Transfer from: Wealth particle

(source: Chint official website)

According to the national enterprise credit information publicity system, Zhejiang Yaotai Shuzhi Technology Co., Ltd. was recently established. The legal representative is Lin Wei. At the same time, Lin Wei is also the chairman and general manager of the company. The registered capital is 20 million RMB, and the business scope includes software Sales; manufacturing of electronic components; manufacturing of other electronic devices; manufacturing of industrial automatic control system devices, etc.

The shareholders of the company are Jinhua Zhixin Technology Co., Ltd. and Zhejiang Zhengtai Automation Technology Co., Ltd. The shareholders of Zhejiang Zhengtai Automation Technology Co., Ltd. are Zhejiang Zhengtai Electric Appliance Co., Ltd. and Hangzhou Yunyong Enterprise Consulting Partnership (Limited Partnership), while the shareholders of the latter are Lin as, Gu Jiansu and Zhejiang Zhengtai Investment Co., Ltd. Zhejiang Zhengtai Electric Appliance Co., Ltd. is a single shareholder of Zhejiang Zhengtai Investment Co., Ltd.

according to a report in national business daily on June 20, recently, zhengtai anneng digital energy (Zhejiang) co., ltd. (hereinafter referred to as zhengtai anneng), which focuses on the development and operation of household photovoltaic business, applied for an IPO on the main board of the Shanghai stock exchange. Zhejiang zhengtai electric appliance co., ltd. (hereinafter referred to as "zhengtai electric") is its shareholder, holding more than 60% of shares.

Zhengtai Anneng's main business was the cooperative construction of household photovoltaic power plants, and then sold household photovoltaic power plants to third-party investors. From 2020 to 2022 and the first half of 2023, Zhengtai Anneng realized operating income of 1.633 billion yuan, 5.631 billion yuan, 13.704 billion yuan and 13.705 billion yuan respectively, and realized net profit of 0.253 billion yuan, 0.867 billion yuan, 1.753 billion yuan and 1.202 billion yuan respectively.

According to the official website, Chint Electric is China's first A- share listed company with low-voltage electrical appliances as its main business. Behind it is Chint Group Co., Ltd. (hereinafter referred to as "Chint"), which was founded in 1984 and is a world-renowned provider of smart energy system solutions. Chint has business in more than 140 countries and regions, with more than 50000 employees worldwide and a group operating income of 155 billion yuan in 2023, for more than 20 consecutive years on the list of China's top 500 enterprises. The chairman of Chint Group Co., Ltd. is Nan Cunhui. He is currently a member of the Standing Committee of the National Committee of the Chinese People's Political Consultative Conference, the vice chairman of the China Civil Chamber of Commerce, the chairman of the China Electrical Appliance Industry Association, the chairman of the Zhejiang Chamber of Commerce, and the first rotating chairman of the Yangtze River Delta Entrepreneur Alliance.

According to a report by Securities Star on June 5, 2024, Chint Electric's revenue broke through the 50 billion mark for the first time last year. However, in 2023 and the first quarter of this year, Chint Electric increased revenue and reduced profits.

income is difficult to increase profits, gross profit margin is reduced

Chint was listed on the-share market in 2010. Before 2016, the company's main business was low-voltage electrical appliances. After Chint New Energy was included under its command, a dual-main business pattern of low-voltage electrical appliances and photovoltaics was formed. As a rising star of cultivation, the photovoltaic sector has become an important part of the revenue and profit of listed companies.

Since 2023, the overall price of the photovoltaic upstream industry chain has shown a downward trend, the price of all links in the industry chain has fallen, and the price of the main material components for investment in the photovoltaic power plant system has fallen, further stimulating the demand for downstream installed capacity.

benefiting from the high demand for downstream installed capacity, chint electric will achieve operating income of 57.251 billion yuan in 2023, up 24.53 percent year-on-year. By industry, revenue from the low-voltage electrical appliance industry was 20.139 billion yuan, up 7.84 percent year-on-year, while revenue from the photovoltaic sector was 36.604 billion yuan, up 38.11 percent year-on-year.

although the overall revenue increased, the net profit attributable to the parent company during the same period was 3.686 billion billion yuan, down 8.27 percent from the same period last year. Given that the change in the fair value of the shares held by Chint Electric in Control Technology (688777.SH) had an impact of -0.123 billion yuan on the current net profit, the net profit attributable to the parent after excluding the impact of this factor was 3.809 billion yuan, down 4.49 percent from the same period in 2022.

Chint's gross margin has declined continuously since 2019. In 2019-2023, its gross margin decreased by 1.69 per cent, 4.83 per cent, 11.06 per cent, 6.36 per cent and 4.97 per cent, respectively. Gross margin in 2023 has hit its lowest point since listing.

in the first quarter of this year, Chint achieved revenue of 15.917 billion yuan, up 1.12 percent from the same period last year, while net profit attributable to its parent was 1.081 billion yuan, down 10.06 percent from the same period last year.

However, gross margin levels recovered in the first quarter, rising 8 to 22.94 per cent year-on-year to reach the same period in 2022.

Cash flow turns negative, important subsidiary seeks listing

Chint's inventory surged 68.81 per cent to $37.944 billion in 2023 due to an increase in power stations to be sold. In the first quarter of this year, inventories still surged 74.17 percent year-on-year to $36.229 billion, an all-time high. Large advances in inventory led to poor liquidity in Chint's operating activities, with operating cash flow in the first quarter falling from $4.14 billion in 2023 to-$1.171 billion in the first quarter of this year.

In terms of liabilities, in the first quarter of this year, Chint Electric's short-term loans were 6.28 billion yuan, up 305.7 percent year-on-year; non-current liabilities due within one year were 10.939 billion yuan, up 141.14 percent year-on-year. However, the book currency funds are only 8.988 billion yuan, there is a huge funding gap. In addition, Chint's long-term borrowing is also as high as 12.142 billion yuan.

The development of photovoltaic power plants is an asset-heavy, long-term business that requires high "financial resources" for enterprises. However, Chint's asset-liability ratio has remained high in recent years. In 2023 and the first quarter of this year, the asset-liability ratio was 61.5 and 60.7 respectively, both at historical highs.

Chint Electric is also trying to solve the financial problem. In June 2023, Zhengtai Electric decided to spin off Zhengtai Anneng, the core subsidiary of the photovoltaic sector, to be listed on the main board of the Shanghai Stock Exchange. Upon completion, Chint Electric will remain the controlling shareholder of Chint Aneng, and the latter's financial position and profitability will continue to be reflected in Chint Electric's consolidated financial statements.

in this spin-off, zhengtai anneng plans to issue no less than 0.271 billion shares, that is, no less than 10% of the total share capital of the company after the issuance. The IPO plans to raise 6 billion yuan, mainly for household photovoltaic power station cooperation projects, information platform construction projects, supplementary working capital and repayment of bank loans.

data show that chint anneng was established in 2015, when it belonged to chint new energy. With Chint New Energy being acquired by Chint Electric, Chint Anneng has also been included in the listed company system. At present, Zhengtai Anneng is the main body of Zhengtai electrical household photovoltaic business. In 2023, Zhengtai An can add more than 12GW of new installed capacity, accounting for about 29% of the country's new installed capacity for household photovoltaics. (Securities Star)

Editor: Gao Yang Zhaorui