China railway emergency change master Hu Danfeng cashed out nearly 1.9 billion performance and debt ratio rose 4.3 billion debt top

On the evening of May 21, China Railway Emergency disclosed the change of master plan, Hu Danfeng, the controlling shareholder of the company, and his concerted actors signed an agreement with Hainan Haiceng Industrial Investment Co., LTD. (hereinafter referred to as "Haiceng Property Investment"), and Hu Danfeng planned to transfer a total of 14.01% of the company's equity to Haiceng Property Investment, with a total price of nearly 2 billion yuan. Among them, Hu Danfeng will cash in 1.897 billion yuan.

China Railway emergency debt pressure is obvious. By the end of 2023, the company's asset-liability ratio increased to 70.54%. At the end of the period, the company's interest-bearing liabilities exceeded 4.3 billion yuan.

Recently, a paper announcement of China Railway emergency caused widespread concern. The company plans to spend 1 billion yuan cross-border computing power. In the case of insufficient funds, still spend huge sums of money across the border, the exchange has also issued a letter of inquiry.

After the emergency change of ownership of China Railway, how will its financial pressure be relieved?

Hu Danfeng cashed out nearly 1.9 billion yuan at one time

China iron emergency change owner, the actual controller of the company Hu Danfeng took the opportunity to cash out.

On May 20 this year, China Railway Emergency suddenly announced that on May 20, the company received a notice from Hu Danfeng, the controlling shareholder, that it was planning the transfer of shares and planned to transfer some shares to the Sea Control Property investment agreement. This transaction still needs the prior approval of Hainan SASAC and other departments. If the above matters are finally reached, the controlling shareholder of the company will be changed to HAC, and the actual controller will be changed to Hainan SASAC.

After the completion of the transfer of this agreement, HAC will hold 14.01% of the shares of the listed company and become the controlling shareholder of the listed company, and Hainan SASAC will obtain the actual control of the listed company.

This agreement to transfer equity, Hu Danfeng will cash in 1.897 billion yuan.

Financial pressures coexist with high performance growth

Why did Hu Danfeng transfer control? This was once the focus of market attention.

The main business of Huatie Emergency is the leasing and service of various engineering equipment such as building support equipment, aerial work platform and underground maintenance equipment, which belongs to the traditional business.

In recent years, the company has continued to consolidate its operational advantages around the core business philosophy of "channel + operation + service". By the end of 2023, the company's offline network layout has reached 274, serving more than 160,000 customers.

In 2023, the equipment management scale of China Railway emergency aerial work platform reached 121,100 units, an increase of 55.33%, and the average unit volume rental rate reached 85.31%.

Although the net profit of revenue continues to grow rapidly, there is an obvious shortcoming of China Railway Emergency, that is, the financial pressure is large.

By the end of 2023, the company's asset-liability ratio was 70.54%, the highest level in history. At the end of the period, the book monetary fund of the company was 85 million yuan, the corresponding short-term loans were 919 million yuan, the non-current liabilities due within one year were 2.650 billion yuan, the long-term loans were 789 million yuan, and the total long-term and short-term debts were 4.358 billion yuan. That year, the company's financial expenses reached 488 million yuan, also a new high.

At the end of the first quarter of this year, the company's monetary capital was 58 million yuan, and the corresponding long-term and short-term debt was 4.411 billion yuan. Financial expenses for the first quarter were 129 million yuan.

Because of the financial pressure, since its listing in 2015, China Railway Emergency has only paid dividends four times, with a total dividend of 180 million yuan, and the dividend rate is 6.37%.

Perhaps, the emergency financial pressure of China Railway is the main reason for Hu Danfeng's transfer of control.

So, after the change of owner, how to relieve the emergency financial pressure of China Railway?

China Railway emergency announcement said that the implementation of the transaction is based on the company's existing business, the industry and its development prospects, the follow-up will play its capital, credit and resources advantages, fully help the company's strategic development, and strive to build a global head equipment operator.

It remains to be seen whether Haikeng will fulfill its promise as scheduled, and China Railway still needs to speed up the recovery of accounts receivable and improve its hematopoietic ability.