Bohai can even lose a valuation but exceeds 800 million Wangneng environment.

On the evening of March 6, Huaxi Energy (002630, SZ) announced that it will transfer the 49% equity of Guangdong Bohai Yuneng Environmental Protection Co., Ltd. (hereinafter referred to as Bohai Yuneng). The pick-up side is Wangneng Environment (002034, SZ).

"Daily Economic News" reporter noted that Wangneng Environment's main business is waste incineration power generation projects. From this point of view, the transaction can trigger synergies between the two. However, Bohai can be in a state of loss for a long time. According to Huaxi Energy's announcement, the parties initially agreed that the overall valuation of the transfer target is estimated to be 800 million to 1 billion yuan, and the final transfer consideration is determined by the parties. Then, when you buy a loss-making company, what is the consideration of Wangneng Environment?

Bohai can continue to lose money

Wangneng Environment was formerly known as Meixinda, whose main business is to purchase fabrics for printing and dyeing. In 2017, Meixinda implemented a major asset restructuring, and placed the assets and liabilities related to the printing and dyeing business, and placed 100% of the shares in Zhejiang Wangneng Environmental Protection Co., Ltd. (hereinafter referred to as Wangneng Environmental Protection). Wangneng Environmental Protection Co., Ltd. is mainly engaged in the domestic waste incineration power generation business, and in accordance with the purchase and sale agreement, the local power department is provided with power products that meet the national standards, and the thermal power products are provided to the surrounding units according to the heating agreement. In mid-January this year, Meinda announced that the company name and stock abbreviation were changed to Wangneng Environment Co., Ltd. and Wangneng Environment.

From the main business, Wangneng Environment is very similar to Bohai. However, it is still unknown whether Bohai, who has not yet achieved profitability, can bring effects to it.

The reporter did not find detailed financial data of Bohai Energy in the Huaxi Energy 2015 Annual Report, but the listed company's investment profit and loss under its equity law was negative 9.995 million yuan. This is enough to show that Bohai can not make a profit in the same year.

Huaxi Energy's 2016 annual report shows that Bohai Energy's revenue during the reporting period was RMB 5.6683 million and the net profit loss was RMB 22,362,500. Huaxi Energy's 2017 semi-annual report showed that Bohai Energy's revenue during the reporting period was 22.4111 million yuan, and the net profit loss was 2,937.31 million yuan.

Huaxi Energy announced that as of December 31, 2017, Bohai Energy's total assets were 1,256,564,300 yuan and net assets were 46,370,400 yuan; in 2017, operating income was 60,628,100 yuan, and net profit was 333,150,100 yuan (the above data is not available) Audited).

Bohai can continue to lose money, what is the Wangneng environment? In this regard, the "Daily Economic News" reporter called the Wangneng Environmental Investor Hotline, but the phone was not answered.

The betting project enters the production period

The reporter noted that the most direct reason for Bohai’s loss was that its operating project had not been officially put into production. According to the acquisition of Huaxi Energy (November 2014), Bohai Energy has won the bid and signed six waste treatment and incineration power generation BOT projects. In terms of the usual investment construction progress, the construction period of the Bohai Energy Project will take 3 to 5 years. Among them, some projects are built in phases, and the period of complete completion and production may exceed 5 years. Based on this estimation, the Bohai Energy Project should have gradually entered the production period.

According to the announcement of the capital increase of Huaxi Energy on February 26, 2018, the Bohai Xineng Guangyuan project has been put into operation, and there are still power generation projects such as Jiamusi, Zhaoqing Sihui, Zhaoqing Gaoyao and Jilin Shulan under construction or preparation.

Huaxi Energy disclosed that the total amount of garbage disposal in Bohai Energy's projects reached 7,150 tons per day, 60% of which was distributed in the coastal areas of Guangdong, and the future economic benefits were outstanding. The total investment of the whole project is expected to reach 3.3 billion to 3.5 billion yuan. After the project is fully completed and put into production, it is expected to realize a net profit of 300 million yuan per year. If the forecast is still valid, Bohai’s benefits after it is put into production are undoubtedly considerable.