Recently, Hangzhou star enterprises have swiped the screen, most of them rely on the hard power of science and technology to get out of the circle, but some companies rely on blowing bubbles and gejiucai to get out of the circle. Deepseek, which almost changed the fortunes of the country by itself, not to mention the IPO listing, even directly denied the first round of financing two days ago, "all financing related rumors". Crisp and sharp, this concentration is undoubtedly admirable.

But there are hundreds of flowers, people have hundreds of forms, and not everyone can become Liang Wenfeng. For example, also in Hangzhou, there is also a two-city issuance of the first high-priced stock - Hoymiles shares. Its issue price was as high as 557.8 yuan, and it was as high as 1877.43 (compound price) at the beginning of listing, and as of the close of trading on February 24, 2025, the compound price was 355.57, down 36.25% from the issue price and 81% lower than the highest price.

Although the stock price has broken is almost at an all-time low, although Hoymiles claims to be the first gross profit margin in the photovoltaic circle, and although the overseas micro-inverter market seems to be improving, all this cannot stop the company's actual third largest shareholder from reducing its holdings. There is only one reason, compared with the Hoymiles shareholders who cut their ankles, the original shareholders - Jiuzhi Capital and director Han Hualong still increased their value by more than 8 times even if they reduced their holdings at this price.

Why? It was all caused by the high-priced issuance - the company was originally only going to raise 558 million, but with the instigation and blessing of CITIC Securities, it actually raised 5.578 billion, which was overraised by nearly 5 billion. Now, the three shareholders are ready to run away with their buckets.

Catch up with the carbon number originally had a good impression of Hoymiles, because even in the third quarter of last year, its net sales profit margin was still as high as 23.74%, only slightly inferior to Deye shares, ranking second in the photovoltaic circle, and only 10% of the micro-inverter peer Yuneng. For this reason, Catch Carbon has written an article "How can this inverter company achieve the first gross profit margin in the industry?" 》。 However, the truth is very slap in the face, after the release of the article, Hoymiles' share price has been declining, with a maximum decline of 25%, far weaker than the broader market, so that some investors have left messages in the WeChat background to complain.

Now, the Chinese version of Enphase, which was once the most expensive in the two cities, has finally shown its true intentions. It is no wonder that Wu Shichun, a well-known investor and founding partner of Meihua Venture Capital, recently publicly said: "If the company we invest in is going to be listed on the Hong Kong stock market (Hong Kong Stock Exchange), I will break his leg." In fact, this is to pit the money we invested, because if we go to the Hong Kong stock market, it is equivalent to not being listed, and we are 'lonely'. "Of course, even if the stock price breaks, because Hanwha Long and Jiuzhi are neither the actual controllers nor the largest shareholders, they can still reduce their holdings. This is not a violation. Just like the original sky-high issuance, there were no violations. However, there are always a lot of smart people in this market who can always use the rules to the extreme.

　　01

The sky-high price of issuance has led to the revision of the pricing system for A-share issuance

How exaggerated was the IPO of Hoymiles more than three years ago?

According to public information, it is stated that

(1) In December 2021, Hoymiles shares were listed for the first time at an issue price of RMB 557.80 per share, making this small company the first high-priced stock issued in the history of A-shares. Hoymiles shares issue price-earnings ratio as high as 225.94 times!

(2) Hoymiles originally only planned to raise 500 million yuan, but the final net fundraising was as high as 5.4 billion yuan, overraising nearly 5 billion yuan! So much so that even now, the over-raising multiple of Hoymiles shares is estimated to be the largest among A-shares.

(3) Because of the high-priced issuance and over-raising, the sponsor CITIC Securities also made a lot of money. The total issuance fee of Hoymiles shares is 172 million yuan, and the underwriting fee and sponsor fee received by CITIC Securities are as high as 142 million yuan!

The phenomenon of high-priced issuance of Hoymiles shares has even triggered reflections on the A-share issuance system at the regulatory, academic and market levels

In terms of pricing mechanisms: the limitations of over-reliance on valuation models; In the process of market-based pricing under the registration system, how to avoid the situation that institutions give excessively high quotations for their own interests in the process of inquiry, resulting in inflated issue prices; The sponsor, CITIC Securities, may have overvalued the company and underassessed the market risk in the issuance of Hoymiles shares.

