Can kyrie Werner's skateboard be a sure thing in 2018?

Once dubbed the a-share "lithium giant" and touted as one of China's top three domestic makers of power batteries, kenrevonen, A former firefighting equipment company, made A stunning turnaround two years ago. But like a pirate ship in an amusement park, the long robotic arms always swing you to the other extreme.

Indeed, the company's recent announcements have come at a pace that even its own insiders have struggled to cope with.

"Since march, announcements have been made almost every day. Financial chain tension, the company's bank accounts were frozen, the progress of debt restructuring, the controlling shareholder shares were judicial freeze notice, etc., are to be announced. The company's securities department in an interview with the "investment times" reporter so frankly. Since the Spring Festival, only 20 percent of factories have opened since the start of the New Year due to tight funding, the person said. Not only was the first quarter not ideal, but 2018 is not expected to be either.

On the one hand, ningde era, which is in the same industry camp, launched its IPO with the image of "super unicorn"; on the other hand, jian ruiwo, which was listed eight years ago, could not "jian" any more. Such a sharp contrast made the market sigh.

Leading to this dramatic shift is the main business income in 2017 and the total assets at the end of 2017 accounted for more than 90 percent of its weight of shenzhen watmar. It is reported that after the one-time provision of 4.6 billion yuan of goodwill impairment, jianruihuaneng originally 5. 2.2 billion yuan profit, instantly revised to a loss of 36. 8.9 billion yuan.

Industry insiders said the company is currently in a liquidity crisis, with many bank accounts under the name of watmar and other subsidiaries frozen by the judicial system. The capital turnover is extremely difficult, and it is unable to carry out normal raw material procurement and subsequent production.

The question is, was it the straw that broke the camel's back?

Is skateboarding a sure thing in 2018?

Jianruihuaneng landed on the gem on September 2, 2010. From 2010 to 2015, the company's operating income and net profit did not change fundamentally, with a net profit of 20 to 30 million yuan in the good years and a loss of 10 million yuan in the worst year of 2012.

The "performance explosion" began in 2016. This year, the company's current net profit of 4. 2.9 billion yuan, deducting non-net profit of 3. With 8.2 billion yuan, the net profit surged nearly 11 times year-on-year. This astronomical figure came from the acquisition of 100 per cent of watmar.

On February 29, 2016, jianruihuaneng issued the merger and acquisition and private placement plan, proposing to acquire 100% equity of watmar for 5.2 billion yuan. The consideration of this transaction was equal to 9 yuan at the time of watmar. 2.9 billion yuan of book equity based on a substantial premium of 4. 6 times. The deal also resulted in a $46 profit for zenevo. 1.6 billion yuan of goodwill.

In order to raise funds, this plan also plans to issue a total of 7. 1.6 billion shares. Public information shows that at that time, the total assets of watmar was 5.2 billion yuan, and the total assets of cre fire was only 14 billion yuan. 5.4 billion yuan, that is 27 of the former. 96%; In terms of turnover, watmar's current turnover was 21. 6.3 billion yuan, jianrui fire for 5. 81 billion yuan, that is 26 of the former. 86%. Watmar is more than three times larger than cre in terms of assets and revenues, a classic "snake eats elephant" merger.

At that time, however, many institutional investors were not optimistic about the acquisition with a large premium. On the one hand, the motivation and business logic of watmar's willingness to "yield" under the premise of good market conditions were not clear and convincing. At the same time, with the current debt-to-asset ratio at 62%, such "risk on" seems to be hard to contain.

Only a year later, all those fears were realized, and allergan's "performance myth" was blown off its pedestal.

The company reported an operating income of 96 percent for the current period, its 2017 annual report showed. 6 billion yuan, up 152 percent from a year earlier. 88%, achieving operating profit of -36. 3.7 billion yuan, down 788 percent from a year earlier. 83%, the realization of net profit attributable to the parent company -36. 8.4 billion yuan.

