The main business continues to lose money, and the “King of Buffalo Milk” who has repeatedly failed to cross the border will re-conquer the photovoltaic dream. Can the dream come true?

Huangshi Group (002329), which has always been “restless”, has frequently moved on the photovoltaic track. Although the revenue from the photovoltaic business has not yet been realized, the company’s stock price has performed first since the announcement of the crossover last year, and the current stock price has doubled compared with the same period last year. In stark contrast, it has suffered consecutive losses after deduction of non-net profit, and its main business is in a state of blood loss.

Right now, the Huangshi Group, known as the “King of Buffalo Milk”, is eyeing the “popular fried chicken” perovskite in the photovoltaic industry. The company announced on the evening of January 31 that its holding subsidiary, Huangshi Agricultural Light Complementary (Guangxi) Technology Co., Ltd. (hereinafter referred to as Huangshi Agricultural Light Company) signed the “New Generation Solar Cell: Calcium Titanium Ore/Crystalline Silicon Lamination Technology Cooperation Framework Agreement, valid for two years from the date of signing. According to the agreement, the two parties will establish a cooperation mechanism, give full play to their respective advantages in capital, technology, talents and resources, and jointly promote the research and development, production and product application of TOPCon/perovskite laminated battery technology, and enhance the development of Huangshi Agricultural Photovoltaics. Product efficiency of the company’s TOPCon solar cell project.

In the capital market, the concept of perovskite is quite popular. From the perspective of the industrialization process, the speed has been accelerated after the intensive influx of capital in recent years, but the overall development is still in the research and development stage, and there are still huge challenges in the stability and industrialization of perovskite materials. The cost of stacked batteries is still high, and it will take at least 5 years before commercial mass production.

Technological breakthrough still needs time and capital investment, but the main business of Huangshi Group has been exhausted. The company’s net profit attributable to shareholders of listed companies in 2022 is expected to be 10 million to 15 million yuan, but the net loss after deducting non-recurring gains and losses is 110.66 million to 105.66 million yuan. The company explained that the increase in raw and auxiliary materials and transportation costs of dairy products, the increase in depreciation and amortization of fixed assets, the increase in investment in marketing innovation, technology research and development, and new market cultivation, and the maintenance of high financial expenses have resulted in non-net profit deductions not meeting expectations. . In 2020 and 2021, Huangshi Group’s net profit attributable to its parent will be -137 million yuan and -472 million yuan respectively.

It is also difficult to rely on photovoltaics to increase profits in the short term. In December last year, Huangshi Group gained control of Huangshi Agricultural Photovoltaic Company, a subsidiary of the photovoltaic sector, through capital increase and share expansion, and the latter was included in the scope of the consolidated statement. In the first three quarters of 2022, the unaudited operating income of Nongguang Company is 0 yuan, and the net profit is -1.0185 million yuan.

At present, Huangshi’s photovoltaic business is advancing at the manufacturing end and EPC end. From the very beginning, market doubts about “PPT’s entry into photovoltaics, reduction of holdings and cash out” lingered on the company.

On August 22, 2022, Huangshi Nongguang Co., Ltd. and the Management Committee of Fuyang Economic and Technological Development Zone in Anhui Province signed an investment agreement for 20GW Topcon ultra-efficient solar cells and 2GW modules. The total investment of the project is about 10 billion yuan. After the announcement of “Chasing the Light” was disclosed, its stock price rose sharply. Moreover, its stock price has risen by more than 50% in the month before the announcement.

At that time, many investors questioned how the Huangshi Group, which has a market value of only 8 billion yuan and a net loss in performance in 2021, will leverage tens of billions of projects.

The Shenzhen Stock Exchange also quickly issued a letter of concern, requiring it to explain the basic situation of Huangshi Nongguang Company and other shareholders, the basis for the calculation of annual sales of no less than 17 billion yuan and annual tax revenue of no less than 400 million yuan after the project reaches production capacity, and Whether the company uses information disclosure to cooperate with secondary market speculation, etc. The Huangshi Group responded that according to market conditions, the 17 billion yuan sales and related tax calculations are reasonable.

