After the termination of the 1.9 billion convertible bond project, Construction Machinery launched a new round of fixed increase to supplement liquidity and repay debts.
Net loss in the first three quarters reached 35.1 billion yuan, total liabilities 12.4 billion1.1 billion yuan, or the main reason why construction machinery is eager to raise funds.
Looking further, since the listing, the construction machinery has been ST three times, experienced major restructuring matters such as asset replacement and industry mergers and acquisitions, and has been tossed for more than ten years, but it is still limited by the characteristics of the industry, and the main business of the enterprise is single.
First, the long-term high operation of debt, once the performance does not meet expectations, it will face greater pressure to collect money.
If it is not for the strength of the controlling shareholder, it is really difficult to evaluate the situation of construction machinery in the capital market.
On December 23, the construction machinery announced that the company intends to 4The ** of 79 yuan shares shall be issued to the controlling shareholder and actual controller, Shaanxi Coal Chemical Group Co., Ltd. (hereinafter referred to as "Shaanxi Coal Group"), not more than 26.4 billion shares, and the total amount of funds raised is expected to be no more than 126.5 billion yuan.
The reporter of the Daily Economic News noted that before the issuance, Shaanxi Coal Group directly held 37.2 billion shares, indirectly held through its wholly-owned subsidiary, Shaanxi Construction Machinery (Group) Co., Ltd500 million shares, accounting for 33 percent of the company's total share capital58%。
Construction Machinery Bulletin.
Major shareholders invest real money** to participate in the private placement, which can increase the equity ratio and consolidate control. After the completion of the issuance, the proportion of shares held by Shaanxi Coal Group in listed companies will be further increased.
Looking at the subscriber Shaanxi Coal Group, which is a leading enterprise in Shaanxi Province, its main business sector involves coal, coal chemical industry, coal power, steel, etc., with more than 60 secondary wholly-owned, holding and shareholding enterprises, and 5 listed companies.
In the 2023 Fortune Global 500 list, Shaanxi Coal Group has an operating income of 758With US$71.2 billion, it ranked 169th, a significant jump of 40 places from 209 in 2022.
This is not the first time that Shaanxi Coal Group has participated in the capital operation of construction machinery.
In 2009, Shaanxi Coal Group single-handedly led the restructuring of construction machinery, replacing the continuous loss of machinery manufacturing assets, and at the same time placing its subordinate mining engineering construction and industrial and civil construction assets with strong profitability to avoid its delisting in the same year.
From May 3 to June 27, 2018 and from May 16 to July 28, 2022, Shaanxi Coal Group increased its holdings of 23.99 million shares and 19.34 million shares of construction machinery through centralized bidding transactions, respectively, releasing a signal to the market that it is optimistic about the listing target.
This time 126.5 billion yuan fixed increase, the subscriber Shaanxi Coal Group promised not to transfer the new shares issued to it within 3 years, and the company's general meeting of shareholders agreed that Shaanxi Coal Group was exempted from issuing an offer.
Every reporter noticed that unlike most enterprises that raise large amounts of money for project construction or fixed asset purchase, one of the purposes of construction machinery is to repay debts.
According to its announcement, after deducting the relevant issuance costs, all the investment funds raised will be used to replenish liquidity and repay debts.
Construction Machinery Bulletin.
A similar scene appeared in 2013. In June 2013, Construction Machinery raised 52.3 billion yuan, after deducting the issuance cost of 9.12 million yuan, 3700 million yuan to repay the loan, 1$4.4 billion was used to replenish liquidity.
In addition, the reporter noted that construction machinery is also a relatively large number of Shaanxi stock fund-raising enterprises.
According to rough statistics, since its listing in 2004, Construction Machinery has completed 4 private placements (excluding initial listing fundraising) and 2 corporate bonds, with a total investment amount of more than 5 billion yuan.
Specifically, in addition to the initial offering and the 2013 fundraising mentioned above, 52.3 billion yuan, in 2015, the construction machinery took half a year to 190.5 billion ** completed the merger and reorganization of two private enterprises, Shanghai Pangyuan Machinery Leasing Co., Ltd. and Zigong Tiancheng Construction Machinery Co., Ltd., and raised supporting funds 63.5 billion yuan will be used to increase capital and integrate targets, in order to absorb high-quality resources and improve their own profitability.
In 2020, the construction machinery was completed 150.6 billion yuan of fixed increase plan, the purpose of funds for the project leasing equipment expansion construction project;In October 2021 and the end of March 2022, CCM successfully issued two corporate bonds with a scale of 500 million yuan.
