In 2019, the net profit turned from profit to loss to 1.6 billion yuan, a year-on-year decline of 1494.96%. One of the leading companies in China's new energy industry and the first domestic photovoltaic accessories listed company Aikang Technology (002610, Stock Bar), is deeply trapped in the quagmire.
In addition to the huge loss in performance, Aikang Technology is deeply involved in the guarantee risk.
1. Huge performance loss. Deeply trapped in the quagmire of guarantee. The annual report shows that the balance of Aikang Technology at the end of 2019 was 6.05 billion yuan, accounting for 147.21% of the net assets, of which more guarantees were provided to related parties; at the end of 2018, the balance of external guarantees was 4.795 billion yuan, accounting for 81.73% of the net assets.
According to the announcement of Aikang Technology , considering that the main debtor and its affiliates have been in a debt crisis as a whole, it is very likely that the company, as the guarantor, assumes the guarantee liability within the maximum guarantee scope, and there is great uncertainty in the results of the recovery, and the assets that can be recovered cannot be estimated.
, the auditing agency Zhongxinghua Accounting Firm (Special General Partnership) issued an audit report with reservations on the financial statements of Aikang Technology in 2019, and issued an internal control attorney report with reservations, both involving two matters: one is that sufficient and appropriate audit evidence cannot be obtained to judge the future debt repayment ability of the shareholder Suzhou Aikang Energy Engineering Technology Co., Ltd. and the company's controlling shareholder Jiangsu Aikang Industrial Group Co., Ltd. , and cannot judge the impact on the above-mentioned corporate guarantees on the financial statements. The company's evaluation and supervision part of the guarantor's guarantor was not effectively implemented; the other is that sufficient and appropriate audit evidence cannot be obtained to judge the use of funds and balance receivable funds receivable and equity transfer payments of the atomic company Nantong Aikang Metal Co., Ltd. and the recyclability of funds receivable and balance transfer payments, and the company has not effectively implemented the internal control system for the collection and payment management of funds.
Zxinghua Accounting Firm (Special General Partnership) also reminds users of financial statements to pay attention to Aikang Technology . The major uncertainty that may cause major doubts about the company's ability to continue operating due to large amounts of external guarantees, net profit in 2019 was -1.6 billion, and cumulative undistributed profit at the end of 2019 was -1.2 billion yuan.
For this reason, the Shenzhen Stock Exchange's inquiry letter requires Aikang Technology :
(1) According to the special statement of non-standard audit opinions issued by the annual audit accountant, as of December 31, 2019, your company's guarantee balance for energy projects was 766.3585 million yuan, and the guarantee balance for Aikang Industrial was 394.95 million yuan. Please explain the time, amount of funds, guarantee period, guarantee risk assessment and related guarantee measures (if any), the reasons and necessity of guarantees for your company to Energy Engineering and Aikang Industrial, as well as the internal review procedures and information disclosure of relevant guarantees, and please explain the specific reasons why your company has not effectively implemented the assessment and supervision of the guarantor and the next rectification measures.
(2) According to the special statement of non-standard audit opinions issued by the annual audit accountant, your company reduced the capital investment funds of Nantong Aikang in March 2019, and the capital reduction was receivable of RMB 179.3 million. In May 2019, your company transferred 51% of the equity of Nantong Aikang. As of the date of reporting, your company's balance of receivables to Nantong Aikang was 291.132 million yuan. Please disclose the operating conditions of Nantong Aikang since its establishment, and explain your company's main considerations for reducing capital and transferring equity funds for Nantong Aikang's investment funds, the reasons for the formation of the proceeds of equity transfers and the purpose of the funds.
(3) Please explain the reasons why your company failed to recover the receivables of Nantong Aikang in time, the current recovery situation and the arrangements for the recovery of uncollected funds, and the basis and rationality of the provision for impairment.
