Nanfu Battery: Nanfu backdoor CDH new third board listed

My recent circle of friends was screened by Nanfu Battery's backdoor Yajin Technology 830806 on the new third board. Many people say that this is another rise of national brands, full of positive energy.

I have been talking about the problems of the new three boards for two days. There are fans in the background asking me: Is your true love for the New Third Board?

For this kind of comment, I just want to say, too young to naive.

Haven't you heard a word? Beat is close, scold is love, do not beat not scold is evil.

But today, we jumped off the whole three boards themselves to talk about feelings.

It must be, such a high-quality enterprise settled in the new third board indicating the great appeal of the new third board.

However, some people have asked, like the industry leader of Nanfu Battery, the net profit of the year is close to 500 million Yuan, and there is a CD-back investment behind it. Why not go directly to the A-share, but to the new three-board? Moreover, it is still through the way of backdoor.

Speaking of this, in fact, Fu sister wants to understand one thing, what does CDH want to do? How much can I earn?

1. Why not directly hang out after five change its owner?

The scenery in front of me is so sad. As we all know, the experience of Nanfu battery is quite rough. In the past 15 years, the company has made it a foreign-controlled company. The frequent replacement of its controlling shareholders has led to the collapse of overseas listings. After being acquired by P&G, it has been unsettled. The former industry has become a domestic distribution channel for competitors.

In November 2014, CDH invested in the purchase of Nanfu battery from P&G, which undoubtedly gave the opportunity for Nanfu Battery to regain its glory.

The current transcript of Nanfu Battery is really good.

According to public information, Nanfu Battery is now among the top five alkaline battery manufacturers in the world. It is the enterprise with the most modern equipment and the strongest scientific and technological strength in China's battery industry.

At present, Nanfu Battery's products have accounted for 70% of the national brand alkaline battery market sales, with 2.2 million sales channels, and the profit rate has remained at a high level.

According to public data, as of June 30, 2015, Nanfu Battery has a total asset of 1.487 billion yuan, and its financial data is also very beautiful.

In 2015, Nanfu Battery is expected to achieve revenue of 2.1 billion Yuan and a net profit of 430 million Yuan. In 2016, it is expected to achieve 2.19 billion Yuan and a net profit of 460 million Yuan. In addition, net profit will continue to grow at around 2.5% year after year.

Regardless of the size of the company or the financial situation, after the return of the Nanfu battery to A shares, is not only no money, but so easy.

Unexpectedly, the Nanfu battery has shunned the A-share market in the capital market, and directly bypassed the new third board by the shell of the Asian technology curve. Why?

In fact, the most direct obstacle to making Nanfu battery so tossing may be its shareholding structure.

It is worth noting that the actual controllers of CDH today, Shangzhi Wu and Shuge Jiao are all Singaporean nationality.

Everyone knows that the A-share IPO review time is slow, the process is complicated, and it also needs to be queued.

In the battle of Nanfu Battery Landing Capital Market, the most unaffordable is Nanfu’s major shareholder, CDH Investment.

According to media reports, CDH invested $600 million in buying and selling Nanfu batteries from P&G. As a well-known investment institution, these funds are time-consuming.

In other words, CDH Investment, which spends this huge sum of money, needs to pack the Nanfu battery in the shortest time and then withdraw.

Time is money. This is a good thing for CDH. To get money from time and log in to the capital market, the New Third Board is in line with the requirements of CDH.

2. How much can the $600 million exchange in the new third board?

In fact, this acquisition is not the first time that CDH Investment and Nanfu Battery are holding hands. As early as 1999, CDH Investment and Nanfu Battery formed a "fate."

In 2003, CDH Investment sold its shares to Gillette.

According to the investment of 15 million US dollars for Nanfu Battery at the time, this share transfer made CDH Investment earn 58 million US dollars in one breath.

Surprisingly, after 11 years, CDH Investment bought the Nanfu battery that he sold himself from P&G.

In November 2014, Warren Buffett announced that he would acquire P&G's Duracell battery for $4.7 billion. On the same day, CDH Investment also invested $600 million to acquire 78.775% of P&G's Nanfu battery of shares.

Although the public's evaluation of the purchase of Nanfu battery by CDH Investment has been raised to the height of supporting national brands, however, please note that we are not subjective in politics. As a well-known private equity institution, CDH Investment may buy the Nanfu battery and may have the idea of supporting national brands, but more is due to the interests.

