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Hanergy's privatization offer has aroused shock and concern in the photovoltaic industry and the capital circle.
Hanergy
On October 23, Hanergy Mobile Energy Holding Group Co., Ltd. (hereinafter referred to as "Hanergy Mobile Energy") announced that it had decided to issue privatization offers to all investors holding shares of Hanergy Thin Film Power Generation Group Co., Ltd. After privatization, the company plans to list in domestic A-shares.
This news caused shock and concern in the photovoltaic industry and the capital circle. Li Hejun, Chairman of Hanergy, also said in interviews with many media that the return to A-share is based on confidence in the future of the domestic economy and A-share market, and the privatization proposal is also for the interests of minority shareholders. At the same time, he also said that the return of privatization at this time was "a particularly good opportunity, at the right time".
According to the announcement, Hanergy Mobile Energy has issued a privatization proposal to the listed company on October 12, and has been unanimously agreed by the board of directors of the listed company. The listed company requires Hanergy Mobile Energy to improve and implement the proposal in accordance with the requirements of the Hong Kong Code on Takeovers and Mergers.
Hanergy announced its planned privatization three years after its suspension, which is a capital buyback and relisting in line with the trend of the state's support for the private economy, relying on the world's leading technology and outstanding performance, and with the attitude of being responsible for the interests of small and medium-sized shareholders.
Reward oriented, no conflict between resumption and privatization
Hanergy was suspended for more than three years before its Hong Kong listed company planned to be privatized. Since May 20, 2015, Hanergy's shares were maliciously short and then suspended by the Hong Kong Stock Exchange, when Hanergy resumed trading has been a concern of many investors. President Li Hejun said in an interview that Hanergy has been working hard for the resumption of trading. The privatization proposal and resumption of trading are completely independent.
In January 2017, the Hong Kong Securities Regulatory Commission proposed two conditions for Hanergy to resume trading. Hanergy has fully supported this and made substantial progress: the first condition was completed in September 2017; The disclosure documents of the second condition for resumption of trading have been completed and submitted to HKEx for approval. And the data shows that Hanergy has been profitable for three consecutive years since 2016, and its financial condition is good. The resumption of Hanergy will only be released by the Hong Kong regulatory authority.
As for the specific reasons for the proposed privatization, Hanergy Mobile Energy announced that the trading of Hanergy Thin Film had been suspended for more than three years. For the protection of the interests of small and medium-sized shareholders, and with the approval of the board of directors of Hanergy Mobile Energy, it was decided to issue a privatization agreement to all investors holding shares of listed companies. In addition, the purchase price of no less than HK $5 per share directly reflects Hanergy's attitude to repay investors.
In this repurchase, the purchase price of Hanergy is no less than HK $5 per share. Based on the share capital of 42.1 billion shares, the market value of Hanergy Thin Film Power Generation can reach HK $210.5 billion. When trading was suspended three years ago, the share price of Hanergy Thin Film Power Generation was HK $3.91, with a total market value of HK $164.8 billion. The privatization of Hanergy will bring 28% premium space to investors who previously held Hanergy shares.
Both production line and performance
The privatization of the company requires huge funds and development confidence. Hanergy's confidence and confidence in privatization come from its leading solar thin film power generation technology, constantly innovative product lines, constantly pioneering new development models and striking revenue data.
After the stock suspension, Hanergy was not discouraged and continued to accelerate product research and development and new strategic layout. In July 2016, Hanergy released 4 solar cars at one go and entered the new energy vehicle industry; In May 2017, Hanergy thin film solar energy technology was applied to shared bicycles such as Mobil; On July 29, Hanergy thin film solar energy building material "Hanwa" was officially launched on the market; Mobile energy products such as solar power packs, power generation papers, Hanergy umbrellas, and solar mobile power generation equipment have been launched from the laboratory to the market by Hanergy; Recently, Hanergy strongly released the "Han Wall" that subverts the traditional construction industry. The rich product line is one of Hanergy's important capital.
Now, Hanergy has broken away from the traditional photovoltaic product manufacturing enterprise and become a "high-tech+energy" company focusing on high-end equipment manufacturing. Hanergy's unique "turnkey project" will include the R&D, design, sales and delivery of thin-film solar cell/module production equipment and the whole production line, as well as corresponding technical services, which will be applied to various local mobile industrial parks to deliver a full set of thin-film solar module production equipment production lines.
The unique model has brought a brilliant revenue performance. In the first half of 2018, Hanergy's main business income and net profit both increased significantly, and it has a good cash flow: in the first half of 2018, Hanergy's revenue reached 20.415 billion Hong Kong dollars, with a year-on-year growth of about 615%, and its net profit was 7.329 billion Hong Kong dollars, with a year-on-year growth of 30 times, setting a record for the best half year performance in history. As of August 27, the company had received HK $16.8 billion from customers, and the cash balance reached HK $6.8 billion.
Waiting for Huakai A-share
For Hanergy, an enterprise with outstanding performance and a leading position in the industry, there are many options for listing: strive to resume trading and continue listing in Hong Kong stocks; Or overseas, listed in the United States or Europe; Or return to China, listing in A-share, etc. Hanergy resolutely chose to return to A-share. Li Hejun said that Hanergy was full of confidence in the future development of the domestic economy and A-share market, and it was right time for Hanergy to return.
On October 20, the chairman wrote back to the private entrepreneurs who were praised in the "Ten Thousand Enterprises Helping Ten Thousand Villages" action, pointing out that since 40 years of reform and opening up, private enterprises have flourished, and the private economy has grown from small to large, from weak to strong, playing an important role in stabilizing growth, promoting innovation, increasing employment, improving people's livelihood, and becoming an important force in promoting economic and social development. It is the consistent policy of the Party Central Committee to support the development of private enterprises, which will never waver. The chairman's remarks have reassured Hanergy and other private enterprises in their great development.
National leaders and policies are keen on private economy. In addition, China Securities Regulatory Commission actively supports high-quality overseas listed enterprises to list in A-share market, prompting many overseas listed photovoltaic enterprises to choose to return to A-share market. This has become a trend in the photovoltaic industry: Trina Solar, Jing'ao Solar, Artes and other companies listed in the U.S. stock market have successively announced privatization, It is only a matter of time before we return to A-share market.
The good domestic policy and market environment, strong industrial advantage support and more stable financing environment provide a good foundation and opportunity for Hanergy to return to A-share. Wait for Hanergy to blossom its A-share market and help the photovoltaic industry to develop the private economy. The opinion of this article only represents the author himself. If the source of the article is a network reprint, this website is an information publishing platform. If there is infringement, please contact this website to delete it in time.
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