(4) Please explain whether your company discloses the transactions in the announcement of the sale of assets in accordance with regulations, whether it constitutes the provision of financial assistance and requires the implementation of review procedures and disclosure obligations, and the specific manifestations and reasons of your company's failure to effectively implement the internal control system for the collection and payment of funds.
(5) Please specify the reasons and rationality of the increase in the guarantee balance and the high proportion of net assets based on the business conditions of the guarantor, financing form, etc.
(6) Please explain whether your company has fully investigated the business and credit status of the guarantor before signing the guarantee agreement, whether there is a guarantee to the guarantor who is obviously not able to solve the problem, and whether the internal control of external guarantees follows the principles of legality, prudence, mutual benefit and security.
(7) Please check and explain whether your company will perform the review procedures and information disclosure obligations in accordance with Article 10.2.6 of the "Stock Listing Rules (Revised in November 2018)" of the Exchange, "If a listed company provides guarantees to related parties, regardless of the amount, it shall be submitted to the shareholders' meeting for deliberation after the board of directors' review and approval", and list the shareholders' meeting review and meeting time for the above-mentioned related guarantee matters.
(8) Article 8.3.5 of the "Guidelines for Standardized Operation of Small and Medium Enterprises Listed Companies (Revised in 2015)" of this firm stipulates that "the other party shall require the other party to provide counter-guarantees for external guarantees, and carefully judge the actual guarantee ability and the enforceability of the counter-guarantees of the counter-guarantee provider." Please explain the counter-guarantee situation obtained by your company's above external guarantees.
(9) Please check and explain whether your company has violated the prescribed procedures to provide guarantees to the outside world, whether there is a situation where the guaranteed debt needs to be extended after the maturity and needs to continue to provide guarantees but fails to fulfill the review procedures and disclosure obligations.
annual report shows that as of December 31, 2019, the company's shares held by Jiangsu Aikang Industrial Group Co., Ltd. (hereinafter referred to as "Aikang Industrial"), the controlling shareholder of Aikang Technology, has been frozen in total 531.4317 million shares, accounting for 78.76% of its shareholding ratio and 11.84% of the company's total share capital. The above-mentioned shares were frozen mainly because Aikang Industrial provided guarantees for the financing of Jiangsu Haida Technology Group Co., Ltd. (hereinafter referred to as "Haida Group") and its subsidiaries. Haida Group's creditors have taken property preservation measures for the shares held by the guarantor Aikang Industrial.
In the internal control forensic report issued by Zhongxinghua Accounting Firm (Special General Partnership), the auditing agency believes that it is impossible to obtain sufficient and appropriate audit evidence to judge the future debt repayment ability of energy engineering and Aikang Industrial, so it is impossible to judge the impact of the above-mentioned guarantees for energy engineering and Aikang Industrial on the financial statements, as well as the impact of the above-mentioned share freezing matters on the controlling shareholder status of Aikang Industrial.
In this regard, the Shenzhen Stock Exchange asked to explain the relevant progress of the frozen shares of the company's controlling shareholder, and the resolution measures that have been taken and planned to be taken will have an impact on the company's production and operation and control stability.
Aikang Technology disclosed in its annual report that the company's controlling shareholder Aikang has provided guarantees for Haida Group and its subsidiaries Kema Metal and Donghua Aluminum to the financing of Jiangnan Financial Leasing Co., Ltd. and Xinda Asset . Since Haida Group and its subsidiaries have been seriously affected, some loans are owed interest and related debts are overdue, Aikang Industrial, as one of the guarantors, may need to bear corresponding guarantee responsibilities. Therefore, Jiangnan Jinzu and Xinda Asset have taken property preservation measures for some of the company's shares held by Aikang Industrial. Aikang Industrial's 531 million shares (accounting for 78.76% of its shares and 11.84% of the company's total share capital) were frozen, of which the waiting number is 231 million shares (accounting for 34.30% of the shares held and 5.16% of the company's total share capital). The company's guarantee balance for Kema Metal and Donghua Aluminum has a total of 311 million yuan, of which the guarantee balance for Aikang Technology is 241 million yuan, and the guarantee balance for Kema Metal is 70 million yuan. Haida Group provides counter-guarantees for the above guarantees, but considering that Haida Group has currently defaulted on its debt, the implementation of its counter-guarantee measures may face certain difficulties. If Kema Metal and Donghua Aluminum are not repaid when they expire during the guarantee period, the company may bear the corresponding guarantee liability.
