Tong Kun shares blind expansion Pro product prices plummeted or unable to repay debt

-Our reporter Zhou Wentian Zhejiang reported that due to blind expansion, coupled with industry surplus, Tong Kun shares finally broke out of crisis. On the one hand, polyester filament prices plummeted in the last one months, the company as a leading polyester filament manufacturing, gross profit margin was diluted; on the other hand, the company last year just issued 1.3 billion yuan bonds, the recent 4 bondholders have asked to repay the 400 million-dollar bonds in advance, or will result in a large area of 1.3 billion yuan bond risk. Industry analysis, Tong Kun shares of cash flow has dried up, may not be able to repay the 1.3 billion yuan bond, before the plan to throw 550 million yuan repurchase shares plans or will be stranded. Tong Kun shares 15th a paper directly confirms the above analysis, announced that "emergency", the board to exempt the Board of Trustees of the 17th meeting in advance 5th notice obligations, serious situation even 5th can not afford. 1.3 billion-dollar bonds facing early liquidation of this year in mid-August, Tong Kun shares disclosed "on the centralized bidding transactions to repurchase shares of the plan." The repurchase report stated that the company decided to repurchase part of the social and public shares and write off the shares within 6 months from the date of the shareholders ' general meeting for consideration of the option of repurchase shares, with the total repurchase fund not exceeding 550 million yuan and the repurchase share price not higher than 7 yuan/unit. Timing For this repurchase, "12 Tong kun debts" of the holders obviously different meaning. October 10, 4 bondholders or agents participate in the "12 Tong Queensland Debt" holders of the conference, the 4 people on behalf of the voting corporate bonds 3,947,660, accounting for the period of the total number of corporate bonds 30.37%, accumulated nearly 400 million yuan holdings of "12 Tong Kun debt." The bondholders ' meeting reviewed and voted on the motion not requiring companies to repay their debts and provide guarantees in advance. Wanguo [Weibo] special drew "12 Tong Kun debt" bondholders meeting agreed, after the company completes this repurchase shares correspondingly reduces the registered capital, does not require the company to pay in advance "12 Tong Queensland Debt" under the debt, also does not require the company to "12 Tong Kun Debt" provides the supplementary guarantee. However, according to the result of the poll, the resolution failed to obtain the approval of the holder or his agent who represents more than 50% of the total principal amount of the outstanding debt in the current period. "The voting result of the creditors ' meeting was unexpected. "People close to the company's management say. After the results were released, the market was interpreted as "12 tong Kun debt" holders may face large-scale demand for early liquidation of the risk. Market participants also believe that the bond holders ' opposition to repurchase shares is rare, indicating that there has been a great divergence of views. Since no effective resolution has been formed, under the relevant provisions of the company law, the bondholders have the right to request the issuer to repay the debt or to require the issuer to provide the corresponding guarantee on the basis of valid claim documents and certificates. "Bondholders are concerned about the solvency of the companies, who do not care about the ups and downs of the share price, nor do they want the listed companies to use cash to buy back the shares, because it will reduce the cash of the listed companies." "But shareholders of listed companies are happy to buy back shares because they usually bring in stock prices, which is why Tong Kun sharesGeneral meeting of the shareholders to pass the repurchase bill, and the reasons for the joint effort sniper. In view of the "12 Tong Kun debt" bondholders failed to pass the relevant bills, the company intends to "12 tong Kun Debt" to provide security or "12 Tong Kun Debt" bond holders in advance settlement. In the provision of security, the company intends to take the form of a letter of guarantee by commercial banks, by the commercial banks for "12 Tong Queensland Debt" to provide joint and several liability guarantee, the main claim amount of the guarantee according to the actual repurchase shares of the total funds determined, the maximum of not more than 550 million yuan. In the early settlement, due to the maturity date of January 21, 2018, early liquidation on the one hand will bring the company additional financing costs, Tong Kun shares to be in July 21, 2014 "12 Tong Kun debt" par value of 93% to the bondholders in advance, and to pay the full interest of the early settlement date. These two options will be submitted to the "12 Tong Kun debt" of the bondholders meeting to be considered by the bondholders meeting to select one of the implementation of the scheme. Market personage Analysis, if repurchase shares and bonds in advance repayment at the same time, Tong Kun shares will undoubtedly face greater financial pressure. 550 million yuan repurchase or quench thirst Tong Kun shares 2012 years, the huge polyester industry to achieve revenue of 18.421 billion yuan, but fell 8.44%, and its attribution to the listed company shareholders net profit of only 257 million yuan, the year-on-year decline of 77.02%. The release of the company's capacity to raise investment or make its performance worse. In fact, in the four quarter of last year, when the investment project was put into production, the problem of overcapacity began to appear. 2012 Tong Kun stock from 1.067 billion yuan to 1.789 billion yuan, an increase of 68.51%, the reason lies in the "Jiaxing petrochemical production in this period, the end of the inventory increase." "More embarrassing, for the cash flow is not very optimistic about the shares of Tung Kun, Hao throw 550 million yuan for share repurchase is not easy." One researcher, who declined to be named, noted that the company's fast-moving ratio was only 0.57, and that this part of the liquidity was actually very small, only half of the debt. If there is a real cost of 550 million yuan, this means that Tong Kun, in addition to the need to use their own funds, the company's high financial costs will be difficult to change the decline. This will give the company long-term development to bring lingering hidden dangers. When the company's 2013.5 Annual report was disclosed, the company had a monetary capital of 510 million yuan, and the recently released repurchase scheme required 550 million yuan. Some investors said, "unless the repurchase is cancelled, because reducing the registered capital to the creditor does not benefit, 550 million yuan is the creditor's money." "Tong Kun shares the main business of polyester filament for the development, production and sales, the main products can be divided into Poy, DTY, fdy three categories." However, the industry overcapacity is obvious, the global economy is still weak, downstream demand, coupled with the upstream raw materials, such as PTA and other factors such as oil prices, the company's performance has slipped significantly since 2012. Company's current liabilities accounted for a large proportion of the current assets in the receivable and inventory, there is a certain mismatch, speed ratio, flow ratioare on the low side. China Securities News reporter inquires The Daily Express of textile chemical fiber, polyester poy price One months since the "cliff-style" fell, from September 3 quoted 10750 yuan/ton, fell to October 14 of 10200 yuan/ton, She 550 yuan per ton. Polyester Fdy price trend of the same way, from the beginning of September 12400 yuan/ton, fell to the beginning of October 11900 yuan/ton, a plunge of 500 yuan per ton. Polyester Dty is no exception, the decline of 300 yuan per ton or so. "From the fundamentals of the company, there is no reason to prop up the company's share price for a long time. "Long-term research of chemical fiber industry researchers said, Tong Kun shares are mainly engaged in the field of polyester filament production, and accompanied by the decline of polyester filament product prices, the company's gross margin has been diluted to 5.87%." Even more than that, the company's stock is huge. Although big shareholders do not hesitate to buy the bite, the fundamentals do not see a warming signal. Market participants cautioned that although many repurchase actions were viewed as positive by investors, not all repurchase is long-term "red envelopes", and some may even be "landmines." Investors need to carefully examine the nature of the company, repurchase is not the company's fundamental to usher in the inflection point of the positive factors. For the shares of Tong Kun, the repurchase may face termination. The 15th announcement has hinted that it would be possible to terminate the repurchase plan if it is difficult to agree.