GCL Energy Technology (002015): Plans To Acquire The Remaining 10% Equity Of GCL Smart Energy

Recently, GCL energy technology (002015), which just disclosed the 5 billion yuan fixed increase plan, started the acquisition of the remaining equity of GCL smart energy.

On the evening of June 27, GCL energy technology announced that the listed company intends to acquire 10% equity of GCL smart energy held by GCL group, with a transfer price of 730 million yuan. Before the transaction, GCL energy technology has held 90% of the equity of the target company; After the completion of the transaction, GCL energy will hold 100% equity of the target company.

GCL energy technology said that the transaction is a prudent decision made by the listed company from the long-term interests of the company and the future development needs, which is conducive to improving the comprehensive strength of the company. Therefore, it is necessary to implement the transaction, which is in line with the overall interests of listed companies.

Information shows that GCL smart energy's main business is clean energy power generation, cogeneration and comprehensive energy services. Focusing on the development, investment and operation management of clean energy projects, as well as comprehensive energy services in related fields, the company has become one of China's leading operators and service providers of non-public clean energy power generation and cogeneration, including gas turbine cogeneration, wind power generation, garbage power generation, biomass power generation, coal-fired cogeneration, etc.

While providing power, heat, cold and other energy products for power grid companies, industrial parks and cities, we have steadily set foot in the field of comprehensive energy services, providing energy solutions and other comprehensive energy services for enterprise customers.

As of December 31, 2020, the total installed capacity of GCL smart energy is 3680.04mw. Among them: 2647.14mw of gas turbine cogeneration, 524.4mw of wind power, 60.5mw of biomass power generation, 116MW of garbage power generation and 332mw of coal-fired cogeneration. The main business of GCL smart energy and its subsidiaries are clean energy power generation, cogeneration and comprehensive energy services. The main products are electricity and steam.

In 2020, the main customers of GCL smart energy are State Grid Jiangsu Electric Power Co., Ltd., China Southern Power Grid Co., Ltd. and State Grid Zhejiang Electric Power Co., Ltd.

According to the assessment, on December 31, 2020 as the appraisal base date, the appraisal value of the total equity of the shareholders of GCL smart energy is RMB 7.502 billion, which is RMB 3.7 billion higher than the book value of owner's equity of GCL smart energy, with a value-added rate of 97.30%, and a value-added rate of 71.91% compared with the book value of the owner's equity of GCL smart energy. With the agreement of both parties, referring to the appraisal value of the target equity, the transfer price of 10% equity of smart energy company is determined to be 730 million yuan.

GCL energy technology pointed out that in recent years, with the completion and operation of power plants under construction, the total installed capacity of GCL smart energy has been increasing, and the net profit attributable to the parent company has increased from 425 million yuan in 2018 to 933 million yuan in 2020; In the forecast period, with the completion and operation of the power plants under construction, the net profit and cash flow will continue to expand, and the profitability will be further strengthened; Therefore, the value added of this assessment is reasonable.

According to the transaction plan, GCL energy branch plans to purchase 10% equity of GCL smart energy held by the controlling shareholder GCL group with cash raised by itself. After the completion of the transaction, GCL energy will hold 100% equity of GCL smart energy. GCL smart energy will become a wholly-owned subsidiary of the company, which is more conducive to the company's management of its subsidiaries. This transaction will not lead to changes in the scope of consolidated statements of listed companies.

It is understood that the acquisition constitutes a related party transaction with GCL group as the trading party and Zhu Gongshan as the ultimate actual controller. GCL group and GCL energy technology are enterprises under the same control.

GCL group, the controlling shareholder of GCL Energy Technology Co., Ltd., is a science and technology leading private leading enterprise focusing on new energy and clean energy and coordinated development of national integrated circuit semiconductor industry and other related industries. It is a global leading new energy technology and service operator with comprehensive strength.

GCL group's main business involves environmental protection power, IC core materials and special gas, application and manufacturing of new solar technologies, natural gas, energy Internet and big data, new materials of electric and energy storage technology. In 2020, GCL group ranked 213 in China's top 500 enterprises, 24th in China's top 100 leading enterprises in strategic emerging industries, 72nd in China's top 100 multinational companies index, and 56th in China's top 500 private enterprises.

GCL smart energy is the main holding subsidiary of GCL energy technology. The audited consolidated net profit of GCL smart energy in 2020 is 1.071 billion yuan, and the net profit attributable to the parent company is 933 million yuan. In contrast, the net profit of GCL energy technology in 2020 is 802 million yuan. After the completion of this transaction, it is expected to increase the net profit of Listed Companies in 2021 and future years.