In terms of supervision and review, the regulatory authorities need to think about how to grasp the regulatory scale between encouraging the financing development of enterprises and protecting the interests of investors, not only to support innovative enterprises to obtain financial support through the capital market, but also to prevent excessive risks to investors caused by excessively high issue prices, and how to effectively strengthen the monitoring and intervention of abnormal issuances, etc.

In terms of post-event supervision and punishment mechanism: in view of the large fluctuation of stock price and performance decline after the listing of Hoymiles, how to strengthen the post-event supervision mechanism, and timely supervise and deal with problems such as sharp decline in performance and improper use of over-raised funds.

Due to the high-priced issuance of Hoymiles shares and other enterprises, the "Provisions of the State Council on Regulating Intermediaries to Provide Services for the Company's Public Offering of Shares" was promulgated (effective from February 15, 2025), Article 6 stipulates that "securities companies engaged in sponsorship business may charge service fees in stages according to the progress of work, but whether or not to charge and how much to charge shall not be conditional on the results of public offering and listing of stocks; It shall comply with the provisions of the securities regulatory authority of the State Council, and collect service fees based on factors such as comprehensive assessment of project costs, and shall not increase the proportion of fees according to the scale of issuance. ”

(4) After the listing, Hoymiles shares were frantically touted by various brokerages all the way, and the stock price rose all the way, and on September 7, 2022, it reached a sky-high price of 1338.88 yuan. In the past 30 years, among the more than 5,000 companies in the A-share market, in addition to Kweichow Moutai, only Hoymiles, Roborock, and Aimeike have a share price of more than 1,000. If there is no new regulation on shareholding reduction, it is estimated that all the original shareholders of the company will run away as soon as it is listed.

With the joint efforts of all parties in the market, driven by a number of Chinese technology companies such as Deepseek, the capital market has finally gradually recovered, and people have begun to believe in the story of the mapping of technology between China and the United States.

However, the same enterprises in Hangzhou, and even the executives are also from Zhejiang University, and even Jiuzhi Fund is crowned with the head of Zhejiang University, but they are ready to leave at this moment.

Once again, there is nothing wrong with reducing holdings within the rules. But from the perspective of small and medium-sized investors, we have to have this feeling: the world is like this sometimes, everyone knows that some people are using the rules to do bad things, but you have nothing to do with them.

　　02

Even if you break, you still earn seven or eight times!

Chairman of Jiuzhi Capital, Han Hualong

On February 21, 2025, Hoymiles announced that the third largest shareholder, Zhejiang University Jiuzhi-Hangzhou Gangzhi Investment, plans to reduce its holdings of no more than 3,722,206 shares of the company, and the total reduction ratio will not exceed 3% of the company's total share capital.

According to public information, Gangzhi Investment and its concerted actor Hanwha Long hold a total of 9.39% of Hoymiles' shares (of which Gangzhi Investment holds 5.58% and Hanwha Long holds 3.82%; Hanwha Long's shares were acquired from Hoymiles' controlled Gangzhi Investment after its listing.

In terms of the shares actually controlled, Hanwha is the third largest shareholder after Shao Jianxiong, the actual controller of Hoymiles, and Yang Bo, the general manager.

Considering the ex-rights and dividends, the current share price of Hoymiles shares has fallen by 36% compared with the issue price, and it has been in a state of breakage for a long time. According to the new rules on shareholding reduction, Shao Jianxiong, the actual controller, is not eligible to reduce shareholdings. When the stock price of a listed company falls below the issue price at the time of its initial offering (i.e., breakage), the controlling shareholder and actual controller are not allowed to reduce their holdings of the company's shares through the secondary market - the shares held by Shao Jianxiong have been lifted in December 2024.

If he can reduce his holdings, will Shao Jianxiong also run away?

Hoymiles share chart; Source: Dongcai Choice

However, the new shareholding reduction regulations do not hinder the reduction of non-controlling shareholders, and naturally do not prevent the reduction of shareholdings of Gangzhi Investment. Now that they are exiting, for Gangzhi Investments and Hanwha Dragon, the return on their investment in Hoymiles' share price has outperformed 99% of the investors in the market.

