①Suzhou Jinfu Technology sold 53.42% of the shares of Shenjie Environmental Protection for 0.507 billion yuan, as the subsidiary's performance commitment was not met and lacked synergy with the main business. ②Having recently entered the electrochemical materials business, the company increased its investment in Jintianchi by 71 million yuan, claiming it aligns with the company's strategic development plan. ③Since 2021, the company has been continuously operating at a loss and previously stated plans to increase investment in differentiated niche product categories.
Financial Associated Press, September 29th (Reporter Wu Chao) The company has been operating at a loss since 2021 and under operational pressure, Suzhou Jinfu Technology (300128.SZ) is seeking business transformation and adjustments. This evening, the company issued multiple announcements stating plans to transfer the equity of subsidiary Shenjie Environmental Protection, which lacks synergy with the main business, while also increasing capital in the subsidiary Jintianchi, which is strategically important.
It is worth noting that the company also announced tonight that there will be a significant modification to its business scope, removing previous items such as 'asia vets interaction perception technology, internet of things technology, internet plus distributed cloud technology,' and adding new contents like 'new material technology research and development; emerging energy technology research and development; electronic special material research and development.'
Performance commitments not met, Shenjie Environmental Protection equity sold.
According to the equity transfer agreement, Suzhou Jinfu Technology plans to transfer its 53.42% share of Shenjie Environmental Protection to Tai Xing Dongzhi Industrial Development Co., Ltd. for 0.507 billion yuan. At the same time, the company plans to transfer to Dongzhi Industrial the 7.16% share of Shenjie Environmental Protection intended to compensate for the performance commitment compensation received from Zhang Siping and Zhang Hezhao. After the transfer is complete, the company will no longer hold shares in Shenjie Environmental Protection.
It is reported that when the company initially acquired shares in Shenjie Environmental Protection, Zhang Siping and Zhang Hezhao made performance commitments. If Shenjie Environmental Protection's performance did not meet the specified target, they would compensate the company. The announcement reveals that Shenjie Environmental Protection's consolidated net profit for 2022-2023 was 0.1295 billion yuan, below the committed 0.178 billion yuan. Under the relevant agreements, Zhang Siping and Zhang Hezhao are required to pay the company a compensation of 84.4468 million yuan for performance. In this equity transfer, after deducting the 16.4273 million yuan in unpaid equity transfer fees, the actual payment by the performance commitment party to compensate the company is 68.0195 million yuan. Ultimately, the performance commitment party intends to offset the performance compensation with the 7.16% share of Shenjie Environmental Protection they hold. Concurrently, the company will transfer this portion of compensatory shares to Dongzhi Industrial at a price of 68.0195 million yuan.
In this equity transfer, after deducting the company's unpaid equity transfer of 16.4273 million yuan, the actual payment by the performance commitment party to compensate the company is 68.0195 million yuan. Lastly, the performance commitment party intends to offset the performance compensation with the 7.16% share of Shenjie Environmental Protection they hold. Simultaneously, the company will transfer these compensatory shares to Dongzhi Industrial at a price of 68.0195 million yuan.
The company states that it has now established a development strategy focusing on research, production, and sales of new materials in the fields of new energy and consumer electronics, with a layout of thermal management materials, high-end bonding materials, and electrochemical materials as the three main business lines. The power equipment maintenance and installation business of Shenjie Environmental Protection no longer aligns with the company's future development direction as it lacks business synergy.
The company also stated that the funds obtained from the sale of assets will be invested in the company's projects for lithium battery cathode non-fluoride binders, new energy vehicle components, and the company's daily operations. In the future, the market positioning of the company's new energy and new materials industries will be more clear. In addition, this asset sale is expected to increase the company's investment income by approximately 60-70 million yuan in 2024.
Seeking transformation after continuous losses, the company increased its capital in the electrochemical materials business.
While selling equity in Shenzhen Sente Environmental Protection, Suzhou Jinfu Technology also plans to increase its capital to its subsidiary Jiangsu Jintianchi New Material Technology Co., Ltd.
Jinfu Technology and Jintianchi, along with two other shareholders, Shanghai Bai Gongli New Material Technology Co., Ltd. and Shanghai Hongchang New Material Technology Co., Ltd., signed a "Capital Increase Agreement." Jinfu Technology, holding 100% equity of Taixing Tianma Chemical Co., Ltd., increased the capital to Jintianchi by 71 million yuan; Bai Gongli, holding ownership of fourteen patent applications, increased the capital to Jintianchi by 68.2 million yuan; Shanghai Hongchang waived its right to increase capital to Jintianchi in this round.
Jinfu Technology stated that Jintianchi is an important platform for the company's layout in the electrochemical materials business. By injecting 100% equity of Tianma Chemical and related patented technologies of lithium battery cathode, anode binders, etc., Jintianchi possesses all the elements for R&D, production, and sales of critical auxiliary materials for lithium batteries, laying a solid foundation for its future development in the electrochemical materials business. It is also an important link for the company's strategic development plan.
Financial media journalists noted that Jinfu Technology has not been involved in the electrochemical materials business for a long time. The company explicitly mentioned this business for the first time in public information in the 2023 annual report, stating, "The company has introduced a research and development team for electrochemical materials and high-end bonding materials."
Financial data shows that from 2021 to 2023, Jinfu Technology's revenue has grown year by year, but the net income has been continuously negative, at -0.346 billion yuan, -0.226 billion yuan, and -2.24 billion yuan respectively. In the first half of this year, the company achieved a net profit of -0.115 billion yuan, a 141.49% decrease year-on-year.
In the previous performance briefing, Jinfu Technology pointed out that objectively, the company's die-cutting business no longer belongs to the first echelon in the fiercely competitive domestic market. The company's future direction for the die-cutting business is to provide supporting services for the company's material business. In the field of new energy industry-related businesses, the company chooses to enter from the differentiated sub-category product race, which can to some extent avoid market risks brought by fierce competition. The company will continue to increase its investment in this sector.
