third quarter of this year, Transart's notes payable and accounts payable totaled 96.3 billion yuan, an increase of 93 percent year-on-year22% and short-term borrowings of 92.1 billion yuan, and non-current liabilities due within one year were 03.2 billion yuan, while the company's monetary funds on the books are 59.2 billion yuan, which is difficult to cover short-term debt.
Transart Technology previously disclosed that as of May 31, 2022, the company's sodium-ion battery phase I was 4The 5GWh project's own funding is 16.1 billion yuan, and the unused line of bank credit is 102.7 billion yuan, nearly ninety percent of the funds ** in bank loans.
In addition, according to the prospectus (third revised draft), the second phase of the plan of Transart Technology 5The total investment of the 5GW project is 274.7 billion yuan, in addition to the 2.4 billion yuan raised by the private placement, there are still 3$4.7 billion funding gap. To this end, the company will raise 17.5 billion yuan was changed to the project, and the current progress of the project has reached 6%. The company made it clear that the purpose of this fundraising is to enhance the scale effect and seize market share and key customer resources as soon as possible in the early stage of sodium-ion battery industrialization.
The reason why Transart Technology is so anxious is because the current sodium-ion battery track is crowded, and the strength of competitors should not be underestimated. As of now, including CATL (300750SZ), Zhongke Haina, Funeng Technology (688567SZ) and other giants are accelerating the industrialization of sodium-ion batteries. On November 18, BYD (002594SZ) announced that it plans to build the world's largest sodium electric system for mini vehicles in Xuzhou, Jiangsu Province, with an annual production capacity of 30GWh and a total investment of CNY 10 billion.
In the case of tight capital chain and intensified competition in the industry, the refinancing of 3 billion yuan was stopped, which is not good news for Transart Technology, which is currently experiencing sluggish performance.