Star Shuaier to buy AmSolar to enter the photovoltaic industry
According to Huangshan Daily, AmSolar will invest 18 million yuan this year to purchase production equipment and implement technological transformation.
Hangzhou Star Shuaier Electric Appliance intended to acquire a 51% stake in Huangshan AmSolar Technology Co., Ltd. (“AmSolar”) by cash payment, said the company on the evening of February 25. The transaction is based on 6 yuan per share. The total price is RMB 30.6 million.
In the morning of the 26th, Star Shuaier responded to the Cailian Press:
“This acquisition is based on the respective strategic decisions of the two parties. After the acquisition, the company’s main business will not be changed. Star Shuaier and AmSolar are both manufacturing enterprises and are committed to the development of energy conservation, consumption reduction, environmental protection, and green Products, there is a basis for cooperation. Star Shuaier wants to quickly develop the clean energy market and further enhance the company’s sustained profitability; while AmSolar can only meet foreign orders due to funding shortages. After the completion of the acquisition, AmSolar will use funds to expand production capacity and develop the domestic market.”
The equity transfer agreement includes performance commitments and compensations. Specifically, AmSolar promises to produce net profit after deduction of non-recurring profit and loss with no less than 8 million yuan, 9.6 million yuan and 11.5 million yuan in 2021, 2022, and 2023, respectively. Three annual commitments The accumulated non-net profit deduction is not less than 29.1 million yuan.
The announcement shows that in 2020, AmSolar’s revenue was nearly 120 million yuan, and the net profit was about -2.1 million yuan. As of December 31, 2020, AmSolar had net assets of 4.048 million yuan.
An insider in the photovoltaic industry said, “AmSolar is of normal production capacity. The premium for this transaction is high, and it is difficult to achieve the performance commitment. The final result depends on the specific integration of the two parties.”
The investment in AmSolar brought Star Shuaier into the photovoltaic industry. According to the announcement, AmSolar was established in 2017. Its main product is photovoltaic modules. The product are used in centralized power stations, distributed power stations, and mainly centralized power stations. The current capacity of photovoltaic modules is 350 MW per year.
The main client of AmSolar is a Canadian company called HELIENE. The latter mainly serves North American government and photovoltaic companies that serve and civilian projects. There are dozens of hundreds of megawatts of distributed photovoltaic projects in the United States and Canadian states, and it also provides photovoltaic product services to companies such as General Electric and Exxon Mobil in the United States.
According to Huangshan Daily, AmSolar will invest 18 million yuan this year to purchase production equipment and implement technological transformation. It is expected to achieve a production capacity of 700 megawatts and an output value of 600 million yuan within this year.
Star Shuaier products are mainly thermal protectors and starters for compressors, which account for nearly 1/3 of the domestic market.
According to the third quarterly report of 2020, Star Shuaier achieved 670 million yuan, a year-on-year increase of 30.02%; net profit was 88.85 million yuan, a year-on-year decrease of 21.83%.