Miss Dong's 'repair dream' was frustrated.
Prior to Dong Zhuzhu's full involvement in Zhuhai Yinlong, the listing approach was soon to be 'broken down', and the huge funding gap left by the rapid expansion of the market was likely to face a genuine 'death and death' after the listing was blocked.
Those who are smart and powerful, such as Dong Mingzhu, have encountered setbacks in cross-border investment in emerging industries, not to mention A-share small companies. Therefore, it is reasonable for regulators to strictly monitor cross-border M&As!
Zhuhai Yinlong listed emergency 'down anchor'
On May 30th, the Guangdong Securities Regulatory Bureau disclosed that the latest issue of Guangdong Province has reported that the listed company’s counseling work schedule shows that Zhuhai Yinlong New Energy Co., Ltd. (hereafter referred to as 'Zhuhai Yinlong')’s coaching progress bar shows The "counselling termination" is the latest schedule for January 17, 2018.
This means that just 8 months after the introduction of counselling by China Merchants Securities, Zhuhai Yinlong's sprint listing trip has come to an abrupt halt. This gives Dong Mingzhu, who is still in the dream of making cars, a “wake up” service. .
In May 2017, Shanghai Securities News China Securities Net spearheaded the exclusive disclosure of the 'Zhuhai Yinlong sprint IPO' message, which has attracted strong public opinion.
Zhuhai Yinlong was originally an unnamed company. It was planned to acquire 100% equity at a price of RMB 13 billion from Gree Electric Appliances. The company's reputation has risen. With the involvement of Dong Mingzhu and Gree Electric Appliances, the value of Yinlong has skyrocketed.
However, the acquisition plan was eventually aborted due to the opposition of Gree Electric's small and medium-sized shareholders. The diversification strategy of Gree Electric under Dong Mingzhu’s leadership was also subject to setbacks. Zhuhai Yinlong’s first attempt to defeat the A-share IPO market defeated.
However, after Dong Mingzhu's "Zhongzhong" Zhuhai Yinlong did not give up.
After the acquisition plan was rejected by the shareholders' meeting, in December 2016, Dong Mingzhu, in his own name, Wang Jianlin of Wanda, Liu Qiangdong of Jingdong, and other institutions, signed a capital increase agreement with Zhuhai Yinlong, and transfused 3 billion yuan. Yuan, 22.325% stake in Zhuhai Yinlong.
After the capital increase, the valuation of Zhuhai Yinlong was RMB 13.4 billion. Dong Mingzhu’s shareholding ratio was 7.46%, ranking Zhuhai Yinlong’s fifth largest shareholder.
Shortly afterwards, Zhuhai Yinlong made a further capital increase. Dong Mingzhu’s shareholding ratio increased to 17.46%, making Zhuhai Yinlong the second largest shareholder.
According to Zhuhai Yinlong's latest shareholder structure, the current registered capital of the company is RMB 1.103 billion, the number of shareholders is 24, Sunshine Life Insurance, Wanda Group, and bus media are listed.
The predecessor of Zhuhai Yinlong was Guangdong Yintong Investment Holding Group Co., Ltd., which was registered and established by Wei Yincang in 2004. After Wei Yincang tried several areas of investment, he finally turned his attention to the power battery.
In 2010, Zhuhai Yinlong acquired a 53.6% stake in OT Nanotechnology Co., Ltd., a company listed on Nasdaq in the US, for US$57.5 million, and obtained lithium titanate battery technology and production lines.
However, in the current field of power batteries, compared to ternary materials and other power battery technologies, the technical route of lithium titanate batteries has always been viewed in the market cautiously. Its main drawback is its low energy density and large size, and it is difficult to achieve national subsidies for new energy buses. Technical requirements, so promotion is very difficult.
Extreme Speed 'Brake' hidden
Since this year, Zhuhai Yinlong has been exposed by negative news.
In May, there was a large-scale shutdown of the Yinlong Automobile Industrial Park in Yanwuan, and the employee's departure was viewed by public opinion.
Subsequently, there was another news report that the Chengdu Yinlong New Energy Co., Ltd. vehicle factory was in a semi-suspended state in the last three to four months;
The general manager of Tianjin Yinlong New Energy Co., Ltd. climaxed, due to shortages of capital budget and charging station infrastructure, Tianjin Yinlong currently has 500 new energy vehicles worth 700 million yuan backlog at the factory.
Behind the news was the rapid expansion of Zhuhai Yinlong in the past two years. After the first capital increase by Dong Mingzhu, Wang Jianlin, and Liu Qiangdong at the end of 2016, rapid expansion began.
