Earnings rose 20 times is not happy Jiawei shares face seven risk
Source: Date:2018-03-28

Complete business adjustment of Jiawei shares (recently given a mixed semi annual report: the company announced in the first half of 2016 to increase performance at the same time, has released seven major risk warning. Affected by this, good performance of two failed to boost the level of market performance, as of August 15th, Jiawei shares closed at 32.35 yuan, compared with the semi annual report released before fall 5%, inverse market trend line. Jiawei shares in 2016 semi annual report shows that the company's 1-6 month operating income 1 billion 299 million yuan, an increase of 220.14%; attributable to shareholders of listed companies net profit of 122 million yuan, an increase of 19.66 times. Since 2015, the company has completed the acquisition of the way through the extension of Huayuan new energy, electrical source in the acquisition of 100% stake, which entered the photovoltaic power plant producing areas, the formation of "photovoltaic, lighting, photovoltaic lighting +" business model. In fact, before the completion of the acquisition of two, Jiawei shares have fallen into financial difficulties. The first half of 2015, for the first time since the company suffered losses listed, its net profit of -655.17 million yuan, down 124.70%. The company was originally the main LED lawn lamp, LED lighting and other LED products and special components. The LED lawn lamp for the company's first major products, but the product profitability has declined in recent years. In 2014, the company LED lawn lamp products operating income 277 million yuan, down 13.37% year-on-year. But the product cost reached 203 million yuan, an increase of 14.39%. In 2015, the 24.40% increase in operating income, its operating costs also increased by 23.15%. In August 2015, Jiawei shares to complete the acquisition of Huayuan new energy, photovoltaic power plants and thus enter the field of EPC and the performance to "escape from the fire". In 2015, Jiawei shares achieved operating income of 1 billion 902 million yuan, an increase of 179.68%; attributable to shareholders of listed companies net profit of 137 million yuan, an increase of more than 15 times. It is worth mentioning that, EPC photovoltaic power plant project to replace the LED products became the first company main business, the business revenue in 2015 accounted for over 50%. In June this year, the completion of the acquisition of electric power by Jia Wei shares, the photovoltaic power plant industry chain layout is deep. The effect is immediate, the company's EPC photovoltaic power plant project and photovoltaic power generation revenue two performance increased significantly. The company in 2016 semi annual report shows that operating income of 776 million yuan EPC photovoltaic power plant project, the proportion of total revenue 59.74%, up 9.63 percentage points compared with the end of 2015. The photovoltaic power generation revenue of 128 million yuan, the proportion of total revenue 9.85%, up 4.96 percentage points compared with the end of 2015. Obviously, the two major acquisitions will Jiawei shares out of poor performance, and stood on the popular wind photovoltaic. But, why in the performance rose on the occasion but revealed seven significant risk? The so-called "into also Xiao He defeated Xiao He, Jiawei shares concern is the potential risk of the layout of the photovoltaic power plant industry chain brought. According to the 2016 semi annual report, the seven risk can be summarized as related to the company's management risk, product risk, LED photovoltaic subsidy policy risk, exchange rate risk, the risk of impairment of goodwill and commitment to performance risk. Among them, five of the companies involved in the business risk and photovoltaic power station. In the announcement, the company said it faces a "company expansion to bring the risk management", "photovoltaic power plant electricity subsidies and subsidies in decreasing risk, policy risk of photovoltaic power plants" and "goodwill impairment risk" and "merger performance commitments unfinished risk". In fact, by querying the company nearly two years of the acquisition will be difficult to find a series of acquisitions, the risk is directed at the company due to the photovoltaic power plant business layout. The first is, Jiawei shares spend 1 billion 800 million yuan, 1 billion 100 million yuan, has "swallow" Huayuan new energy and electric power. The new business is to inject the current popular Jia Wei shares photovoltaic air station, but new problems ensued. First of all, Jiawei shares face the risk of impairment of goodwill. Before the introduction of photovoltaic power plant industry, Jiawei shares the goodwill value of 135 million yuan. At the completion of the acquisition of Huayuan new energy, Zhengxiangbaiqi of electro-optic and electric power company, the goodwill total increase of 1 billion 335 million yuan, up 9.89 times. Secondly, to inject new business while boost the performance of the company, but due to the high proportion of business makes the new business will be about the overall performance of the company, and if the acquisition target fails to complete performance commitments, will greatly influence the performance of Jiawei shares. Transactions report shows that Huayuan new energy and electric power of the shareholders were performance commitments: Huayuan new energy commitment 2015-2017 years owned by the parent net profit of non deduction of not less than 258 million 906 thousand and 400 yuan, 334 million 570 thousand and 900 yuan, 366 million 144 thousand and 200 yuan, the source of power is committed to 2016-2018 years of female owned non deduction net profit of not less than 78 million 954 thousand and 100 yuan, 70 million 183 thousand and 800 yuan, 81 million 394 thousand and 800 yuan. In 2015, Huayuan new energy although owned by the parent of non deduction net profit of 259 million 531 thousand and 100 yuan, exceeded 624 thousand and 700 yuan, but its net profit in the first half of this year was 137 million 102 thousand and 100 yuan, completed only 40.98% goals this year, the second half of the pressure increased sharply. The source of power in the first half of this year net profit of only 3 million 581 thousand and 500 yuan, only 4.54% of the target this year. In addition, at the policy level, Jiawei shares also need to withstand the pressure. In April this year, the NDRC price department price department official has said publicly that China will improve the photovoltaic subsidies standards, establishing subsidy mechanism gradually reduced. This means that the policy subsidies for photovoltaic industry will gradually "fever". At the same time, with the domestic PV installed capacity continue to record, PV overcapacity intensified, which makes the regulation policy highlights. For example, the national development and Reform Commission announced last year that began in June 30, 2016 three in photovoltaic price cut. In view of this, although the reported performance rose nearly 20 times, Jiawei shares can not sleep without any anxiety. Fortunately, the company's current business symptoms have been clear, how to continue to maintain steady growth in an antidote against the disease "has become the performance of Jiawei shares next to solve the problem.

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