Due to the high debt caused by the expansion, mona Lisa urgently needs financing "blood transfusion"

Due to its insufficient hematopoietic capacity, ceramic company Mona Lisa faced pressure to expand production capacity and began to seek market financing.

On August 12, the Mona Lisa (002918. SZ) announced that the company will issue 1.169 billion yuan of convertible corporate bonds with a face value of 100 yuan each, and will launch the subscription of convertible bonds on August 16, with the bond code "127044".

The funds raised this time, Mona Lisa intends to invest in the acquisition of about 58.97% of the equity of Meishande and increase the capital, the construction of digital management system and intelligent warehouse, and the supplementary working capital.

As one of the leading ceramics industry, Mona Lisa was founded in 1998. In 2017, Mona Lisa was listed on the Shenzhen Stock Exchange, and at present, the company's main business is the manufacture of architectural ceramic products, which has four major production bases in Foshan, Guangdong, Fujian, Guangxi and Gao'an, Jiangxi.

Monalis's bond issuance is mainly related to an acquisition at the beginning of the year. According to the purpose of the fundraising, Mona Lisa intends to use the raised $651 million for the acquisition, accounting for about 55% of the fundraising.

Specifically, in February this year, Mona Lisa announced that it would acquire 58.97% of the equity of Zhimei Shande held by Putin Ceramics for 401 million yuan in cash, and subscribe to the new registered capital of Meishan De with 250 million yuan in cash of 44.1176 million yuan, with a total investment of 651 million yuan.

According to the data, Zhimei Shande is a manufacturer of architectural ceramics, mainly engaged in the processing, manufacturing and sales of architectural ceramic products. Currently, the name of Zhimei Shande has been changed to "High Ammona Lisa".

Over the past year, the Mona Lisa has been frequent in its strategic expansion. First invested in the production base of Fujian County, Guangxi, the first time out of Guangdong, and then invested in the Production Base of Gao'an, Jiangxi, to lay out the East China market.

At present, Guangxi Tengxian and Jiangxi Gao'an base has become the company's third and fourth largest production bases, the former's total production capacity is the same as the company's Qingyuan, Foshan two major bases production capacity, equivalent to recreating a "Mona Lisa"; and the latter is the company's just completed the acquisition of Zhimei Shande, but also Mona Lisa's production capacity base in Jiangxi Gao'an.

Xiao Libiao, president of Mona Lisa Group, believes that "the layout of Jiangxi Gaoan can enhance the company's competitiveness in the East China market and the Pan East China regional market. In turn, it meets the rapidly changing market demand. This was an important strategic investment decision for mona Lisa Group. ”

But the continuous investment of funds has also caused the company to owe a lot of debt.

According to the financial report, in 2020, mona Lisa's operating income was 4.864 billion yuan, an increase of 27.86% year-on-year, the net profit attributable to the mother was 566 million yuan, an increase of 30.89% year-on-year, and the net profit attributable to the mother after deducting non-deduction was 559 million yuan, an increase of 36.99% year-on-year.

Underneath that, the Mona Lisa's debt has multiplied several times. As of the end of 2020, the company's short-term borrowings were 368 million yuan, an increase of about 18 times year-on-year, current liabilities were 3.889 billion yuan, an increase of 84.05% year-on-year, and monetary funds were 1.219 billion yuan.

Although from the perspective of short-term solvency, the company's book funds can still cover short-term debt, and the overall performance is stable, in the long run, Mona Lisa's debt has hit a new high in nearly four years. From 2017 to 2020, the company's debt ratio was 37.32%, 41.57%, 43.58% and 52.57% respectively.

In particular, with the same first echelon of Dongpeng Holdings (003012. SZ) compared to the Mona Lisa's gearing ratio is exactly 12% higher. In 2020, the amount of cash flow from operating activities was 576 million yuan, down 37.46% year-on-year, and the net cash flow from investing activities was -1.206 billion yuan, down 151.67% year-on-year, and the cash flow situation was not optimistic.

In response to the surge in debt, the representative of Mona Lisa Securities told Interface News: "Mainly because of the company's capacity expansion, last year the company invested in two major production bases in Guangxi and Jiangxi, so the upfront investment requires a lot of money to prepare production materials. ”

The Mona Lisa is not well funded. However, in order to meet the demand for expansion, the company began to use external channels to frequently "transfuse blood".

Bond financing is a microcosm of foreign fundraising. It is understood that since the beginning of this year, in addition to bond financing, Mona Lisa has also borrowed money to solve its capital needs. As of the first quarter of this year, the company's debt short-term borrowings increased by 142% year-on-year to 439 million yuan, and the total liabilities increased by 119% year-on-year to 4.885 billion yuan.

Not only that, in May this year, the company's chairman Xiao Hua also indirectly cashed out 60 million yuan by reducing his shares.

On May 20, Mona Lisa announced that due to its own capital needs, the shareholder Merchi Investment (actual controller Xiao Hua) reduced its holdings in the company by 2.0442 million shares, accounting for 0.5% of the total share capital, through centralized bidding transactions, and the average price of the reduction was 31.48 yuan / share, cashing out about 60 million yuan.

Whether it is bond financing or new borrowing, Mona Lisa, which has insufficient hematopoiesis, can only achieve scale expansion through external financing. In the future, as the invested bases are put into production one after another, it will take time to observe whether they can bring operating benefits to the company.