Erdos: How To Break Through Capital "Besieged City"

In a series of survey articles on "Erdos local financial ecology", some experts suggested that Erdos should encourage more large enterprises to go public, so that more SMEs could get loans from banks. So, what is the current situation of the 4 listed companies in Ordos? Can they stir up the banner of promoting the development of the local capital market? market Under the circumstances of long-term financing freeze, can they bring the dawn of some breakthroughs in B-share reform?

In response, our reporter analyzed the A/ B-share Erdos and pure B shares Itai B.

The main capital flows into the stock market (01/16).

Sudden surge is likely to come to the gospel of investors: locked up stocks are saved!

As the first listed company in coal city, Ordos (600295, e capital B shares 900936) has gone through the A/ B share capital market for more than 10 years.

The road is long and hard.

The China Economic Times reporter, referring to company information, shows that the total share capital of the company is from 516 million in 2001 to 1 billion 32 million now, and B shares are 420 million circulation, and A shares are 612 million tradable shares, among which the controlling shareholders (group companies) have 420 million shares.

From the perspective of the revaluation of the stock price, the B shares are 0.5 US dollars at the time of listing. Period It went through a minimum of 0.13 dollars, a maximum of 4.46 dollars, and then to 1.05 dollars in January 4, 2012. The opening price of A shares was 22.16 yuan from the first day, and the lowest price was 6.05 yuan during the period. The highest price was 61.88 yuan, and then it was 11.56 yuan in January 4, 2012.

Over the past 10 years, what is the way of the A/ B-share capital market for the capital market of Ordos and even the Inner Mongolia Autonomous Region?

Diversification of main business

"Ordos warm the world".

In fact, with cashmere, 10 years ago, it established its own "Ordos" brand marketing hall and shop in the European and American markets.

It is understood that Ordos has five main business entities: calcium carbide, ferrosilicon, cashmere sweater and cashmere products, coal and silicon manganese. The annual report shows that in 2010, 2009 and 2008, the operating income of the company was 11 billion 730 million yuan, 8 billion 120 million yuan and 9 billion 520 million yuan respectively, and the net profit was 840 million yuan, 393 million yuan and 410 million yuan respectively. From 2011 to September, the total revenue of the company was 9 billion 624 million yuan, and the net profit from the beginning of the year to the end of the reporting period was 749 million yuan in 1. Among them, operating income in 2009 increased by -14.73% compared with 2008, and net profit in 2009 increased by -3.24% compared with 2008.

For the reduction of operating income and net profit in 2009, the company said in its annual report, "mainly because the company's coal and metallurgical industry declined in the first half of the year, especially in the first quarter, and cashmere prices fell. clothing Industrial compression also has a certain impact on exports.

As for the cashmere plate, the company emphasizes that the cashmere garments do not have brand advantages abroad, and the gross profit margin is far lower than the domestic sales for a long time, so the company continued to reduce the proportion of export sales in 2009.

Moreover, in the 2010 annual report, the company claimed that "the export cost of clothing products has been rising sharply, which has seriously affected the export volume and profitability of clothing products under the influence of rising domestic labor costs and RMB appreciation."

A brokerage company in the research report also believes that, due to rising labor costs and upstream upstream prices, "cashmere and clothing business gross margin risk."

"Brand is the short board of Erdos cashmere products. It is also in the middle and low end market in the international market, and has a big gap with the high-end brand design, processing technology and precise positioning in Italy and the United Kingdom. Xu Jing, an insider, told our reporter that "in the domestic market, it is also facing fierce competition in the industry. In fact, it has long been out of date in many aspects, such as brand building, product design, marketing and so on.

Erdos chairman Wang Linxiang once told the media that "making cashmere industry for many years, and then doing heavy chemical industry, feel different. Cashmere makes 200 million yuan a year, which is not easy, and ferroalloy makes 453 million yuan a year. "

These may be the main factors of corporate diversification, so cashmere and related industries account for only a minor part of the company's total revenue in the continuous growth of company's operating income. More income comes from the company's calcium carbide, ferrosilicon, coal, silicon manganese and other projects.

Doubts about industrial projects

In 2010, it was reported that the company has further improved the layout of heavy chemical industry. In addition to the original coal mining and washing, power generation and metallurgy, polycrystalline silicon and chlor alkali chemical projects have also entered the production stage.

However, investors are also questioning the "Ordos's most profitable" polysilicon project. It is understood that polysilicon industry's total share capital is 1 billion shares, Ordos company accounts for 36% of the shares, Erdos City State owned company accounts for 30% of the shares, electri metallurgy company accounts for 25% of the shares, and group companies account for 9% of the equity. Ordos company passed direct And indirectly holding 51% of the interests of polysilicon industry, obtaining absolute control over polysilicon companies. 2010 annual report shows that the company's polysilicon sales situation is 2 tons. In fact, the power consumption of producing polycrystalline silicon is 200 thousand degrees.

