Ke Chuang Plate First Postponed Consideration In The First Year Of The Year: 4 Billion 569 Million Trust And Loan Burial? Trina Solar, The Old Photovoltaic Enterprise, Has A Long Way Back To A.

In January 8th, the science and technology board welcomed the first meeting of the municipal Party committee in 2020, and Trina Solar and Sanyou Medical Association attended the meeting.

However, Trina Solar did not open the door to great heights, and Sanyou medical treatment passed smoothly. At the same time, the outcome of Trina Solar's meeting was postponed.

According to the twenty-first Century economic report, this is the third company to suspend its deliberations. Fudan Zhang Jiang and Qinchuan intangible Federation have not yet had the latest developments.

From the point of view of audit, the primary reason for Trina Solar's suspension of deliberation is the fact that the trust fund has reached a maximum of 4 billion 569 million yuan. The municipal Party committee asked the company to further explain that if the real controller violates the loan agreement, how to ensure that the controlling rights are not affected. In addition, the listing committee is concerned about the existence of legal defects in operating land, receivables and subsidies, and impairment of goodwill.

Trina Solar is the first privatized company in the stock market of PV, and its "back to A" road has been attracting much attention from the market. Before the meeting, there were many voices in the market questioning the fact that the controlling loan and the relationship with the first largest customer were related. This was postponed for consideration and added some variables to its landing of A shares.

China's stock return to A

Trina Solar is a solar photovoltaic enterprise based in Changzhou, Jiangsu. It was founded in 1997 and is an early start in the domestic photovoltaic industry. After more than 20 years of development, Trina Solar has grown from the original small workshop to the photovoltaic industry giant, once the world's largest PV module shipper.

Trina Solar was also one of the photovoltaic companies that landed earlier in the capital market. In 2006, Trina Solar was listed as the main body of overseas listing by Tianhe Cayman and listed on the NYSE. However, due to the fact that China's PV enterprises are generally low in valuation in the United States, although Trina Solar's assets have been growing rapidly in recent years, the share price has dropped.

In March 2017, Trina Solar completed privatization and delisted from the NYSE. Subsequently, the company made a clear statement, hoping to land as early as possible in the A share market.

The reason for Trina Solar's delisting from the US was also noted in the letter of inquiry from the Shanghai Stock Exchange. The company replied that Trina Solar was chosen as a Chinese company to privatize its strategic withdrawal from the NYSE. On the one hand, China and other Asian and Pacific emerging market countries have accelerated the development of PV market, delisting is to achieve the focus of the company's business and capital market consistency. On the other hand, in recent years, the ability of financing in the US capital market is relatively weak, but the cost of maintaining the listed companies is relatively high. Therefore, Trina Solar implemented privatization delisting and intends to go public in A shares.

As a pioneer in the wave of privatization of stocks, Trina Solar's "back to A" process has attracted much attention. In recent years, Trina Solar's "back to A" preparations have been continuously prepared, including a series of changes in ownership structure, the completion of shareholding system reform, and even rumors of backdoor listing. The voice of doubt also goes hand in hand, such as the face of photovoltaic industry policy face, performance decline, debt expansion and other news.

Despite rumors, Trina Solar has not made substantive moves in A shares. The rest of the photovoltaic stocks in the US stock market delisting, in addition to the solar energy backdoor Tianyi Unicom, the listing action of CLP PV and Han Hua new energy is also not good enough.

In May 2019, the application of Trina Solar science and technology board was accepted, and the way back to A was officially launched.

Trina Solar has positioned itself as one of the world's leading providers of photovoltaic smart energy solutions, and its company's performance has again been concerned.

In 2016 -2018 and the first half of 2019, Trina Solar's operating income was 22 billion 590 million yuan, 26 billion 160 million yuan, 25 billion 50 million yuan and 10 billion 760 million yuan respectively. It is easy to see that Trina Solar's performance has slipped in 2018.

And this will have to mention changes in the entire PV industry. In 2018, the introduction of China's "531" policy and the US "201" bill opened the door for China's photovoltaic industry to adjust deeply, resulting in a decline in overall demand in the photovoltaic industry. In 2019, affected by the delayed announcement of photovoltaic guidance policies, the entire photovoltaic industry recovered slowly, which is evident from the first half of Trina Solar's performance.

At present, the photovoltaic industry is still affected by domestic and foreign industrial policies. The capacity, scale and intensity of subsidies directly affect enterprise performance, and its performance fluctuation is in line with the industry characteristics. Trina Solar is an old company. From the perspective of shipping volume and technology, it is still relatively ahead in the industry. In the future, China's PV industry will be driven by policy driven technology to an inevitable trend, and the competitive advantage of the head company will be bigger and bigger. " A Shanghai photovoltaic industry analyst said.

Liquidity constraints?

Despite its strength in volume, Trina Solar's financial pressure on policy changes is obvious.

The scale of Trina Solar's fundraising was 3 billion yuan, and the fund-raising scale is the highest in the current reporting enterprises, of which 1 billion 350 million yuan will be used to supplement liquidity.

In the prospectus, Trina Solar said that the photovoltaic industry has a high capital barrier and needs a lot of financial support. This supplementary liquidity project will first help the company to reduce its reliance on bank loans, reduce the risk of debt repayment and finance expenses arising from bank loans, and maintain the debt ratio to a reasonable extent. Secondly, it will provide some financial support for the company's R & D activities, and finally, provide multi-dimensional financial support to the company's business development.

This is regarded as one of the signals that Trina Solar is facing financial pressure.

On the other hand, debt financing has become the main source of Trina Solar financing in the ever expanding business scale.

In the 2016-2018 years and the first half of 2019, the company's asset liability ratio (merger) was 75.56%, 69.19%, 59.33% and 63.26% respectively. At the same time, Trina Solar's accounts receivable also rose. At the end of the reporting period, the book value of accounts receivable was 4 billion 350 million yuan, 4 billion 950 million yuan, 4 billion 840 million yuan and 4 billion 970 million yuan respectively, accounting for an upward trend in current revenue.

A photovoltaic industry insider told reporters, "photovoltaic industry is a big industry that needs capital investment. After Trina Solar's withdrawal from the US stock market, it failed to land A shares quickly, and with relatively high debt, cash flow was once more intense. The demand for broadening financing channels for listing is relatively strong."

The most concern of the market is Trina Solar's real controller Gao Ji fan's borrowing problem, which has been repeatedly mentioned by regulators and has become the main reason for the delay.

In February 2017, he signed the "trust loan contract" with the Xiamen international trust. It agreed that the Xiamen trust would lend 4 billion 569 million yuan to Gao Jifan, the loan period was 60 months, the annual interest rate of loans was 6%, from 2017 to June 20th each year in June 20th and December 20th as the interest bearing day, and the loan was due to pay the last interest and principal.

At the same time, Taka Kifan, pan Ji investment and Qing Hai investment registered the pledge of Trina Solar in November 2017. After the issuance and listing of the shares, the parties lifted the pledge in April 2019. However, there are no other alternative guarantee measures or interest arrangements between Gao Ji fan and the Xiamen International Trust.

The municipal Party committee asked whether such an arrangement is in line with the requirements of the trust authority's wind control, such as how to guarantee the control of the real controlling person and the reliability of the repayment plan of the actual controller, such as breach of contract.

In this regard, many trusts told reporters that if the two sides agreed at that time, they can really lift the pledge, but if the subsequent consultations are inconsistent, there are other risks such as the freezing of shares.

In January 8th, the economic report reporters also called Trina Solar on the above issues in twenty-first Century, but the telephone failed to get through at the end of the deadline.