Since the opening of the market after the Spring Festival, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) (600078) share price has hit the dust. From February 7 to the morning of February 17, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) (600078) has closed 9 trading boards in a row, with a cumulative increase of more than 50%, becoming a “demon stock” since the lunar new year.
“confirmation of net assets” received the inquiry letter from Shanghai Stock Exchange
Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) before wearing a hat, the stock is abbreviated as “Chengxing shares”, and the full name is Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) . It is a well-known phosphorus chemical enterprise in China. The logic of the continuous rise of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) share price may come from the “confirmation of net assets” and the court’s acceptance of the reorganization of its controlling shareholders.
On the evening of January 28, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) issued an announcement on the pre increase of performance in 2021. It is estimated that the net profit attributable to the parent company in 2021 will be about 1.356 billion yuan to 2.017 billion yuan, and the estimated net assets will be 1.310 billion yuan to 1.949 billion yuan. The reason for the pre increase of performance is in addition to the increase of revenue caused by the large increase of yellow phosphorus market price in the second half of 2021, It is mainly to offset the occupation of funds accrued in the previous year according to a note to creditors.
Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) said that the company received the creditor’s statement issued by Jiangsu Asset Management Co., Ltd. (hereinafter referred to as “Jiangsu asset management”) on December 31, 2021, in which Jiangsu asset management said that the amount of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) creditor’s rights held by it had exceeded 1.746 billion yuan, It is agreed that before April 30, 2022, all creditors of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) will be linked to realize in full the receivables of 2.223 billion yuan from Chengxing group and its related parties or accept Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) to pay off the creditor’s rights held by the creditors with the equivalent amount of 2.223 billion yuan from Chengxing group and its related parties in lieu of cash. Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) the management of the company judged that this letter is likely to be fulfilled in the future, and charged back the total balance of principal and interest of Chengxing group and its related parties’ non operating occupation of the company’s funds fully accrued in the previous year at 72.50%.
Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) in May 2021, due to the occupation of funds by controlling shareholders and their related parties and the negative net assets at the end of 2020, and the issuance of the annual report, the delisting risk warning was implemented. If the annual report in 2021 touches any of the delisting related indicators, the listing of the company’s shares will be terminated. According to the performance forecast, the performance of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) in 2021 turned from loss to profit, and the net assets at the end of 2021 also successfully turned positive.
Or affected by this news, on February 7, the first trading day after the Spring Festival, the Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) that fell sharply before the festival closed at the limit, with a turnover of 6.53 million yuan and a turnover rate of 0.16%. In the following trading days, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) closed at the daily limit. As of the closing on the morning of February 17, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) has achieved nine consecutive boards.
It is worth noting that in the special note issued on January 28, Suya Jincheng certified public accountants believes that Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) has insufficient basis to reverse 72.5% of the bad debt reserves of the collective accounts receivable from Chengxing group and its related parties in 2020 based on the creditor’s note, resulting in the reversal of net assets.
The inconsistency between Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) and the statements of accounting firms also attracted the attention of the Shanghai Stock Exchange, and sent two inquiry letters on January 29 and February 7, requiring Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) to standardize information disclosure and fully remind relevant risks.
Previously, on December 16, 2021, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) received an inquiry letter from the Shanghai Stock Exchange, requesting to verify whether there was collusion between the applicant and the respondent of the judicial auction to avoid the reduction of holdings. So far, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) has postponed the reply for four consecutive times.
After issuing inquiry letters for many times, on February 12, the regulatory measures of Shanghai Stock Exchange were upgraded, and a regulatory letter was issued to Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) , requiring the company to remove the relevant personnel who had been punished as soon as possible, and complete the replacement of the board of directors and the board of supervisors.
twice auction of equity
On February 8, Jiangyin regional headquarters economic Park Development and Investment Co., Ltd. applied to Jiangyin court for reorganization of Chengxing group on the grounds that the Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) controlling shareholder Chengxing group could not pay off the due debts, the amount of liabilities was huge, the assets were insufficient to pay off all debts, and there was an obvious lack of solvency. On February 9, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) received a notification letter from Chengxing group, saying that the above reorganization application had been accepted by the court, and Chengxing group entered the reorganization procedure.
The 25.78% equity held by Chengxing group was auctioned for the first time from 10:00 on January 13, 2022 to 10:00 on January 14, 2022, but the auction was closed, and the second auction was held from 10:00 on February 14, 2022 to 10:00 on February 15, 2022. Finally, the auction was closed because there was no bidder to bid. The subsequent treatment of the equity was not explained in the company’s announcement.
In addition, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) the 16.01% equity held by Hanying investment, the second largest shareholder of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) , has also conducted two judicial auctions recently, both of which ended in auction. At present, the above equity held by Hanying investment will be sold publicly, and the sale will end at 10:00 on March 31.
It is understood that the above equity auction and sale require bidders to promise to solve the problem of funds occupied by Chengxing group. The starting price of the second auction of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) equity held by Chengxing group is 646 million yuan. The bidder must promise to solve the capital problem limited to 62% of the total capital principal and interest of the company occupied by Chengxing group and its related parties, i.e. 1.378 billion yuan. The selling price of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) equity held by Hanying investment is about 400 million yuan, and the bidder must promise to solve the capital problem limited to 38% of 2.223 billion yuan, that is, 845 million yuan.
In this way, the auction cost of bidders far exceeds the starting price, so it is not difficult to understand why the starting price of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) equity auction seems not high, but there is still no bidding.
delisting risk warning implemented
still closed 82 limit sectors
According to the risk warning announcement issued on the evening of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) February 16, in addition to the risk of reorganization failure, bankruptcy and termination of listing, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) also has the risk that the company’s shares have been delisted, the net assets cannot be regularized and the listing has been terminated.
On November 9, 2021, the creditor Jiangyin building decoration products factory applied to Wuxi intermediate people’s court for bankruptcy reorganization of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) on the grounds that Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) could not pay off its due debts and its assets were not enough to pay off all its debts. However, at present, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) has not received the ruling on the reorganization, and there is still significant uncertainty whether the company will enter the bankruptcy reorganization procedure. If the court formally accepts the application for reorganization of the company, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) will have the risk of being declared bankrupt due to the failure of reorganization. If the company is declared bankrupt, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) shares will be delisted.
Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) received the inquiry letter from Shanghai Stock Exchange on January 28, 2022 and February 7, 2022, requesting an explanation on the matters leading to the confirmation of net assets according to the creditor’s statement. If the corrected net assets are expected to be negative, the listing of the company’s shares will be terminated when the 2021 annual report is disclosed.
Despite multiple risks, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) is a blockbuster in the secondary market.
From May 21, 2021 to the morning of February 17, 2022, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) gained a total of 82 limit sectors. During this period, the stock price fluctuated like a roller coaster. The stock price rose from the intraday low of 1.86 yuan / share on May 21 to the intraday high of 14.29 yuan / share on December 17, up 768.28%, and soared nearly eight times in seven months.
Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) in the past six months, it has been popular with funds. On the one hand, it may be due to the performance growth brought by the sharp rise in the market price of the company’s yellow phosphorus product. According to the company’s financial report, in the first three quarters of 2021, the company achieved a total operating revenue of 2.491 billion yuan, a year-on-year increase of 10.19%, and the net profit attributable to the parent company was 92.9062 million yuan, a year-on-year increase of 1525.32%. On the other hand, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) facing bankruptcy reorganization, standing at the tuyere of the concept of phosphorus chemical industry may also attract capital speculation.
