58.2 billion is bound to increase the twists and turns of the Ningde era to receive the letter of inquiry! Is it over-financing?

On the evening of September 30, Ningde Times announced that it had received a "letter of inquiry about the application of Ningde Times New Energy Technology Co., Ltd. to issue shares to specific targets" from the Shenzhen Stock Exchange.

Rich but huge financing supervision issues soul torture

According to the inquiry letter, with regard to the foreign investment of no more than 19 billion yuan disclosed by the company in April and the previous fixed increase of 58.2 billion yuan, the inquiry letter requires the company to demonstrate in detail that it holds large monetary funds and high cash inflows, and continues to invest a large amount of foreign investment, the necessity and scale of financing of this issue is reasonable; Explain the necessity and rationality of carrying out this fund-raising project when the funds of the previous fund-raising project have not been used up, and whether there is excessive financing, and so on.

Prior to this, at the end of April, Ningde Times issued a notice on carrying out investment related to the domestic and foreign industrial chain, mentioning that in order to meet the needs of the company's long-term business development, promote the global strategic layout, and ensure the supply of key resources in the industry, the company intends to invest in high-quality listed companies in the industrial chain at home and abroad in the form of securities investment, with a total investment of no more than 19 billion yuan (excluding capital) RMB or equivalent currency.

Then, in mid-August, Ningde Times issued an announcement saying that it would issue shares to specific targets to raise 58.2 billion yuan, triggering a heated discussion in the market.

This inquiry letter focuses on these two issues and asks Ningde era to make a reasonable explanation.

As soon as the news of the inquiry letter came out, most of the shareholders agreed. Some netizens think that Ningde has no bottom line, lose money to steal Chinese business, and spend all the money of financing; others say that the Ningde era must not be allowed to act recklessly; some netizens even mentioned the news of the acquisition of the Canadian lithium mine in the Ningde era. the netizen said that the Ningde era raised the price by 1.9 billion to beat Ganfeng Lithium Industry and acquire Canadian lithium producers.

Ningde Times, a Chinese battery maker, has agreed to buy the company for C $377 million (1.92 billion yuan) and has signed a 100 per cent stake agreement with Millennial LithiumCorp, Canada's local time said on Tuesday.

In addition, Ningde Times will invest $240 million (1.552 billion yuan) in a lithium mining project in Africa on Sept. 28. Australian mineral exploration company AVZ Minerals announced on Sept. 27 local time that it has reached an agreement with Chinese company Suzhou Tianhua Times New Energy Industry Investment Company to acquire a 24% stake in the project company after receiving a capital injection of US $240 million (RMB 1.5 billion) from Tianhua Times, which will be used to develop the lithium project in the Democratic Republic of the Congo (DRC). According to AVZ, an Australian company, funding from Ningde era will exceed $400m (about 2.58 billion yuan) after the development costs are verified.

The largest overseas Chinese stock fund sold for three consecutive months to reduce its holdings in the Ningde era.

In August, Allianz China Fund, the largest overseas Chinese equity fund, once again reduced its holdings in the Ningde era, according to Morningstar. This is another reduction after the Ningde era in June and July. However, Allianz China Fund is optimistic about long-term investment opportunities in China's new energy vehicle sector. Institutional insiders speculate that the reduction of holdings for three consecutive months may be due to excessive valuations.