Raise 500 000 007 month diversion Beijing Express response Exchange does not

Polaris solar PV net news: nearly 1.3 billion yuan to raise funds all ought to be used as investment, but only 7 months after the Beijing Express – to raise money has changed my mind.

Beijing Express decided on 23rd, intended to end its part of the public offering of shares to raise funds investment projects and will be permanently added savings of 512 million Yuan working capital of the company. However, Shanghai Stock Exchange believe that Beijing Express’s disclosure of key information is not sufficient, risk disclosure in place, and on July 25, sent a letter asking Beijing Express to do further explained.

On July 27, the Beijing Express reply Exchange denied that the termination of the project there is dispute or breach of law, and said that termination of planned investment projects does not have a significant impact on the expected rate of return.

Beijing Express project is the roof of the termination of distributed PV power station, project site under the policy to encourage development of distributed PV industry quickly, raising 2.155 billion yuan Beijing Express November 2015, 1.275 billion yuan intended for the project. Press Conference on 26th and 27th morning repeatedly call the Beijing Express, but no one answered.

To change letters with insufficient

Beijing Express page notice “understatement” to raise money into changing circumstances, but SSE said it’s not that simple.

According to the original plan, to 9 in Beijing Express in late November 2015 2.155 billion yuan of the issue raised in the Zhejiang jiaxing 1.275 billion yuan will be used for distributed solar power projects. But on July 23, the company said, intends to end its part of the public offering of shares to raise funds investment projects and permanent supplementary savings of 512 million Yuan working capital, as a result, used to supplement working capital of the company amounts to 962 million Yuan, raising money 45%.

The move immediately drew the attention of SSE. Beijing Express reported 25th SSE inquiry letter requirements explain the change to raise funds to specific causes, the need for changes to, and asked whether its when you start a non-public offering fully demonstrates the feasibility of offering investment projects.

According to the Beijing Express introduced, the company intends to terminate is a part of the roof in jiaxing, Zhejiang Province of distributed solar power projects, December 2014 was approved for this project, by the Beijing Express in Haining, three sub-companies of Pinghu town, Tongxiang, in three regions of 50MW, is expected to finish construction of the end of 2016. At present, the project has been completed and 109MW, invested 763 million Yuan, remaining 41MW will no longer advance, unused balance is 512 million Yuan to raise funds.

In reply to announcements on 27th, Beijing Express says, on the one hand the project relating to the construction and signing the client’s business, part of the economic downturn, demand for electricity substantially reduced, if construction of the project, most electricity sold to the grid rather than the customer, lower electricity prices a lot, while the other part of the business is about to collapse or for sale, project risk, and this reason relates to 6MW. The other hand, roofing resources is the reason for the termination of the project, one of the Beijing Express, some roofs rusted grave does not meet the conditions, substandard roof load increased costs, involving a total of 35MW.

In addition, the Beijing Express denied that the termination of the project legal dispute or breach, and said that termination of planned investment projects does not have a significant impact on the expected rate of return. Beijing Express had predicted that after the project is completed, Haining, Pinghu, Tongxiang internal rate of return after tax in the three places up to 9.5%, 8.4%, 9%, and due to the lower investment costs, currently yields have increased, and the three corresponding internal rate of return, and 10.02%, and 9.86%.

Risk tip questioned inadequate, Beijing Express in his reply that roof has prompted many potential issues of coordination of resources, and in December 2014, July 2015 are listed two announcements. But to raise the funds to announce the termination of this period, Beijing Express never tip of the project may not be risk-complete, this makes the fundraising notice to change somewhat “sudden”.

Beijing Express project has been showing a positive attitude, long before fundraising, Beijing Express have used self-financing invested 522 million Yuan for the project until January 2016, replacement of Beijing Express in order to raise funds to raise the necessary funds.

Distributed PV positive growth

Early in the fundraising, said Beijing Express, completion of the project will help improve the company’s strategy in the new energy industry, enhance ability to withstand industry cyclical fluctuation by the existing business risks, to achieve long-term sustainable development is of strategic importance.

Beijing Express in the 27th letter of introduction, Zhejiang Province local government subsidies to distributed generation with “high to low” for obvious features, significantly shortening the payback period of the project and improve investment yields.

Such receipts were expected to follow. Beijing Express project partners core energy PV science and Technology Corporation (hereinafter referred to as the core technology) in 2014 after upgrade for distributed PV as the core, achieve profitability in September 2015 and list on the new Board, and entered the IPO counseling period in October 2015.

Capital securities research reported that “Thirteen-Five” during country continued to support the photovoltaic power generation, and will vigorously promote distributed photovoltaic power generation, driven by subsidy-driven steering technology, business models, has a unique business model, innovation capability of enterprises will come to the fore.

Beijing Express is focused on photovoltaic industry in 2015, annual report, Beijing Express said, the company’s business mainly for photovoltaic PV power station power station acquisition, possession and operation. And that, in terms of expansion of solar PV power plant business, the company has formed a relatively complete selection, construction, operation and decision-making systems, and help the company more accurately and rapidly identify quality projects, improve project returns.

Beijing Express termination of the project spread over Henin three, Pinghu, Tongxiang, jiaxing city, are, according to the jiaxing city the official website describes, as early as in December 2014, Haining “national demonstration zone of distributed PV Application” first projects already grid-connected, first half of 2016, the PV industry in the city, an increase of 24.5%.

In the context of distributed PV industry supported by the policy, Beijing Express subsidiaries enjoy tax benefits, which include offering three subsidiaries of the investment projects, in addition, the local Government also distributed PV electricity price subsidies. According to the Beijing Express 2015 annual report, its in Haining, Pinghu, Tongxiang subsidiaries operating profit was 29.8661 million Yuan, 215800 Yuan, 924,200 Yuan.

Original title: raise 500,000,007 month diversion Beijing Express response Exchange: does not affect the rate of return

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