Dehao Runda added hair
[Source: "High-tech LED - Research and Review" May issue / reporter Zhang Yashu] " This is a capital-intensive, technology-intensive, cyclical industry, not a small capital to play. Look at today's silicon semiconductor, It is possible to predict the LED of tomorrow." This is the rhetoric that Wang Haolei, Chairman of Dehao Runda, had in his exclusive interview with Gaogong LED in 2011.
On April 5, 2012, under the assistance of state-owned enterprises, Dehao Runda once again completed a private placement of 1.561 billion yuan. This is only a year away from the last $3.5 billion private placement. In addition, in November 2010, the company successfully issued 1.5 billion yuan at a price of 9.54 yuan per share. In less than 2 years, Dehao Runda has raised nearly 6.5 billion yuan for the expansion of LED projects.
It is worth mentioning that Dehao Runda's non-public offering refinancing is not easy.
First, the issue of the effective subscription is insufficient, and then the issuer and underwriters have no choice but to issue additional shares; then the subscription target reduces the number of subscriptions, causing the stock to fall below the lower limit of the issue, forcing other subscribers to make additional purchases. After experiencing the above flaws, this non-public offering refinancing was barely successful.
At this time, the shareholder structure of Dehao Runda has also undergone subtle changes.
In November 2010, the issue targets are controlling shareholder Dehao Investment, Wuhu Economic Development Zone Optoelectronic Industry Investment, Wuhu Longwo Lake Construction and Wuhu Yuanda Venture Capital. The latter three are state-owned assets background; the company's subscription for this private placement is “main force†"Yucheng Investment is also a state-owned sole proprietorship. After the completion of the private placement, the shareholding ratio of Dehao Investment is 21.04%, and the shareholding ratio of the four state-owned shareholders is 22.13%. So far, the total shareholding ratio of state-owned assets has exceeded the controlling shareholder.
Although the three successful issuances temporarily solved the urgent needs of Dehao Runda, the days of Wang Donglei are still not good, because the company is facing the most difficult moment after the transformation of LED. On the one hand, the local government's huge equipment subsidies, and on the other hand, the venture capital institutions with local state-owned backgrounds continue to dilute their equity. Dehao Runda seems to be steadily tightening the interests of the huge LED empire that it weaves and the interests of local governments.
Continue to madly invest
It is undeniable that LED is a burning industry. It’s inevitable that crazy investment leads to cash flow.
Dehao Runda’s 2011 financial report shows that the company achieved operating income of 3.07 billion yuan, an increase of 18.12% over the previous year. However, it is worth noting that the company's monetary assets decreased from 1.6 billion in 2010 to 860 million in 2011, a decrease of 46.70% from the end of the previous year. The company's 2011 current ratio was 1.0 times and the quick ratio was 0.76 times. As of the end of the first quarter of 2012, its short-term borrowings were 1.09 billion yuan, accounting for 16.12% of its total assets, total liabilities were as high as 4.1 billion yuan, and the asset-liability ratio was approaching 50%.
The current ratio and the quick ratio reflect the liquidity of the enterprise and the ability to repay the short-term debt of the enterprise. Generally speaking, the company is full of cash, the current ratio is generally more than 2 times, and the quick ratio is generally more than 1 time.
Obviously, the two indicators of Dehao Runda are lower than the safety level and show a trend of continued deterioration. Compared with Sanan Optoelectronics (600703.sz), Dehao Runda's liquidity is obviously behind. The data shows that Sanan Optoelectronics' current flow ratio was 3.28 times in 2011, and the quick ratio was 2.51 times.
The financial report shows that the operating profit margin of Dehao Runda in 2011 was mainly driven by the LED business, and the main reason for the increase in LED business was the significant increase in revenue of LED application products with higher gross profit margin, especially LED street lighting products during the reporting period. At the same time, this also includes the contribution of huge government subsidies. The data shows that during the reporting period, the company received a total of 513 million yuan from the local governments of Wuhu, Yangzhou and Handan, of which 437 million yuan has been included in the current profit and loss.
However, Dehao Runda paid a higher price for this.
The financial report shows that Dehao Runda's fixed assets rose rapidly from 600 million yuan in 2010 to 1.22 billion yuan in 2011. Among them, the amount of construction in progress is as high as 1.8 billion yuan. Up to now, the funding gap of the company's construction projects has reached 2.8 billion yuan, including 2.4 billion yuan in Wuhu LED industry project, 87.73 million yuan in Yangzhou LED industry project and 340 million yuan in Dalian LED industry project.
According to the financial report, during the reporting period, Wuhu Dehao Runda has received 50 MOCVD equipment, and Yangzhou Dehao Runda has received 30 MOCVD equipment, and 20 units have not yet been purchased. According to insiders of Dehao Runda, most of the new MOCVD machines currently in the Wuhu LED project are being commissioned. Since the commissioning cycle is usually long, the supporting chip production equipment also needs corresponding commissioning time. Coupled with the trial production period of more than half a year, the Wuhu project will not reach the conditions for mass production in the short term.