In addition, Aikang Technology disclosed in an announcement on May 11 that the above-mentioned guaranteed companies currently have interest arrears and overdue interest. Among them, the 41 million yuan loan from Donghua Aluminum to the Jiangyin Branch of Bank of China Co., Ltd. has been overdue, and its operations have also stagnated. The above two guaranteed parties cannot confirm their debt repayment ability.At present, a total of 120 million yuan of loans to Hengfeng Bank guaranteed by the company are about to expire, and the guaranteed company is facing overdue. According to the relevant guarantee agreement, the company faces compensation risks. The company is actively negotiating with the bank on loan transfer. During this period, if two loans are overdue, the company will further recover interest on overdue loans.
2. Performance briefing investors questioned the slogan of the market value of 100 billion yuan. It is recommended that the company be renamed as the guarantee company
Aikang Technology On the afternoon of May 14, an online performance briefing was held in the third floor conference room of Jintang Road Company, Zhangjiagang Economic Development Zone, Jiangsu Province.
Aikang Technology Chairman Zou Chenghui , Senior Vice President and Vice Chairman Yi Meihuai, Board Secretary and Vice President Zhang Jing, Financial Director Li Jing, and Independent Director He Qian attended the briefing.
Let’s experience the sharp problems of investors together.
1. Is there any suspicion of transfer of interests or asset transfer for your company’s external guarantees? Or what considerations are external guarantees based on? Who will bear the adverse consequences caused by long-term and multiple external guarantees?
Answer: Dear investors, the company's current operating conditions are normal, and external guarantee matters have strictly fulfilled the review procedures and disclosure obligations, and there is no asset transfer or interest transfer. Thank you for your attention!
2. When will your company plan to delist risk warning?
Answer: The company has not met the standards for delisting risk warning stipulated in " Shenzhen Stock Exchange Stock Listing Rules ". Thank you for your attention!
3. What is the number of shareholders as of May 13, 2020?
Answer: The company's latest shareholders' meeting was the fourth extraordinary shareholders' meeting in 2020 held on May 11. The equity registration date was May 6, and the number of shareholders was 237,880. Thank you for your attention!
4. Tell me about Aikang's story and Aikang's future. Let’s talk about the specific measures to turn losses into profits in 2020?
Answer: Dear investors, the company has disclosed its 2019 annual report. For details of the company's future development plan, please see "9. The company's future development prospects" in the annual report. The performance of the first quarter of 2020 has been announced, and the profitability is good. Although the company faces the risks of guarantee and impairment, the company's daily operations have not been affected. Thank you for your attention!
5. What measures does the company have to deal with the company’s stock price fall one after another?
6, Aikang Technology Why did Zhangjiagang Economic Development Zone in Jiangsu Province change from increasing holdings to reducing holdings? Why did the company reorganized several times and promised to increase its holdings, but it was repeatedly untrustworthy. As an investor of 180,000 shares, the market rises and it falls, and the market falls and it falls sharply. I feel very disappointed.
7. Hello, Secretary to the Board, Can the stock price of the solar sector increase a little?
8. What do you think is the biggest reason?
9. Faced with the continuous decline in stock prices, is your company's response measures contrary to the slogan worthy of the 100 billion market?
10. Hello, Mr. Zou. Aikang Technology currently ranks 45th last year in the Shenzhen and Shanghai stock markets, and is integrated with ST stocks. I have a deep understanding of the cost of 4.6 yuan. What is the problem with Aikang Technology ? Can you still turn over?
