Another company withdraws its IPO!

Mondo Finance Updated on 2024-02-01

**: Company E.

Hete Energy, which focuses on the cogeneration business of industrial parks, ended its IPO on the main board of Shanghai.

On January 29, the Shanghai Stock Exchange disclosed that due to the withdrawal of the application for issuance and listing of Hete Energy (Fujian) Co., Ltd. (hereinafter referred to as "Hete Energy") and its sponsor, the Shanghai Stock Exchange terminated its issuance and listing review in accordance with relevant regulations.

According to the prospectus, Hete Energy has been focusing on the cogeneration business of the industrial park, and provides customers with central heating, power and general solid waste resource disposal services through the construction of a cogeneration platform. Relying on large-scale heating pipe network facilities, the company provides customers with steam pipe network transportation services.

Hete Energy uses coal as the main fuel, and at the same time blends part of the sludge, relying on high-temperature and high-pressure circulating fluidized bed furnaces and back-pressure steam turbine generator sets to carry out cogeneration and sludge harmless and resource disposal business; The main customers of steam products are the production enterprises in the industrial park, covering many industries such as textiles, chemical fibers, grains, oils and foods; The customer of power products is the State Grid, and the company will meet the surplus power sales after self-consumption. The Company's principal revenue and profit** are in the cogeneration business and steam pipeline network transportation services.

In terms of performance, from 2020 to the first quarter of 2023, Hete Energy's operating income will be about 31.4 billion yuan, 38.3 billion yuan, 4$5.5 billion and $10.7 billion yuan. During the same period, the company achieved a net profit of 11.6 billion yuan, 7374890,000 yuan, 7870550,000 yuan and 1839900,000 yuan.

It is worth noting that the gross profit margin of Hete Energy's cogeneration business fluctuates. From 2020 to the first quarter of 2023, the gross profit margin of the main business of Hete Energy's cogeneration business was respectively. 83% and 919%。Among them, there will be a sharp decline from 2020 to 2022, mainly due to the sharp increase in raw material coal** during this period, and at the same time, there is a large gap between the Bohai Rim thermal coal index** and the actual purchase of coal**, which makes the company's steam ** increase through the coal-heat linkage mechanism fail to match the increase in coal ** in time, resulting in a decline in the company's cogeneration gross profit margin.

In addition, Hete Energy's gross profit from a single customer accounts for a relatively high percentage. From 2020 to the first quarter of 2023, the gross profit from sales of Hete Energy's major customer Guoneng Thermal Power accounted for the proportion of total gross profit to gross profit respectively. 26% and 6893%。In 2022 and the first quarter of 2023, Hete Energy's gross profit from sales to Guoneng Thermal Power accounted for more than 50%, constituting a concentration and dependence on the gross profit of a single customer.

Hete Energy said that Guoneng Thermal Power is a central heating enterprise in Jiangyin Port City Economic Zone, a holding subsidiary of Fujian Energy Co., Ltd., a national energy group, and its operation was good during the reporting period. As of the signing date of the prospectus, Hete Energy has cooperated with Guoneng Thermal Power for more than 10 years, and the validity period of the latest "Steam Transmission Contract" signed with Guoneng Thermal Power will expire at the end of September 2028, and the cooperative relationship between the two parties is stable. During the reporting period, the transportation volume of Hete Energy's steam pipeline network in Jiangyin Port City Economic Zone continued to increase, which made the company's sales revenue and gross profit proportion of Guoneng Thermal Power continue to increase.

Looking back on its listing process, in September last year, the IPO of Hete Energy's Shanghai main board was accepted, and in November of the same year, it was reviewed and inquired by the exchange, but as of the withdrawal of the IPO, the company has not disclosed the reply to the inquiry. In this IPO, Hete Energy originally planned to raise 600 million yuan, which was used for the central heating pipeline construction project of Fuqing Yuanhong Investment Zone, the central heating pipeline and pipe gallery construction project of Jiangyin Industrial Zone of Fuqing City, and the centralized gas supply project of Yuanhong Investment Zone of Fuqing City, to supplement working capital and repay bank loans.

Editor-in-charge: Liu Junyu.

Proofreader: Tao Qian.

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