Ankai bus cliff-like decline in net profit need funds to quench their thirst

Net profit loss for five consecutive quarters, after the decline of the new energy subsidy policy, the profitability of Anhui Ankai Automobile Co.,Ltd (hereinafter referred to as "Ankai bus", 000868.sz) is not optimistic?

The financial report shows that in 2017, ankai bus net profit fell like a cliff, and in the first quarter of 2018, net profit continued to lose. Ankai bus realized operating revenue of 657 million yuan in the first quarter, down 34.06% year on year, and net profit loss of 81.774 million yuan, down 252.39% year on year.

In the case of net profit loss, nearly half a year, ankai bus for many times "capital operation". On April 23, ankai bus private offering shares by the securities regulatory commission approved. On March 21, ankai bus issued two announcements: one is to entrust the controlling shareholder jianghuai automobile to apply for a loan of no more than 500 million yuan, and the other is to apply for using its own idle funds to buy a bank-guaranteed financial product of no more than 600 million yuan.

The reporter of China business news has noticed that in the 2017 annual report of ankai bus, it was disclosed that the cash payment for investment in 2017 (mainly due to the impact of purchasing financial products in the current period) increased by 1431.43% compared with 2016. As for the reasons for the large investment in financial products, the relevant person in charge of the securities department of ankai bus replied, "in 2017, the large increase in cash invested by the company is mainly caused by the purchase of financial products of Banks, which is mainly due to the readily redeemable structured deposits, and the high growth rate is mainly due to the small base of the previous year.

Net profit fell off a cliff

Public information shows that ankai bus was founded in 1987, the products cover all kinds of road buses, tourist buses, group buses, landscape cars, buses, new energy commercial vehicles, etc.

According to the financial report, in the first quarter of 2018, ankai bus realized operating revenue of 657 million yuan, down 34.06% year on year, and net profit loss of 81.784 million yuan, down 252.39% year on year. Regarding the net profit loss, ankai bus said that the fluctuations of the performance in the first quarter of 2018 were mainly caused by the large drop in operating income and operating gross profit compared with the same period of last year, the increase in sales expenses and financial expenses, and the impact of investment income and other earnings.

Among them, the sales expenses of ankai bus in the first quarter increased by 24.89% compared with the same period last year, and the financial expenses increased by 5.08% compared with the same period last year. In the first quarter of 2018, the company's investment income was -9.3535 million yuan, down by 1,940.47% compared with the same period last year, which had a great impact on the net profit.

As a matter of fact, ankai bus, which regards itself as "the leader and benchmark of China's luxury passenger cars", does not have considerable profitability. The reporter checked the financial report and found that the attributable net profit of ankai bus from 2013 to 2017 was -34.73 million yuan, 23.54 million yuan, 40.24 million yuan, 51.35 million yuan and -230 million yuan respectively. Net profit after deducting non-profits was -129 million yuan, -27.23 million yuan, 6.48 million yuan, -7.41 million yuan and -296 million yuan respectively.

Among them, from 2013 to 2017, the government subsidies of ankai bus included in current profit and loss are 97.147,000 yuan, 38.364,000 yuan, 44.929,000 yuan, 63.622,000 yuan and 66.388,000 yuan respectively. From the perspective of data, the government subsidy included in the current profit and loss accounts for a relatively high contribution to the net profit.

Ankai bus, which relies on "government subsidies" to boost its net profit, faces the reality that "new energy subsidy policy" is gradually declining and government subsidies are reduced. In 2017, the sales volume of ankai bus decreased by 14% year-on-year to 8,717, and the operating revenue increased by 14.54% to 5.4 billion yuan. However, after the reduction of new energy subsidies, the operating income dropped by 18.25% year on year. The attributable net profit was about 230 million yuan, down 548.2% year on year, and the net profit showed a "cliff-like decline".

For the reason of the loss, ankai bus did not explain too much, only in the annual report said, "by the withdrawal of receivables impairment provisions, the company operating losses in 2017. Jia xinguang, an auto industry analyst, told reporters that ankai bus had won market space with luxury and comfort in the booming period of long-distance passenger transport, but in recent years it has been impacted by high-speed trains and increased competition in the industry.