11, Aikang Technology has been falling since 2016, and the stock price has fallen for 5 consecutive years. When the market is good, the company still falls. Aikang Group has been beneficial. Aikang Technology announces that it is not only guaranteed, but also guaranteed. Why don’t it change its name to guarantee company? Are Aikang Group and Aikang Technology the same? Why has the additional issuance price not been released yet? Why has the second shareholder reduced his holdings at a loss? Are the second shareholders so unfavorable to your company? Why not buy back and cancel shares? Are you not optimistic about the future development of your company?
12. The company's stock price has been hovering on the verge of delisting of 1 yuan for many days. And there is a trend of acceleration. The shares transferred to the Industrial Corporation will be reduced again.If the stock is less than 1 yuan in the face value at the time of the game, it will be delisted, how much funds will the management prepare to maintain the stock price? Or will it be delisted if you can help you?
answer (5-12): Dear investors, the company is committed to doing its main business, improving profitability, and bringing better returns to shareholders and investors. The fluctuations in the stock price of the secondary market are affected by many factors such as policies, markets, and general environment. Please pay attention to investment risks and thank you for your attention!
13. Why at this time, the Economic Development Zone reduced its holdings and the company established heterojunction batteries. It was short of money, so why did it still provide risk guarantees? Now that the stock price falls and is close to delisting every day, the company has no measures. Why don’t you increase your holdings and maintain your stock price when you have money? You often issue some deception announcements. Restructuring has repeatedly breached trust, and the same is true for repurchasing.
Answer: The company's management continues to pay attention to the fluctuations in stock prices, and all Aikon people stick to their main business. I have confidence in the company's development. Thank you for your support.
14. The company's stock price is close to the brink of delisting. Why is the development zone still reducing its holdings at this time? The company has established heterojunction batteries, and is already short of money and has high-risk guarantees. Haven't the leaders fulfilled their commitment to increase their holdings?
Answer: Hello, investors, the reduction of holdings in the Economic and Technological Development Zone is based on its own capital needs. The commitment of the company's directors and senior executives to increase their holdings has been fulfilled.
15. 1. How can the company prevent and control the risks brought by guarantee 2. When will the company's heterojunction batteries be mass-produced and shipped? What is the production capacity? 3. What aspects will the company mainly use to explore and ensure the company's profit and development? 4. The stock market continues to fall. How can the company guarantee the interests of small and medium-sized investors?
Answer: The company's board of directors is conducting a comprehensive assessment of the asset quality, industry prospects, debt repayment ability, credit status, etc. of the guarantor. The company's risk control and funding department designated special personnel to continue to pay attention to the situation of the guarantor, collect the guarantor's latest financial information and audit reports, regularly analyze their financial status and debt repayment ability, pay attention to their production and operation, assets and liabilities, external guarantees, division and mergers, changes in legal representatives, etc., establish relevant financial files and report to the board of directors. The company's Changxing base project has currently achieved mass production of components, and the battery equipment is still in the process of ordering. The company is committed to doing its main business well, improving profitability, and bringing better returns to shareholders and investors. The fluctuations in the secondary market are affected by various factors such as policies, markets, and general environment. Thank you for your attention!
16. Why does your company end up breach of trust every time it announces restructuring? However, at this time, the development zone changes from increasing holdings to reducing holdings. Are you not optimistic about your company, or is there any financial problems with your company?
Answer: Dear investors, the company has actively expanded according to the company's strategic plan in recent years, and the company has made prudent decisions based on changes in market conditions. The reduction of holdings by the Economic and Technological Development Zone Industrial Corporation is due to its own financial needs. Thank you for your attention.
17. What is the progress of the company's Changxing Island heterojunction project?
18. Hello, Mr. Zou. The news report is the Aikang Technology Changxing base that can be put into production in December 2019. It will only be the efficient components that are offline by the end of April. I wonder when the battery will be put into production? Is it because of lack of funds that the equipment is not in place?
19. Has the heterojunction been put into production?
answer (17-19): The components of the company's Changxing base project have been partially mass-produced, and the battery equipment is still in the process of ordering. Thank you for your attention!
