Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) was suddenly filed for investigation
On December 4, Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) announced that the company and its chairman Zhou Xianhai were filed for investigation by the CSRC due to suspected violations of information disclosure. At the same time, Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) a 20-year-old director and deputy general manager quickly resigned.
In April this year, Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) exposed the problem of illegal appropriation of funds by major shareholders. In 2020, it provided the controlling shareholder Dingsheng group and its subsidiaries with a demolition loan of 525 million yuan. In the first quarter of 2021, the company continued to increase the demolition loan of 380 million yuan. Therefore, the company’s internal control report in 2020 was given a non-standard opinion by the annual audit accountant.
According to last year’s annual report and the third quarterly report of this year, the company’s interest bearing liabilities are high, accounting for an increasing proportion of operating revenue. In the third quarter, the interest bearing liabilities are close to 10 billion, but there are billions of cash in the account. However, due to the lithium tuyere, the share price of Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) performed well this year, with an increase of nearly four times during the year.
On December 3, 2021, Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) and Zhou Xianhai, the chairman of the company, received the notice of filing (No.: Zhengjian Lijian Zi No. 0102021002 and Zhengjian Lijian Zi No. 0102021003) from the CSRC, The contents are: “because your company is suspected of illegal information disclosure, according to the securities law of the people’s Republic of China, administrative punishment of the people’s Republic of China and other laws and regulations, on November 27, 2021, we will decide to file a case against you.”
The company said that during the filing and investigation period, it will actively cooperate with the investigation work of the CSRC and perform the obligation of information disclosure in strict accordance with the regulatory requirements. “At present, the operation, management and financial status of the company are normal”. The company’s announcement did not disclose the specific reasons for the investigation.
On the same day, Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) also announced that a non independent director applied to resign as a director. Two days later, it announced that the director resigned as deputy general manager at the same time.
According to the announcement, Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) the board of directors recently received a written resignation report from Ms. Bian Huijuan, a non independent director of the company. For personal reasons, Ms. Bian Huijuan, a non independent director, applied to resign as a director of the 5th board of directors, a member of the strategy committee of the board of directors and a member of the remuneration and assessment committee of the board of directors.
On December 6, the company announced again that “for personal reasons, Ms. Bian Huijuan applied to resign from the post of deputy general manager of the company, and her resignation report will take effect from the date when it is delivered to the board of directors of the company. After her resignation, Ms. Bian Huijuan will no longer hold any position in the company and its subsidiaries”.
Bian Huijuan was born in March 1974. From March 2002 to September 2007, she successively served as the salesperson and sales Minister of Hangzhou Dingcheng Aluminum Co., Ltd; From September 2007 to September 2018, he served as deputy general manager of Hangzhou Wuxing Aluminum Co., Ltd. From September 2018 to now, Bian Huijuan has successively served as the general manager, Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) director and deputy general manager of Wuxing aluminum until she resigned this time.
Public information shows that Dingcheng aluminum and Wuxing aluminum are subsidiaries of Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) , that is to say, Bian Huijuan is an “old minister” who has worked in the company for nearly 20 years.
controlling shareholder’s illegal appropriation
The reporter of China fund daily noted that in April this year, the company was exposed to the illegal occupation of funds by major shareholders, and the internal control report was issued with non-standard opinions by the audit institution. Therefore, the company received the supervision letter from the Shanghai Stock Exchange, and the company and its involved directors and supervisors were also criticized by the Shanghai Stock Exchange.
Specifically, Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) controlling shareholder Dingsheng group occupies non operating funds of listed companies and subsidiaries through itself and its controlled subsidiaries, of which the balance occupied at the beginning of 2020 is RMB 100 million, the amount occupied by non operating funds in 2020 is RMB 525 million, and the balance occupied at the end of 2020 is RMB 68.5836 million (including interest of RMB 18.5836 million). From January to March 2021, another 380 million yuan will be occupied.
After auditing the effectiveness of internal control in Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) 2020, Tianjian Certified Public Accountants issued an unqualified opinion with highlighted items. Tianjian certified public accountants believes that Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) and its subsidiaries were occupied by the non operating funds of the controlling shareholders and the companies controlled by them in 2020. In the process of lending funds, the listed companies failed to perform the approval process of the company’s internal control system, the decision-making procedures of related party transactions and timely information disclosure.
In May this year, Dingsheng Xincai received the supervision letter from the Shanghai Stock Exchange. In July, the Shanghai Stock Exchange issued a disciplinary decision to the listed company and relevant responsible persons for the occupation of non operating funds by the controlling shareholder.
The Shanghai Stock Exchange believes that the company provides inter-bank loans to the controlling shareholders and their subsidiaries without transaction essence, which constitutes the occupation of non operating funds by the controlling shareholders.
As the actual controller of the company, then chairman and general manager, Zhou Xianhai failed to regulate the behavior of the company and its controlling shareholders, failed to actively supervise and ensure the compliance operation of the company and its controlling shareholders according to law, and was mainly responsible for the violation of the occupation of the above funds. Wang Cheng, then general manager and Secretary of the board of directors, as the company’s operation and management decision-maker and the specific person in charge of information disclosure, and Li Xiang and song Yangchun, then chief financial officer, as the specific person in charge of the company’s financial matters, failed to be diligent and responsible, and were also responsible for the above violations of the company.
suspected “big deposit and big loan”
As the leader of aluminum foil, the battery foil business of Dingsheng new material has become a hot spot in the market, and the company has also been dubbed the concept of lithium battery.
Dingsheng new material said on the investor interaction platform on December 2 that the company has rapidly developed into a leading enterprise of aluminum foil for lithium battery in China. The company’s battery foil customers include China’s major energy storage and power battery manufacturers, including Contemporary Amperex Technology Co.Limited(300750) , Byd Company Limited(002594) group, ATL group, Hefei Gotion High-Tech Co.Ltd(002074) , etc.
