[ad_1]
Original title: Tianqi Lithium Exhibitions that more than 12 billion loans may not pay the aftermath of the “elephant swallow snake”, how to solve?
Every time reporter Xu Shuai has more articles than any editor
Last weekend, Tianqi Lithium (002466, SZ; yesterday’s closing price was 22.69 yuan) revealed that more than 12 billion yuan may not be available. After the market opened on November 16, the market chose to vote with its feet, at the end of the day the price fell 7.69%. In an announcement last Friday night, Tianqi Lithium mentioned that the $ 1.884 billion in M&A loans will expire at the end of November 2020, representing 179.35% of the company’s most recent audited net assets. company. This high-value M&A loan originated from Tianqi Lithium’s acquisition of SQM Salt Lake.
At present, Tianqi Lithium Industry wants to solve the aftermath of the “elephant swallowing the snake”, on the one hand, it needs to obtain the extension of CITIC Bank, on the other hand, it needs to raise funds for debt repayment, such as the introduction of war investments.
From the perspective of industry insiders, even though Tianqi Lithium is in debt quagmire, it still owns the assets of Talison and SQM Salt Lake.
More than 10 billion loans due this month
Last Friday night, Tianqi Lithium published an announcement on the progress of major risk issues. Subsequently, the risk that the company could not repay the principal and interest on a large amount of outstanding debt shocked the market.
Launched on November 16, Tianqi Lithium Group once lowered its limit during the bidding phase. However, it was immediately shaken up by funds and a massive transaction volume of more than 2.5 billion yuan was launched this morning.
According to an announcement late Friday, Tianqi Lithium mentioned that the $ 1.884 million in M&A loans will expire at the end of November 2020, representing 179.35% of the company’s most recent audited net assets. . According to the latest exchange rate against the US dollar, US $ 1.884 billion equals RMB 12.4 billion. Tianqi Lithium’s third quarterly report revealed that the company’s total assets at the end of the period were approximately 42.671 million yuan, liabilities were 34.677 million yuan, and net assets were 5.85 billion yuan.
In fact, it is not the first time that Tianqi Lithium has issued a risk announcement that it cannot repay the principal and interest on a large amount of debt owed. On September 30, Tianqi Lithium issued a risk warning announcement, which mentioned that the US $ 1.884 million loan will expire in November and there is a risk that the loan will not be repaid.
However, due to the general optimism in the A-share market after the National Day holiday, Tianqi Lithium’s share price at the opening after the holiday did not plummet, but there was an increase. This time, after Tianqi Lithium exposed its debt crisis, the market caused an uproar and its share price plummeted. To a large extent, the debt repayment period is gradually approaching and the market is concerned that Tianqi Lithium’s repayment capacity will be insufficient, which will really explode.
This time, Tianqi Lithium’s debt problem started with a merger two years ago. In May 2018, Tianqi Lithium acquired a 23.77% stake in Compañía Minera Química de Chile (SQM) for US $ 4,066 million (approximately RMB 25,920 million), becoming SQM’s second largest shareholder.
SQM Company is located in the Salar de Atacama and has the richest lithium and potassium resources in the world. Salt Lake’s high-leverage acquisition is the second time Tianqi Lithium has “cut the elephant.”
The first “Snake Tunxiang” was in 2014 when the company acquired the world class Australia Terryson lithium mineral resource. The latter’s Greenbush mine is the best overall performing spodumene mine in the world.
In 2015 and 2016, the new energy revolution fueled the explosive growth of lithium prices, and Tianqi Lithium was officially transformed into a white horse. In 2015, Tianqi Lithium’s net profit reached 248 million yuan, a year-on-year increase of 89.93%; In 2016, Tianqi Lithium’s net profit reached 1.512 billion yuan, a year-on-year increase of 510.03%. The “Daily Economic News” reporter once contacted a mid-level manager at Tianqi Lithium and recalled that when the price of lithium was the craziest, he said that customers basically called to pay the total in advance.
However, the result of the second “snake-eating elephant” was not as good as the first. It was also a highly leveraged M&A, but Tianqi Lithium acquired Salt Lake at a high lithium price.
In 2015, the price of lithium carbonate for batteries started to rise, reaching a peak close to 200,000 yuan / ton. However, as of February 2018, the price of battery grade lithium carbonate peaked and fell, and the range was more than narrow. This also puts Tianqi Lithium under double pressure: on the one hand, the high interest expense, on the other hand, the “hematopoiesis” of lithium prices is no longer at its peak.
According to the third quarter report of this year, Tianqi Lithium’s interest expense in the first three quarters was as high as 1.398 billion yuan; net profit was a loss of 1,103 million yuan, a year-on-year decrease of 890.95%.
Prior to this, Tianqi Lithium also repaid debts through appropriation financing. But things fell through: the company’s high hopes for the award raised just 2.93 billion yuan. Is the real driver “broken arm” to raise funds?
Regarding this latest announcement, the market chose to vote with its feet, and some investors are concerned that Tianqi Lithium may face insolvency.
Tianqi Lithium said the company has formally submitted a request to adjust the loan term structure to the syndicate, but it is currently under review. In addition, Tianqi Lithium has temporarily suspended payment of part of the interest on M&A loans due in 2020.
In the September 30 announcement, Tianqi Lithium also mentioned this. Notably, Tianqi Lithium has temporarily postponed the M&A interest payment, but has also obtained the credit line from CITIC Bank. Tianqi Lithium obtained a loan from CITIC Bank of China of no more than US $ 100 million, which was used primarily to settle overdue payments for lithium concentrates.
An industry analyst said that if Tianqi Lithium Industry’s debt problem becomes irreversible, it shouldn’t get as many lines of credit.
However, Tianqi Lithium’s debt repayment time is imminent after all, and extending the loan and raising funds remains the top priority.
A person from Tianqi Lithium told the “Daily Economic News” reporter that the company is currently actively solving the problem, and details have been revealed in the announcement. “The company and majority shareholders are still actively carrying out related work, such as the introduction of strategic investors, with a view to alleviating the current tight liquidity situation, reducing the financial leverage of the company and optimizing the asset and liability structure. Although no legally binding strategic investment has yet been signed The author presented the agreement, but the related work has been continuously and actively promoted, ”said the interested party.
The battle is still undecided and Tianqi Lithium must first cut expenses. The company also previously mentioned that it suspended or delayed all construction projects and reduced its annual cost budget. As of this year’s third quarterly report, the company’s ongoing total construction has fallen to 6.713 billion yuan.
In the eyes of the industry analysts mentioned above, Tianqi Lithium is not completely insolvent. After all, the company also has two high-quality assets, Talison and SQM. “As long as you want to pay the money back, there is still a way. These are excellent assets. Look at Lao Jiang (the royal controller) reluctantly.”
The journalist noted that SQM’s share price has more than tripled this year. However, there is still a gap between Tianqi Lithium’s acquisition price at the time and its acquisition price in 2018 was $ 65 / share. More importantly, the autohematopoiesis ability of Tianqi Lithium. According to market data, the price of lithium carbonate is gradually rising.
According to tracking data from the trading agency, in recent times, the price of lithium carbonate has been in a relatively upward range. With increasingly tighter shipments, the price continues to rise. The supply and demand structure is expected to emerge gradually as the lithium battery industry continues to develop improve.
Lithium carbonate analysts at the Business Society believe that the current market price for lithium carbonate continues to rise and market shipments are tight. Driven by increasing demand and cost growth, the lithium carbonate market is expected to remain in a positive trend in the short term.