20. Hello, Mr. Yi. What are the current photovoltaic production capacity of the three major production bases in Zhangjiagang, Changxing, Zhejiang and Ganzhou, Jiangxi? What is the final planned total production capacity?
Answer: The company currently has three battery module production bases in Zhangjiagang, Jiangxi, Ganzhou and Changxing, Zhejiang, with a 1.2GW module production capacity and 450MW battery production capacity. In 2020, the company will continue to increase its investment in efficient module battery manufacturing, focus on PERC, heterojunction technology, etc., further upgrade its battery production line, and win the market with service, quality and differentiated products. The company is actively promoting the investment and construction of efficient heterojunction batteries and efficient fully automated component factories in Changxing Green Manufacturing Industrial Park. The company is actively planning heterojunction battery manufacturing, based on the special electrical performance and design of heterojunction batteries. The company is committed to becoming the world's most leading high-efficiency battery manufacturer.
21. Hello, Mr. He. The company's share increase announcement was not implemented without keeping its promise; a large proportion of mortgage guarantees higher than the total net assets caused huge losses. These problems occur, how do you monitor them as independent directors? What to do in the future?
Answer: Dear investors, the company's directors and senior executives' commitment to increase their holdings has been fulfilled. The losses in 2019 are mainly due to asset impairment and the provision of bad debts for guarantees of 311 million yuan. As an independent director, I will continue to pay attention to the progress of the company's guarantee matters, and communicate more actively about the new guarantees in the future to urge the company to control risks. Thank you for your attention.
22. WeChat Aikang Group is constantly beneficial, why is Aikang Technology indifferent? Is Aikang Group and Aikang Technology the same company?
Answer: Dear investor, Jiangsu Aikang Industrial Group Co., Ltd. is the controlling shareholder of Aikang Technology .
23. Hello, Mr. Zou. Is the European Climate Fund Joint Development Fund signed with Aikang? Is the listed company Aikang Technology signed, or is your Aikang Industrial signed? What does it mean to the company? What is the reason why the stock price has not reacted?
Answer: Dear investors, the European Climate Fund Joint Development Fund is not signed by Aikang Technology . Thank you for your attention.
24. The company once announced that it would repurchase its own stocks of no less than 150 million. Because of the entry and acquisition of Jiangbei Yize of Zhangjiagang Economic and Technological Development Zone, it was always in a sensitive window period and could not be repurchased. Now Yize's acquisition failed. Zhangjiagang announced that it would reduce its holdings and is in a non-platform period. Will the repurchases continue to be implemented?
Answer: Dear investor, Hello, the company's share repurchase has been terminated. Thank you for your attention.
Chairman: Why does Aikang Technology keep falling, what are the company's business expansion, what are the new growth points
25, why does Aikang Technology keep falling, what are the company's business expansion, what are the new growth points?
Answer: Hello, investor, the company's stock price has been affected by all aspects. We have made a detailed explanation in the 2019 annual report on the expansion of the company's main business. Please check it out.
26. Hello, Mr. Yi. When will the heterojunction project of Changxing Base be officially put into production? The company's WeChat official account posted news, including news photos, which are displayed as 2GW in the banner, but the private placement announcement said the project was 1.32GW. Which number is accurate?
Answer: The components of the company's Changxing base project have been partially mass-produced, and the battery equipment is still in the process of ordering. The 2GW involved in the company's WeChat official account is the future plan, and the 1.32GW involved in the private placement project is part of the above project, and there is no conflict. Thank you for your attention!
27. Although the company has not met the standards for delisting risk warning stipulated in the "Shenzhen Stock Exchange Stock Listing Rules", there are regulations for delisting on face value, and the company's stock price continues to decline. When it reaches a certain stage, it may enter a state of panic decline. Whether the company's management is alert to this and whether there are pre-control measures. Mr. Zou is willing to delist Aikang.
Answer: Hello, investor, the company's abandonment of the acquisition of Ningbo Yize project is a prudent decision made based on the actual situation of the company and due diligence results. Thank you for your attention.