3 days after the major shareholder of Hoymiles announced the reduction (only 1 working day), another inverter company in Hangzhou, SolaX Energy, also announced a reduction in the state of stock price breaking: Beijing Ruize, a shareholder with a total shareholding of more than 5%, intends to reduce its holdings of no more than 0.51% of the company's shares (note: Beijing Ruize holds 4,556,880 shares of SolaX Energy, accounting for 2.8481%, and Three Gorges Ruiyuan holds 4,250,760 shares, accounting for 2.6567%), All of them are enterprises controlled by Three Gorges Capital. A total of 8,807,640 shares, accounting for 5.5048%, were obtained before the IPO).

Therefore, photovoltaic new energy concept stocks were not very popular with the market some time ago, and sometimes it was not entirely because everyone in the industry lost money, but those companies that made money even if the statements showed that they were making money, they were not in awe of the capital market, and of course they did not take the small and medium-sized investors who followed it all the way.

　　03

The capital master has invested in two star perovskite companies!

In the first three quarters of 2024, Hoymiles achieved a total operating income of 1.266 billion yuan, a year-on-year decrease of 10.12%; net profit attributable to the parent company was 246 million yuan, a year-on-year decrease of 40.88%; deducted non-net profit of 232 million yuan, a year-on-year decrease of 39.06%.

The

over-raising of 5 billion yuan is only sweet for Hoymiles shares, and there is no trouble and burden - even if this money is deposited in the bank, there is a lot of interest every year.

Now, many new energy enterprises have tight capital chains, and Hoymiles shares are definitely rich. According to the data of the third quarter report of 2024, as of September 30, 2024, the monetary funds of Hoymiles shares were 4.309 billion yuan. After Hoymiles shares were overraised, there was so much money that there was nowhere to spend it.

The "human design" of the micro-inverted leader with high barriers and high moats created by Hoymiles at the time of IPO is now gradually being broken down. Deye shares, Sungrow, Huawei and other companies soon also cut into the microinverter market. In 2024, Hoymiles expects to ship 1.5 million to 1.7 million units of microinverters. According to the forecast of Soochow Securities Research Report, Deye Co., Ltd. may exceed 500,000 units of microinverter shipments in 2024, and will ruthlessly snatch a piece of cake in the microinverter market.

If you are not afraid of foreigners, you are afraid of fellow countrymen. Enphase, the industry leader, may have been crippled by Hoymiles, Yuneng, GoodWe, etc. in Europe, but the Chinese counterparts have risen!

However, it has to be said that Hoymiles' strength in capital operation sometimes far exceeds that of operating enterprises.

The success of Gangzhi Investment's investment in Hoymiles is inseparable from the actual controller, Han Hualong. A capital tycoon like Han Wah Long is very low-key. Only the article said that he had worked in well-known financial institutions such as Zheshang Securities Investment Banking Department, Zhonghai Trust, and Zhejiang University Venture Capital, and had more than ten years of experience.

The manager of Gangzhi Investment is Zhejiang University Jiuzhi (Hangzhou) Investment Management Co., Ltd. Zhejiang University Jiuzhi (Hangzhou) Investment Management Co., Ltd. has two shareholders, namely Hangzhou Jiuzhi Investment Management Co., Ltd., which is controlled by Hanwha Long, and Zhejiang Zhejiang University Qizhen Venture Capital Co., Ltd. (Zhejiang Province State-owned Assets and Zhejiang University shares), holding 90% and 10% of the shares respectively.

Nine Wisdom Capital, controlled by Hanwha Dragon, has always kept a low profile. Tianyancha shows: "Jiuzhi Capital has set up a number of science and technology industry investment promotion funds with Jiuzhi Capital in Zhejiang, Hangzhou, Huzhou and other district and county local governments, as well as large provincial and municipal state-owned enterprises such as Zhejiang Energy Group and Hangshi Group, to provide support for local governments to attract investment and the industrial landing of many science and technology enterprises." Jiuzhi Capital has successively invested in more than 100 high-tech enterprises such as BYD (002594, the former fifth largest shareholder), Hoymiles (688032, the third largest shareholder), Leapmotor (HK9863, the fifth largest shareholder), Qiyuan Core Power, and Honeycomb Energy.

