Xin Xin Ke (002015): Injection Of Billions Of Dollars In Clean Energy Assets, The Overall Profitability Improved More Than 100 Times Last Year.

Restructuring is still a good way to "regenerate". In March 11th, Xin Xin Ke disclosed the first annual report card after the completion of the reorganization. The results show that the company achieved a total revenue of 10 billion 900 million yuan in 2019, and the net profit attributable to shareholders of the listed company was 549 million yuan, which was 2210.33% and 10109.02% higher than the net income of 472 million yuan before the reorganization in 2018 and net profit of 5 million 378 thousand and 700 yuan, and the overall profitability of listed companies increased by more than 100 times.

"After the completion of the major asset reorganization, the fundamentals of the company have undergone tremendous changes. The main business has been transformed from the comprehensive treatment of waste polyester, the development, production and marketing of colored polyester fiber and colored yarn to clean energy power generation, heat and power cogeneration and comprehensive energy services." Shen Qiang, Secretary of the company's board of directors, said in an interview with the Securities Daily reporters.

Transformation of energy eco service providers

It is an old listed company. It has been listed for 16 years since it was launched in 2004.

In 2016, under the influence of objective factors such as low international and domestic market demand, fluctuation of textile raw material price and finished product price, the company's sales were low and production and marketing was upside down. After 2014, the production and operation of the company fell into a deficit again. The net profit of shareholders attributable to the listed company was -4124.19 million yuan.

The main business profitability continued to decline, the operation was in trouble, and reorganization was put on the agenda.

In 2018, the company launched a major asset restructuring and set up a 90% stake in Xinyuan intelligent energy, which has a total assets of more than ten billion yuan, while setting up less profitable assets. Over the past few months, the company implemented a major asset restructuring asset delivery in May 2019, and Xinxin energy became the controlling subsidiary of the company. Xia Ke environmental protection has been transformed into a clean energy industry by a textile listed company.

After completing the major asset reorganization, the company has redefined the overall strategic line and transformed energy production into energy service. The company will focus on green energy operation and comprehensive energy services in the future. With clean energy as the core, the "source network sales cloud system" will be built to become a leading energy and ecological service provider. Shen Qiang told reporters.

According to the data, the business income of the company in the first half of 2019 was 5 billion 60 million yuan, an increase of 38.34% compared with the same period last year. The net profit of the shareholders belonging to the listed company was 268 million yuan, an increase of 14.39% compared with the same period last year, of which the net profit of Xinxin intelligent energy was 474 million yuan in the half year. The latest annual earnings bulletin is even more dazzling.

After the reorganization, the scale of production and operation of the new main business clean energy business continued to expand, and the total assets and ownership rights of shareholders belonging to the listed companies increased significantly. As at the end of December 2019, the total assets of the company amounted to 24 billion 67 million yuan, an increase of 18.29% over the beginning of the period. The net assets per share attributable to shareholders of listed companies were 3.57 yuan, an increase of 168.42% over the initial adjustment period, and the net profit attributable to shareholders of listed companies reached 549 million yuan in 2019, and the overall profitability of listed companies increased by more than 100 times.

"From my personal point of view, the performance of the company in 2019 was better than expected. From 2018 to next year, the relevant natural gas and garbage power plants built by Xinxin smart energy have been transferred to operation in the next year, and the acquisition of a wind power enterprise in the first half of 2019 has resulted in an increase in electricity and steam revenues over the same period. An anonymous analyst said in an interview with the Securities Daily reporters.

Closely linked to power reform dividends

Globally, the contribution of electricity to energy consumption has increased as the proportion of economic development and renewable energy has increased. According to the electrical Regulatory Commission and Peng Boxin energy finance forecast, the peak value of total electricity consumption in China will reach 12 trillion kwh in 2035.

As the fourth listing platform of Xinxin group, unlike other listed companies in the stock market, the core business of xinxinke focuses on green energy operation and comprehensive energy services. It takes clean energy as the core, layout energy storage, placing electricity, energy data and electric port business.

In 2019, after the new management team was put into operation, it quickly started to raise funds for the construction of Jiangsu Sihong wind power project (75MW), Jiangsu Funing wind power project (phase I 30MW+ two phase 15MW), Inner Mongolia set up yellow flag wind power project (125MW) and other wind power projects.

"With the support of national policies to ensure the new energy power generation, and the deployment and transmission of electricity reform, the wind power industry will continue to develop healthfully." Industry analysts said that with the gradual deepening of the new round of power system reform, the distribution and sale of electricity and other business opportunities have been gradually released. The State Grid has vigorously promoted the construction of ubiquitous power Internet of things, coupled with the rapid development of energy storage, electric vehicles, 5G communications, artificial intelligence, block chain and edge counting, and so on, new business opportunities have sprung up in the company's industry.

"The electricity market as a whole is still a highly specialized market." Peng Peng, Secretary General of China's new energy power investment and financing alliance, said in an interview with the Securities Daily that in order to enjoy the dividends of power reform, private enterprises need to constantly strengthen their professionalism, and at the same time, they need to step on the drum. Unlike other market reforms, the electricity market is demanding electricity price reduction, and the difficulty of innovative business is great.