As for the reasons for the performance loss, the company explained that it was affected by the comprehensive factors including the adjustment of the national new energy industry policy subsidies, the rapid expansion of the subsidiary watmar business, slow receivables collection and tight capital chain. The company wrote down the full amount of the goodwill accrued during the acquisition of shenzhen watma battery co., LTD.

For its part, watmar said it underestimated the difficulties and complexity brought by the adjustment of new energy vehicle industry policies in 2017. The company's use of short loans and long loans exacerbated the impact of volatility.

It is learned that on December 30, 2016, the ministry of finance, the ministry of science and technology, the ministry of industry and information technology and the national development and reform commission jointly issued the "notice on adjusting the fiscal subsidy policy for the promotion and application of new energy vehicles". Under the new rules, non-individuals who buy new energy vehicles need to operate 30,000 kilometers before they can apply for subsidies.

This is a watershed. The new rules make it difficult for companies to continue to charge high prices in the leasing process, and thus lead to difficulties in the capital chain.

More troubling, the collapse of watma continues. Jianrewo can disclose this year's first quarter results show that its performance is still in the red. The data showed that the company achieved a total operating income of 11. 1.7 billion yuan, down 59 percent year-on-year. 88%; Realize the net profit of the parent company -3. 1.9 billion yuan, down 225 percent year-on-year. 86%.

Tight capital chain

"Due to the shortage of funds, some production subsidiaries have suspended production and the demand for materials has decreased. At the same time, the payment conditions of suppliers are more stringent than before. Only under the condition of full payment can the normal supply be maintained. Said the securities department to the investment times reporter so replied.

The person said the most urgent thing is to solve the debt crisis, on the one hand through debt restructuring to reduce debt, on the other hand actively promote the introduction of strategic investors to attract capital inflows.

A number of brokerage institutions in an interview with reporters, because jian ruihuaneng too many problems, a year ago has been removed attention. "Accounts receivable increase, increase in cash flow are not optimistic about the main reason for jianrehuaneng. A senior brokerage research gave reasons.

As of March 2018, allergan has as much as 221 major debts. 3.8 billion yuan: including notes payable 100 yuan. 0.9 billion yuan, accounts payable 22. 2.1 billion yuan, bank loans of 5.4 billion yuan. 7.4 billion yuan, financing lease form long-term payables 25. 9.3 billion yuan, borrowed by non-financial institutions 3. 3.2 billion yuan, shareholder loan 15. 0.9 billion yuan. Jianrehuaneng issued a notice that the company overdue debt 19. 98 billion yuan, mainly for notes payable and bank loans, facing the claims of creditors, if the company can not raise funds to repay the arrears, it will have a greater impact on daily operations.

With the rapid development of the new energy automobile industry in recent years, the volume of watma business continues to grow, which also leads to a substantial increase in receivables. As of December 31, 2017, watma had a net receivables of 82. 9.3 billion yuan, up 177 percent from the previous year. 20%. Although most of its downstream customers are domestic well-known vehicle manufacturers, with strong financial strength and good credit, the payment collection situation is not ideal. Once the cash flow of downstream customers appears tense and difficult to pay the situation, the company will have the risk of receivables can not be collected.

Industry analysts believe that the power battery industry because of its widespread "long payment days" and subsidies to obtain the characteristics of the delay, resulting in the poor cash flow of the entire industry, jianruihuaneng debt crisis is also due to the cash flow problem caused by the normal turnover of enterprise working capital. In the future, if the company cannot solve the cash flow problem by strengthening cash flow management, it will face the risk of further deterioration of debt.

For jianrehuaneng, the introduction of strategic investors or its current best choice. The company also announced that its chairman and actual controller, guo hongbao, and the company's major shareholder and managing director, li yao, are planning to transfer the company's equity to introduce strategic investors, who are concerned about new energy enterprises and have a significant impact on the company.

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