In December 2016, Yinlong Chengdu New Energy Industrial Park project started, with a total investment of 10 billion yuan;
In January 2017, Lanzhou Yinlong New Energy Industrial Park project was signed. The first two phases plan to invest 2.5 billion yuan;
In February 2017, Yinlong and the Tianjin Municipal Government signed a cooperation framework agreement to build a new energy battery and automotive industry base with a total investment of 7 billion yuan in the first phase;
In May 2017, Yinlong New Energy Nanjing Base commenced construction and plans to invest 10 billion yuan;
In July 2017, Yinlong and Panzhihua signed an agreement to deploy new energy and new material bases, and the project investment was not less than 5 billion yuan. In the same month, Yinlong acquired the Nanjing Bus Factory to complete the framework agreement;
In August 2017, Yinlong announced the construction of a new energy industrial park and national headquarters in Zhuhai with a total investment of 19.5 billion yuan. In the same month, Yinlong and Luoyang signed a cooperation agreement. Yinlong will invest in Luoyang New Energy Industrial Park with a total investment of 15 billion yuan. ......
In less than a year, Zhuhai Yinlong has signed a total of 11 new industrial parks in Lanzhou, Nanjing, Tianjin, Luoyang and other cities, of which 7 are under construction and the total cost is over 80 billion yuan.
The rapid expansion seems to have brought book achievements to Zhuhai Yinlong.
Looking at the financial report of Yinlong in Zhuhai in recent years, we found that in 2014-2016, the revenue of Zhuhai Yinlong was RMB 248 million, RMB 3.862 billion, RMB 7.898 billion, and the net profit was RMB -266 million, respectively, which was RMB 416 million. Billion. However, in the past three years, the new energy subsidies declared by Zhuhai Yinlong have reached 55.50 million yuan, 10.16 billion yuan and 2.235 billion yuan respectively.
In April of this year, Gree Electric released its 2017 annual report. In 2017, Zhuhai Yinlong realized operating revenue of 8.752 billion yuan, an increase of 10.8% year-on-year; net profit was 268 million yuan, a year-on-year drop of 67.94%.
In addition, in February 2017, Gree Electric and Zhuhai Yinlong signed a related party transaction agreement of no more than 20 billion yuan, and finally showed in the annual report of Gree Electric Appliances that no transaction of any amount was executed.
The data shows that in 2017, Zhuhai Yinlong sold less than 7,000 new energy vehicles. And Wei Yincang, the former chairman of Zhuhai Yinlong, previously publicly stated that the purpose of Yinlong in 2017 was 30,000 units of production capacity and sales of 300 yuan. Billion.
In fact, the crisis signal of Yinlong in Zhuhai has already begun to appear in 2017. This can be seen from the dramatic changes in personnel.
In November 2017, the founder of Yinlong Company, former chairman Wei Yincang resigned, and Sun Guohua, who is the old partner of Wei Yincang, concurrently served as chairman of the company. The legal representative of the company was changed from Wei Yincang to Sun Guohua.
In January of this year, Zhuhai Yinlong was again exposed to the payment of huge amounts of money from suppliers, and it was in the same name as Zhuhai Siqi Electric Vehicle Equipment Company.
At the end of March, Zhuhai Yinlong held its first temporary board of directors in 2018, and Sun Guohua, who has served as Chairman for nearly four months, resigned as chairman and president of the company. Lu Chunquan, general manager of Zhuhai Yinlong’s fifth largest shareholder, Purun Capital, Chairman, Lai Xinhua, former vice president of Silver Long who served in Gree, served as President of Yinlong Company.
On April 4, the legal representative of Zhuhai Yinlong was changed from Sun Guohua to Lu Chunquan.
Two weeks later, on April 19th, the legal representative of Zhuhai Yinlong was changed from Lu Chunquan to Lai Xinhua.
Miss Dong's new problems
The rapid expansion has consumed a lot of money, but Zhuhai Yinlong's investment projects have not been able to bring in cash flow in time. Listing financing has become the best choice. However, Zhuhai Yinlong’s emergency 'broken down' on the IPO road has left huge Funding gap, this also brings new problems to Dong Mingzhu who has already got in the car.
'I hope everyone will sit in Gree's car, call Gree's mobile phone, control the temperature of air-conditioning in the home, and enjoy the delicious food that Gree will bring to you. ' Dong Mingzhu's dream of building a car has long been known to the world.
The reason why 'Shangzhong' Zhuhai Yinlong and Dong Mingzhu also said: 'I invested in Yinlong, not because the Gree acquisition was unsuccessful, but I compromised, but because I am optimistic about this technology.'
The tough Dong Mingzhu, a little 'good bet'. She said: 'I'm willing to put all my assets into Yinlong.' She wants to do something subversive!
If calculated based on the value of Zhuhai Yinlong's capital increase of RMB 13.4 billion at the time, Dong Mingzhu’s holding 17.46% of equity would require RMB 2.34 billion.
