Smarter Energy (600869) announced in the evening on July 29 that, “Hualong One cable product used in harsh environment” developed jointly by Anhui Cable Co., Ltd. and China Nuclear Power Engineering Co., Ltd. won “Certificate of National Defense Scientific and Technological Results Appraisal” in 2015. The product has reached the international advanced level for similar products in performance, realized a replacement of imported product with similar one, and achieved localization of nuclear key technologies. To further enhance Anhui Cable Co., Ltd.’s scientific and technological research capability, technical level and manufacturing capacity, strengthen overall competitiveness, and consolidate its leading position in nuclear power cable, the company intends to increase the capital of Anhui Cable Co., Ltd., one of its holing subsidiaries, by RMB 68.185 million in cash; also, Teng Xueren will increase the capital in cash that is amounted to RMB 33.852 million. After the capital increase, the registered capital for Anhui Cable Co. Ltd. will reach RMB 300 million.
According to the announcement, the subject company- Anhui Cable Co., Ltd.- has a registered capital of RMB221.51 million. Its operating scope covers manufacturing and sales of wires and cables, copper wire materials, cable plastics, bellows, cable coils, wood products and instrumentation; exporting own products and technology; and importing machinery and equipment, spare parts, raw and auxiliary materials, and technology demanded by Anhui Cable, excluding the goods and technologies restricted by the country in operation or banned by the county from importing & exporting. Smarter Energy holds 59.5458% of its stake. As of March 31, 2016, the subject company has owned a total assets of RMB 756,977,165.72, and net assets of RMB 117,193,143.50. In the first quarter of 2016, it realized an operating revenue of RMB 111,065,150.22, and net profits of RMB-4,328,015.04.
The announcement shows Smarter Energy, as an industry leader, is the supplier with the most complete types of wire and cable, and the largest quantity of sale. This time, an increase in the capital helps optimize the capital structure, and reduce the ratio of asset-liability, providing a strong guarantee for Anhui Cable to explore the market, which has further secured a leading position for listed companies in the field of nuclear power cable, and laid a solid foundation for the listed companies to expand their overseas markets.
According to the analytical reports released by research institutions recently, the company's smarter energy industry chain continues to promote a transformation strategy, and the energy Internet platforms are perfecting the establishment, under which the energy control system, power lithium-ion battery, intelligent system, wire and cable, and e-business "trading pay network" display obvious synergy effects. The company’s profitability and asset quality have been improved overall. Yi Neng Electricity is expected to stop loss this year, while the acquired Intelligence Power and SEMEUREKA own higher-quality assets running well, which have a larger probability in realizing the performance commitments. 2016 will be a starting point for the listed companies to sharply raise the performance. Increasing the capital of the holding subsidiary aims to intensify the support to Anhui Cable Co., Ltd.’s "Hualong One cable product used in harsh environment", enhance the capability of manufacturing high-end products, and help the listed companies consolidate the leading position in the industry.