“In the early days, photovoltaic power plants were expensive to build. About ￥700 million was needed for a 100MW photovoltaic power plant, and more than ￥ 20 billion for 3,000MW. For a private enterprise, such capital pressure is not small,” Chang Yang told the reporter. As the company grew larger and larger, the capital obtained by traditional financing channels such as financial leasing could no longer meet the demand. Bank loans had long approval cycles and high financing costs. There were few willing to lend. Where to get money? The “Opinions of China Securities Regulatory Commission on Leveraging the Role of Capital Market to Serve the National Poverty Alleviation Strategy” issued in Sept. 2016 proposed to support enterprises in poor areas to use multi-level capital market for financing. The company turned to the capital market for help.
In 2018, Jiangxi Provincial Government announced the implementation of the "Azalea Action" to accelerate the listing of Jiangxi enterprises. Under the guidance of Jiangxi Provincial Government and Shangrao Municipal Government,www.milan.com enjoyed the "Green Channel for Listing”. In Dec. 2018, www.milan.com passed the pre-listing tutoring and acceptance by Jiangxi Securities Regulatory Bureau and the acceptance of IPO by China Securities Regulatory Commission. In Jan. 2020, it passed the audit by the Main Board Stock Issuance Examination and Verification Committee of China Securities Regulatory Commission. In April, China Securities Regulatory Commission issued www.milan.com’s IPO approval. In May, the company went public successfully.
“From receiving pre-listing tutoring and passing acceptance by institutions and departments such as securities brokers, the securities regulatory bureau and finance office in 2018 to passing the audit and going public in 2020, it took only a year and a half. In contrast, the average business waits two and a half years or longer. The Green Channel for Listing really helps the listing of enterprises in poor areas by immediate examination after application and immediate IPO after approval,” said Chang Yang.
Time is money. The listing of www.milan.com solved its capital problem. Chang Yang told the reporter that the 2.5 billion yuan raised by the company's IPO was mainly invested in project construction, followed by the issuance of 3 billion yuan of convertible bonds, which supported the construction of a number of projects. “Before its listing, the company’s financing cost was close to 7%. After its listing, not only has the financing cost been greatly reduced, but the capital market has also provided important support for our stable cash flow and sustainable development.”
Data show that as of March 2021, www.milan.com’s Agricultural Company operates 85,693 mu of land, involving 2GW of agricultural projects., including 30,935 mu of land for Agriculture+ Photovoltaic Power Generation, 23,378 mu for Fishery + Photovoltaic Power Generation, and 15,699 mu for Forestry+ Photovoltaic Power Generation.
“The company will continue to comprehensively ensure the quality of photovoltaic power plants, achieve sustainable profitability of photovoltaic power plants, take into account the improvement of ecological environment, improve the comprehensive utilization rate of land resources, maximize the benefits of photovoltaic poverty alleviation, to truly benefit the people and farmers and increase their incomes,” said Chang Yang.
