Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) (600078. SH) the performance forecast of turning losses into profits has brought more question marks.
According to the announcement, the company expects to realize the net profit attributable to the shareholders of the listed company from 1.356 billion yuan to 2.017 billion yuan in 2021; It is estimated that the net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses in 2021 will be 79.2 million yuan to 117.81 million yuan; The estimated operating income of the current year is 3.747 billion yuan; It is estimated that the operating income after deducting the business income irrelevant to the main business and the income without commercial substance will be 3.564 billion yuan; It is estimated that the owner’s equity at the end of 2021 will be 1.31 billion yuan to 1.949 billion yuan; It is estimated that the owner’s equity attributable to the parent company will be RMB 977 million to RMB 1453 million at the end of 2021; Earnings per share in 2021 ranged from 2.05 yuan to 3.05 yuan.
We should know that Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) is a loss in 2020, and the owner’s equity and the owner’s equity attributable to the parent company are negative. From this point of view, it will turn loss into profit in 2021. Data show that in 2020, the company lost 2.216 billion yuan and its net assets were also negative.
Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) said that “we have fully communicated with the accounting firm on matters related to the performance forecast, and there is no difference with the accounting firm on the performance forecast”. However, in the special note of Suya Jincheng Certified Public Accountants (special general partnership) disclosed simultaneously, “During the audit, we noticed that the company received the creditor’s statement issued by Jiangsu Asset Management Co., Ltd. on December 31, 2021, which may be conducive to the settlement of the matters occupied by the shareholders of the company. However, we believe that according to the provisions of the accounting standards for business enterprises, the company The 72.5% share of the bad debt provision of the collective receivables from Chengxing group and its related parties in 2020 was reversed, resulting in the positive conversion of net assets, which is not based on sufficient basis “.
Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) said that “there is no difference”, and the accounting firm said that “the basis for the confirmation of net assets is insufficient”, which somewhat embarrassed the company.
According to the public information, on December 31, 2021, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) received the creditor’s statement issued by Jiangsu Asset Management Co., Ltd, The explanation is as follows: “our company is Jiangsu Asset Management Co., Ltd. and now holds Chengxing shares with a debt amount of more than 1.746 billion yuan. Our company agrees to link the receivables of all creditors of Chengxing shares to Chengxing group and its related parties of 2.223 billion yuan before April 30, 2022 (Unaudited, the final audit shall prevail) Fully realize or accept Chengxing shares and pay off the creditor’s rights held by our creditors with its receivables of RMB 2.223 billion to Chengxing group and its related parties (Unaudited, subject to the final audit) instead of cash. No matter whether it can eventually link all creditors of Chengxing shares, our company unconditionally accepts the above arrangement and solves the problem of occupation of remaining funds in other ways “.
This is also the source of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) management’s confidence. The company estimates that 72.5% of the total balance of principal and interest of the company’s capital occupied by Chengxing group and its related parties for non operating purposes fully accrued in the previous year is 2.1776 billion yuan.
This contradiction was also noticed by the regulators. On January 28, the company received an inquiry letter from the Shanghai Stock Exchange.
The troubles of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) emerge one after another.
On May 6, 2021, the company’s shares were warned of delisting risk. According to article 9.3.11 of the Listing Rules of Shanghai Stock Exchange (revised in January 2022), if the company’s 2021 annual report touches any of the delisting related indicators, the listing of the company’s shares will be terminated. The reason why the company was hooded was that the company was occupied by the funds of the controlling shareholders and their related parties in 2020 and could not be solved at the expiration; Moreover, the company also triggered the situation that the audited ending net assets in 2020 were negative and the financial and accounting report in 2020 was issued without an opinion. Then, as of September 30, 2021, the controlling shareholder Chengxing group and its related parties still occupied a total of 2.223 billion yuan of the company’s capital (Unaudited), which has not yet been returned.
As for article 9.3.11 of the Listing Rules of Shanghai Stock Exchange (revised in January 2022), it includes that the financial and accounting report is issued with qualified opinion, the audited ending net assets of the latest fiscal year are negative, etc.
Source: Listing Rules of Shanghai Stock Exchange
Source: Listing Rules of Shanghai Stock Exchange
On November 9, 2021, Jiangyin construction and decoration products factory, the creditor of the company, filed an application for bankruptcy reorganization of the company with Wuxi intermediate people’s Court on the ground that the company could not pay off its due debts and its assets were insufficient to pay off all debts. At present, the company has not received the ruling of the court on the applicant’s application for company reorganization. Can the applicant’s application be accepted by the court, There are still major uncertainties about whether the company will enter the bankruptcy reorganization procedure. If the court formally accepts the reorganization application of the company, the company will be at risk of being declared bankrupt due to the failure of reorganization.
On December 7, 2021, the listed company and Chengxing group received the notice of filing a case from the China Securities Regulatory Commission on the same day. They were filed for investigation for suspected illegal information disclosure.
On December 17, 2021, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) issued the suggestive announcement of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) on the judicial auction of the shares of the company held by the controlling shareholder. Due to the first auction, the second auction time is from 10:00 on February 14, 2022 to 10:00 on February 15, 2022.
On January 13, 2022, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) some directors and supervisors were publicly determined by the exchange to be unfit for higher disciplinary action.
As of January 29, the cumulative amount of the company involved in litigation (Arbitration) was 2.342 billion yuan. The announcement on January 29 also showed that a total of 34 bank accounts of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) and its subsidiaries were frozen, with the frozen amount of 9.8409 million yuan, accounting for 2.9% of the monetary funds in the third quarter.
In addition, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) has applied for freezing the equity of 17 companies such as Yunnan Maitreya phosphorus electric chemical Co., Ltd., and the total operating revenue of the above companies in 2020 is 5.083 billion yuan, accounting for 77.8% of the company’s operating revenue in 2020; By the third quarter of 2021, the total operating revenue was 3.099 billion yuan, accounting for 77.07% of the company’s operating revenue. (the data of individual report is not consolidated and offset)
