Just after receiving the supervision letter due to violations, the executives of the listed company were detained for investigation, Henan Yicheng New Energy Co.Ltd(300080) ( Henan Yicheng New Energy Co.Ltd(300080) , SZ; yesterday’s closing price of 5.06 yuan) has been negatively entangled recently.
Recently, Henan Yicheng New Energy Co.Ltd(300080) announcement disclosed that the company received the notice of retention and the notice of filing from the CPC Lingbao Municipal Commission of discipline inspection and Lingbao Municipal Commission of supervision on February 28, 2022, and decided to take retention measures against Zhang weiqi, vice president of the company, and file a case for investigation.
In this regard, Henan Yicheng New Energy Co.Ltd(300080) people said in an exchange with the reporter of the daily economic news that Zhang Weiqi’s investigation has nothing to do with the company’s business. He is only in charge of some departments in the company, but does not involve the company’s production. His work has been handed over.
The company is in the upper reaches of the PV industry, but it is not worth checking. Just last week, the Shenzhen Stock Exchange also issued a supervision letter to Henan Yicheng New Energy Co.Ltd(300080) due to two violations: delayed information disclosure and correction of accounting errors.
vice president detained and filed for investigation
After the closing on March 1, Henan Yicheng New Energy Co.Ltd(300080) announced that it had received the notice of retention and the notice of filing from the CPC Lingbao Municipal Commission of discipline inspection and the Lingbao Municipal Commission of supervision on February 28, and decided to take retention measures against Zhang weiqi, vice president of the company, and file a case for investigation.
The company announced that this matter is only for Zhang weiqi, vice president of the company, has nothing to do with the listed company and will not have a significant impact on the company’s daily production and operation activities. The company has made proper arrangements for relevant work.
As an executive of the company, Zhang Weiqi didn’t work in Henan Yicheng New Energy Co.Ltd(300080) for long. According to relevant announcements, Zhang Weiqi was nominated by Henan Yicheng New Energy Co.Ltd(300080) President Zhou Zhimin on September 13, 2020 and approved by the board of directors to serve as the vice president of the company.
At that time, according to the resume disclosed by Henan Yicheng New Energy Co.Ltd(300080) disclosure, Zhang weiqi, male, Chinese nationality, has no right of permanent residence abroad, was born in August 1985, and has a doctoral degree.
It is worth noting that Zhang Weiqi has served in China Pingmei Shenma Group (hereinafter referred to as “Pingmei Shenma”), the controlling shareholder of Henan Yicheng New Energy Co.Ltd(300080) for nearly 10 years, compared with his resume in a listed company for more than one year.
The full name of Pingmei Shenma is China Pingmei Shenma energy and Chemical Group Co., Ltd. according to the company’s official website, the group was reorganized from the former Pingmei Group and Shenma Group, two of China’s top 500 enterprises.
According to his resume, Zhang Weiqi worked in the capital operation Department of Pingmei Shenma from August 2013 to June 2014; From April 2014 to June 2014, he served as the legal adviser of Henan Pingmei Shenma Shoushan Chemical Technology Co., Ltd; From June 2016 to March 2017, he served as the supervisor of Henan Zhongping Financing Guarantee Co., Ltd. (hereinafter referred to as “Henan Zhongping financing”) and the legal adviser of Henan Pingmei Shenma Shoushan Chemical Technology Co., Ltd.
However, the reporter of the daily economic news found on qixinbao that Zhang Weiqi withdrew from the list of senior executives of Henan Zhongping Financing Guarantee Co., Ltd. on December 31, 2021. Henan Zhongping financing is a holding subsidiary of Pingmei Shenma, which is the major shareholder of Henan Yicheng New Energy Co.Ltd(300080) holding company.
At noon on March 2, the reporter of the daily economic news asked Henan Yicheng New Energy Co.Ltd(300080) for confirmation of Zhang Weiqi’s detention and investigation. The person from the company’s Securities Department said that the specific situation was not clear, but it had nothing to do with the business of the listed company. Zhang Weiqi was only in charge of some departments, but not in charge of the company’s production, and Zhang Weiqi’s work had been handed over.
10 billion photovoltaic enterprises have suffered losses for two years
Judging from Henan Yicheng New Energy Co.Ltd(300080) statement, the Zhang Weiqi incident had no impact on the company’s production and operation. However, as a photovoltaic listed company with a market value of 10 billion yuan, Henan Yicheng New Energy Co.Ltd(300080) , which is in the middle of the industrial chain, has made great profits both upstream and downstream of the industrial chain, but its performance is somewhat embarrassing.
From the perspective of main business, the information disclosed by Henan Yicheng New Energy Co.Ltd(300080) shows that the company firmly follows the development strategy of “new energy and new materials”. The main businesses of the new energy industry include: production and sales of high-efficiency monocrystalline silicon battery and lithium battery, Cecep Solar Energy Co.Ltd(000591) power station investment, construction and operation. The main businesses of the new materials industry are: production and sales of ultra-high power graphite electrode and negative electrode materials.
However, due to its position in the industrial chain, Henan Yicheng New Energy Co.Ltd(300080) did not hand over the perfect report card in 2021. On January 25, 2022, Henan Yicheng New Energy Co.Ltd(300080) issued the performance forecast for 2021. After the operating loss in 2020, the forecast loss in 2021 continued to expand. The loss in 2020 is 45.468 million yuan, and the performance forecast loss in 2021 is 130 million to 180 million yuan.
The reporter of the daily economic news noted that after the net profit loss of 45.468 million yuan returned to the parent company in 2020, the amplification of the loss in 2021 also made Henan Yicheng New Energy Co.Ltd(300080) fall into the dilemma of losing money for two consecutive years.
