Jin Yu Che Cheng (000803): Apology, Commitment, Net Profit 9000 Million Intelligent Electric Only 369 Thousand And 600

In 2017, Jin Yu Che Cheng (000803) announced the purchase of 55% stake in Chi Lin Electric Company at a price of 383 million yuan. At that time, the dealer promised that the net profit of 2018 would not be less than 90 million yuan, but the net profit last year was only 369 thousand and 600 yuan.

Kim Yu Che city also issued an apology announcement on the evening of June 17th. At the same time, the company responded to the Shenzhen Stock Exchange's annual enquiry letter, saying that the Chi Lin Electric cash flow is expected to be stable next year, but it still has the possibility of failing to fulfill its performance promise in 2019.

Chi Lin electric net profit last year was only 369 thousand and 600 yuan.

Chi Lin Electric is a device integrator dedicated to providing overall solutions for smart grid, photovoltaic new energy, green smart energy, microgrid, submerged high pressure electrode boiler heat storage system.

In October 2017, Jinyu car city and Zhang Xinmiao, Liu Shuliang, Di Xiaodong, Zhang Guoxin and Cai Yuantang (hereinafter referred to as the "trading partner") signed the "agreement on cash payment for assets" and purchased 55% stake in Chi Lin Electric Company at 383 million yuan price. At that time, the dealer promised that the net profit of Chi Lin Electric 2017 to 2019 was no less than 60 million yuan, 90 million yuan, and 120 million yuan respectively.

As of November 17, 2017, Jinyu car city will pay 20% of the share spanfer price, and the spanaction price will be 76 million 670 thousand yuan, and the remaining 80% share spanfer price will be paid according to the contract respectively. By the end of March 4, 2019, the trading side had written off 163 of the 174 related companies, and 11 had not written off. Therefore, the company agreed to suspend payment of the second and subsequent purchase price according to the commitment.

The announcement shows that in 2017, Chi Lin's net profit was 64 million 788 thousand and 600 yuan, and its performance commitments were successfully completed. However, in 2018, the operation of Chi Lin electric appliance was in a state of rapid decline. Finally, the embarrassment of the net profit of 369 thousand and 600 yuan was only surrendered.

Three reasons lead to poor performance.

Regarding the reasons for the unfulfilled performance commitments, Jin Yu Cheng said in an apology announcement that Chi Lin Electric was affected by industry policies in 2018, and business development was greatly affected, resulting in a substantial difference between the actual performance and the performance of the company. On the same day, in reply to the enquiry letter of the Shenzhen Stock Exchange annual report, the company further explained that the first half of 2018 was affected by the "5.31" photovoltaic policy, and the photovoltaic industry entered the downstream channel. The business of Chile's electric business was under severe impact and faced with a severe operating environment, resulting in a failure of operation efficiency, a year-on-year decrease of 248 million yuan and a decrease of 60.19%. Net profit decreased by 62 million 721 thousand and 900 yuan and 95.30% respectively.

1. the main business is greatly influenced by the new 531 industry policy. The announcement on the related issues of photovoltaic power generation in 2018 (hair reform energy [2018] 1459) led to the obstruction of the traditional business development of Chi Lin Electric, the difficulty of business development, and the decline in main business revenue generating capacity;

2. Chi Lin electric current fund failed to meet business development. In 2018, liquidity was relatively tight, and some projects failed to land due to lack of funds.

3. due to the shortage of liquidity, the lawsuit is increasing. Some cases lead to difficulty in financing and further difficulty in bidding.

Performance commitments may not be fulfilled in 2019

Kim Yu Che city said in a notice that Zhang Xinmiao, Liu Shuliang, Cai Yuantang, Zhang Guoxin and Di Xiaodong made a difference between the 2018 annual performance and the achievement of 89 million 630 thousand and 400 yuan. According to the relevant agreement of the profit forecast compensation agreement, Chi Lin Electric 2018 performance compensation is 120 million yuan.

Jin Yu Che Cheng stressed that the company has the right to deduct the relevant compensation directly in its current purchase price. "Considering that the price of the shares in the Chi Lin Electric Company has yet to be paid 307 million yuan, the counterparty has the ability to perform the performance compensation."

In reply to the enquiry letter of the Shenzhen Stock Exchange annual report, Kim Yu Che City hints at the risk that Chi Lin Electric's 2019 performance promise will not be able to achieve. The company said that despite its efforts under the management of Chi Lin electric management, its operation and management remained basically stable. At the same time, with the launching of the fourth batch of "leader" related work of the national energy board at the end of 2018, the landing of the related policies of "parity Internet" and the gradual improvement of the industry liquidity and the company's own efforts, the smart cash flow is likely to be stable, but it still has the possibility of failing to fulfill its performance commitments in 2019.