The Shenzhen Stock Exchange also issued a regulatory letter, arguing that the disclosure of the investment and return model in the previous announcement of the Huangshi Group was incomplete.

In addition to the source of the tens of billions of investment, there are other mysteries to be solved. According to Tianyancha data, in May 2022, the head of Huangshi Agricultural Light Company was changed from Qian Yuntao to Lu Yanfei. On August 3, the Huangshi Group announced that Huang Jiadi, the company’s controlling shareholder and actual controller, planned to transfer 30.8 million shares of the company to Lu Yanfei through an agreement transfer, accounting for 3.677% of the company’s total shares. The transfer price of this transaction is 5.31 yuan per share, and the total transfer price is about 164 million yuan.

Since then, the stock price of Huangshi Group has been rising steadily. According to China Securities News, on August 25 last year, the company’s share price was 10.02 yuan. Calculated at this price, although Lu Yanfei has not yet completed the equity transfer, he has already made a floating profit of about 80 million yuan.

In addition, on August 15, that is, a week before the Huangshi Group released the tens of billions of photovoltaic investment announcements, the shareholders of the Agricultural Photovoltaic Complementary Company changed their blood except for the Huangshi Group. One of the new shareholders, Zhongguan Investment (Jiangsu) Co., Ltd. The actual controller is Lu Yanfei. Ten days later, a new shareholder, Guangxi Nanning Xiaoniu Enterprise Management Partnership (Limited Partnership), is also Lu Yanfei’s company. At present, the two companies together hold about 26% of the shares of Huangshi Nongguang Company.

Who is Lu Yanfei? According to public information, Lu Yanfei was born in the trade of silicon materials and founded Jiangsu First Sunshine Photovoltaic Technology Co., Ltd., Zhongguan Investment, Jingfei Energy and other enterprises. It can be said that the joining of Lu Yanfei provided industry resources for Huangshi Group’s “photovoltaic dream”.

Huangshi’s existing photovoltaic orders have been very “torsey”. When answering investors’ questions, the company stated that the components used in the EPC project won by the company intend to purchase externally, and adopt the model of locking the battery sales of Anhui Huangshi Green Energy Technology Co., Ltd. with orders for photovoltaic modules, that is, the company plans to use CNBM, In exchange for modules produced by manufacturers such as Yingli and Risen Energy, manufacturers who undertake orders for this part of modules will have priority in purchasing Huangshi Green’s TOPCon batteries under the same conditions. However, its battery production capacity has not yet been put into production. Therefore, it is adopting the method of entrusting third-party processing to complete some TOPCon solar cell orders.

Huangshi Dairy, the predecessor of Huangshi Group, was established in May 2001, listed in 2010, and changed its name to Huangshi Group in 2014. As a long-established dairy company in Guangxi, Huang’s does not want to only do dairy products. Before getting involved in the photovoltaic industry, the company also crossed industries such as children, the Internet, film and television, entertainment, and information services.

In 2014, Huangshi Group officially entered the film and television industry by acquiring 100% equity of Yujia Film and Television Group Co., Ltd. But the good times didn’t last long. With the upgrading of the supervision of the film and television industry, the film and television business of Huangshi Group went downhill in 2017. In 2018, its net profit attributable to the parent was -616 million yuan. In 2019, the Huangshi Group decided to completely divest the film and television sector after learning from the pain. While the severe damage suffered in the film and television field was still vivid, the Huangshi Group set up Tai’an Digital Smart City Operation Company to enter the offline cultural tourism industry.

In 2020, Huangshi Group intends to enter the field of artificial intelligence and signed a “Strategic Cooperation Agreement” with Shanghai Shangtang Intelligent Technology Co., Ltd., saying that it will carry out in-depth and three-dimensional cooperation in key fields of artificial intelligence. Since then, the cooperation has not made any progress due to the impact of the epidemic.