Hanbara plans to IPO raise 1 billion "plus code" UHV power grid

The " smart grid sector " that is now hotly fired may add new troops. Hanlan Cable recently released its first prospectus (draft), which is expected to be held on September 3 . The company is currently the largest private UHV cable manufacturer in China. The company's net profit in 2009 and 2008 both achieved about a one-time increase. However, there are also hidden concerns behind the glorious data. In the first half of this year, net profit data was only one-third of last year, which was 158 million yuan.

Its pre-disclosure documents show that, in addition to the State Grid, the company's major customers also include large state-owned enterprises such as China Southern Power Grid Corporation, CNOOC, and China Shenhua [23.88 -0.25%] .

The net cash flow from operations of Hanban Co., Ltd. in 2009 and the first half of this year was RMB 217 million and RMB -987.532 million, respectively. The company explained that the main customers had the characteristics of centralized payment at the end of the year. Therefore, accounts receivable in June also increased by 96.4411 million yuan from the end of last year.

The non-sustainability of national investment projects also poses challenges to the stability of the company's operating conditions. Han Cable is the designated supplier of UHV cables for the Olympic Games and the Shanghai World Expo. The company supplied 312 million yuan and 348 million yuan to the designated purchasers of the two events in 2008 and 2009 , respectively, which accounted for the total revenue of the year. 10.59% and 12.60% . In the first half of this year, the national grid investment has also been reduced by 25% , and the reduction in large orders has caused the advance receipts at the end of June this year to be reduced by 60% from the beginning of the year.

In addition, metals such as copper and aluminum are the main materials for the production of cables, and their price fluctuations will also have a major impact on the company. First-half net profit performance this year than in previous years largely due to the fall in copper prices led to the beginning of April to May the company bought the futures price is higher than futures contracts expire settlement value of the futures contract delivery to generate a loss of 47.8755 million yuan, with last year's 1.46 100 million yuan in futures investment income can not be the same day.

Although the company's future performance has all the above-mentioned uncertainties, the capital investment project company that is listed and raised is still betting on the UHV power grid. The company expects to raise funds of 1.01 billion yuan, of which 430 million yuan will be used for the production of the highest priority UHP XLPE insulated intelligent energy-saving cables and accessories products. It is estimated that the new ultra-high voltage cable products will be 200 to 460km/ year. The company currently does not have 500KV EHV cable production capacity.

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