Former newsprint giant fujian nanpaper will face the "ST" fate
Once a newsprint giant, now it has lost money for two consecutive years. If it loses money again this year, nanfang will face the fate of wearing "ST". Why does fujian nan paper change from strength to weakness, what are its internal and external causes? Why did huaxin oil reorganize the paper lost? What does south paper have finally to turn over a loss means? Why do mysterious private equity lurk in nanfang? On Wednesday (October 24), reporters visited nanpaper in fujian province. From employees inside nanpaper to local insiders in nanping, they lamented the decline of nanpaper.
The phenomenon of
Thick profits turn small profits newsprint from the good to the bad
"Green around the mountain, paper center." This is the famous poet guo moruo in the autumn of 1962 inspection of southern fujian left the poem. Before 2000, fujian nanping paper was the largest newsprint factory in China. At its peak, the production of newsprint accounted for about a quarter of the national newsprint production in that year.
"In the 1990s, I remember that there was a long queue of paper carriers at the gate of nanpaper, from the central media like People's Daily to the local newspapers, and from the newspaper owners who came to the door to ask for paper, it was probably the best time for nanpaper." Lao ke, a native of nanping, recalled the scene and cried bitterly. At that time, a piece of southern paper was expensive and thousands of gold was still in the era of planned economy. The production of newsprint was controllable.
On October 17, driving from fuzhou to nanping, the reporter was shocked by the factory area covering nearly one thousand mu as soon as he entered nanping paper factory. South paper dong secretary li yonghe told the reporter, nanping has "five south", respectively is south paper, southern textile, south aluminum, south cable and south fu, south paper is the largest production area, the most brilliant nearly 6,000 employees, only about 2,800 people.
There are many reasons for the decline of nanfang paper, among which the main reason is the decline in the sales of paper media, the price of newsprint raw materials has doubled several times, and the price of newsprint raw materials has dropped sharply with the influx of cheap pulp from Russia and Canada. The newsprint industry is shifting from the lucrative industry to the low-margin industry, which is particularly affected by the system and the slow transformation.
In the 1990s, the price of raw materials for paper making was low, such as one or two hundred yuan for a ton of coal. Now it has doubled several times.
In addition, from the domestic point of view, due to the rapid expansion of production, the domestic newsprint competition is extremely fierce. With huatai, chenming and other newsprint giants listed successively, the paper's production and quality advantage is not. At present, huatai produces 2 million tons of newsprint every year, which makes it a domestic giant. However, nanfang produces only 300,000 tons.
Single product transformation is too slow
"In the golden age, nanfang lacked strategic vision, so much surplus capital did not invest in other projects, such as real estate, agriculture, or even some other subdivision of the paper industry." Fujian nanpaper an internal employee said truthfully.
Take a look at the domestic huatai, chenming and other newsprint enterprises, and plan to start production of other paper projects several years ago, such as household paper, corrugated paper, packaging paper, advertising paper, copperplate paper, coated paper, etc. As it turns out, the demand for these kinds of paper is still very high in China, and there is a large gap.
For example, in other paper listed companies in our province, Annie shares have seized the market segment of paper, specializing in the production of thermal sensitive paper for supermarkets and card readers. Annie recently disclosed that its net profit for the third quarter of this year is expected to increase by 114 percent to 196 percent. Its profitability is still strong and its development momentum is good.
Shenyin wanguo fuzhou business department investment fu liming thinks, south paper is mainly constrained by the system reason, as a state-owned enterprise, the staff troop is huge, but wants to transform, every small step, must report layer by layer to approve, still need to move all parties. For a long time, south paper products only newsprint, too monotonous structure, if industrial supply and demand imbalance, will inevitably be affected.
The reporter found that in the domestic paper industry, transformation is the consensus of most enterprises, such as huatai, which not only put into production the salt chemical industry, hydrogen peroxide, but also the polysilicon project a few years ago. And another paper giant, chenming paper, not only got involved in the project of copperplate paper early, but also set up a green environmental protection industry fund, involving PE.
Although diversification is a double-edged sword, in the context of declining economic growth, diversification also means multiple survival channels and a profit point.
Shares in the restructuring stalled and halved
At a time when fujian southern paper was Mired in losses, a shanghai-based company called huaxin petroleum took a look at its listed "shell". At that time, private equity and public offering in China were optimistic about the transfer of shares in nanpaper, and the share price of fujian nanpaper was even once strong, becoming one of the best companies in fujian last year. However, the share transfer died in the first half of this year. Nanfang fell from 7 yuan to 3 yuan, almost half of it.
