CHINT ELECTRICS(SH:601877) Zhong Guo Ji Jin Bao·2025-09-02 01:57Core Viewpoint - The plan for the spin-off of Chint Electric's subsidiary, Chint Aneng, to list on the A-share market has officially failed, triggering a buyback obligation of at least 1.5 billion yuan [1][11]. Group 1: IPO Process and Outcome - Chint Electric announced the plan to spin off Chint Aneng for an IPO in October 2022, but the application was withdrawn on September 1, 2023, after a lengthy review process [1][2]. - The IPO application was accepted in September 2023, but after multiple updates to financial data, the process stalled without further inquiries or meetings [1][3]. Group 2: Financial Performance and Challenges - Chint Aneng's revenue for the years 2022 to 2024 was reported at 13.704 billion yuan, 29.606 billion yuan, and 31.826 billion yuan, with net profits of 1.753 billion yuan, 2.604 billion yuan, and 2.861 billion yuan respectively [3][4]. - The company's inventory has significantly increased, with the value at the end of 2024 reaching 37.414 billion yuan, which is 1.18 times its annual revenue [4][5]. - Chint Aneng's total assets were reported at 74.257 billion yuan, with inventory accounting for over half of this total [5][6]. Group 3: Debt and Financial Obligations - The company has a high debt level, with asset-liability ratios of 76.92%, 79.16%, and 80.25% over the reporting periods, indicating a tight cash flow situation [8][9]. - Short-term borrowings reached 8.97 billion yuan by the end of 2024, a threefold increase over two years, while cash reserves were only 3.22 billion yuan, covering less than 20% of short-term debts [9][10]. - The failed IPO will activate several buyback agreements, potentially costing Chint Group and its controlling shareholder over 1.5 billion yuan [11].