"In 2010, the company sold 2 tons of polycrystalline silicon to consume 400 thousand degrees of electricity, and how many tons of coal to be consumed?" Mr. Wang told reporters in the industry, "Erdos City, there are billions of resources also launched polysilicon project, the whole world group (transfer) is also engaged in. This is the meat and potatoes that are being launched. What are the advantages of Ordos?

Polysilicon production capacity has been surplus, the market is returning to reason, and the boom in 2010 has cooled down. Mr. Wang said, "in this context, Ordos polysilicon project will face enormous risks."

In fact, Mr. Wang's statement is not subjective.

According to relevant information, with the rapid development of photovoltaic industry in China in recent years, the upstream polysilicon production capacity has surged from 5800 tons in 2007 to 30 thousand tons in 2010. However, from 2007 to 2009, China's demand for polysilicon was between 3 and 50 thousand tons, and the external dependence of polysilicon was over 50%. By 2010, China's polysilicon self sufficiency rate reached 80%. Meanwhile, China's polysilicon prospect planning and production capacity reached 74 thousand and 250 tons. Compared with the global total 100 thousand tons of polysilicon demand, China's polysilicon industry is now facing serious overcapacity.

In response, an anonymous professional pointed out that polysilicon project as an extension of Ordos coal and ferroalloy industrial chain, has considerable cost advantages. "This cost advantage is the integration of coal and electricity. However, under the current domestic economic conditions, the effect of coal electricity integration is not good, and there is a lot of trouble inside it, which leads to the loss of state-owned assets.

It is reported that Ordos company has built coal mining - washing, power generation - characteristic metallurgy and coal chemical industry chain. What supports them is Erdos's unique geographical position and resource endowment advantage.

Hongyuan securities Zhao Liming believes that the company's fourth quarter decline in risk increased, "polysilicon prices decline, polysilicon project is difficult to have good expectations."

Another broker also expressed similar views, "the downward pressure on price brought by excess capacity of polysilicon, and a certain squeeze on future earnings growth."

In this regard, the company said that polysilicon project capacity has not yet been fully released, the output will continue to grow in the future. At the same time, the company will strive to establish a dominant position in the industry, and play a greater role in industry self-regulation and price formulation.

Capital Fortress Besieged

Behind the ups and downs of the Ordos industrial sector is the company's long-term "lack of gold". With the advance of time, Ordos has been trapped in its own capital "Besieged City".

According to the annual report, 2008, 2009, 2010, 2011 three quarter The current liabilities were 7 billion 840 million yuan, 9 billion 80 million yuan, 10 billion 320 million yuan and 11 billion 800 million yuan respectively, while the current assets were 6 billion 660 million yuan, 8 billion 70 million yuan, 11 billion 620 million yuan and 13 billion 750 million yuan respectively. The normal situation is that the current assets should be two times the current liabilities, and the company will be insolvent in 2008 and 2009.

Although it has always been in the state of "starvation" of capital, Erdos has never stopped the pace of margin trading since the listing of B shares and A shares.

It is worth mentioning that the company issued a non-public offering to a specific target in 2008, which was negated by the China Securities Regulatory Commission. In raising funds of not more than 3 billion yuan, 2 billion 20 million yuan will increase capital and expand stocks for polysilicon. And this project was not optimistic at that time.

Many uncertain factors have caused huge stalls like bottomless holes. Ordos is still struggling to find breakout.

In June 21, 2011, Erdos Group agreed that Ordos asset management (Hongkong) Limited purchased shares of the company through the two tier market. In June 20, 2011, it increased its B1072819 shares, accounting for 0.10% of the total share capital of the company.

After the completion of the increase plan, the Huzhou group will directly or indirectly hold the shares of the company from 420 million shares to 523 million 200 thousand shares, and the proportion of the total share capital will be changed from 40.7% to 50.7%.

Some analysts believe that from this information, the company accelerated the merger process of AB shares.

The merger of AB shares is generally regarded as the inevitable trend of the B-share market in the future. Liu Liang, Department of Economic Research of Shanghai Academy of Social Sciences, thinks that some scholars have put forward many plans for B-share market reform, including re starting B shares IPO and B shares to H shares and B shares to become international boards and so on. Among them, the most feasible operation plan is to take the form of large shareholders repurchase in the form of "A/B" form B shares, and to synchronize private placement in the A share market, and cancel the B shares after the issuance.

For company AB share consolidation, group Whether the company is listed as a whole, financial and other issues, this reporter went to the company for the two time to understand the situation. "AB shares merger, group companies as a whole listing, such a big thing I have not heard of, the company's financial problems in the annual report, you can check." On the afternoon of December 20th, Ceng Guangchun, director of the company, told the newspaper reporter on the phone.