Changjiang Electronics Technology Reform: China microelectronics report eat burned half

SANGHUA 2005 in the first half report and third quarterly report shows, although SANGHUA main business and profit growth is very fast, but its accounts receivable is quite high. The first half of the retribution accounts receivable was 201 million yuan, a year in the accounts receivable amounted to 196 million yuan, accounting for 97% of the proportion of the total accounts receivable; other accounts receivable amounted to 145 million yuan, a year in other accounts receivable 126 million yuan, accounting for other receivables total ratio of 86.89%.

Once the SANGHUA create a great sensation (600360) of the Changjiang Electronics Technology (600584) shares investment trust projects, before the date of termination and failed to.

In December 9th, China microelectronics announcement, decided to terminate the two-year investment trust plan, proposed last year through long power technology 34 million 828 thousand shares Warburg trust and investment legal person shares were transferred to Suzhou fatai Investment Co. Ltd., Jiangsu Ruihua Investment Development Co., Ltd. and Qingdao hisyntrust & Investment Co. Ltd. Suzhou Industrial Park and the Sea King Properties Limited 4 company, the transfer of a total amount of 85 million 560 thousand yuan.

China microelectronics decision to make a premature termination of the trust, with the original sensation caused by a sharp contrast, but also contrary to the expectations of many people in the industry. What is the real story?

Termination of the trust triggered speculation

SANGHUA announcement said that since December 7th through the long power technology reform plan: the non tradable shares to tradable shareholders according to the proportion of 10 shares for every 3.2 shares, the Huawei believes that the principal fortune trust transferee Changdian Technology Corporation shares investment trust plans to transfer cost is higher than the other promoters of non tradable shares, at the same time, Changjiang Electronics Technology in the realization of the full circulation after 12 months can not handle the transfer. Therefore, the premise of the first beneficiary's interest in maintaining the trust plan under the company commissioned by the Warburg trust transfer Changjiang Electronics Technology Corporation shares under the project equity investment trust plan, and terminate the long Power Technology Corporation shares investment trust projects.

"This is a real reason." An unnamed insiders said in an interview with reporters, now SANGHUA ahead of the end of its trust plan, can only get about 2 million yuan of investment income, and if you wait until the long power technology to achieve full circulation, they may get tens of millions or even more investment income, therefore, China microelectronics announcement is not enough. Otherwise it should be because of.

Perhaps, when the original investment trust in the position of microelectronics can support the judgment of the person.

In August 16, 2004 the Sino microelectronics announcement said, "pricing based on the trust plan after the expiration of the underlying equity transfer, the transfer price of 2.39 yuan per share is far lower than the trading price of shares in circulation long power technology, the two years after the expiration of the trust plan, then China stock market began to implement the full circulation plan, with the price of the underlying equity transferee will China get a huge return on investment of microelectronics." The announcement also revealed: "given the long power technology's main business is the manufacture and sale of packaging and testing of semiconductor discrete devices and integrated circuits, and the company belong to the electronic components industry, and belongs to the relationship between the upstream and downstream industries. In recent years, the long power technology and the company has a large number of business cooperation, is one of the major customers and vendors supporting the company. The investment in the trust plan, two years after the expiration of the trust company is expected to hold long power technology 11.9% stake, which is to strengthen cooperation in the industry, strengthen customer relationships, have the value and significance of strategic."

Accounts receivable problems?

From the above SANGHUA announcement can be seen, China Changjiang electronics technology has great value and micro investment strategy, so China will try to route through microelectronic, fortune Trust shares to Changjiang electronics technology, if not forced to, SANGHUA should not easily quit.

There may be financial pressure." Pudong Development Bank, said Mr. Zhou, Hua Yuan entrusted Warburg trust and investment plan will expire in August next year, which requires a large amount of funds to pay microelectronics. According to the share reform program, the purchase of non tradable shares shall be given to the proportion of tradable shares of shareholders. So this may be one of the reasons for the termination of the trust in China micro micro. Further analysis of Mr. Zhou, from the first half of third SANGHUA reports, quarterly reports and the latest November 22nd results announcement shows the situation this year, SANGHUA good operating conditions, net profit will exceed last year more than 100%, so it is not too much financial pressure. From now, long power technology situation, long power technology business is also good, the development prospect of next year is more optimistic, with the full circulation of stock should have greater value-added space, as long as you can come pretty huawei. However, the interpretation of the contradictions are suspected, the problem is where?

Reporters in the 2005 half of the report and the report in the form of microelectronics in the third quarter found that although the main business of microelectronics and profit growth is very fast, but its accounts receivable is also quite high. SANGHUA semi annual report shows that its accounts receivable 201 million yuan, and within a year the accounts receivable amounted to 196 million yuan, accounting for 97% of the proportion of the total accounts receivable; other accounts receivable amounted to 145 million yuan, a year in other accounts receivable 126 million yuan, accounting for other receivables total ratio of 86.89%. The sum of accounts receivable and other receivables amounted to $346 million, exceeding $285 million in revenue in the first half of the year as much as $60 million. Accounts receivable and other receivables in the three quarter report of microelectronics was $349 million, an increase of $about 2000000 over the first half of the year, compared with the main operating income of $444 million ($75%).

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