Securities code: 601789 securities abbreviation: Ningbo Construction Co.Ltd(601789) Announcement No.: 2022-010 convertible bond Code: 113036 convertible bond abbreviation: ningjian convertible bond
Ningbo Construction Co.Ltd(601789)
Stock trading abnormal fluctuations and risk warning announcement
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Important content tips:
● Ningbo Construction Co.Ltd(601789) (hereinafter referred to as “the company”) stock trading within two consecutive trading days, the cumulative deviation of the closing price increase has reached 20%. According to the relevant provisions of the trading rules of Shanghai Stock Exchange, it is an abnormal fluctuation of stock trading.
● secondary market transaction risk. The company’s stock price rose for five consecutive trading days, with a range increase of 84.87% from February 7 to 22 after the Spring Festival. From February 7 to 22, the cumulative turnover rate of the company’s shares was 87.12%, significantly higher than the previous turnover rate of the company. The latest development of the company has a P / E ratio of 19.41 times and a P / B ratio of 2.07 times, which are significantly higher than those of Listed Companies in the same industry.
● there is no significant change in the company’s main business. The company’s main business is the traditional construction industry, including the general contracting of housing construction engineering, municipal garden engineering and related professional subcontracting business. The company’s main business accounts for 100%. So far, the main business has not changed.
● impairment risk of receivables. The balance of accounts receivable of the company is large, and the turnover speed of accounts receivable is slow due to the regulation of the real estate industry. As of September 30, 2021, the total value of the company’s accounts receivable, notes receivable and contract assets was RMB 12.404 billion, accounting for 61.35% of the total assets of the current period. There is a certain amount recovery risk and asset impairment risk.
● the risk that the net cash flow from operating activities is negative. As of January September 2021, the net cash flow generated from the company’s operating activities was -1.099 billion yuan. Investors should pay attention to the operating risks.
● price fluctuation risk of convertible bonds. The premium rate of the company’s convertible bonds is 140.46%
The share premium rate is 48.75%, which is high. Since February 7, 2022
Since, the company’s convertible bonds have fluctuated greatly in the short term, with an increase of 99.34%.
1、 Details of abnormal fluctuations in stock trading
The deviation of the closing price increase of the company’s stock trading has reached 20% in two consecutive trading days on February 21 and February 22, 2022. According to the trading rules of Shanghai Stock Exchange and other relevant regulations, it belongs to abnormal fluctuation of stock trading.
2、 Relevant information concerned and verified by the company
(I) at present, the company’s production and operation activities are normal and the business environment has not changed significantly. According to the company’s self inspection, there are no important matters that should be disclosed but not disclosed.
(II) the company has not found any unpublished material information that may or has had a great impact on the company’s stock trading price reported by the public media recently.
(III) according to the verification of the company, as of the announcement date, the company has no major information that should be disclosed but not disclosed in accordance with the relevant provisions of the stock listing rules of Shanghai Stock Exchange, including but not limited to major asset restructuring, issuance of shares, acquisition of listed companies, debt restructuring, business restructuring, asset stripping and asset injection.
(IV) the company confirmed with the controlling shareholder Ningbo Communications Investment Holding Co., Ltd. (hereinafter referred to as “Ningbo Stock Exchange”) that as the controlling shareholder of Ningbo Construction Co.Ltd(601789) as of the announcement date, Ningbo stock exchange had no information that should be disclosed but not disclosed related to Ningbo Construction Co.Ltd(601789) as stipulated in the stock listing rules of Shanghai Stock Exchange and other laws and regulations, There are no major issues affecting the abnormal fluctuation of Ningbo Construction Co.Ltd(601789) stock trading price, and there are no other information that should be disclosed but not disclosed, including but not limited to major asset restructuring, share issuance, acquisition of listed companies, debt restructuring, business restructuring, asset stripping and asset injection related to Ningbo Construction Co.Ltd(601789) .
(V) through the company’s self-examination, no other major events that may have a great impact on the company’s share price are found. The controlling shareholders, actual controllers, directors, supervisors and senior managers of the company do not buy or sell the company’s shares during the abnormal fluctuation of the company’s stock trading.
3、 Board statement
The board of directors of the company confirms that at present, the company does not have any matters that should be disclosed but not disclosed in accordance with the relevant provisions of the Listing Rules of Shanghai Stock Exchange or the planning, negotiation, intention and agreement related to such matters, and the board of directors has not been informed of the matters that should be disclosed but not disclosed in accordance with the relevant provisions of the Listing Rules of Shanghai Stock Exchange Information that may have a great impact on the trading price of the company’s shares and their derivatives. The information disclosed by the company in the early stage does not need to be corrected or supplemented.
4、 Relevant risk tips
(I) secondary market transaction risk
The company’s stock price rose for five consecutive trading days. As of the closing on February 22, 2022, the company’s closing price was 7.58 yuan. From February 7 to 22 after the Spring Festival, the range increased by 84.87%, with a large increase. The cumulative turnover rate was 87.12%, significantly higher than the previous turnover rate of the company. According to the relevant valuation data of China Securities Index Co., Ltd., as of the closing of February 22, 2022, the latest static P / E ratio of E48 civil engineering construction industry of the company’s CSRC industry was 9.61 times, the latest dynamic P / E ratio of the company was 19.41 times, the P / B ratio of civil engineering construction industry was 0.91 times, and the latest P / B ratio of the company was 2.07 times, The P / E ratio and P / B ratio of the company are significantly higher than those of Listed Companies in the same industry. Please invest rationally and pay attention to risks.
(II) there is no significant change in the company’s main business
The company’s main business is the traditional construction industry, including the general contracting of housing construction engineering, municipal garden engineering and related professional subcontracting business. The company’s main business accounts for 100%. So far, the main business has not changed. Please invest rationally and pay attention to risks.
(III) impairment risk of receivables
The balance of the company’s accounts receivable is large, and affected by the regulation of the real estate industry, the turnover speed of accounts receivable is slow, so there is a certain risk of recovery of accounts receivable. As of September 30, 2021, the company’s accounts receivable is 4195648116.34 yuan, notes receivable is 432188145.73 yuan, contract assets is 7776229998.42 yuan, and the total value of accounts receivable, notes receivable and contract assets is 12404066260.49 yuan, accounting for 61.35% of the total assets of the current period. There is a certain risk of fund recovery and asset impairment. Please invest rationally and pay attention to risks.
(IV) risk of negative net cash flow from operating activities
As of January September 2021, the net cash flow from the company’s operating activities was -1098649684.64 yuan. Please invest rationally and pay attention to business risks.
(V) price fluctuation risk of convertible bonds
As of February 22, 2022, the price of “ningjian convertible bonds” was 236.88 yuan per share, which was much higher than the face value of 100 yuan per share. According to the data of China stock market news choice, the premium rate of the company’s convertible bonds was 140.46% and 48.75% respectively. Since February 7, 2022, the company’s convertible bonds have fluctuated greatly in the short term, with an increase of 99.34%. Please invest rationally and pay attention to risks.
The company solemnly reminds investors that the company’s information can be found on the website of Shanghai Stock Exchange (www.sse. Com. CN.) And the relevant announcements published in China Securities News, Shanghai Securities News, securities times and Securities Daily, the information disclosure media designated by the company. Please invest rationally and pay attention to risks.
It is hereby announced.
Ningbo Construction Co.Ltd(601789) board of directors February 23, 2022