On November 26, 2011, fujian light textile (holding) co., ltd. plans to transfer 215 million shares of fujian nanfang paper, accounting for 29.80% of the total equity, by openly soliciting the transferee, according to the company. As of 17:30 of December 23, 2011, a letter of intent and relevant materials from the effective transferee have been received and submitted to Shanghai huaxin petroleum group co., LTD. According to the company's letter of intent and related materials, the company intends to accept the shares at 5.341 yuan per share.
If the equity deal is completed, huaxin will become the new owner of fujian nanpaper. According to the data, huaxin petroleum was established on February 22, 2003 with a registered capital of 846 million yuan. Its main business is domestic and foreign trade in petrochemical raw materials and additives, and it is a private enterprise.
But since the only intention of public solicitation assignee Shanghai huaxin oil group co., LTD. Is a state-owned enterprises, the share transfer will be involved in the south fujian paper is the first big shareholders by state-owned to non-state staff to put forward some demands, south fujian textile company in conjunction with the paper demonstrates the appeal to the worker and the consultation, to formulate the worker shunt placement plan, solicit opinions from the employees.
Due south of fujian nanping paper mill by old state-owned enterprise restructuring is the paper established, number of workers, worker total shunt placement fee is bigger, light textile company in fujian province and Shanghai huaxin oil group co., LTD., the two sides can't agree on worker shunt placement fee payment matters, thus failed to sign the share transfer agreement, termination of share transfer matters.
The reporter inside fujian nanfang paper understands, its worker distributive settle down a charge total, add the cost that accept 1.148 billion yuan, hua xin oil needs to put out fund as high as 1.5 billion yuan. High installation fees have also forced the retreat of huaxin oil, so that huaxin will focus on anhui's huaxing chemical industry.
On Sept. 27, fujian nanfang shares fell to 3.03 yuan, their lowest level in three years. Analysts at a fuzhou securities firm said that huaxin's blood transfusion could not only revive fujian nanpaper, but also help it to successfully "transform and upgrade". The impact of huaxin's withdrawal from nanpaper restructuring may still have to be tested, but time is running out for it to recover.
Year-end torsion loss is uncertain ST is more likely
In addition to poor performance, fujian nanfang capital is also relatively tight. By the end of the first quarter of this year, fujian nanfang had a total assets of 3.94 billion yuan and a total liabilities of 2.526 billion yuan, with an asset-liability ratio of 64.11%. The company's net cash flow for the first quarter was -245m yuan. By the time of this year's report, the loss was 0.318 yuan per share.
As the loss increases, the chances of wearing an "ST" on nanfang become greater and greater.
Fujian southern paper started its own rescue operation after the reorganization was blocked and its working capital was tight. In August, fujian southern paper had to sell land, mortgage the financing of forest rights and other ways to tide over the difficulties.
On August 15, fujian nanpaper said that in order to guarantee the funds needed for the daily production and operation of the company, the board of directors agreed to apply for financing from industrial and commercial bank nanping yanping sub-branch with the asset of 52,380 mu of consumptive forest trees as collateral, with the financing amount not exceeding 52 million yuan, and the duration of financing and mortgage being one year.
At the same time, fujian nanpaper even has five unused plots of land and ground attached objects around the factory area collected and stored by the land acquisition and reserve center of nanping city and adjusted them into commercial land. The assessment value of land and ground attachment of the above five plots is RMB 63.77 million. According to fujian nanpaper, all of the proceeds from the collection, storage and transfer of the five plots of land and ground attachments will be used to supplement the company's working capital and development funds.
"Sustained losses are not easy to reverse in a short period of time." Fujian nanfang people frankly, in the absence of external forces, the year is not easy to turn around.
Mysterious private placement lurks south paper
A private equity firm called ping an trust ruifu 1 has been lurking in nanfang since the middle of last year. In addition to ruifu no. 1, mysterious natural persons such as zhang fubin, xue donglai, li fuqing, yao yanmin, deng zhenhua and Yang lihua are among the top 10 shareholders of nanpaper, and their shareholding equity is very close.
What is the origin of ruifu 1 of ping an trust? Li yonghe, secretary of the board of directors of fujian nanfang paper, said the agency had not come to nanfang to conduct research, including the previous China merchants shengshi growth fund, which also had a stake in the company with a market value of nearly 100 million yuan.
From the point of intervention of ruifu I, it should be on the south paper. "From the perspective of the inventory, it is obvious that there is money in the paper, it is likely to be early private equity quilt cover, in order to timely solve the cover." Citic securities fuzhou business department investment Lin jian jian said.
Before this, the market rumors that nanfang "shale gas" to buy us oil, was later clarified by nanfang is nothing. Analysts say it may be that private equity is looking for a variety of solutions.
After the failure of huaxin's restructuring, fujian light textile, a major shareholder in nanfang, said it would not discuss the restructuring for three months. That may mean that this winter could be even colder for the paper people.