The controlling shareholder of Yinlong New Energy has changed ownership! Dong Mingzhu rekindles "Dream of making cars"

On August 31st, 000651.SZ, Dong Mingzhu's employer, issued the "announcement on Foreign Investment and related transactions". The announcement suggested that Gree Electric Appliances won 30.47% of the shares in Yinlong New Energy by participating in judicial auctions. At the same time, Dong Mingzhu, chairman and president of Gree Electric Appliances, entrusted Gree Electric Appliances with the corresponding voting rights corresponding to its 17.46% stake in Yinlong New Energy.

After the completion of the transaction, Gree Electric Appliance, a listed company, will hold a 30.47% stake in Yinlong New Energy and control 47.93% of the voting rights of Yinlong New Energy, which will become a controlling subsidiary of Yinlong New Energy.

The announcement shows that the shares won by Gree Electric Appliances this time are Yinlong New Energy shares held by Yinlong Investment, Hou Ming Investment and Hongkai Software, and Gree Electric Appliances cost a total of about 1.828 billion yuan.

Before the transaction, Yinlong Investment is the largest shareholder of Yinlong New Energy, Hou Ming Investment is the fourth largest shareholder, and Hongkai Software is the 12th largest shareholder. After the transaction, the above three shareholders did not withdraw from Yinlong New Energy completely, but continued to hold 1.645%, 3.846% and 0.002% of the shares respectively.

Taking the 30.47% stake in Yinlong New Energy as a price of 1.828 billion yuan, all shares in Yinlong New Energy are worth about 6 billion yuan.

Gree Electric Appliances said that this transaction is an important measure for the company to actively respond to the national "double carbon" goal and implement the development idea of "based on the home appliance industry and steadily expanding diversified emerging businesses". Holding Yinlong New Energy helps to improve capacity utilization and product competitiveness, and with the help of Yinlong New Energy's nanometer lithium titanate technology and existing lithium battery capacity, promote the application of Yinlong new energy storage products in the company's energy storage-related electrical products, new energy and other sectors, and comprehensively accelerate the development of existing diversified business.

This transaction still needs to be submitted to the State Administration of Market Supervision and Administration for examination of the concentration of operators.

Dong Mingzhu's "rekindling the Dream of Building a car"

It is well known that Dong Mingzhu intends to take part in the construction of cars. In 2016, at the urging of Dong Mingzhu, Gree Electric Appliances had planned to fully acquire Yinlong New Energy for diversified expansion, but it was eventually denied by the shareholders' meeting.

Subsequently, Dong Mingzhu invested in Yinlong in her personal capacity. It is worth noting that in addition to Dong Mingzhu's personal investment, Dong Mingzhu also brought together JD.com Chairman Liu Qiangdong and Wanda Group Chairman Wang Jianlin to invest in Zhuhai Yinlong.

At that time, Zhuhai Yinlong was valued at 13.4 billion yuan, and the next step after completing the financing was to list independently. This is the highlight moment of Yinlong New Energy.

However, the independent listing of Yinlong New Energy failed, and conflicts broke out between Dong Mingzhu, the second largest shareholder, and Wei Yincang, founder of Yinlong New Energy. Wei Yincang stepped down, and Gree took over the operation of Yinlong New Energy.

Yinlong New Energy has publicly accused major shareholders of embezzling the company's interests of more than 1 billion yuan. However, it is understood that Wei Yincang has left the United States at large.

In 2018, Yinlong New Energy was also revealed to be in arrears of more than 1 billion yuan to a number of suppliers, the factory reduced production in a large area, and the industrial park was closed down by the court.

In 2020, Yinlong New Energy shares were auctioned many times, but there were few takers. 31.55 million shares were planned to be auctioned, but only 70, 000 shares were sold in the end.

Now, Gree Electric Appliance has become the controlling shareholder of Yinlong New Energy through judicial auction, and Dong Mingzhu's dream of building a car should be realized faster.

It is worth noting that in May 2019, Yinlong New Energy launched-Yinlong New Energy Effie, the new car was positioned as a pure electric MPV, with a price of 430000 yuan before subsidy.

Yinlong Aifei's car logo looks like "five laps Audi", so it has been complained by many netizens that it looks like a pirated Audi. It is reported that the annual sales of this car is less than 2,000.

About Yinlong New Energy

According to the announcement, Yinlong New Energy is a rare comprehensive new energy industry group in China that has formed a closed cycle industrial chain ranging from lithium battery materials, lithium batteries, modules / PACK powertrain, new energy vehicles, energy storage system equipment to power battery cascade utilization and recycling.

Yinlong New Energy is one of the few new energy companies in the world to master nanometer lithium titanate materials and battery production technology. lithium titanate battery has the unique advantages of high safety, high rate, fast charge and discharge, wide temperature resistance and long life.

Yinlong New Energy has more than 40 lithium titanate and lithium iron phosphate production lines, and the overall actual production capacity of the battery plate is about 18.31GWh/ years, of which the actual capacity of lithium titanate batteries is 2.85GWh/ years, ranking in the forefront of the world; lithium iron phosphate battery equipment level is high, and the actual production capacity is among the top in China. In the context of the shortage of lithium battery capacity, the existing sufficient lithium battery capacity of Yinlong New Energy will be released in a short period of time to stabilize the supply market.

Yinlong New Energy also has a full range of commercial vehicles, special-purpose vehicles, logistics vehicles and other models, with a wide range of product types, of which the new energy bus industry ranks first.

As of August 31, when Gree Electric Appliances issued the announcement, Yinlong New Energy had applied for a total of 3106 patents and authorized 1874 patents; in recent years, it has undertaken / participated in 34 key engineering projects, including 10 national scientific research projects and 16 provincial scientific research projects; participated in the preparation of 20 standards, including 6 national standards and 5 industry standards.

From January to July of 2021, the cumulative sales of new energy buses of Yinlong New Energy ranked fourth in the industry; in July, the company ranked third in the industry in terms of sales of new energy buses of more than 7 meters.

However, the performance of Yinlong New Energy is poor. According to the announcement, in 2020, Yinlong New Energy achieved operating income of 4.325 billion yuan, operating profit of-836 million yuan, net profit of-682 million yuan, and net cash flow generated by operating activities of 3.172 billion yuan.

By the end of July 2021, Yinlong New Energy had unaudited revenue of 1.076 billion yuan, operating profit of-958 million yuan, net profit of-763 million yuan, total liabilities of 22.729 billion yuan and accounts receivable of 4.613 billion yuan.

Summary

Since the beginning of this year, the new energy automobile industry has been popular with major investors, and Internet giants such as Xiaomi, Baidu and Ali have joined the "car-building" army one after another.

It remains to be seen what kind of report card Gree Electric Appliance can hand over on the shoulder of Yinlong New Energy.

On the secondary market, Gree Electric Appliances closed at 41.10 yuan per share on August 31, up 0.10 yuan per share or 0.24% on the day. The closing price has fallen 35.56% from the peak price of 63.78 yuan on January 6 this year.

Gree Electric Appliances currently has a total market capitalization of 247.2 billion yuan.