Recently, the integrated service provider Kingland Technology Co.Ltd(000711) (hereinafter referred to as ” Kingland Technology Co.Ltd(000711) “, stock code: 000711. SZ) in the field of ecological environment, which is the subject of the acquisition, announced that the company is expected to get back some compensation.
On February 10, Kingland Technology Co.Ltd(000711) announced that the company received the confirmation of securities transfer registration from China Securities Depository and Clearing Co., Ltd. on February 8, 2022, confirming that the corresponding shares of Gao Xueqiang, Gao Zuoming, Gao Zuobin and Yang Chunli have been transferred and registered in the special securities account for Kingland Technology Co.Ltd(000711) repurchase.
It is understood that in 2017, the company purchased 90.11% of the shares of northern garden forest held by the 55 shareholders of Beijing Blue northern Garden (Tianjin) Co., Ltd. (formerly known as Tianjin Northern entrepreneurship Hangzhou Landscaping Co.Ltd(605303) Co., Ltd., hereinafter referred to as “northern garden”), namely northern group, Gao Xuegang and other persons acting in concert, at a total cost of about 720 million yuan. Both parties also made performance commitments. After the acquisition, northern garden realized net profits of 133 million yuan and 116 million yuan respectively in 2017 and 2018. However, due to changes in the external environment in 2019, the northern garden slowed down and terminated the implementation of some projects, resulting in reduced operating revenue and reduced profits. The net profit turned from profit to loss. The final net loss was about 390 million yuan, and the performance commitment was not realized. At the same time, Kingland Technology Co.Ltd(000711) is also under the pressure of loss. The financial report shows that the company’s net loss in 2019 is about 1.037 billion yuan.
At the end of December 2019, Kingland Technology Co.Ltd(000711) filed a lawsuit to the third intermediate people’s Court of Beijing to apply for the preservation of the property of the defendants Tianjin Beikong Engineering Management Consulting Co., Ltd. (hereinafter referred to as “Beikong consulting”), Tianjin North venture Municipal Engineering Group Co., Ltd., Gao Xuegang, Gao Xueqiang, Gao Zuoming, Gao Zuobin and Yang Chunli, and requested the defendant to pay compensation of about 720 million yuan, There are also liquidated damages, overdue interest and other expenses, totaling about 780 million yuan.
Finally, in March 2021, the court ruled that the defendant should perform the compensation liability within 10 days from the effective date of the judgment, of which Beikong consulting should perform about 332 million yuan to Kingland Technology Co.Ltd(000711) , Gao Xuegang and Gao Zuobin should perform 104 million yuan and 65.44 million yuan respectively, and the remaining Gao Xueqiang, Gao mingbin and Yang Chunli should perform 72.78 million yuan. Moreover, the defendants should give priority to performing in the form of Kingland Technology Co.Ltd(000711) share repurchase.
After the judgment came into effect, all defendants failed to execute according to the judgment results, and Kingland Technology Co.Ltd(000711) applied to the court for execution. Up to now, the compensation due to the company has not been fully recovered, but the two-year rights protection lawsuit has seen the dawn. Kingland Technology Co.Ltd(000711) said that after receiving the execution ruling, the company immediately started the execution work, but it is still impossible to predict the completion time and specific completion of each execution work.
On the way to recover the loss, Kingland Technology Co.Ltd(000711) has a hard time. In 2020, the company’s net loss was about 2.355 billion yuan. According to the performance pre loss report in January this year, the net loss in 2021 was between 750 million yuan and 1.355 billion yuan.
At present, the industrial ecological business segment of the company is mainly undertaken by the holding subsidiary zhongkedingshi. Zhongkedingshi’s main business is environmental remediation engineering services, with contaminated soil remediation as the core. In 2019, the company also signed a performance gambling agreement when acquiring the real equity of zhongkeding, and the performance commitment period is from 2018 to 2020. In 2020 Kingland Technology Co.Ltd(000711) , the soil remediation operation service business realized a revenue of 851 million yuan, accounting for 73.52% of the company’s total operating revenue in 2020. At that time, Keding exceeded the performance commitment by 107%.
However, the company disclosed that the reason for the performance loss in 2021 was the change of industrial policies of soil remediation business, which led to the significant extension of the observation period of Zhongke Dingshi project and the delay of project settlement and payment collection. Moreover, the rise in the prices of energy and materials has also had an impact on the company’s net profit to a certain extent. Due to the impact of industrial policies, covid-19 pneumonia epidemic and intensified market competition, the business of Zhongke Dingshi, a holding subsidiary, has led to a significant decline in the amount of bid winning projects in the expected period. The goodwill formed by the acquisition of 77.7152% equity of Zhongke Dingshi may be impaired, and the provision for goodwill impairment is expected to be withdrawn by about 200 million yuan.
