Elec-Tech "quanqian" method: government subsidies and refinancing together

The recent NVC and the actual control of the original scores disputes upgrade and the widespread attention of the BDO, the first half of the performance was disappointing.

According to the August 28th semi annual report disclosure, the first half net profit not only Elec-Tech declined by 23.36% over the previous year, the non deduction of earnings per share or even a loss of 0.01 yuan.

It is worth noting that the first half net profit of only 38 million 702 thousand and 500 yuan, the non deduction of losses amounted to 12 million 72 thousand yuan, while the government subsidies included in the current profits and losses is as high as 64 million 430 thousand and 900 yuan.

Over the past few years, the government subsidies for the LED industry is more, peers have received varying degrees of financial subsidies. "The staff told reporters.

Government subsidies 1 billion 100 million whitewash the main industry

Since 2009 to enter the LED industry, government subsidies have become a major source of profit for the elec-tech.

According to previous periodic report reporter statistics found that from 2009 to the first half of this year, government subsidies to be included in the final statement of the Elec-Tech accumulated up to 1 billion 108 million yuan, the cumulative net profit over the same period was only 846 million yuan, the former was 1.31 times of the latter.

This year's government subsidies can reach the amount of last year, can not be expected, but the first half of this year, the government subsidies included in the profit and loss of about 50000000 yuan higher than the same period last year. "The Elec-Tech staff said. The report shows that in 2013 Elec-Tech included in the profit and loss of government subsidies for 232 million yuan, although less than 310 million yuan in 2011, but slightly higher than the 224 million yuan in 2012.

The government subsidy obtained in addition to a multitude of names Elec-Tech, major industrial projects associated with the LED LED chip production industry project funding, MOCVD research and development equipment subsidies, subsidies and other LED production line assets such as subsidies, funds, financial subsidies to provinces imported equipment subsidies, interest subsidies and other numerous benefits of imported equipment subsidies. Two kinds of government financial aid projects up to more than and 10.

Government subsidies to support the Elec-Tech for more than 5 years, but the development of the LED industry has always been just passable, although the first half of the LED business sales revenue record and more than a small appliance business for the first time, the gross margin fell 4.55%.

92 sets of MOCVD machine and Elec-Tech obtained high government subsidies, currently only 58 units of production (including 6 R & D machine).

Due to the fierce competition in the market price of the chip chip, the gross profit margin is not high, the remaining units will be mainly used for the production of flip chip. "Elec-Tech dongmi Dunfee research institutions in the reception said.

But the mechanism seems to be the focus of future development of Elec-Tech flip chip business doubts, in the research in the first half of the flip chip is a niche product, and how to improve the market acceptance guarantee capacity utilization question.

The LED industry profit lackluster began from the end of 2012 Elec-Tech, plan to "grab" the strength of the country's first channel NVC, two through the secondary market to buy the shares and, as the first half of this year a total of HK $2 billion 150 million (about 1 billion 704 million yuan), to gain control of the latter 27.03%.

Now in stakeholder disputes and the opinion of the vortex of NVC, also brought the book income as Elec-Tech, the first half of this year and in 2013, the equity investment income amounts were 17 million 963 thousand and 400 yuan and 47 million 256 thousand and 600 yuan, and high government subsidies Everfount a whitewash of the main hole elec-tech".

More than 5 billion 100 million refinancing yourselves"

The government will grant as a "main business" is also the capital market of China, "quanqian" master. Public data shows, since 2010, Elec-Tech has implemented 3 set by refinancing, A shares become rare refinancing specialist.

In October 19, 2010, the 9.54 yuan / share to 4 specific non-public offering of 160 million shares, net fund-raising 1 billion 506 million yuan; in March 19, 2012, with 15.61 yuan / share to 8 specific investors, non-public offering of 100 million shares, net fund-raising 1 billion 522 million yuan; in June 6, 2014, then to 5.86 yuan / share to 2 specific non-public issue 230 million shares, raising 1 billion 337 million yuan net.

In addition to the total set by refinancing 4 billion 366 million yuan, Elec-Tech in March 2013 through the issuance of corporate bonds, obtain the net fund-raising 790 million yuan.

But to obtain a total of over 5 billion 100 million yuan refinancing de Ho Runda, although the so-called eight industrial base has been built and formed a LED layout of the whole industry chain, its equity investment projects are in yourselves.

According to the 2013 annual report, LED chip, Elec-Tech fixed increase in equity investment in the LED package, LED lighting, LED epitaxial wafers and other 4 projects, all did not reach the expected benefits, and of which 3 projects last year a total loss of 104 million yuan.

Not only that, but also to LED packaging project and Elec-Tech LED epitaxial wafer production project serious pile up in excess of requirement reason, will raise 121 million yuan which has not been used for a permanent supplement working capital, 4 million 277 thousand and 900 yuan LED chip project, LED lighting project and other fund-raising savings are all used to permanently add liquidity.

The use of re financing add liquidity amount has reached staggering proportions, in addition to the change of use of the prospectus, the issue of 790 million yuan of corporate bonds this year and fixed by raising 1 billion 330 million yuan, are all used to supplement working capital, and before the scheduled increase in fund-raising 304 million yuan has been used to supplement working capital.

And NVC fight for control of China, was also interpreted as the buried copy for government subsidies, increase