28. Although the company has not met the standards for delisting risk warning stipulated in the "Shenzhen Stock Exchange Stock Listing Rules", there are now regulations on delisting with face value, and the company's stock price continues to decline. When it reaches a certain stage, it may enter a state of panic decline. Is the company's management alert about this and whether there are pre-control measures. Mr. Zou is willing to delist Aikang.
Answer: The company's management continues to pay attention to the fluctuations in stock prices, and all Aikon people stick to their main business. I have confidence in the company's development. Thank you for your support.
29. Please tell me about your thoughts on your company’s guarantee for Donghua Aluminum and its pros and cons?
Answer: Jiangsu Haida Technology Group Co., Ltd. was established in 1979 and is the largest private tinplate and aluminum profile manufacturer in East China. Since its establishment, Aikang Technology has been an upstream and downstream business cooperation relationship with Donghua Aluminum, a subsidiary of Haida Group, and has formed a mutual insurance relationship based on domestic financing requirements.Recently, the production and operation of Haida Group has encountered difficulties, which has had a certain impact on its guarantee circle enterprises. At present, Aikang Industrial Group, the major shareholder of the listed company, is actively facing the accelerated processing. On the one hand, it continues to hold a coordination meeting with members of the debt committees of all parties to maintain stability. On the other hand, Aikang Industrial is implementing measures to introduce strategic investors in steps and achieve strategic breakthroughs such as mixed-ownership reform of Aikang Industrial, in order to eliminate Aikang Industrial’s guarantee risks to Haida.
30. The China Securities Regulatory Commission stipulates that shares cannot be issued privately if the annual report of the certified public accountant issued a reservation opinion in the previous year. What arrangements will be made for your company's private placement of shares?
Answer: Dear investors, according to Article 39 of the "Regulations on the Administration of Securities Issuance of Listed Companies", companies that have issued a reservation opinion audit report may conduct a private placement of shares after the major impact of the matters formed by the reservation opinion is eliminated. The company is actively solving related matters. Thank you for your attention.
31. Hello, Mr. Yi. Does the new infrastructure that the country has launched to respond to the epidemic this year include the solar photovoltaic industry? In addition, what is the domestic and international situation of photovoltaics this year? Is there a possibility that the company's performance will improve?
Answer: Global photovoltaics has maintained rapid growth in the past decade, and the annual new installed capacity continues to rise. According to data from the International Renewable Energy Agency (IRENA), the global photovoltaic new installed capacity maintained an upward trend from 2011 to 2018. The new installed capacity in 2018 was 97,302.6MW, an increase of 5.4% over 2017. In 2019, the photovoltaic industry showed characteristics such as a decline in domestic installed capacity but an increase in power generation, an acceleration of industrial integration, a growth in power generation, a decline in light abandonment rate, a blooming technology, and a double increase in export volume. In 2020, the industry development trend in 2019 will continue, with the installed capacity increasing by more than 100GW. It is expected that the new growth trend will continue to maintain a continuous growth trend in the future. Our company is in this industry with great development space and has always focused on related product manufacturing and services in the links of the industrial chain. The company is confident that it will make good achievements in the established strategic direction and repay investors. Thank you for your support to the company!
32. How much has the annual salary of management decreased compared to last year?
Answer: Dear investors, please refer to the company's 2019 annual report for remuneration, please refer to the company's 2019 annual report. Thank you for your attention.
33. Why don’t the charging bank project be launched?
Answer: Dear investors, the company is currently focusing on the development of its main businesses such as frames, brackets, and components, and has not invested in charging pile projects. Thank you for your attention!
34. The losses in 2019 are mainly due to asset impairment and the provision of bad debts for guarantees of 311 million yuan. These two situations will not exist in 2020. At present, Aikang Technology 's operating activities are normal. Therefore, investors should be confident that Aikang Technology will turn losses into profits in 2020, and even significantly increase in profits and profits year-on-year. Does Mr. Li think this is the reason? Thanks!
