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Recently, the official website of the Shanghai Stock Exchange showed that China Steel Luonai Technology Co., Ltd. (hereinafter referred to as "China Steel Luonai") will attend the IPO on December 15 and accept the review of the Science and Technology Innovation Board Listing Committee.
This time, the company plans to raise 600 million yuan for the annual output of new refractory materials project, new materials R&D center construction project, 10,000 tons of special silicon carbide new material project, and 1 ton of metal composite new refractory materials project.
IPO Daily noted that as a company under China Steel Group, the impact of the debt crisis that broke out in China Steel Group in 2014 on this company still exists. As of the end of June 2021, the long-term loan principal for Sinosteel Lonai's debt restructuring reached 506 million yuan.
Source: Company official website
Profit is "supported"
It is reported that Zhonggang Luonai is an enterprise under Zhonggang Group, a central enterprise. Public information of
shows that Zhonggang Luonai's core business is the research and development, manufacturing, sales and services of mid-to-high-end refractory materials. It currently has 8 series of silicone series, magnesium series, high-aluminum series, and more than 200 varieties of refractory products, which are used in steel, non-ferrous metals, petroleum and coal chemical industry, ceramics, cement and other high-temperature fields.
In August 2006, China Steel Group and Luoyang Municipal State-owned Assets Supervision and Administration Commission decided to jointly invest in the establishment of China Steel Refractory (the predecessor of the company), with a registered capital of 150 million yuan, of which China Steel Group had a monetary investment of 135 million yuan and Luoyang Municipal State-owned Assets Supervision and Administration Commission had a monetary investment of 15 million yuan. The controlling shareholder of
is China Steel Technology Development Co., Ltd. (hereinafter referred to as "China Steel Technology"), which directly holds 47.15% of the company's shares. At the same time, it indirectly holds 4.53% of the shares through its wholly-owned subsidiary China Metallurgical Science and Technology Achievements Transformation Co., Ltd., and holds a total of 51.68% of the company's shares; the indirect controlling shareholder of China Steel Luonai is China Steel Group, and the actual controller is the State-owned Assets Supervision and Administration Commission of the State Council.
preview shows that from 2018 to 2020 and the first half of 2021 (hereinafter referred to as the "reporting period"), China Steel Lonay achieved operating income of 1.641 billion yuan, 1.82 billion yuan, 2.018 billion yuan and 1.412 billion yuan, corresponding net profits of 105 million yuan, 144 million yuan, 209 million yuan and 145 million yuan respectively. Among them, the sales revenue of refractory materials accounted for 86.16%, 81.79%, 83.51% and 84.98% of the company's main business revenue in each period.
During the reporting period, the revenue amount of direct sales of outsourced products was RMB 114 million, RMB 208 million, RMB 342 million and RMB 430 million, respectively, accounting for 6.92%, 11.42%, 16.96%, and 30.47% of operating income, respectively, and the amount and proportion increased year by year. China Steel Luonai said that it is mainly due to the deepening of supply-side structural reforms in industries such as steel, nonferrous metals, and building materials, as well as the influence of policies such as environmental protection governance and dual energy consumption control, downstream industries continue to replace production capacity, and the company's own production capacity is difficult to meet the growing order demand year by year, so the purchase volume is large.
IPO Daily noted that government subsidies and tax incentives contribute to the company's profits.
During the reporting period, the amount of government subsidies included in the current profit and loss of the company was RMB 49.8208 million, RMB 33.9546 million, RMB 18.5914 million and RMB 16.539 million, respectively, accounting for 43.49%, 21.18%, 8.10%, and 10.17% of the company's total profits; in addition, the impact of tax incentives on profits by China Steel Lonay during the reporting period was RMB 10.9108 million, RMB 10.5507 million, RMB 25.0956 million and RMB 16.0093 million, respectively, accounting for 9.53%, 6.58%, 10.94%, and 9.84% of the company's total profits.
It is not difficult to see that the highest amount of was in 2018. The total amount of government subsidies and tax incentives has exceeded half of the company's total profit that year (accounting for 53.02%).
"residual warmth" of Sinosteel's debt crisis
In 2014, due to external factors such as the downturn in the macro economy, the continued sluggish steel industry, and internal factors such as its own poor management, Sinosteel Group was deeply trapped in a debt crisis of tens of billions of yuan. In September 2016, some creditors of China Steel Group's financial institutions established a debt restructuring plan and voted to pass; in December of the same year, China Steel Group signed the "Framework Agreement on Debt Restructuring of China Steel Group Co., Ltd. and Subsidiary Companies and Financial Institutions Creditors" on behalf of its subordinate enterprises participating in the restructuring and its creditors.