Construction Machinery Official Micro.
It is worth noting that in 2020, Construction Machinery planned to issue corporate bonds with a scale of no more than 2 billion yuan (including 2 billion yuan), which was intended to be used to repay the company's interest-bearing debts, supplement the company's liquidity and other purposes permitted by laws and regulations.
In 2022, the convertible bond plan will be changed to a proposed public issuance of corporate bonds with a scale of no more than 1.9 billion yuan (including 1.9 billion yuan), and the net proceeds after deducting the issuance costs will be used for leasing equipment purchase projects and replenishing liquidity.
However, in June this year, the above-mentioned convertible bond scheme was terminated.
It is not difficult to find from the financing process since the listing that construction machinery is relatively short of money.
The announcement of elongated construction machinery found that it disclosed a large number of external guarantee announcements, and rough statistics show that from the beginning of 2022 to the present, construction machinery has disclosed a total of 31 guarantee announcements.
At the same time, judging from the liabilities disclosed by it, as of September 30, 2023, the total liabilities of construction machinery were 1241.1 billion yuan, of which 59 percent were current liabilities6 billion yuan, current liabilities accounted for a relatively high proportion of total liabilities;At the end of 2021, the end of 2022 and the end of September 2023, the company's asset-liability ratio was respectively. 60% and 6869%。
The project cycle of engineering infrastructure and real estate is relatively long, and the settlement must lag behind after the completion of the project, so the debt is relatively high. And in the short term, the industry should not be too significantly improved. The staff of the Secretary of the Board of Directors of Construction Machinery told reporters.
Companies with debt repayment pressure generally have the problem of insufficient sustained profitability, and construction machinery is no exception. In 2022, construction machinery will achieve an operating income of 389.6 billion yuan, down 1756%, with a net loss of 4220520,000 yuan, a year-on-year decrease of 11127%。
Entering 2023, its losses have further intensified.
In the first three quarters of 2023, construction machinery achieved revenue of about 243.8 billion yuan, a year-on-year decrease of 1501%；The net profit loss attributable to shareholders of the listed company was about 35.1 billion yuan, a year-on-year decrease of 66272%。
For the reasons for the loss, the construction machinery previously mentioned in the semi-annual report that due to the reduction in the new construction area of the real estate industry, the number of new orders signed by the company is difficult to grow, and a large number of signed projects, due to project reasons, the equipment can not enter the site on schedule, which also affects the improvement of equipment utilization.
In addition, the reporter noted that the construction machinery was implemented 8 times in 5 years of regulatory measures or penalties, involving the reasons for inflating performance and raising funds not being used in accordance with the regulations.
For example, in November 2023, part of the funds raised from the corporate bonds issued by Construction Machinery were not used according to the purpose decided, which violated Article 13 of the Administrative Measures for the Issuance and Trading of Corporate Bonds. The Shaanxi Supervision Bureau of the China ** Supervision and Administration Commission issued a warning letter to the company and Bai Haihong.
On November 11, 2020, the Shaanxi Supervision Bureau of the China Securities Regulatory Commission issued the "On Shaanxi Construction Machinery Co., Ltd. and Yang Hongjun and Chai Zhao.
1. Bai Haihong's decision to take measures to issue a warning letter.
The reason is that the cost and expense of construction machinery from 2015 to 2017 were undercounted by a total of 1829660,000 yuan, resulting in an overstatement of 1829 total profits660,000 yuan;In 2018, the cost and expenses were overcounted by 1216160,000 yuan, resulting in an undercount of 1216 total profits160,000 yuan.
Construction Machinery Bulletin.
Looking further, on July 11, 2018, Construction Machinery received 4 fines from the Shaanxi Securities Regulatory Bureau, for its 2015 issuance of shares to purchase Tiancheng Machinery, the acquisition of the target Tiancheng Machinery from 2015 to 2017 to achieve a net profit of less than 50 of the amount of ** and other reasons.
Although the operating performance is not good, the construction machinery released the "dividend return plan for the next three years" on the same day as the fixed increase announcement. It stated that under the premise of not affecting the company's ability to continue operations, the cumulative profits distributed in cash in the three years of 2023 and 2025 shall not be less than 30% of the average annual distributable profits realized in the last three years.
The company will definitely do this kind of dividend return, once the conditions are met, the company will still actively perform its duties. The above-mentioned staff member told reporters.
National Business Daily.