In the second half of 2021, Jinggong Technology (002006.SZ) frequently issued announcements on the progress of major contracts, and its stock price has also been rising, from around 8 yuan in the middle of the year to a peak of 33 yuan. However, delays in advance payments have added uncertainty to the company’s large orders.
On December 14, Jinggong Technology announced that as of the date of the announcement, the company has not received the remaining advance payment of 80 million yuan payable by Guoxing Carbon Fiber in the “Carbonization Line Device Purchase and Sales Contract” No. RC2109290887, and the contract is being performed. Therefore, the company faces the risk of default in the future.
On the morning of December 15, a relevant person from the company told reporters, “The other party may have some problems with capital turnover, resulting in the overdue payment. Currently, most of the funds have been received. The company will fully implement the contract. If the overdue payment is overdue, the overall process may be slower. It should be no problem.”
The contract was signed two months ago on October 15. Jinggong Technology and Jilin Guoxing Carbon Fiber Co., Ltd. officially signed the “Purchase and Sales Contract of Carbonization Line Device” No. RC2109290885 and the “Purchase and Sales Contract of Carbonization Wire Device” No. RC2109290887 Contract”, the contract amounts are 310 million yuan (tax included) and 340 million yuan (tax included) respectively, and the total value of the aforementioned contracts is 650 million yuan (tax included).
According to the contract, Jinggong Technology should receive an advance payment of 195 million yuan before December 14, but now it has only received 115 million yuan, a shortfall of 80 million yuan.
The reporter noticed that starting from 2020, the large orders for Jinggong Technology’s carbon fiber production line basically revolve around several customers such as Jilin Guoxing Carbon Fiber, Jilin Chemical Fiber, and Jilin Carbon Valley. Behind this, Jinggong Technology’s controlling shareholder Jinggong Group Another subsidiary, Jilin Jinggong, is inextricably linked.
It is worth noting that in 2020, the key factor for Jinggong Technology’s turnaround from losses to profits was the related transactions of the controlling shareholder’s carbon fiber sector. The company’s current revenue from the sales of carbon fiber equipment to Jilin Jinggong was 162 million yuan, accounting for the company’s entire carbon fiber business revenue 78.26% of the total, driving the current carbon fiber business revenue to surge. In 2021, the company has successively announced that it has received large orders. Whether it can finally be realized in terms of performance still needs to be paid attention to.
The successful bidding order has twists and turns
Jinggong Technology’s 2021 semi-annual report shows that the revenue of carbon fiber complete production lines accounts for nearly 40%, which is doubled from the end of 2020.
The company’s orders with Jilin Guoxing Carbon Fiber total 650 million yuan, accounting for 60.75% of the company’s 2020 revenue. Previous cooperation has also brought significant positive improvements to the company’s performance: from January to July 2021, the company received advance payments and progress payments for the first phase of the project and advance payments for the second phase of the project from Guoxing Carbon Fiber, totaling 363 million yuan. . The company’s net profit in the third quarter increased by 400% year-on-year.
In 2020, Jinggong Technology also encountered overdue advance payments. The company announced on September 3 of that year that it had not yet received the 110 million yuan advance payment payable by the counterparty Jilin Guoxing New Materials.
In addition to the above order with Jilin Guoxing Carbon Fiber, the company has another 700 million order, which can be described as twists and turns: On November 17, it was announced on the China Bidding and Bidding Public Service Platform that Jinggong Technology won the bid for Jilin Chemical Fiber to produce 12,000 tons of carbon fiber per year. The estimated amount of the composite product EPC project is 700 million yuan, accounting for 65.43% of Jinggong Technology’s 2020 operating income.
On November 15th and November 17th, Jinggong Technology closed two daily limits, and the stock price increased by approximately 24.08% in three trading days. On the night of November 17, the company issued an announcement on abnormal stock price fluctuations, stating that the company had no major matters that should be disclosed but were not disclosed. On the evening of the next day, November 18, the company announced the news of winning the bid for the carbon fiber production line, for which it received a regulatory letter from the Shenzhen Stock Exchange.
The company explained in the reply letter that the secretary of the board of directors first discovered that someone posted a post on the company’s stock forum that day “Who won the bid for the Jilin Chemical Fiber Carbon Fiber Project” and “A company in Zhejiang won the bid for the Jilin Chemical Fiber Carbon Fiber Project”, and then the company searched the bidding website. Found the winning bid announcement.