However, afterwards, she also raised a heated statement: “I’m holding my shares and I can give it to you if you want. Because I don’t go, the relationship between Yinlong and Gree is gone. So much intelligence. Equipment company, why do people use your Gree. '
In the recent two years of the promotion of Zhuhai Yinlong, Dong Mingzhu has invested not only in real money, but also personally, in the name of Zhuhai Yinlong platform, and in the two years after the Zhuhai Yinlong “car”, it has exposed various problems. Maybe Dong Mingzhu has the feeling of 'fatigue driving'.
However, at the age of 64, Dong Mingzhu still believes that he is 'still very young'. 'Although I am over 60 years old, my heart is like 25 years old.'
Dong Mingzhu still has a lot of dreams. In addition to 'repair dreams', she still has 'phone dream' and 'chip dream'.
On the evening of June 4, Gree Electric announced that due to the nomination of the company's new board of directors, board of supervisors, and supervisors, the election of the company's board of directors and the supervisory board was postponed. The term of the special committees and senior management of the company's board of directors was extended. Corresponding delay.
And on May 31 of this year, it should be the last day of the second term of the chairman of Gree Electric Appliances.
Collins's "From Good to Great" has revived the successes of many great companies' ups and downs. History tells us that excellent companies often experience disastrous failures, learn from failures, and adjust their direction to become truly successful.
Zhuhai Yinlong can make a comeback? Dong Mingzhu how to turn the tide? Time is the best referee.
A success or failure, think about it!
The troubled Zhuhai Yinlong really made it difficult for investors who have invested in the company to add to the dungeon. Gree Electric and its shareholders who had lost contact with Zhuhai Yinlong should secretly be glad that they successfully avoided a potential big mine. .
First of all, thanks to the small and medium shareholders of Gree who voted against the two years ago.
Back in time--
On August 19, 2016, several months after the suspension of trading, Gree Electric Appliances successively issued 35 announcements, mainly intended to spend RMB 13.0 billion to acquire 100% equity of Zhuhai Yinlong.
Two months later, on October 28, Gree Electric held the 2016 first extraordinary general meeting of shareholders to vote on the acquisition plan.
On this day, under the opposition of many small and medium shareholders, the acquisition ran aground. On the same day, the video of Dong Mingzhu's 'fighting' at the shareholders' meeting spread wildly. It also triggered heated discussions among all parties.
On October 30, two days later, Gree Electronics issued an announcement on the resolution of the extraordinary general meeting of shareholders.
Although the “Proposal on the Company’s Proposal for Purchasing Assets through the Issuance of Shares to Specific Targets” was approved by the “Yinlong Motion” proposal (voting results show that the motion is a risk-free clearance, the proportion is 66.96%, which is just over 2/3. Half of the medium and small shareholders voted against it. However, 15 proposals such as the “Proposal on the company to raise matching funds” had not been approved, and the majority of small and medium shareholders cast a negative vote.
This created a difficult problem at that time: The general motion was not passed, but the sub-proposal of the issue of shares to purchase assets was passed. The plan for the acquisition of Zhuhai Yinlong passed or failed. This result is for everyone. It's a fog.
After a dispute of about half a month, Gree Electric Appliances issued an announcement on the evening of November 16. The company received a written letter from Zhuhai Yinlong on the same day and was informed that the adjusted trading plan failed to obtain the Zhuhai Yinlong shareholders meeting. After deliberation and approval, Zhuhai Yinlong decided to terminate the transaction based on the voting results. Gree Electric Appliances decided to terminate the plan to issue shares to purchase assets.
This is undoubtedly the victory of Gree small and medium shareholders.
Recall that if it was not when small and medium shareholders actively participated in and involved in the decision-making process of Gree Electric Appliance's major acquisition, what would be the current loss of Gree Electric Appliances in Zhuhai Yinlong?
It is the majority of small and medium shareholders that Gree Electric this outstanding company is not caught in the quagmire.
The Yinlong incident in Zhuhai gave a good inspiration to the A-share market. The promotion of the company’s development requires the joint efforts of stakeholders including shareholders and managers, and the laws and regulations of corporate law, securities law, and corporate governance guidelines of listed companies were granted. Every shareholder has the right to vote.
The significance of corporate governance lies in safeguarding the common interests of all parties through mutual restraint mechanisms. Corporate governance cannot be limited to supervising management, protecting the interests of major shareholders, but also protecting the interests of small and medium shareholders, employees, and creditors and other stakeholders.
As a company's shareholder, even small and medium-sized shareholders who do not have a large number of shares, do not use 'rights' as small, but do not become 'silent majority' with a small share. They should actively become participants and promoters of corporate governance.
To cherish the voting rights of each share of good hands, this not only concerns the individual interests of small and medium shareholders, but also concerns the interests of the entire company and even the interests of the entire society.