It seems that Hanwha Dragon has invested in many star companies, and Jiuzhi Capital's investment has been very successful.

Among them, the story of Jiuzhi's investment in BYD is also more complicated. CCB Fund-Agricultural Bank of China-Huaxin Trust-Huaxin Trust-Huarong Financial Town-Jiuzhi No. 1 Accumulative Capital Trust Plan became a shareholder of BYD by participating in BYD's private placement in 2016. It is precisely because of this relationship that Jiuzhi Investment has publicized the successful case of BYD. However, the yield of these projects may not be comparable to that of Hoymiles shares.

In addition to Hanwha Long, Shao Jianxiong, the actual controller of Hoymiles, is also keen on capital market investment.

Shao Jianxiong is the majority shareholder of Hangkai Holding Group Co., Ltd. In addition to investing in Hoymiles shares, which is the controlling shareholder of Hoymiles, this company has also invested in 23 companies.

In addition, Shao Jianxiong is also keen on equity investment, and he actually controls a number of investment institutions, including Hangzhou Deshi Drive Investment Partnership (Limited Partnership). Hangzhou Deshi Drive Investment Partnership (Limited Partnership) has active foreign investment, and it has invested in Hangzhou Micronano Optoelectronics, a star perovskite enterprise.

Coincidentally, Hanwha Long's Jiuzhi Investment has taken a stake in the perovskite company, Jidian Solar. It seems that in the future, the two capital masters will meet at the top of perovskite. By then, there will be new myths in the stock market.

　　04

From Hangzhou to Hainan, just to avoid taxes reasonably when reducing holdings?

Hoymiles shares can be sought after in the secondary market at the time of issuance, and it has to be said that they do account for the light of Zhejiang University and the light of Zhejiang University's capital.

According to the "2024 Zhejiang University Alumni Listed Companies List", as of May 17, 2024, the number of Zhejiang University alumni entrepreneurs holding key positions such as founders, actual controllers, chairmen, and general managers of listed companies is 351, and there are 313 listed companies under management or control.

Of course, Deepseek, Unisus, etc. are not included.

Therefore, investors generally have confidence in Zhejiang, have a good impression of Zhejiang University enterprises, and the capital market is also willing to give high valuation and high premium. There is also a lot of capital from Zhejiang University, and the investment results are fruitful, and we will take stock of it when we have the opportunity. Therefore, it is also easier for Zhejiang University Capital and Zhejiang University enterprises to hold together. Only in the photovoltaic circle, there are Jingsheng Electromechanical and Shichuang Energy that are familiar with the carbon number. Compared with Jingsheng Electromechanical, which has obvious scientist temperament and heritage and focuses on research and development, the high-priced issuance and reduction of Hoymiles shares seem to be specially designed for the capital market.

On March 8, 2024, Hoymiles' shareholder, Gangzhi Investment, transferred 1,511,300 shares of the Company to Hanwha Dragon through a block transaction (Hanwha Dragon is the actual controller of Gangzhi Investment, and the two parties are acting in concert).

This left-handed right-handed equity transaction is a bit incomprehensible, is it just to avoid taxes?

In addition, Xinguo Investment, which is actually controlled by Yang Bo, the general manager of Hoymiles Co., Ltd. and participated by Shao Jianxiong, the actual controller, was changed to Hainan Xinhe Investment Partnership (Limited Partnership) on January 24 this year, and its registered place was changed to Haikou Free Trade Zone, Hainan Province.

As we all know, Hainan Province has strong preferential tax policies for specific investment enterprises and employees in terms of enterprise income tax and individual income tax. In contrast, Hangzhou, a newly developed science and technology innovation city, is estimated to have no such preferential tax policies in terms of reducing stock holdings.

Therefore, if you talk about using the rules to do great things, the talents of Zhejiang University are quite good.

Editorial review and co-ordination: carbon detection

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