The first stock acquisition expansion, many fundraising bloo

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The first stock acquisition expansion, many fundraising "blood" economist song qinghui analysis

"High reputation is a double-edged sword. In pursuit of short-term results, publicly traded companies will remain focused on improving their performance through asset purchases. But if targets don't meet expectations, they will be prepared for damage." Soong told reporters that companies that benefit investors should remain vigilant.

Lisin reports from Beijing

Beijing capital (" capital ", 600008.sh) released its 2019 semi-annual report on August 30. In the first half of the year, the company achieved revenue of 574.8 billion yuan, up 25.52% over the previous year.

A reporter from China business journal noted that Capital's profit growth has nothing to do with its rapid expansion in recent years. However, the success of the acquisition has increased the risk of goodwill, with the book value of the initial goodwill equity being about 2.9 billion yuan in 2018.

An industry insider told reporters that a good reputation is worth investors' attention. "In recent years, acquisitions by environmental companies have generally been inappropriate. Companies like Capital Capital will have to slow down their acquisitions in the future and further consolidate and develop them."

Extend the aftermath

At present, green resource business, such as environmental business, village environmental business and sludge treatment, has become the first growth point.

In the first half of this year, the capital achieved a revenue of 574.8 billion yuan, up 25.52 percent year-on-year, while the net profit of homeless mothers increased by 53.06 percent to 313 million yuan. Among them, the company's income from environmental protection business is 445.5 billion yuan, accounting for 96.96%.

From 2016 to 2018, Capital Capital's operating profit increased by 12.04%, 17.36% and 34.14% respectively to 78.2 billion yuan, 928.5 million yuan and 12.455 billion yuan. Net income was 662 million yuan, 665 million yuan and 665 million yuan, up 13.92%, 0.18% and 17.55% respectively over the previous year.

Capital's growth is due to its rapid expansion. Since 2015, Capital Capital has completed 16 companies under the same control, according to public filings. However, due to mergers and acquisitions, the year-end book value of goodwill is about rmb2.9bn.

The goodwill for the company's first equity stake includes a number of acquisitions, including the acquisition of a 70 per cent stake in tongling capital water co., according to zhitong accounting firm.

In fact, apart from the first stock, other companies in the environmental field have also acquired mergers recently, which has won a high reputation. For example, in the first half of 2019, dasheng global owns 100% equity, minghuan co., ltd. owns 100% equity and liangke environmental protection co., ltd. owns 55% equity, guangdong shunhuan huatou invests 15% capital increase, and tianjian innovation owns 20% equity. Yingfeng environment's goodwill value reached 6.209 billion yuan. Song qinghui is a famous economist

"High reputation is a double-edged sword. In pursuit of short-term results, publicly traded companies will remain focused on improving their performance through asset purchases. But if targets don't meet expectations, they will be prepared for damage." Soong told reporters that companies that benefit investors should remain vigilant.

High debt

The reporter found that although the stock shares with the acquisition and expansion, but the accounts receivable are also "soaring."

In 2016-2018 and the first quarter of 2019, Capital Capital's trade receivables were 2.66 billion yuan, 2.282 billion yuan, 2.8 billion yuan and 2.82 billion yuan respectively. In the first quarter of 2019, Capital Capital's receivables increased 1.4 times compared with 2016.

In this regard, the company's operating profit for the first time in 2016 was 7 billion yuan, its year-end receivables were about 2.1 billion yuan, its 2018 operating income was 12 billion yuan, and its year-end receivables were about 2.9 billion yuan. A. Yuan company's operating profit increased by 58%, accounts receivable increased by 33%, affecting the management of accounts receivable.

The first stock says: "we have a cyclical performance delay in our product range and will add significantly to that by the end of the year. Customers are mainly local governments, reputation is worth affirmation. Environmental protection is a national strategic industry, which is the future of the industry. It's called multilateral protection. "

But some industry insiders told reporters that sewage treatment is a capital-intensive industry, while project construction and bonds account for more of the turnover. The purpose of accounts receivable is usually the government sector, revenue status depends on the local economic strength. In some areas, problems such as difficulty recalling or recovering long-term revenue are often present because of government finances and other reasons.

Reporters found that although mergers and acquisitions are expanding, but the first stock to raise capital to "blood."

On the evening of August 7, 2019, the first batch of shares announced plans to issue no more than 5 billion yuan of renewable corporate bonds. It can be issued in a lump sum or in instalments, and the money raised will be used to replenish working capital and return after deducting the cost of the offering. Bank loans. In addition, on May 7 and June 4, Capital Capital announced another plan to raise less than 11 billion yuan.

The company's first stock told reporters that the purpose of the fundraising is to recapitalize. First, a channel will be opened, including stock dividends and renewable corporate bonds, and one or more of the above financial methods will be selected according to the needs of the business development. We guarantee the healthy development of our company.

Subsidiaries have been punished many times

The first stock acquisition and expansion, multiple fundraising "blood"

In addition, the capital group's environmental problems have also been widely concerned by the outside world.

Between September 2013 and March 2019, Capital Capital and its subsidiaries received 79 fines. The fine amounted to more than 380,000 yuan, or 9,925,600 yuan. There were 29 environmental protection penalties, one fine, two production safety penalties, one industrial and commercial administrative penalty, two urban management and housing construction administrative penalties, and three. Given these penalties, Capital's environmental practices are excellent.

According to the promotion, on June 14, 2018, the company's first subsidiary, shangrao fengshun domestic waste treatment co., LTD. (--), normally operates water pollution control facilities such as anaerobic tanks, oxidation ditchings, ammonia removal towers and leachate treatment plants. Didn't work. Shangrao's environmental protection bureau has fined the city 1.1 million yuan for excessive chemical oxygen demand of water, ammonia nitrogen and phosphorus.

In addition, in February and June 2018, capital group yangzhou capital environmental protection energy co., ltd. and jiangsu suba waste car disassembly and recycling co., ltd. respectively received 450,000 yuan and 200,000 yuan. Has been punished continuously.

"Some companies are punished for environmental protection and have problems with internal control and governance," said kyung-hee Song, vice President. In the future, it will have a significant negative impact on the company's operations and will affect the next acquisition. "

About the environmental violations, the company's first stock told reporters that the first stock should be the second in the industry in terms of number and number of operations. It has more than 300 subsidiaries across the country, disseminates projects and implements environmental policies differently in different regions. For operational problems, the subsidiary's administrative penalty is about 20%, most of which are caused by the lack of inlet water quality, local government performance and other reasons. Due to operational reasons, the company's operation function is not the reason, so there is no problem with the operation management function. Former title: m&a expansion of capital creation