Huadong Dama plans to raise another 500 million yuan

As the living environment of residents improves, gardening culture is gradually taking shape, especially in Europe and the United States where there are many single-family buildings and a high level of economic development, where gardening culture is more prevalent.

Under such circumstances, the garden machinery and equipment widely used in garden maintenance has a large market demand in Europe and the United States and maintains a growth trend. Daye shares, a big seller of East China garden machinery, has also ushered in rapid development with the industry boom.

In order to maintain its momentum of sustained growth, Daye Co., Ltd. has launched a new round of financing plan.

With annual revenue of 1.6 billion, Daye shares plans to raise another 500 million yuan

On July 6 , the Shenzhen Stock Exchange issued a "Notice on Accepting the Application Documents of Ningbo Daye Garden Equipment Co., Ltd. for Issuing Convertible Corporate Bonds to Unspecified Objects" to Daye Co., Ltd. The Shenzhen Stock Exchange believed that Daye Co., Ltd.'s relevant application documents were complete and decided to accept it.

It is reported that the issuance of convertible corporate bonds to unspecified objects still needs to be reviewed by the Shenzhen Stock Exchange and can only be implemented after obtaining the decision of the China Securities Regulatory Commission to agree to the registration. There is uncertainty as to whether the issuance can be successful and the issuance time.

The type of securities issued by Daye Co., Ltd. this time is convertible corporate bonds that can be converted into the company's A-shares , and the total issuance amount shall not exceed RMB 499,031,200 (including RMB 499,031,200).

After deducting the issuance costs, the funds will be used for the production of 60,000 riding lawn mowers per year, the production of 220,000 new energy garden machinery products per year and the replenishment of working capital. Currently, the first two projects have been registered as investment projects by the local Development and Reform Bureau.

Daye shares is mainly engaged in the research and development, design, production, manufacturing and sales of lawn mowers, grass trimmers /brush cutters and other garden equipment and accessories. Products are mainly exported, and export revenue accounts for more than 90%.

In terms of sales model, Daye mainly adopts ODM, with a small amount of OBM sales. In 2021, Daye's ODM sales revenue accounted for 86.06%, and OBM accounted for only 4.3%.

Thanks to the rapid development of the industry, Daye shares achieved operating income of 1.6 billion yuan in 2021, an increase of 60.52% compared with the same period last year. Among them, the net profit attributable to shareholders of listed companies was 55.52 million yuan, a decrease of 27.61% compared with the same period last year.

Daye Co., Ltd. stated that the decline in net profit in 2021 was affected by many factors, including tight international logistics capacity, a sharp increase in global freight rates, the continuous appreciation of the RMB against foreign currencies, rising labor costs, and rising raw material prices.

Although the increase in these expenses has affected Daye’s profits in the short term , Daye believes that this has, to a certain extent, laid a solid foundation for further consolidating its industry position and sustainable development of its business.

Daye Group attaches great importance to product research and development and the marketing and promotion of its own brands. In 2021, Daye Group invested 49.39 million yuan in research and development, up 4.36% from the same period last year.

At the same time, sales expenses reached 58.1 million yuan in 2021, an increase of 63.18% compared with the same period last year. This was mainly due to the expansion of overseas business, increased salaries of sales staff, warehouse rental fees, and increased advertising investment.

In order to improve the international marketing network, Daye Co., Ltd. has also established overseas subsidiaries such as Daye Europe and Daye North America in Europe and the United States, and gradually implemented the promotion of independent brands such as "MOWOX" and "GREEN MACHINE". At present, the above brands have achieved high popularity in Europe and the United States.

Due to high resident income, high urbanization level, developed machinery manufacturing industry and prevalent gardening culture, Europe and the United States have long been at the center of market demand and supply of garden machinery products. Especially in the United States, the supply and demand of garden machinery ranks first in the world.

The United States is also one of the main export destinations for Daye's products. Therefore, the trade environment and policies in the United States will have a certain impact on Daye's sales performance of products exported to the United States.

The final anti-dumping ruling of Daye Co., Ltd. is finalized!

In May 2020, the American MTD company filed an application with the U.S. Department of Commerce and the U.S. International Trade Commission, requesting the initiation of anti-dumping and countervailing duty investigations on walk-behind gasoline lawn mowers (displacement 196CC (inclusive) or less) originating in China.

In June 2020, the U.S. Department of Commerce announced that it had filed a case and launched a "double-reverse" investigation . Since then, Daye Co., Ltd. has been caught up in the anti-dumping storm.

In May 2021, the United States International Trade Commission made final anti-dumping and anti-subsidy rulings on walk-behind lawn mowers imported from China, determining that the products involved in the case, which involved dumping and government subsidies, had caused substantial damage to the U.S. domestic industry.

Starting from July 9, 2021, Daye Co., Ltd. will be required to pay a deposit of 88.14% anti-dumping duty rate and 14.17% anti-subsidy duty rate when exporting gasoline lawn mower products to the United States.

In addition to gasoline lawn mowers, Daye's other main product, a walk-behind gasoline snow blower, was also involved in the "double-reverse" investigation. Fortunately, the "double-reverse" investigation of this product did not have a significant impact on the company's performance.

In March 2021 , MTD filed an application for a "double-reverse" investigation with the US Department of Commerce . In April of the same year, the US Department of Commerce announced an anti-dumping and countervailing duty investigation on walk-behind gasoline snow blowers imported from China.

Recently, Daye Co., Ltd. issued an announcement stating that the US Department of Commerce has made a final ruling on the anti-dumping and anti-subsidy investigation in this case.

in:

(1) It was ruled that the dumping duty rate for Ningbo Daye Garden Equipment Co., Ltd. was 223.07% nationwide and the adjusted dumping duty rate was 201.99%; the dumping duty rate for other enterprises that received individual tax rates was 163.27% and the adjusted dumping duty rate was 142.19%.

( 2) The subsidy tax rate for the company is 203.06%, and the subsidy tax rate for other Chinese companies is 203.06%.

It is reported that Daye Co., Ltd. recently received a notice from the U.S. International Trade Commission that it had made a final ruling on anti-dumping and countervailing duty on the products involved in the case, which was announced in the U.S. Federal Register . Since then, the final dumping and subsidy tax rates calculated by the U.S. Department of Commerce for this case have officially come into effect.

Daye Co., Ltd. stated that from 2021 to the date of disclosure of the announcement , the company had not exported walk-behind gasoline snowplows to the United States, and the company had completed the preliminary deployment of overseas warehouses and overseas production bases overseas. The U.S. anti-dumping and anti-subsidy investigation on walk-behind gasoline snowplows has no significant impact on the company .

In addition to trade frictions and the risks of US "anti-dumping and countervailing" investigations, Daye Co., Ltd.'s products' overseas expansion also faces multiple risk factors such as market fluctuations, exchange rate fluctuations, customer concentration, overseas production, and increased freight costs.

However, challenges and opportunities always coexist, and the mechanical gardening industry in which Daye shares is located still has unlimited possibilities. Daye shares' fundraising and investment projects conform to the development trend of the industry. If the fundraising and investment are successful, Daye shares' profitability will be greatly enhanced, and its market share in gardening machinery products will be further increased!

Anti-dumping

Big Sell

Financing