In fact, in the fierce market competition environment, in the first quarter of 2018, the net profit of yutong bus, zhongtong bus, jinlong automobile and yaxing bus in the same industry generally decreased.

Money is urgently needed to quench the thirst

Behind the net profit loss is the desire for capital of ankai bus. The reporter concerns, come nearly half an year, an kai passenger car carries on "capital operation" for many times.

On April 23, nk bus non-public stock approved by the SFC, the company plans to issue new shares in private line way is not more than 139 million shares, the total will not exceed 536 million yuan, raise money is mainly used for medium upscale male commercial vehicles, product validation ability promotion projects, digital management system construction projects, to repay bank loans.

It is understood that matters related to the private placement of shares of ankai bus were reviewed and approved by the company's first interim general meeting of shareholders in May 2017, one year after the expiration. However, ankai bus recently extended the effective period of this private placement of shares to May 7, 2019 by 12 months.

It took almost a year for the fixed increase to be approved by the SFC, but the specific issue time has not yet been finalized. On the one hand, the project construction needs capital input; on the other hand, the new energy subsidies are delayed. In addition, ankai bus also faces 2.08 billion yuan of accounts receivable.

Under the above background, in order to meet the requirements of the company's main business development, guarantee the production and business operation needs, nk airbus released on March 21, the declaration is more related to financing loans, including trust controlling shareholders jianghuai auto company to apply for a loan does not exceed 500 million yuan, to handle the total amount of accounts receivable pledge is not more than RMB 800 million for financing.

Another announcement on the same day drew the attention of journalists. Ankai bus announced that it "intends to apply for using its own idle funds to buy capital protected financial products of Banks, with the amount of use not exceeding 600 million yuan, within which funds can be used in a rolling manner."

Ankai bus in a number of financing announcement showed a "thirst for funds," but also announced that the free use of idle funds to buy the bank capital - protected financial products. Where does this idle money come from, and why is it not being used to build projects or pay off debt?

"" in the first half of this year, the company received 800 million yuan of government subsidies, and the 800 million yuan of subsidies could not be spent overnight. In the case that the bank loan has not yet matured, in order to improve the efficiency of the use of funds, choose to buy bank-guaranteed financial products. Securities department, the relevant person in charge told reporters.

Ben siming, executive director of youdao consulting in Shanghai, believes that this may be a kind of portfolio investment. When the investment rate of return is higher than the loan interest rate, companies will earn interest margin out of the "profit-seeking" instinct, and such investment decisions are reasonable.

Affected by the "mortgage sales model"

It is worth noting that on March 21, ankai automobile said in the announcement that "the company intends to provide auto repurchase guarantee totaling no more than 9.5 billion yuan in 2018 for customers who apply for bank or leasing company mortgage loans for purchasing auto products of the company.

"In order to improve the competitiveness and achieve the purpose of stimulating sales, the bus industry generally adopts the 'uncovered sales model', but there are certain risks. The securities department said the relevant person in charge.

In fact, ankai bus 2017 net profit fell significantly with its "mortgage sales model". It is learned that as of December 31, 2017, ankai bus for its legal customers on behalf of the overdue mortgage payment 152 million yuan, for its personal customers on behalf of the overdue mortgage payment 41,109,000 yuan, respectively, the provision for bad debt 36.36 million yuan, 7.6922 million yuan.

"Mortgage sales model" in the case of the customer can not be scheduled repayment, not only need to produce sales enterprises to pay, and there is bad debt risk. In this case, the reporter asked ankai bus "whether to consider changing this sales model?"

"The mortgage sales model is the basic sales model for the passenger car industry, and there are risks, but removing the mortgage sales model could have one consequence: fewer orders." The securities department told the relevant person in charge.

According to the securities department, the company has a complete set of procedures to control the "mortgage sales model" may create risks. In the pre-audit stage, the first thing is to judge whether the customer is a good customer, judge the customer's credit situation, the follow-up company will have a special risk control department to track the customer in the event, after the legal intervention.

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