After the market on March 4, LONGi issued an announcement stating that it plans to spend 1.635 billion yuan to acquire 27.25% of the shares of Center Shixing Group Co., Ltd. (hereinafter referred to as “Centre shares”, 603098.SH) at a price of 12.50 yuan per share. .
The price of 12.50 yuan per share is 30.75% higher than the closing price of Sente shares on March 4.
It is understood that the parties to this transaction include Liu Aisen, the controlling shareholder and actual controller of Sente, Beijing Shixingshengya Investment Co., Ltd. (hereinafter referred to as “Shixingshengya”, wholly-owned by Liu Aisen and his wife Li Guiru), and another Huayong Investment Group Co., Ltd. held by natural person Li Yong.
Of the approximately 131 million shares transferred in total, Liu Aisen and Shixingshengya accounted for 63.30%, which means that Liu Aisen and Li Guiru will cash out about 1.035 billion yuan in this transaction.
Affected by this news, on March 5, Sente shares bid up to the limit of 10.52 yuan, a record high in the past five months, with a market value of 5.050 billion yuan.
After the completion of the share transfer, Liu Aisen and Shi Xingshengya will reduce their total shareholding ratio from 57.43% to 40.18%. They will remain the controlling shareholder and actual controller of Sente. Longji will become the company’s second largest shareholder with a shareholding of 27.25%. .
According to data, Sente was established in December 2001 with a registered capital of 480 million yuan. Its main products are new building materials. It mainly undertakes metal enclosure system engineering (roofing system, wall system) and sound barrier system engineering, and provides secondary engineering Engineering contracting services from consulting, design, supply of special materials and processing to installation and construction. At the end of 2016, the company successfully landed on the Shanghai Stock Exchange.
Longi shares said that this acquisition will help promote the business integration of both parties, give full play to the advantages of Cente shares in the design and maintenance of building roofs, and combine Longi’s advantages in BIPV product manufacturing, and the two parties will jointly develop the large-scale public building market. business development. It will help the company expand the scope of distributed markets and expand the application scenarios of photovoltaic products.
According to the “Technology Innovation Board Daily” report, as the current domestic photovoltaic industry integration leader, Longi announced its entry into the BIPV (Building Integration of Photovoltaics) market in 2019. At the same time, it plans to achieve BIPV revenue of 10 billion yuan by 2024. Successfully released the first prefabricated BIPV product “Longding” in July last year, mainly for the roofs of industrial and commercial plants.
Changjiang Securities Research pointed out that LONGi’s positioning in BIPV construction is mainly based on building materials. Although BIPV-related products were also available in the early market, they did not achieve widespread promotion due to the relatively high cost at that time. With the long-term downward trend of component manufacturing costs, BIPV products are gradually recognized by the market in terms of economy and aesthetics, and are expected to open up the domestic blue ocean market.
In China, earlier than Longji, the BIPV project at the Jintan base in Jiangsu Province had been connected to the grid and put into operation; Hanergy released the first-generation BIPV product Hantile in July 2017, mainly for industrial and commercial roofs.
Globally, Tesla has done better in this area. It acquired SolarCity, a leading company in the installation of household solar energy systems in the United States in August 2016.
In 2019, Tesla’s energy business relied on SolarCity to achieve revenue of 1.53 billion yuan, accounting for 6.2% of total operating revenue. In the conference call after the announcement of the earnings report, Musk made it clear that he would turn the solar roof into a major business of Tesla. According to him, there is a growing demand for glass solar roofs. In the North American market, Tesla’s annual orders are 4 million new roofs.
“BIPV is one of the most important fields of photovoltaic applications in the future. LONGi intends to acquire 27.25% of Sente’s shares at a premium and become the second shareholder. It will form a strong alliance in the BIPV field to solve the problem of the separation between the photovoltaic circle and the construction circle in the past, and to expand the distribution The scope of the market, forming strong competition with Tesla and other competitors.” Independent economist Wang Chikun said.