Mubang High-tech, “China’s version of Lego”, plans to acquire a photovoltaic company at a premium of more than 500% by transforming its two main businesses

2022-07-01 0 By

The acquisition of Hao-an Energy is the first step for Mubang High-tech to transform from a single business of educational toys to a dual business of “educational toys industry + photovoltaic industry”.And now it is.On February 15, Mubang High-tech (603398, SH), known as “China’s version of Lego”, announced that it intends to pay cash to acquire 100% equity of Inner Mongolia Hao ‘an Energy Technology Co., LTD. (hereinafter referred to as Inner Mongolia Hao ‘an), which is held by Zhang Zhong ‘an and Yu Jumei. The transaction price is tentatively set at 1.1 billion YUAN.After the completion of this transaction, the company’s main business will increase the r&d, production and sales of photovoltaic silicon wafers and silicon rods.Reporters from National Business Daily noted that the deal was valued at a premium of more than five times over Inner Mongolia Hao ‘an’s net assets in 2021.On January 10 this year, Mubang High-tech announced that it planned to acquire 100% equity of Inner Mongolia Hao ‘an. The stock price of Mubang High-tech fluctuated sharply in the three trading days before the announcement.Today (15 days) announcement shows that the transaction target assets Inner Mongolia Hao an 100% equity transaction price tentatively set at 1.1 billion yuan.The reporter noted that as of the end of last year, Inner Mongolia Hao ‘an net assets of 170 million yuan, which is calculated, this transaction pricing premium of more than 5 times.Mubang High-tech will pay cash for the acquisition, including but not limited to its own funds, bank loans, non-public offering of shares, etc.On The 15th, Mubang High-tech also issued a non-public offering of shares plan, planned to raise 2.415 billion yuan, of which 1.1 billion yuan for the acquisition of Inner Mongolia Hao ‘an 100% equity project.It is worth noting that, according to the Equity Acquisition Framework Agreement, both parties will make payments according to the transaction progress, of which 600 million yuan will be paid annually by the Company within the performance commitment period, namely, 200 million yuan will be paid to the transaction object after the annual report of 2022, 2023 and 2024 (hereinafter referred to as the performance commitment period).During the performance commitment period, Inner Mongolia Hao ‘an shareholders Zhang Zhong ‘an and Yu Jumei promised the target net profit of the company (the lower before and after deducting non-recurring profit and loss) of 140 million yuan, 160 million yuan and 180 million yuan respectively.Then Inner Mongolia Hao ‘an current performance?In 2020 and 2021, the operating revenue of Inner Mongolia Hao ‘an is 341 million yuan and 826 million yuan respectively, and the net profit is 22.6336 million yuan and 104 million yuan respectively.Within one year, Mongolia Hao ‘an achieved 1.4 times of growth in operating income, net profit growth is nearly 3.6 times, it can be seen that the company is currently in a high-speed growth period.Why cross over to pv?Mubang Hi-tech changed its name in November last year, after its securities were simply called Bangbao Puzzle.As its name indicates, mubang High-tech’s main business mainly includes educational toy business, medical equipment business, education business and precision non-metallic mold business, among which the toy business accounts for more than 70%.In 2020, toy business revenue accounted for 77.64% of Mubang High-tech’s main business revenue.Inner Mongolia Hao ‘an’s main business is the research and development, production and sales of photovoltaic silicon wafers and silicon rods. At present, it has completed 1.5GW mono-crystalline silicon rods project, and its main customers are Jiangsu Shunfeng New Energy Technology Co., LTD., Jiangsu Runyang Yueda Photovoltaic Technology Co., LTD., etc.Mubang High-tech why from the toy manufacturing crossover heavy assets, high moat photovoltaic industry?In the past two years, mubang high branch’s performance is not good, decline.In 2020, the operating revenue was 502 million yuan, down 6.62% year-on-year, and the net profit was 0.4 million yuan, down 47.38% year-on-year.Mubang High-tech is also expected to return to the mother in 2021 net profit will be a loss, is expected to lose 130 million yuan – 140 million yuan.Mubang’s performance fell more due to the impact of COVID-19.In the earnings preview, Mubang said that the COVID-19 pandemic continues to be turbulent, the demand recovery in the downstream market is not stable, international freight costs have risen sharply, upstream raw material procurement costs are rising, and marketing business promotion costs have increased.Mubang said that after the completion of the transaction, Inner Mongolia Hao ‘an will greatly improve the asset quality and profitability of the listed company, and enhance the ability to continue operations.In addition to reversing the poor performance of the situation, mubang High-tech cross the photovoltaic industry, or from its new actual controller Liao Zhiyuan.After joining the company last year, Liao zhiyuan moved his registered address to Anyi County in Nanchang, Jiangxi province, and renamed the company.The acquisition transaction party Zhang Zhong ‘an, Yu Jumei also has a company under the name of Jiangxi Hao ‘an Energy Technology Co., LTD., just with Mubang High-tech new registered address located in the same county.Liao also owns a listed company, Singyuan Technology (300472, SZ), which is also involved in the photovoltaic industry.Last September, Singdollar announced a 249 million yuan contract with Shangrao Industry and Finance Supply Chain Management Co., Ltd. to sell automatic production equipment for silicon waste purification and recycling.Daily Business News