Answer: Dear investors, the company will focus on the development of its main businesses such as frames, brackets, and components, and actively improve its profitability. Thank you for your attention!
35. Among the losses in 2019, one of them is to make up for impairment. Why can't the country return the subsidized photovoltaic electricity price in a timely manner? Are you still in arrears now? Didn’t the industry speak out about this?
Answer: The new energy industry has maintained rapid growth for ten consecutive years. The industry planning of the National Development and Reform Commission and the funding support of the Ministry of Finance are in the process of exploration. The gap in new energy subsidies continues to grow. It is still in arrears. The company has reported and called on governments at all levels such as industry associations and the Federation of Industry and Commerce. At present, the country has promoted the application work of the eighth batch of lists and issued relevant policies. It is hoped that the arrears will be issued as soon as possible. Thank you for your support to the company!
36. Mr. Li, a company that has been issued a reservation opinion audit report, can issue shares privately after the major impact of the reservation opinion is eliminated. What impacts are the companies planning to eliminate? When will it be solved?
Answer: Dear investors, the company is actively eliminating matters formed by reservations. If there is any progress, the company will disclose it in accordance with relevant rules. Thank you for your attention.
37. Hello, Mr. Zou.Why do Aikang Group and Aikang Technology have to guarantee Haida Group if they want to save their lives? Now the investors who are deeply trapped in it are suffering. When will it take to understand this case of huge losses?
Answer: Jiangsu Haida Technology Group Co., Ltd. was established in 1979 and is the largest private tinplate and aluminum profile manufacturer in East China. Since its establishment, Aikang Technology has been an upstream and downstream business cooperation relationship with Donghua Aluminum, a subsidiary of Haida Group, and has formed a mutual insurance relationship based on domestic financing requirements. Recently, the production and operation of Haida Group has encountered difficulties, which has had a certain impact on its guarantee circle enterprises. At present, Aikang Industrial Group, the major shareholder of the listed company, is actively facing the accelerated processing. On the one hand, it continues to hold a coordination meeting with members of the debt committees of all parties to maintain stability. On the other hand, Aikang Industrial is implementing measures to introduce strategic investors in steps and achieve strategic breakthroughs such as mixed-ownership reform of Aikang Industrial, in order to eliminate Aikang Industrial’s guarantee risks to Haida. In the future, the company will make prudent decisions on guarantee matters of non-consolidated subsidiaries.
38. Hello, Mr. Yi. What is the situation in the photovoltaic industry this year? Is it possible for a company to turn the tables?
Answer: Global photovoltaics has maintained rapid growth in the past decade, and the annual new installed capacity has continued to rise
According to data from the International Renewable Energy Agency (IRENA), the global photovoltaic new installed capacity maintained an upward trend from 2011 to 2018. The new installed capacity in 2018 was 97,302.6MW, an increase of 5.4% over 2017. In 2019, the photovoltaic industry showed characteristics such as a decline in domestic installed capacity but an increase in power generation, an acceleration of industrial integration, a growth in power generation, a decline in abandonment rate, a blooming technology, and a double increase in export volume. In 2020, the industry development trend in 2019 will continue, with the installed capacity increasing by more than 100GW. It is expected that the new growth trend will continue to maintain a continuous growth trend in the future. Our company is in this industry with great development space and has always focused on related product manufacturing and services in the links of the industrial chain. The company is confident that it will make good achievements in the established strategic direction and repay investors.
39. I would like to ask President Yi, the public account of Aikang Group was published as "The Dream Chasing Optoelectronics Series 1: The Dream Chasing, 10 Years of Original Intention", sz002610 Aikang Technology , the 2019 Global Listed Enterprise Ranking No.126 of Aikang Group's listed companies. How to explain it? The market value of more than 3,000 stocks in the two markets ranked 45th at the bottom. How can they be transformed into the 126th global listed companies in 2019? Please explain.