After receiving the regulatory letter on November 22, the company did not officially issue a reply announcement until the evening of November 29. The company’s stock price rose by nearly 30% from the daily limit price on the 17th.
The winning bid for Jilin Chemical Fiber’s order has not yet been “confirmed.” On December 10, the company stated that there are still some differences with Jilin Chemical Fiber on the key terms of the contract for the winning project, and they have not been able to reach an agreement. Whether the winning bid will eventually sign a formal contract There is great uncertainty.
High concentration of large customers
The reporter sorted out the historical orders of Jinggong Technology. In addition to Zhejiang Jingye New Materials and Jilin Jinggong, which are both under Jinggong Group, the customers of the company’s carbon fiber production line are mainly Jilin Guoxing Carbon Fiber, Jilin Guoxing New Materials, and Jilin Chemical Fiber ( 000420.SZ) and Jilin Carbon Valley (836077.BJ), after the equity penetration, the actual controllers behind them are all Jilin Municipal State-owned Assets Supervision and Administration Commission.
The reporter noticed that in the first half of 2021, the revenue of Jinggong Technology’s carbon fiber production line business increased from 93.94 million yuan in the same period last year to 333 million yuan, but the gross profit margin increased from 33.94 million yuan in the same period last year.5.17% dropped to 26.51%, which means that the gross profit margin of business from the same customers has declined.
The company’s only non-Jilin partner is Xinjiang Longju New Materials Co., Ltd., a company newly established in December 2020. The company signed a 330 million yuan contract with it and received an advance payment of 82.5 million yuan on November 5. Yuan.
Suffering from debt default, Jinggong Technology’s controlling shareholder Jinggong Group experienced a liquidity crisis in 2019. In September 2019, Jinggong Group filed a bankruptcy reorganization application with the People’s Court of Keqiao District, Shaoxing City and was ruled to accept it. Until now, Jinggong Group is still in the stage of bankruptcy and reorganization.
After the debt crisis of Jinggong Group, Baowu Carbon Materials, a subsidiary of Baosteel Co., Ltd. (600019.SH), acquired the group’s carbon fiber equity, including 49.74% equity of Zhejiang Jinggong Carbon Fiber Co., Ltd., 51.69% equity of Zhejiang Jingye Emerging Materials Co., Ltd., Jinggong (Shaoxing) Composite Materials Co., Ltd. 45.81% equity. Zhejiang Jinggong Carbon Fiber completed the industrial and commercial change on December 31, 2020, and officially changed its name to Zhejiang Baojing Carbon Materials on January 4 of the following year; on August 12, 2021, Jilin Jinggong Carbon Fiber Co., Ltd. changed its name to Jilin Baojing Carbon Materials Ltd.
Jilin Chemical Fiber purchased 49% of the shares of Jilin Baojing (formerly Jilin Jinggong) from Jilin Guoxing New Materials Industry Investment Co., Ltd. in two separate times, purchasing 18% of the shares in 2018 and 31% of the shares in 2020. , the latter is a wholly-owned enterprise held by the Jilin City State-owned Assets Supervision and Administration Commission and is also the carbon fiber industry investment platform in Jilin City.
The prospectus of Jilin Carbon Valley, which is also a subsidiary of Jilin Chemical Fiber Group, shows that the largest customer over the years has been the “Jinggong system” represented by Jilin Jinggong (Jilin Baojing). Jilin Baojing, which has been renamed, purchases equipment from Jinggong Technology and raw silk from Jilin Carbon Valley. Its current carbon fiber production capacity is 6,000 tons.
It is worth noting that last month, the company’s shares held by Sun Jianjiang, the second largest shareholder of Jinggong Technology, were judicially liquidated. On November 9, Sun Jianjiang passively reduced his holdings and sold 1.7502 million shares of the company through collective bidding in accordance with the court’s order, accounting for the company’s total share capital. 0.385%. After the passive reduction, Sun Jianjiang is no longer a shareholder holding 5% of the company’s shares. By November 15, Sun Jianjiang had passively reduced his holdings of 4.55 million shares through auction sales, and cashed out 99.08 million yuan at an average price of 21.77 yuan.
Public information shows that Sun Jianjiang and Jin Liangshun, the actual controller of Jinggong Group, are cousins. Sun Jianjiang serves as the executive chairman and executive president of the board of directors of Jinggong Group.
</p