As for the reasons for the pre loss in 2021, Henan Yicheng New Energy Co.Ltd(300080) said that during the reporting period, affected by the dual control of national energy consumption and the unbalanced development of photovoltaic industry chain, the raw materials of monocrystalline silicon cell business continued to rise irrationally, and the average price of silicon increased from 80000 yuan / ton at the beginning of the year to 270000 yuan / ton at the end of the year.
In addition to the rise of raw materials, Henan Yicheng New Energy Co.Ltd(300080) ‘s cell business, as an intermediate link of photovoltaic, is subject to the shortage of upstream silicon chips and the impact of parity on the Internet price of downstream terminal power stations. The cell price cannot catch up with the rise, the operating rate continues to decrease and the cost increases, resulting in a sharp decline in the profitability of the company’s monocrystalline silicon cell business compared with the previous year, It became the main reason for the company’s loss in 2021.
Henan Yicheng New Energy Co.Ltd(300080) also said that Kaifeng Pingmei new carbon material technology Co., Ltd. (hereinafter referred to as “Kaifeng carbon”), a wholly-owned subsidiary of Henan Yicheng New Energy Co.Ltd(300080) was affected by many emergencies such as unilateral sanctions from the United States, severe rainstorm and periodic rebound of the epidemic, and the business environment continued to deteriorate, which had a significant impact on the normal performance of performance commitments.
It is worth noting that Kaifeng carbon was purchased by Henan Yicheng New Energy Co.Ltd(300080) in October 2019 from 15 counterparties including Pingmei Shenma, Kaifeng construction investment and Henan investment group, and was listed on October 14 of that year. Henan Yicheng New Energy Co.Ltd(300080) was merged with Kaifeng carbon statement. Kaifeng carbon had a significant impact on Henan Yicheng New Energy Co.Ltd(300080) ‘s income and profit.
Important subsidiaries are frequently concerned by regulators
According to relevant information released by Shenzhen Stock Exchange, since 2016, Henan Yicheng New Energy Co.Ltd(300080) ‘s periodic report has been inquired by the exchange four times. Last week, Henan Yicheng New Energy Co.Ltd(300080) just received a supervision letter due to information disclosure and accounting errors.
When the acquisition of Kaifeng carbon was completed in 2019, compared with the initial transaction plan with an estimated value of 7 billion yuan, Henan Yicheng New Energy Co.Ltd(300080) finally acquired at a discount of 5.765 billion yuan (125.17% premium), and the listed company added ultra-high power graphite electrode business.
However, from the information disclosed by Henan Yicheng New Energy Co.Ltd(300080) it can be seen that the purchase of Kaifeng carbon at a high price has repeatedly become the main factor for Henan Yicheng New Energy Co.Ltd(300080) to be inquired and supervised in relevant inquiry and supervision.
In terms of performance, Kaifeng carbon deducted 985 million yuan of non net profit in 2019, much higher than the performance commitment of 734 million yuan. However, the good times did not last long. In 2020, the net profit of Kaifeng carbon after deduction of non-profit decreased by more than 1.2 billion yuan year-on-year, with a loss of 224 million yuan.
In early April 2021, Henan Yicheng New Energy Co.Ltd(300080) announced that the performance commitment period of Kaifeng carbon was adjusted and it was planned to extend the performance commitments of 2020 and 2021 to 2021 and 2022.
In June last year, in response to investors’ question about the expected decline in performance in 2021, Henan Yicheng New Energy Co.Ltd(300080) said that the decline in performance of the company was mainly due to the obstruction of the export business of graphite electrode products due to the impact of US sanctions on Kaifeng carbon, resulting in the decline in sales of graphite electrode products.
Compared with the impact of the decline of related businesses on the performance, the operation related to Kaifeng carbon also makes Henan Yicheng New Energy Co.Ltd(300080) the object of supervision of the exchange.
According to the supervision letter on Henan Yicheng New Energy Co.Ltd(300080) issued by Shenzhen Stock Exchange on February 25, Kaifeng carbon received a government subsidy of 14.53 million yuan on April 27, 2021, accounting for 31.96% of the absolute value of the audited net profit attributable to the shareholders of the listed company in the latest fiscal year. The matter was not disclosed until September 27, 2021.
In addition, Kaifeng carbon debtor Fushun Special Steel Co.Ltd(600399) restructured. Kaifeng carbon acquired 1019500 Fushun Special Steel Co.Ltd(600399) shares on April 14, 2021, and reduced all Fushun Special Steel Co.Ltd(600399) shares from June 9 to 21, 2021. After deducting relevant expenses, the total profit of the company was affected by the debtor’s reorganization and share reduction, Accounting for 14.77% of the absolute value of the total audited profit of the company in the latest fiscal year, the progress of the debtor reorganization was not disclosed until November 22, 2021.
It is worth noting that the untimely disclosure of the above information also caused accounting errors in Henan Yicheng New Energy Co.Ltd(300080) the company. According to the supervision letter, due to the failure to account for the above-mentioned receipt of government subsidies, debtor restructuring and share reduction in the 2021 semi annual report, Henan Yicheng New Energy Co.Ltd(300080) corrected the 2021 semi annual report, adjusted the 2021 semi annual net profit from 124541 million yuan to 415551 million yuan, increased by 291011 million yuan, accounting for 70.03% of the adjusted net profit.
As for whether the above matters will affect the performance commitment related to Kaifeng carbon, Henan Yicheng New Energy Co.Ltd(300080) person told the reporter of daily economic news that it will not have an impact. The relevant operation only involves the problem of untimely information disclosure, and the company has corrected the relevant information.
