China Grand Energy Accelerates Coal Mining With 2 Billion Yuan While Extending The Industrial Chain Through Cross-border Acquisition With 750 Million Yuan.

China Grand Energy announced that it planned to invest 2 billion yuan to set up a wholly-owned subsidiary to accelerate coal mining, and spend 750 million yuan in cash to acquire 20% equity of Alloy Investment (000633) (000633.SZ).

值得注意的是,合金的主要业务investment is nickel-based alloy material business and landscape engineering construction business, which does not seem to be highly related to China Grand Energy's natural gas sales, coal mining and coal chemical products industry chain.

And benefited from the high prosperity of traditional energy such as oil and gas, China Grand Energy in 2021 revenue of 24.865 billion yuan, net profit of 5.003 billion yuan, year-on-year growth of 64.30%, 274.40%.

Holding alloy investment at a premium of 42.24%

China Grand Energy said in a statement that it will use its own funds of 750 million yuan to acquire Horgos Tonghai Equity Investment Co., LTD. (Tonghai Investment), which holds a 20% stake in alloy investment. Upon completion of the transaction, China Grand Energy will replace Tonghai Investment as the controlling shareholder of Alloy Investment.

Affected by this news, alloy investment stock prices on June 16 a word limit, all day board.

According to the equity transfer agreement, the unit price of Tonghai Investment's share transfer is 9.7439 yuan/share. According to the reporter's rough calculation, if the closing price on the day of announcement is 6.85 yuan/share, China Grand Energy's purchase price is about 42.24% premium, and Tonghai Investment will make a floating profit of 223 million yuan in this equity transfer.

It should be noted that in the six trading days before the announcement, Alloy Investment stock price has jumped 21.12% from the June 8 low of 6.06 yuan/share volume to the highest of 7.34 yuan/share.

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China Grand Energy said in the announcement that the acquisition can further promote the company's overall strategic development progress, extend the company's industrial chain, and optimize the allocation of resources.

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Public information shows that the main business of alloy investment is nickel-based alloy material business and landscaping engineering industry. However, China Grand Energy's main business scope is in the energy industry, including natural gas sales, coal mining and coal chemical products, which does not seem to have much intersection with the business scope of alloy investment, and the industrial chain is not highly related.

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In addition, according to the acquisition agreement and ownership structure, after China Grand Energy buys 20% equity of Alloy Investment, more than half of the board of directors can be elected, and the actual holding of the alloy investment can be formed, and the alloy investment will therefore be consolidated.

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By the end of 2021, the total investment assets of alloy were 239 million yuan, the total liabilities were 70.3871 million yuan, and the net assets were 168 million yuan; In 2021, the realized revenue was 1.165 billion yuan, and the net profit was 3.3444 million Yuan, which changed by 25.20% and -63.08% year-on-year. In the first quarter of this year, its revenue of 47.2648 million yuan, net profit of 2,3634 million yuan, year-on-year change of 46.12%, 71.67%.

Industry insiders said that the quality and scale of alloy investment performance are relatively small, and after the table, the impact on China Grand Energy's annual revenue is not big.

Performance growth accelerates coal mining

In the same announcement, China Grand Energy announced another investment move more closely related to its main business.

The announcement shows that in order to further accelerate the substantial progress of the overall development of Malang No.1 Coal Mine (open-pit mining) and Malang No.1 Coal Mine (Open-pit mining) in Yiwu County, Xinjiang, it plans to invest 2 billion yuan to establish a new wholly-owned subsidiary, which is mainly engaged in the development and operation of Malang coal mine.

According to the China grand energy, penama coal resource is abundant, the buried depth of coal seam is relatively shallow, low mining cost, resources endowment is good, has the high exploitation value, new foreign investment to set up a wholly owned subsidiary, the move aims to establish the main body's main penama coal mine, steadily promoting his new development and utilization of coal resources and real practice.

与渐进的发行e of the newly built production capacity of Malang Coal Mine, China Great Energy will further exert the ability of Xinjiang coal to maintain supply under the tight balance of domestic coal supply, and contribute considerable cash flow to the company, becoming a new profit growth point.

Since last year, global energy prices have risen sharply, which has benefited China Grand Energy.

In 2021, China Grand Energy achieved a revenue of 24.865 billion yuan, up 64.30% year on year; The net profit was 5.03 billion yuan and non-net profit was 5.90 billion yuan, up 274.40% and 217.51% year-on-year. Among them, sales of natural gas, coal and coal chemical products accounted for 98.95 percent of the total revenue.

In the first quarter of 2022, China Grand Energy continued to achieve high performance, with revenue of 9.398 billion yuan and net profit of 2.213 billion yuan, up 70.10% and 175.67% year-on-year, and non-net profit of 2.197 billion yuan, up 172.57% year-on-year.

On the secondary market, China Grand Energy closed at 12.00 yuan/share on June 10 this year after a shock rise, nearly doubling the low of 6.24 yuan/share on February 8 this year.

It is worth mentioning that in the announcement of the two investments on the second day, and alloy investment all day to a word board trading limit closed different.