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JA Solar plans backdoor listing on A-share market at RMB 7.5 bln
March 14, 2019
Abstract : The estimated valuation of 7.5 billion yuan for the 100 percent stake in JA Solar is a reasonable price considering its vertical integrated industry chain as well as the company’s stable profitability in recent years, said chairman and CEO Jin Baofang.
BEIJING, March 14 (Xinhua) -- The estimated valuation of 7.5 billion yuan for the 100 percent stake in JA Solar Holdings Co.is a reasonable price considering its vertical integrated industry chain as well as the company’s stable profitability in recent years, said JA Solar chairman and CEO Jin Baofang in response to market concerns.
JA Solar, which withdrew from Nasdaq to become a private company in July 2018, is planning a backdoor listing on China's A-share market via Qinhuangdao Tianye Tolian Heavy Industry Co.,Ltd. (002459.SZ), but the deal has caused a stir in the market with investors questioning transaction pricing and the company’s seemingly rising asset-liability ratio.
JA solar’s solar cell output had been ranking the second in the global market throughout 2015-2017, said Jin, adding that through years of development, the company has obtained great advantages in terms of vertical industry chain integration as well as complete technological R&D system. The company’s unaudited net profits stood at 713 million yuan, 800 million yuan, 721 million yuan and 552 million yuan, respectively for year 2015-2017 as well as the first three quarters of 2018.
As to the rising asset-liability ratio which was 62.54 percent as of the end of 2015 and 77 percent as of the end of third quarter of 2018, JA Solar director Wu Tingdong told China Securities Journal that long-term asset investment such as power station construction had caused interest-bearing liabilities and other payables increase by nearly 2.5 billion yuan by the end of 2016. Also, the company divided 1.622 billion yuan of dividends to shareholders in September of 2018. In addition, the company acquired Jinglong Group subsidiaries in 2018 with amount due totaling 1.23 billion yuan.
Both the long-term asset investment and the acquisition of upstream leading companies could add on future profitability of JA Solar, Wu said.
Under the scheme previously announced, Tianye Tolian planned to inject all placed assets into a wholly-owned subsidiary which would be sold to an investment company for 1.27 billion yuan. In the meantime, Tianye Tolian planned to issue shares to buy 100 percent stake in JA Solar for 7.5 billion yuan. (Edited by Niu Huizhe, [email protected])
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