"Electric Eel Finance" Zhao Chao/Wen
On July 16, Aurijin (002701.SZ) also announced the controlling shareholder's share reduction process while releasing its shareholding forecast.
According to the forecast, although the performance of Aurijin in the second quarter of this year has improved compared with the first quarter, the net profit is expected to fall by more than 50% year-on-year. However, at a time of sluggish performance, the company's shareholders kicked off the decline in holdings.
Performance continues to decline
According to Aurijin "2020 Semi-annual Performance Forecast", the company expects net profit attributable to shareholders of listed companies in the first half of the year, with a profit of 145 million yuan to 210 million yuan, a year-on-year decline of 70.17%-56.79% compared with 486 million yuan in the same period last year.
Aurijin explained that due to the impact of the new coronavirus epidemic, the company, customers and suppliers' resumption of work and production was delayed, and the flow of materials and personnel was restricted. The company was greatly affected by this in the first quarter of 2020. "In the second quarter, as the domestic epidemic was effectively controlled, the company's business also recovered in an orderly manner, and its operating performance improved significantly compared with the first quarter."
"Electric Eel Finance" noticed that in the first quarter of 2020, Aorigin 's operating income fell 8.66% year-on-year to 1.873 billion yuan, and the net profit attributable to shareholders of listed companies fell 81.42% year-on-year to 43.9584 million yuan. Such a decline exceeded institutional expectations.
CITIC Securities estimated that the company's Hubei production capacity accounts for about 20% (including three-piece cans, two-piece cans, filling, etc.). In the first quarter of 2020, this part of the production capacity was suspended for most of the time.
Aurijin 's main business is to provide comprehensive packaging overall solutions for all types of fast-moving consumer goods customers, covering packaging solution planning, packaging product design and manufacturing, filling services, etc. The company's main beverage and food customers include Red Bull, Qingdao Beer, Jiaduobao, Yanjing Beer , Feihe, Zhanma, Wangwang , Snowflake, Coca-Cola Yili and other well-known brands.
continues to promote differentiated products, which is one of the main strategies of Origin . Last year, a number of differentiated innovative products designed and developed by the company have been put into use. The company cooperates with Xiamen Yanzhiwu to provide it with customized products with exquisite packaging, environmentally friendly and safe packaging. At the same time, the company's design, research and development and production of differentiated products have continued to win honors. The shell cans won the "Three-piece Beverage Can Silver Award" in the "2019 Can" selection of the Global Can Maker Enterprise Summit, and the fourth-generation bowl cans won the "Two-piece Food Can Silver Award".
In 2019, Aurijin 's operating income was 9.369 billion yuan, a year-on-year increase of 14.60%, and operating profit was 1.048 billion yuan, a year-on-year increase of 95.65%, and net profit attributable to shareholders of listed companies was 683 million yuan, a year-on-year increase of 203.15%. Metal packaging products and services have revenue of 8.2 billion yuan, accounting for 87.89% of the company's operating income in the current period. Among the products, the three-piece cans-beverage cans and two-piece cans-beverage cans have revenues of 5.234 billion yuan and 2.509 billion yuan respectively, accounting for 55.87% and 26.78% of the operating income.
However, in the view of Everbright Securities, the significant increase in profits in Aurijin in 2019 was mainly due to the company's provisions for impairment of the equity of the associated company held in 2018. If the impairment provisions are added, the profit attributable to the parent company will decline by 5.8% year-on-year.
"As the impact of the epidemic gradually recedes, Aorigin production capacity gradually recovers, and downstream demand continues to recover, among which Red Bull and milk powder cans recover faster." CITIC Securities pointed out that, however, in the whole year of 2020, it is expected that the company's revenue from Red Bull will still decline year-on-year, and the profit point of the two-piece can is expected to be postponed backward, and the company faces great performance pressure in the short term.
Shareholders continue to reduce their holdings
On the day the 2020 semi-annual report forecast was announced, Origin also issued an announcement on the progress of the controlling shareholder’s reduction in the company’s shares.
According to the announcement, recently, Aorijin received a letter from the controlling shareholder Shanghai Yuanlong Investment Holdings (Group) Co., Ltd. (hereinafter referred to as "Shanghai Yuanlong") that it reduced its holdings of Aorijin shares by 31.7138 million shares through bulk transactions and exchangeable corporate bondholders through share exchange methods, accounting for 1.35% of the company's total share capital.Among them, the exchange method of exchange of shares by the exchangeable corporate bond holders caused Shanghai Yuanlong to passively reduce its holdings by 17.5824 million shares, accounting for 0.75% of the company's total share capital.
Based on the strategic development plan, Shanghai Yuanlong reduced its holdings of the company's unrestricted shares by 14.1314 million shares through the bulk trading system on March 23, 2020. The transferee of the shares Beijing Huabin Manor Green Leisure and Fitness Club Co., Ltd.
day eye check shows that Beijing Huabin Manor Green Leisure and Fitness Club Co., Ltd. was established in 1998 with a registered capital of US$60 million. Huabin Investment (China) Co., Ltd. and Beijing Huabin Real Estate Co., Ltd. hold 90% and 10% of the company's shares respectively. Among them, the shareholders of Huabin Investment (China) Co., Ltd. are Huabin International Investment (Group) Co., Ltd., and the shareholders of Beijing Huabin Real Estate Co., Ltd. are Red Bull Vitamin Beverage (Hubei) Co., Ltd.
"Electric Eel Finance" noticed that Red Bull is one of the main customers of Origin . After this reduction, Shanghai Yuanlong and its joint actors held 921 million shares of the company, and their proportion of total share capital dropped from 40.54% to 39.19%.
After the controlling shareholder reduced his holdings, the other shareholder of Aurijin Zhongtai Asset Management No. 5 also kicked off the prelude to the reduction. On June 12, 2020, Aorigin announced that China-Thailand Asset Management No. 5 plans to reduce its holdings of the company's shares by no more than 500,000 shares through centralized bidding trading in the securities trading system. On July 9, China-Thailand Asset Management reduced its holdings of the company's shares by 121,000 shares through centralized bidding transactions, with an average reduction price of 4.86 yuan per share. After the reduction of holdings of
, Zhongtai Asset Management No. 5 held 118 million shares of the company, accounting for 4.9999996% of the company's total share capital. It is no longer a shareholder holding more than 5% of the company's shares.
"Electric Eel Finance" noticed that although due to the obvious scale advantage and the advantage of production capacity layout, Shanghai New Century gave the company's AA+ ratings of "16 Orijin " and "Ori convertible bonds" issued by the company, it also reminded of related risks.
In the view of Shanghai New Century, China Red Bull is still the main customer of Origin . If there are major fluctuations in China's Red Bull's operations or major food safety incidents, it will have a significant impact on the company's credit quality. At present, the total volume of orders for origin in China has not changed much, but the business term of the relevant entity Red Bull vitamin has expired, and cooperation disputes have not yet been concluded.
Shanghai New Century also reminded that Aorigin has completed the equity acquisition of Boer Asia Pacific related companies, and its self-built production capacity is also continuously invested. The company's two-piece tank production capacity continues to increase. At present, the two-piece tank industry is fiercely competitive, and the company's production capacity is released with great pressure. In addition, the company will also face the integration of Boer-related companies in business, finance, etc., and the relevant situation remains to be seen.