Speaking of this, some people may say that the rich sister is realistic.

But there are clouds in the old sayings, and the world is bustling, all for the benefit of the world. This is a loss-making business that is not profitable. How do you believe that the most savvy private equity in the capital market?

CDH Investment spent a lot of money to buy Nanfu battery this time, to return to the book and even make money only through the capital market. That question is coming. How much is the value of the Nanfu battery that CDH invested in for $600 million?

It is worth mentioning that the current valuation of Nanfu Battery is still at a low level in the industry. According to public information, Nanfu Battery's 2015 P/E ratio is 10.19.

As mentioned above, in 2014, this $600 million allowed CDH Investment to buy back 78.775% of Nanfu Battery. According to the current report on major asset restructuring, the 60% equity transaction price of Nanfu Battery held by Dafeng Electric is 2.64 billion Yuan.

According to this proportion, the overall valuation of the former Nanfu battery was up to 4.4 billion Yuan. But this 4.4 billion is only the current assessment.

According to the data, Nanfu Battery is expected to achieve revenue of 2.1 billion Yuan and a net profit of 430 million Yuan. In 2016, it is expected to achieve 2.19 billion Yuan and a net profit of 460 million Yuan. In addition, net profit will continue to grow at around 2.5% year after year.

The report of Shanghai Securities News Gold Finance said: The valuation of Nanfu Battery is still at a low level in the industry.

“Excluding data-free listed companies and listed companies with short time-to-market, the 2015 P/E ratio is between 9.16 and 780.95, with an average price-to-earnings ratio of 80.72, and Nanfu Battery's 2015 P/E ratio is 10.19.”

If calculated according to 80 times price-earnings ratio, the overall market value of Nanfu Battery will reach 30 billion, even if it is a double discount, it is close to 15 billion Yuan, which means that once the resumption of trading, CDF's floating profit on Nanfu battery or Will exceed 10 billion.

Nanfu battery backdoor is probably one of the most exciting backdoor cases on the new third board, it is worth studying.

It only takes 8 months.

The 2015 mid-year report 8 months ago showed that this is a shell company with a net asset of less than 5 million, an income of less than 1.2 million and a loss of more than 300,000. When the market value is the lowest, the company's market value is only 11.5 million Yuan.

Today, the well-known CDH Investment has injected its investment in Nanfu Battery, and the company's market value has soared to 11.1 billion.

In less than a year, the market value has soared nearly 1,000 times. This is the case of Nanfu Battery Backdoor Asia Jin Technology, and it is also the first case of the New Third Board.

1. Behind the 26.4 billion restructuring, CDH pushes hands

On June 18, 2015, Yajin Technology announced the announcement of a major asset restructuring announcement, and the stock was suspended. The stock price rose by 40.36% to 30.88 Yuan.

On September 30, the mystery was unveiled and the restructuring plan for the purchase of 60% equity of Nanfu Battery by Yajin Technology was officially announced. Subsequently, this news broke the circle of friends who read Jun.

The gameplay of Yajin Technology is very simple. The company purchased 60% of the shares of Nanfu Battery from Dafeng Electric, the major shareholder, and the issue price was 2.64 billion shares to Dafeng Electric at a price of 1 Yuan per share.

Therefore, 60% of the Nanfu battery equity assets were successfully placed in Yajin Technology without spending 1 cent. At the same time, the asset restructuring created a record for the New Third Board, and the non-financial company issued the highest amount of share financing.

Behind the success is because there is a pusher: CDH Investment

So, how does CDH Investment have a relationship with these two companies? And listen to the decomposition below.

2. CDH and Nanfu: unclear, cut and mess

It is said that Nanfu Battery is the first project of CDH.

In 1999, CDH Investment and a number of institutions obtained a 69% stake in Nanfu Battery. At this time, Dafeng Electric is also a shareholder of Nanfu Battery.

However, in 2003, Dinghui sold a 72% stake in Chinese batteries to US Gillette with a foreign shareholder for US$100 million, with a net profit of US$58 million.

After that, Gillette sold the Nanfu battery to P&G.

In 2007, CDH acquired Dafeng Electric and further held a partial shareholding in Nanfu Battery, which is mainly engaged in technical consultation of various batteries and battery accessories.