On April 5, 2012, under the assistance of state-owned enterprises, Dehao Runda once again completed a private placement of 1.561 billion yuan. This is only a year away from the last $3.5 billion private placement. In addition, in November 2010, the company successfully issued 1.5 billion yuan at a price of 9.54 yuan per share. In less than 2 years, Dehao Runda has raised nearly 6.5 billion yuan for the expansion of LED projects.
It is worth mentioning that Dehao Runda's non-public offering refinancing is not easy.
First, the issue of the effective subscription is insufficient, and then the issuer and underwriters have no choice but to issue additional shares; then the subscription target reduces the number of subscriptions, causing the stock to fall below the lower limit of the issue, forcing other subscribers to make additional purchases. After experiencing the above flaws, this non-public offering refinancing was barely successful.
At this time, the shareholder structure of Dehao Runda has also undergone subtle changes.
In November 2010, the issue targets are controlling shareholder Dehao Investment, Wuhu Economic Development Zone Optoelectronic Industry Investment, Wuhu Longwo Lake Construction and Wuhu Yuanda Venture Capital. The latter three are state-owned assets background; the company's subscription for this private placement is “main force†"Yucheng Investment is also a state-owned sole proprietorship. After the completion of the private placement, the shareholding ratio of Dehao Investment is 21.04%, and the shareholding ratio of the four state-owned shareholders is 22.13%. So far, the total shareholding ratio of state-owned assets has exceeded the controlling shareholder.
Although the three successful issuances temporarily solved the urgent needs of Dehao Runda, the days of Wang Donglei are still not good, because the company is facing the most difficult moment after the transformation of LED. On the one hand, the local government's huge equipment subsidies, and on the other hand, the venture capital institutions with local state-owned backgrounds continue to dilute their equity. Dehao Runda seems to be steadily tightening the interests of the huge LED empire that it weaves and the interests of local governments.
Continue to madly invest
It is undeniable that LED is a burning industry. It’s inevitable that crazy investment leads to cash flow.
Dehao Runda’s 2011 financial report shows that the company achieved operating income of 3.07 billion yuan, an increase of 18.12% over the previous year. However, it is worth noting that the company's monetary assets decreased from 1.6 billion in 2010 to 860 million in 2011, a decrease of 46.70% from the end of the previous year. The company's 2011 current ratio was 1.0 times and the quick ratio was 0.76 times. As of the end of the first quarter of 2012, its short-term borrowings were 1.09 billion yuan, accounting for 16.12% of its total assets, total liabilities were as high as 4.1 billion yuan, and the asset-liability ratio was approaching 50%.
The current ratio and the quick ratio reflect the liquidity of the enterprise and the ability to repay the short-term debt of the enterprise. Generally speaking, the company is full of cash, the current ratio is generally more than 2 times, and the quick ratio is generally more than 1 time.
Obviously, the two indicators of Dehao Runda are lower than the safety level and show a trend of continued deterioration. Compared with Sanan Optoelectronics (600703.sz), Dehao Runda's liquidity is obviously behind. The data shows that Sanan Optoelectronics' current flow ratio was 3.28 times in 2011, and the quick ratio was 2.51 times.
The financial report shows that the operating profit margin of Dehao Runda in 2011 was mainly driven by the LED business, and the main reason for the increase in LED business was the significant increase in revenue of LED application products with higher gross profit margin, especially LED street lighting products during the reporting period. At the same time, this also includes the contribution of huge government subsidies. The data shows that during the reporting period, the company received a total of 513 million yuan from the local governments of Wuhu, Yangzhou and Handan, of which 437 million yuan has been included in the current profit and loss.
However, Dehao Runda paid a higher price for this.
The financial report shows that Dehao Runda's fixed assets rose rapidly from 600 million yuan in 2010 to 1.22 billion yuan in 2011. Among them, the amount of construction in progress is as high as 1.8 billion yuan. Up to now, the funding gap of the company's construction projects has reached 2.8 billion yuan, including 2.4 billion yuan in Wuhu LED industry project, 87.73 million yuan in Yangzhou LED industry project and 340 million yuan in Dalian LED industry project.
According to the financial report, during the reporting period, Wuhu Dehao Runda has received 50 MOCVD equipment, and Yangzhou Dehao Runda has received 30 MOCVD equipment, and 20 units have not yet been purchased. According to insiders of Dehao Runda, most of the new MOCVD machines currently in the Wuhu LED project are being commissioned. Since the commissioning cycle is usually long, the supporting chip production equipment also needs corresponding commissioning time. Coupled with the trial production period of more than half a year, the Wuhu project will not reach the conditions for mass production in the short term.
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