The prospect of the main business of the Red Sky is confused and hard to find

Recently, the Red Sky announced plans to issue 1 billion yuan three-year private equity debt, to raise funds for the company to replace bank loans and replenish liquidity. It is noteworthy that the red days before the sale of Guizhou Tian ' an Pharmaceutical Co., Ltd. by selling 55.586% Equity in exchange for 133 million yuan, and now through the Non-public oriented debt financing of 1 billion yuan to replenish liquidity. It is not difficult to see that the company's capital pressure is getting bigger. The company is in such a dilemma because of the red-Sky to its subsidiary of the gold-red chemical total investment of 5.5 billion yuan, but the company has not been profitable for two consecutive years, become a bottomless pit of burning money. To make matters worse, it is hard to be immune to the red sky itself. The company's first three-quarter net profit loss of 91.13 million yuan, a year-on-year decline of 237%. Analysts believe that the company's main products urea face overcapacity in the plight of the future is still not optimistic, it is difficult to turn a profit. Subsidiary into the burning money bottomless pit for two consecutive years the loss did not contribute profits data show that the company in 2012, a total cost of 500 million yuan for the gold-red chemical Tongzi coal Chemical Project One-phase project of ammonia and alcohol production capacity added 100,000 tons/year methanol project, and the use of fund-raising 290.75 million yuan replenishment of the company At present, the funds have been fully invested. In order to replenish liquidity, the red-sky scheme announced in June this year that it intends to apply to banks for a one-year loan of not more than $700 million. At the same time, the company intends to wholly-owned subsidiary of the gold-red chemical industry to provide not more than 1.3 billion yuan commissioned loans. However, these funds still can not alleviate the urgent pressing of the gold-red chemical industry. It is understood that the Kinch chemical production in January 2013, the operation of the factory urgently need a large amount of capital, resulting in the company's lack of liquidity and financial interest burden. Some analysts pointed out that the Kinch chemical industry in 2013 also faced repayment of some of the project loan principal of the larger capital pressure, the red-day capital pressure can be seen. As of February this year, the total investment of red-kinch chemical capital of 5.5 billion yuan, the chemical industry has been slow to make a contribution to the red sky profits. Kinch Chemical Industry since 2012 trial production, the high cost of business, but its performance is not satisfactory. Data show that 2012 years gold-red chemical total assets of 5.6 billion yuan, net assets of 1.6 billion yuan, operating income of 600 million yuan, the loss of 110 million yuan; In the first half of 2013, the operating income of the gold-red chemical industry was 898 million yuan and the loss was 12.773 million yuan. Kinch when the chemical industry turned to red days to contribute to profits, and have the ability to repay the debt, investors have become the focus of attention. Experts in the industry, although the red-sky through coal gasification equipment manufacturing raw materials, natural gas and other raw materials supply and demand reduction, but also reduce dependence on PetroChina, but the introduction of coal gasification technology equipment expensive, virtually increase a large number of costs. Zhuo Chuang Information coal analyst Liu Dongna told the Securities Daily Reporter, since 2012, high coal stocks, prices continue to lower, overcapacity in the liquefied gas market. In recent years, the winter two major heating materials, coal and liquefied gas prices are very difficult to rise in the situation, for the Red Sky, the short and medium term is completely unnecessary through coal gasificationMaking raw materials and adding a lot of costs.　Some analysts said that at present, the red-Kinch also need to invest a lot of money in chemical industry, and gold-red chemical industry is also facing the lack of liquidity, financial interest burden, such as heavy, the return of pressure is still huge. The main business encountered difficulties in the future of confusion difficult to profit at present, the performance of the red-day has also worried investors. In the first three quarters of this year, the red-sky to achieve business income of 3.255 billion yuan, to achieve the ownership of the listed company's shareholders net profit of 91.13 million yuan, down 237% year-on-year. In this respect, the interpretation of the Red sky, the company's leading products urea sales price significantly lower year-on-year, resulting in a sharp decline in profits and net profits, resulting in the owner of the parent company's net profit was significantly reduced and losses. Huatai Securities analysts believe that the urea market after last year's crazy rollercoaster-style explosion, the performance of this year more calm or even relatively depressed. And, the existing urea production capacity has been surplus, but still have new production capacity to put into production, at the end of 2013 total capacity of 80 million tons, and domestic real demand only about 60 million tons. Overcapacity causes domestic urea to rely heavily on exports to balance the market, but in the next few years India will significantly increase its domestic capacity, achieve self-sufficiency in production and cut import demand. In addition, the Middle East and other natural gas resources are very rich countries may pull down the international urea price. "Therefore, the red-day, such as urea for the main business enterprise, Outlook is still not optimistic." The analyst said.