Xiangtan Electrochemical can not afford 900 million liability frequently patronize HREE

Market has been a large number of proposed backdoor square just around the corner , IPO shut down period even more so.

They are always looking for within the total share capital of 200 million shares , worth 1.5 billion or less, are still struggling with losses of listed companies. In their view, such a listed company is the ideal high-quality shell resources . Xiangtan Electrochemical satisfy all the conditions above .

Total share capital of 139 million shares , total market capitalization of less than 11 million yuan last year after another loss in the first half of this year , and is expected in the third quarter losses will continue to increase . Moreover, due to the dominance of state-owned major shareholder restructuring is to let investor confidence , but the 2012 reorganization of the news so far , investors expect the reorganization did not materialize.

Although Xiangtan Electrochemical almost all the qualities with high-quality shell resources , but other companies want to backdoor Xiangtan Electrochemical not easy.

Ideal for carrying over 900 million liability Shell Resources

The first half of 2013 , total assets of Xiangtan Electrochemical $ 1.3 billion , while attributable to shareholders of listed companies net assets of only 297 million yuan , total liabilities of 944 million yuan , asset-liability ratio reached 72%

Just from the market , the current deep households in cities less than 12 billion total market capitalization of less than 100 , but still can not remove the backdoor listing of GEM companies , the remaining 70 or so also . Xiangtan Electrochemical backdoor is highly sought after one .

Xiangtan Electrochemical total share capital of 139 million shares , compared with 2007 in 7540 when newly listed shares increased by about 6500 shares. Investment banks are looking for shell resources , one of the criteria is less than the total share capital of 200,000,000 shares. In general , lower than the 200 million shares of Shell 's assets will be able to absorb the greater dilution of the old shares for new shares will be smaller .

In accordance with the usual logic , Xiangtan Electrochemical that investment banks are looking for high-quality shell company .

More favorable , for a potential backdoor party that , if you want to have absolute controlling stake after the reorganization , backdoor party need only half the current market value of the asset injection , ie about 500 million - $ 0.6 billion of high-quality assets. If you want to obtain the relative holding power, only need to inject more than the largest shareholder of Xiangtan Electrochemical Group Co., Ltd. shares slightly higher market value of assets.

Xiangtan Electrochemical owned by SASAC Xiangtan Xiangtan Electrochemical Group as the main sponsor , together with other four companies jointly established , Xiangtan Electrochemical Group now holds Xiangtan Electrochemical 46.76% of the shares , with a total market value of about 500 million yuan . This means that future re-side at least inject 500 million yuan of assets or more , it will get relatively controlling shareholder status .

The Xiangtan Electrochemical stake held by other shareholders are more scattered. Two shareholders hold only NSSF Xiangtan Electrochemical 2.75% stake , three shareholder Shanghai Jian Zheng Investment Management Limited held 2.31% . Another seven shareholders are individual shareholders holding at 0.27% -0.41 %, respectively.

Xiangtan Electrochemical relatively concentrated ownership structure, so that backdoor listing or asset restructuring decisions easier , avoiding the costs of coordination between the shareholders had a big problem .

Look , with high-quality shell resource qualification Xiangtan Electrochemical highly sought after as it should be . However, as the restructuring side , in addition to the state-owned controlling shareholders other than hesitant , Xiangtan Electrochemical behind for 944 million yuan of debt, too, have concerns .

Therefore , restructuring or not ? What kind of corporate restructuring introduced ? Critical look at Xiangtan Electrochemical Group major shareholder how to choose .

The first half of 2013 , total assets of Xiangtan Electrochemical $ 1.3 billion , while attributable to shareholders of listed companies net assets of only 297 million yuan , total liabilities of 944 million yuan , asset-liability ratio reached 72%. Of which non -current liabilities of only 059 million yuan , 885 million yuan and current liabilities , current liabilities accounted for more than 93% .

In current liabilities , short-term loans accounted for nearly half of the total amount of 410 million yuan , 450 million yuan over the beginning of a slight decline. However, further increase in notes payable , by the beginning of 281 million yuan to 229 million yuan . Other receivables , prepayments , accrued staff costs and other current liabilities increased significantly .

Right Xiangtan Electrochemical direct result of short-term liabilities pressure comes mainly from short-term loans and notes receivable , both liabilities totaled 691 million yuan , the equivalent of the net assets of Xiangtan Electrochemical more than twice .

Possible future restructuring plan , in addition to re-side shares programs, debt restructuring plan stripping scheme or reorganization will be the key point . But it is undeniable that, as a large state-owned holding enterprises Xiangtan Electrochemical Group , then how to choose the path will Xiangtan Electrochemical restructuring of this high-quality shell resources play the most critical role in the future .

2012 Restructuring died

As Hunan local state-controlled listed companies , the integration of large-scale mining enterprises in Hunan is more realistic . However, the current macroeconomic environment is still not much good can support the integration of mining

Enter 2012 in the third quarter , a loss of Xiangtan Electrochemical began to expand , single -quarter loss amounted to 10.16 million yuan , 25.27 million yuan the first three quarters of losses . To the end of 2012 , the annual loss of face appeared , losses amounted to 49.24 million yuan . Xiangtan Electrochemical operating status faced much more severe than in 2011 .

Since 2013 , Xiangtan Electrochemical also difficult to turn around. 2013 first half net profit of -2395 million. For the third quarter of Xiangtan Electrochemical performance , the market is expected to continue increasing loss.

Imagine, then Xiangtan Electrochemical faced pressure to perform will not be less than the first half of 2013 and 2012 , while the country's largest manufacturer of electrolytic manganese dioxide has the aura is not important , the most important is how Paul Shell deficits as quickly as possible .

For Xiangtan Electrochemical , the short-term losses realized the only hope is to integrate high -quality asset package or introduce strategic investors to enter and achieve a real sense of reorganization , which is most investors want to see , is not 2012 feint .

Xiangtan Electrochemical intended restructuring , which has been on the market is not a secret .

October last year , the controlling shareholder of Xiangtan Electrochemical Xiangtan Electrochemical Group announced that is planning significant matters relating to listed companies . A month before , as the market spread on Xiangtan Electrochemical restructuring news, Xiangtan Electrochemical the price from 6.58 yuan rose all the way up to the 9.84 yuan .

However, this time nearly a month of re-suspension ultimately did not make the trip. Xiangtan Electrochemical Group major shareholder reason given is the introduction of strategic investors to increase their investment in major matters more complicated, there is uncertainty , decided to terminate the planning of this major issues.

At that time the most popular on the market two versions , one in Hunan Xiangtan Electrochemical integration of rare earth , the other is a group of Xiangtan Electrochemical asset injection , to achieve the overall market. Both stories have not been Xiangtan Electrochemical confirmed, but its restructuring has been very clear intention , but as a state-owned background , but with high-quality shell resources listed company, Xiangtan Electrochemical restructuring optional room is large, negotiating ability.

From the perspective of security shell , the current restructuring of Xiangtan Electrochemical wishes more strongly. More practical problems, as the choice of what kind of company restructuring side , is the Group's parent , or mining enterprises with regional non- high-growth companies like mine ?

Before , Jiangxi rare earth, rare earth , Hunan , Xiangtan securities have appeared Xiangtan Electrochemical achieve backdoor listing of rumors. The industry believes that , as the Hunan local state-controlled listed companies , the integration of large-scale mining enterprises in Hunan is more realistic . However, the current macroeconomic environment is still not much good can support the mining industry consolidation.


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