Answer: On February 19, in Auckland, the United States, the US non-profit organization As You Sow and Canadian market research company Corporate Knights released the latest data of the Carbon Clean 200 Index, adjusting the ranking of the 200 cleanest listed companies in the world. Aikang Technology ranked 126th.
40. The global photovoltaic industry has become a growth trend. Is there only Aikang Technology in China? Have the company taken the initiative to look for business opportunities?
Answer: The global photovoltaic industry has become a growth trend. The company has maintained a global business layout since its establishment. In 2019, the company's main products exported exceeded 70%. In 2020, affected by domestic industry policies, the international share increased more. There are many border and bracket companies in China, but the company has always maintained a leading market position. Thank you for your support to the company!
41. Since the second half of last year, Aikang Technology has been negative news for the majority of small and medium shareholders, and it has been painful and painful. I wonder if the company can get out of the downturn in 2020?
Answer: Thank you for your support to the company! In 2019, the company performed poorly due to the arrears of subsidies for power stations and Haida guarantees in the industry policy changes. However, judging from the company's first quarter performance and the progress of various main businesses, the company is confident of achieving the strategic goal of gathering its main business and doing a good job in manufacturing and services.
42. What is the reason for the free transfer of shares to Industrial Corporation?
Answer: Hello, the shares transferred by Aikang International to Zhangjiagang Economic and Technological Development Zone Industrial Corporation were not free of charge, but were priced based on the market price at that time.Thank you for your attention!
43. What impact does the new crown pneumonia epidemic have on the company’s business? The company's revenue in the first quarter fell by 40% year-on-year and profits fell by 20%. Is the company's business now returning to normal?
Answer: Dear investors, the new crown pneumonia epidemic has had a certain impact on the company's supply, procurement and sales and personnel resumption of work, but the company has now resumed normal operations.
44. What is the quality of the assets of energy engineering companies that use capital to pay off debts? Will it affect the company's performance? Will the impairment of the assets that pay off debts be made within two years?
Answer: The assets that the energy engineering company has used to pay off debts are power station assets. In 2019, relevant impairment provisions have been made based on changes in national policies and in accordance with the principle of prudence. The company's strategic direction is light assets and low liabilities. It is planned to sell relevant power station assets as soon as possible, and will not affect the company's performance. Thank you for your support to the company!
45. The company's large number of external guarantee loans have had a huge impact on the company. What measures has the company taken to reduce guarantees?
Answer: The company will make more prudent decisions in accordance with the relevant systems when deliberating on guarantee matters for non-consolidated subsidiaries.
46, Aikang Technology established a power sales company very early to enter the new energy consumption side. What is the development progress in this direction? Is it a general direction of the company's development?
Answer: The company's current power sales business has completed market access in 15 power trading centers. Power sales are only an entry point for the new energy consumption side, which mainly depends on the degree of liberalization of power reform policies in various provinces in the country. There are still many businesses to do in energy consumption management on the consumption side. We will mainly focus on the intensity of policy reform and provinces with large electricity consumption to carry out related businesses, and what we currently bring positive performance contributions to the company. Thank you for your support to the company!
47. I wonder if your executives are following the news every day. The energy giant seems to be recruiting photovoltaic borders and bracket partners. Aikang Technology can make huge profits for this year's performance through cooperation with strength?
Answer: Hello, we have always been actively paying attention to the industry. The company's relevant business departments are actively expanding, and in the first quarter, it still achieved good results under the influence of the epidemic. We will still stick to our main business and repay you.
48. Why did the Industrial Corporation suddenly have so many shares? Did it buy it from the secondary market?
Answer: Dear investors, the company's shares held by Zhangjiagang Economic and Technological Development Zone Industrial Corporation are 235 million shares held by Aikang International Holdings Co., Ltd., which is acquired by the agreement. Please refer to the company's announcement for details.
Faced with these problems, I wonder if Chairman Zou Chenghui and Vice Chairman Yi Meihuai have time to wipe the sweat beads on his forehead?