In the second half of 2014, CDH invested US$600 million to recover 78.775% of the shares of Nanfu Battery from P&G. In other words, since the sale of Nanfu battery in 2003, 11 years later, CDH has become the controlling shareholder of Nanfu Battery.

As of June 2015, CDH has held 84.31% of the shares in Nanfu Battery through Dafeng Electric and CDHGIANT.

An equity investment institution and an industrial company, after more than ten years of buying and selling, have finally maintained such a controlling relationship, which is rare.

In general, companies are reluctant to be controlled by a single investment institution, and investment institutions will not re-hold a company that has been actively sold more than a decade ago.

Dinghui must have his reason to do this, and soon, the answer will be announced.

3. Both legs running at the same time, they are not delayed

In the second half of 2014, when it spent $600 million to reclaim Nanfu batteries from P&G, CDH has already started looking for shells on the new three boards.

At this time, the operation of CDH has actually been divided into two lines. One line is the equity of Nanfu Battery, which has changed from a foreign company to a domestic company; the other line is at the same time as the back of the new third board.

On June 6, 2014, Yajin Technology, which is listed on the New Third Board, entered the field of view of the company. The operation of Yajin Technology is not good. The 2015 mid-year report showed that the company's net assets were less than 5 million, the income was less than 1.2 million, and the loss was more than 30. 10,000, the company's market value is the lowest at 11.5 million Yuan. On June 18, 2015, Yajin Technology announced the reorganization of assets and the suspension of shares.

On September 18, 2015, CDHGIANT transferred 54.469% stake in Nanfu Battery to Dafeng Electric, and Nanfu Battery changed from foreign holding to domestic holding. At this time, the shareholding of Nanfu Electric was 60% for Dafeng Electric, 24.306% for CDHGIANT, 12.344% for Nanping Industrial and 3.35% for Beijing Zhongji.

Now you understand why both sides have gone at the same time. If you do not go through the backdoor form but directly list the new three boards, the Nanfu battery will only complete the share reform calculation on September 18, 2015. The company may not have been listed yet. Through this program, Nanfu Battery has successfully landed on the New Third Board on February 19, 2016, and has already started huge financing.

From the small company with a market value of more than 10 million in May last year, Yajin Technology became a big company with a market value of over 10 billion after 8 months. The biggest case of the new third board was born.

4. The private placement of 4.5 billion Yuan has been started or the financing of non-financial enterprises on the third board has been innovated

Read and understand Jun just told you that the operation of CDH is actually divided into two lines, one is the equity of Nanfu Battery, and the other is the backing of the new third board.

In fact, these are just the starting points for CDH's operation in the New Third Board. The third line, that is, the additional financing, has also been progressing.

On the 5th day after Yajin Technology announced the completion of the restructuring, on February 24th, Yajin Technology once again announced a new round of fixed-income financing plan, the proposed stock is not more than 1.8 billion shares, and the financing amount does not exceed 4.5 billion.

Prior to this, Bronte’s 10.5 billion increasing was announced one week later, and the 5 billion Yuan plan for the test was also overwhelmed by the company’s high-level investigation by the Securities and Futures Commission. If Yajin Technology's 4.5 billion can be successfully completed, it will refresh the financing record of non-financial companies on the New Third Board.

On the one hand, this financing solves the company's capital needs, and on the other hand, it provides a market-making stock for the market makers.

What's more, according to the market-issued issuance materials, part of this financing will be used to purchase 24.306% of Nanfu Battery held by CDHGIANT. After that, the listed company will hold 84.306% of the shares of Nanfu Battery. Based on a fixed price increase of 2.5, CDH will use this to cash in 2.7 billion, while at that time CDH received a 78.78% stake and spent only $600 million.

Now, you know why CDH is so enthusiastic. It is also a very exciting example of capital operation on the New Third Board when it is just listed.

Recently, many users in the background asked to read the value of Jun Nanfu battery is not worth buying, may wish to take a look at the public information.

According to public information, Nanfu Battery has revenue of 1.856 billion in 2014 and a net profit of 360 million. In 2015, it expects revenue of 2.2 billion and net profit of over 500 million. Buying this company with a valuation of 11.1 billion, do you think it is worth it?

The page contains the contents of the machine translation.