After negotiations, from 2016 to 2018, the company successively signed debt restructuring agreements with Industrial and Commercial Bank of China, Pudong Development Bank, Bank of Communications, Luoyang Bank, Minsheng Bank, etc., mainly China Steel Co., Ltd. assumed the guarantee liability. Among them, some bank loans were mortgaged by China Steel Luonai for real estate land or margin pledge.
As of the end of June 2021, the long-term loan principal for the company's debt restructuring reached 506 million yuan, and the principal needs to be repaid in 2023 and 2024 according to the loan agreement. The company faces certain debt restructuring risks.
According to the previous draft, during the reporting period, the debt-to-asset ratio (consolidated financial statements) of China Steel Luonai was 87.89%, 81.54%, 54.58% and 54.34%, respectively, a decrease. The reporter noticed that the company's debt-to-asset ratio decreased significantly at the end of 2020, mainly because the capital increase received that year increased the company's monetary funds, thus increasing the company's assets in the current period.
In addition, the shares of Zhonggang Luo, held by the company's controlling shareholder Zhonggang Technology, were pledged by equity, corresponding to the main debt amount is 690 million yuan, and the debt repayment time will start on January 31, 2023. Will this equity pledge affect the stability of the company's control?
It is disclosed that the Debtor Committee issued a "Commitment Letter" in November 2021, which mainly contains the main content of the debt restructuring of China Steel Group. If China Steel Luonai faces a change in the actual controller, on the premise of protecting the legitimate rights and interests of the Debtor Committee and fully repaying the debts within the scope of the pledge guarantee of Zhonggang Luonai's equity, the Debtor Committee agrees that China Steel Group will transfer Zhonggang Luonai's equity to China Baowu Iron and Steel Group Co., Ltd. with the fair value recognized by the Debtor Committee's decision, so as to maintain that the controller is still the State-owned Assets Supervision and Administration Commission of the State Council.
has a large claim lawsuit
IPO Daily noted that the company still has unresolved lawsuits.
public information shows that in July 2019, the company signed the "Test Contract for New Products of Glass Kiln Integrated Melting Pool" with Inner Mongolia Yiwei Glass Fiber Manufacturing Co., Ltd. (hereinafter referred to as "Yiwei Glass"), and provided the latter with 1.98.63 tons of test retardants of four grades including GLJ-30, with a total amount of 4.5437 million yuan; in the same month, Yiwei Glass added 1.47.36 tons of GLJ-30 chromium aluminum spinel bricks and chromium aluminum ramming materials, with a total amount of 3.0307 million yuan; in October 2019, Yiwei Glass continued to add 3 tons of chromium aluminum ramming materials and 2.13 tons of GLJ-30 chromium aluminum spinel bricks on the basis of the original contract, with a total payment of 127,600 yuan.
Due to the dispute between the two parties regarding whether the refractory materials provided by Zhonggang Luonai comply with the contract agreement, Yiwei Glass filed a lawsuit with the Chifeng Intermediate People's Court in August 2020, requesting the company to compensate for various losses of 37.8182 million yuan, and ordered it to bear litigation fees, preservation fees and appraisal fees.
It is reported that China Steel Luonai submitted a judicial appraisal application and a civil counterclaim to the Chifeng Intermediate People's Court in May 2021. The case is being promoted in accordance with the procedures and has not yet entered the substantive trial and has not yet been made. Company stated that the lawsuit may lead to the maximum legal liability of the company being 37.8182 million yuan claimed by the other party and the inability to recover the 3.7725 million yuan payment.
In addition to being a defendant, Zhonggang Luonai had a lawsuit as a plaintiff. It was disclosed that because the customer had not paid the remaining payment for the goods, in October 2017, the company filed a lawsuit with the Guichi District People's Court of Chizhou City, Anhui Province, requesting that Chizhou Guanhua Gold Smelting Co., Ltd. be ordered to repay the 8.9163 million yuan in debt and overdue interest.
As of the end of August 2021, the company has recovered 5.3023 million yuan in payment, returned the product to write off 74,100 yuan in accounts receivable, and made 2.617 million yuan in bad debt provisions, and there is still a possibility that 922,900 yuan cannot be recovered.
END
Reporter Yang Ziwei
layout Chu Nianying
edited by Wu Mingzhou
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