The equity market continues to fluctuate in search of a bottom, with most public mutual funds that participated in the private placements of listed companies now facing unrealized losses.

Data from the Public Mutual Fund Ranking Network shows that as of July 23, a total of 19 public mutual funds have participated in the private placements of 45 listed companies this year, with a total subscription amount of 14.17 billion yuan, and only 6 mutual funds are in a state of unrealized profit.

Looking at the unrealized profit situation, among the 45 A-share companies that public mutual funds have participated in private placements, 14 are currently in a state of unrealized profit, accounting for 31.11%.

The sharp decrease in the profit effect of private placements has naturally affected the enthusiasm of public mutual funds to participate. Choice data shows that as of now, public mutual funds have subscribed to a total of 17.864 billion yuan in private placements this year, a decrease of 68.47% compared to the same period last year's 56.662 billion yuan.

Several public mutual funds that participated in private placements have suffered heavy losses.

Among all private placement targets, the private placements of Hongyuan Green Energy, Jinchen Shares, Qume Home Furnishings, Aikodi, Jifeng Shares, and Shangpin Home Furnishings have resulted in the largest unrealized losses for the participating public mutual funds, with unrealized losses reaching 149 million yuan, 144 million yuan, 116 million yuan, 86 million yuan, 64 million yuan, and 63 million yuan, respectively.

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The 22 stocks with the largest loss in public mutual funds participating in private placements, data source: Public Mutual Fund Ranking Network, as of July 23, with stock prices calculated based on the closing price on the 23rd.

Taking Hongyuan Green Energy as an example, on February 1, the results of the non-public issuance of Hongyuan Green Energy were announced, with the issuance price of this private placement being 25.22 yuan per share, and the fundraising amount was about 2.7 billion yuan. A number of well-known institutions participated in the private placement of Hongyuan Green Energy, including Xidu Li De Fund, CITIC Construction Investment Securities, Caifeng Fund, Huitianfu Fund, Nuode Fund, Guangfa Securities, UBS Group, Guotai Junan Securities, Guotai Junan Financial Holdings, and 14 other institutions, with a total subscription of 107 million shares.

Among them, UBS Group subscribed to 253 million yuan, Nuode Fund subscribed to 183 million yuan, and the subscriptions of Caifeng Fund, Guotai Junan Securities, and Guangfa Securities all exceeded 100 million yuan. It is worth noting that the two funds managed by Shengfeng Yan, Xidu Li De Quantitative Growth and Xidu Li De Zhongzheng 500 Index Increase, both participated in this private placement, with subscriptions of 30 million and 20 million yuan, respectively, accounting for 0.69% and 0.94% of the net asset value of the fund, respectively.

Hongyuan Green Energy has been in the solar photovoltaic industry since 2004 and is one of the earliest manufacturers of photovoltaic specialty equipment in the industry. The company focuses on the research of photovoltaic monocrystalline silicon and is engaged in the manufacturing of monocrystalline silicon specialty processing equipment, and is currently a leading company in the processing equipment for high-hard and brittle materials.Following this round of private placement, the share price of Hongyuan Green Energy has been on a downward trend, closing at 15.73 yuan as of July 23, a decline of 37.63% compared to the issue price.

On July 9, Hongyuan Green Energy released a performance forecast, expecting a net loss of 800 million to 1.1 billion yuan for the first half of 2024. In contrast, the same period last year saw a profit of 1.017 billion yuan.

The company stated that the main business product's gross margin has significantly decreased year-on-year, and the provision for inventory devaluation has increased substantially, leading to a negative net profit for the company.

On July 30, the 1.07 billion shares allocated to the 14 institutions participating in the private placement will be available for trading.

In the private placement of Aikangdi, public funds also suffered severe paper losses.

On April 10, Aikangdi announced the completion of the private placement, with 16 institutions including Easy Fund, Caitong Fund, Guotai Fund, Huaxia Fund, and Nuode Fund subscribing to 66.3717 million shares at an issue price of 18.08 yuan per share.

After the completion of the private placement, Aikangdi's share price began to fluctuate and decline, closing at 13.48 yuan as of July 23, a drop of 25.44% compared to the private placement price. In less than four months, the five public funds participating in the private placement have a combined paper loss of 86 million yuan.

To stabilize the share price, the actual controller of the company, Zhang Jiancheng, plans to increase his holdings in Aikangdi A-shares through the Shanghai Stock Exchange's centralized competitive trading system within 12 months starting from July 22, with a cumulative increase of no less than 30 million yuan and no more than 60 million yuan. Zhang Jiancheng made his first increase of 360,000 shares on July 23, accounting for 0.04% of the total share capital, with an increase amount of 4.9194 million yuan.

The "discount" "income" is not enough to make up for the asset devaluation.

Data from Public Fund Ranking Network shows that among the 45 A-share companies participating in private placements, 42 have received participation from no less than two public fund institutions, with 27 receiving participation from 2-3 public funds; 13 received participation from 4-5 public funds; and 2 received participation from 6 public funds, which are Wenchan Shares and Sitaili, two listed companies.Looking at the allocated funds, there are 39 public offering private placements with an allocation of no less than 100 million yuan, among which 22 companies have an allocation of 100 million to 300 million yuan; 9 have an allocation of 300 million to 500 million yuan; 5 have an allocation of 500 million to 700 million yuan, and 3 have an allocation exceeding 800 million yuan, which are Top Group, Jifeng Shares, and Beibu Gulf Port, three listed companies.

Despite the active layout of public institutions, the situation where the private placement is not yet lifted and encounters a "break-even" still accounts for the majority among public institutions participating in private placements within the year.

Among them, Nord Fund participated in the private placement of 42 listed companies, with a total allocation of 5.737 billion yuan, currently floating profit of 187 million yuan; followed by Caithong Fund, which participated in the private placement of 39 listed companies, with a total allocation of 4.892 billion yuan, currently floating profit of 79 million yuan. In addition, as of now, Central European Fund, Quan Fruit Fund, Huitianfu Fund, and Dacheng Fund are all in a floating profit stage in their participation in private placements within the year.

Apart from the above six institutions, the remaining 13 public institutions participating in private placements within the year have all recorded varying degrees of floating losses.

A person in charge of Tianxiang Investment Consulting said that overall, the performance of the private placement market in the past three years has been average, such as the National Evidence Private Placement Index has been falling for three consecutive years, indicating that the income brought by the discount is not enough to compensate for the decline in asset prices. In addition, if you look at the private placement projects in the first half of this year, their discount rate is about 15%, which has narrowed compared to 20% in the same period last year, and the thickening effect has declined. Therefore, the current market's enthusiasm for participating in private placements is not high.

A public fund manager also analyzed that from the perspective of the listed companies themselves, the cost of private placement is higher compared to other financing methods, and the attractiveness of the private placement method for listed companies has decreased. Specifically: on the one hand, the targeted private placement is usually accompanied by a discounted issue, which means a higher financing cost than general equity financing, and will dilute the rights of old shareholders. If the company has high-quality investment projects, it will prefer to finance through bonds or loans. On the other hand, the financing costs of other financing methods that can replace private placements, such as bank loans and bond financing, are also declining.

Affected by a series of factors, the amount of public funds participating in the subscription of listed companies' private placements within the year has declined significantly year-on-year.