Chinalco package transfer four silicon products companies

Chinese aluminium company chinalco energy group co., LTD., ningxia and silver star energy transfer (000862, shares) are listed on its holdings of ningxia ning electric silicon industry co., LTD. 100% stake, ningxia ning electric silicon photovoltaic materials co., LTD. 100% stake, ningxia ning electric co., LTD. 100% stake and ningxia silver star polysilicon co., LTD. 100% stake, listed price is 23.8615 million yuan respectively, $1, $1 and $2. The assignor requirements, four projects together with the transferee.

Four companies pack to transfer

From the set up time, four companies were established in 2006-2008. Ownership structure, chinalco energy group holdings in ningxia ning electric silicon industry, ning electric silicon photovoltaic (pv) 100% stake, and electricity 73.12% silver star polysilicon; Silver star energy of listed companies has a silver star polysilicon 26.88% stake. Four companies and silicon business are related. Ning electric silicon owners want to be engaged in the development of industrial grade silicon products, research, production and sales; Ning electric silicon material is mainly engaged in research and development, production and sales of silicon materials and by-products, silica strip mining and marketing; Ning electric photovoltaic (pv) is engaged in the research and development, production and sales of silicon material, production and sales of industrial silicon powder, such as a by-product, Silver star polysilicon is engaged in high purity silicon, polycrystalline silicon, monocrystalline silicon, wafers, cells, and components research and development, production and sales.

From the point of financial data, nearly two years of these companies operating conditions are not ideal. In November 2013 and January 2014 -, ning electric silicon industry net profit loss of 7.9904 million yuan and 7.9904 million yuan respectively; Ning electric photovoltaic (pv) loss of 67.832 million yuan and 67.832 million yuan respectively; Silver star polysilicon loss of 82.555 million yuan and 82.555 million yuan respectively. Ning electric silicon unrealized revenue since 2013, net profit of 7300 yuan in 2013, this year in November 1 – loss of 214500 yuan.

Listed price due to the dramatic differences between the four target assessment, four companies only premium in ning electric silicon industry net assets assessment value, the other three are a significant discount. According to the listing announcement to March 31, 2014 to assess base date, ning electric net book value is RMB 5.1039 million, silicon industry evaluation value of 23.8615 million yuan. Ning electric silicon net book value is 114.291 million yuan, evaluation value is – 203.0155 million yuan. Ning electric photovoltaic net book value is 31.7073 million yuan, evaluation value is – 445.7822 million yuan. Silver star polysilicon net book value of RMB 224.51 million, evaluation value is RMB – 420.6479 million.

Industrial concentration needs to be promoted

Silver star energy said, in recent years, the international and domestic objective factors, such as silicon industry downturn, the company’s share company silver star polysilicon continuing losses. The transfer is mainly for the integration of assets, reduce losses, pooling resources and stronger foundations. Listed as the transfer was not successful, the board of directors of the company agree for polysilicon company dissolution or filed for bankruptcy.

Pv installed below expectations this year has been basically reached a consensus, although demand a rebound in the fourth quarter, but in the first half of the excessive inventory and lower than expected demand for basic lost the power of rising prices. According to the data, business club on December 25, polysilicon commodity index is 39.25, polysilicon commodity index since September 26, 91 days are down 3.987%.

The silicon material industry has formed worldwide oligopoly situation. According to the actual shipments statistics, in 2013 the United States ham Locke, wacker, Germany, South Korea east chemical industry, China poly golden concord four giant together account for more than 74%, more and more small factory encounter failure. Because of the polysilicon industry is precision chemical purification industry, more than half a year once production stopped, will cause the equipment corrosion risk. Once formed corrosion, silicon purity is unable to guarantee stability, maintenance cost, capacity of basic void.

At present, China’s industrial silicon industry concentration is not high, lead to internal excessive competition, leading to a lower industry long-term overall profit margins. Poly ShuHua chief executive of the association, xin has previously said that the fundamental reverse of the industry, to promote industrial concentration, speed up the upgrade. Those small without technology, the competitiveness of enterprises will be phased out.