It is precisely because of “lithium related”, Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) has become a bull stock in this year’s A-share market. The company’s share price was as low as 10.72 yuan on February 8 this year, and the closing price was 46.84 yuan on December 3. The previous highest was 50.79 yuan, with a maximum cumulative increase of 373%.
In terms of performance, Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) also seems to perform well. In the third quarter of 2021, the company achieved a total operating revenue of 12.86 billion yuan, a year-on-year increase of 43%, and a net profit attributable to the parent company of 260 million yuan, a year-on-year increase of 2299.1%. In the third quarter, the net profit attributable to the parent company in a single quarter was 110 million, a year-on-year increase of 18226.7%.
However, from the company’s balance sheet, the company is suspected of “large deposit and large loan”.
In recent years, the company has maintained relatively high interest bearing liabilities. In the third quarter of this year, the financial expenses reached 250 million yuan, almost equivalent to the net profit of 260 million yuan, which greatly swallowed up the profits.
Specifically, by the end of the reporting period of 2020, the company’s monetary capital balance was 1.155 billion yuan, and the interest bearing debt was about 8.1 billion yuan, including 3.741 billion yuan of short-term loans, 2.5 billion yuan of short-term notes payable, 591 million yuan of non current liabilities due within one year, 1.561 billion yuan of long-term loans, 1.074 billion yuan of bonds payable, with an asset liability ratio of 71.41%. The interest expenditure during the reporting period was as high as 296 million yuan, The company’s net profit recorded a loss of more than 16 million yuan.
By the end of the third quarter of this year, the company’s monetary capital balance had increased by nearly 80% to 2.07 billion yuan, while interest bearing liabilities had further increased to 9.515 billion yuan, accounting for 74% of operating revenue.
In recent half a year, the company’s shareholders and directors and supervisors have intensively reduced their holdings.
According to the announcement on June 18, Lu Jinche, a shareholder holding 6.46%, plans to reduce his holdings of no more than 8672600 shares, no more than 2% of the company’s total share capital. According to the announcement on July 9, the five directors, supervisors and senior executives plan to reduce their total holdings of no more than 9635900 shares, no more than 2.04% of the company’s total share capital, including three directors and one chairman of the board of supervisors. According to the announcement on August 4, the two shareholders plan to reduce their total holdings of no more than 9.4296 million shares, and the total reduction ratio shall not exceed 2% of the company’s total share capital.
Ningbo Tuopu Group Co.Ltd(601689) : the recall is a non major event, and the cost involved cannot be determined
On December 5, China fund reported that Tesla urgently recalled more than 20000 domestic model y electric vehicles, because the steering knuckle may be deformed or broken during vehicle use, and the suspension connecting rod may come out of the steering knuckle under extreme stress. And thus led to the parts supplier – A-share listed company Ningbo Tuopu Group Co.Ltd(601689) .
On the evening of December 5, Ningbo Tuopu Group Co.Ltd(601689) issued the “explanatory announcement on the company’s products involved in the customer recall event”, which gave a detailed response to relevant issues.
the production line has been rectified and improved
In the announcement, Ningbo Tuopu Group Co.Ltd(601689) admitted that the steering knuckle of model y electric vehicle involved in the recall was directly supplied to customers by the company. As for the specific reasons related to the recalled products, the company pointed out that “the strength of the steering knuckle may not meet the design requirements due to the insufficient water level of the quenching tank in a heat treatment production line, so that individual products are not completely immersed in the quenching solution”.
At present, the recalled products only support model y models, and do not involve other Tesla models or models of other customers. As a response measure, Ningbo Tuopu Group Co.Ltd(601689) indicates that the rectification and improvement of the heat treatment production line have been completed to ensure that the products are fully quenched, and the hardness of the products has been tested by 200%. Meanwhile, the company has provided 132 testing instruments for identifying risk parts to service centers around Tesla for testing and replacement of defective products.
Industry insiders pointed out that the products involved this time are steering knuckles, which are very key parts on the automobile chassis and have a great impact on safety. Once there is a problem, the consequences are very serious and will have a great impact on the brand strength.
As for the recall cost, Ningbo Tuopu Group Co.Ltd(601689) said that because the customer’s recall action is rapid and the recall work has not been completed, the cost involved in the recall cannot be determined temporarily; According to the estimation of recall quantity and defect ratio, the company believes that this recall is not a major event and will not affect the annual operating performance, and this event will not affect the company’s business.
It rose nearly 7 times in 2 years and fell to the limit last Friday
According to the data, Ningbo Tuopu Group Co.Ltd(601689) was founded in 1983 and listed on the Shanghai Stock Exchange in 2015. It is mainly committed to the R & D and manufacturing of automotive power chassis system, trim system and intelligent driving control system, and produces five series of products such as vibration damping system, trim system, intelligent driving system, chassis lightweight system and thermal management system.
According to the announcement, Ningbo Tuopu Group Co.Ltd(601689) officially entered the Tesla supply list in August 2016.
Binding with Tesla has brought huge “imagination space” to Ningbo Tuopu Group Co.Ltd(601689) . In recent years, the stock price of Ningbo Tuopu Group Co.Ltd(601689) has been moving sharply, rising from the low point of 9.07 yuan in August 2019 (former resumption of rights) to 68.06 yuan in November this year, with an increase of 660% in the early two years. The market value has soared from around 10 billion to more than 70 billion yuan.
According to the data of Tianfeng Securities Co.Ltd(601162) , the revenue from Tesla in Ningbo Tuopu Group Co.Ltd(601689) 2020 was 1.1 billion yuan, accounting for 18% of the contribution revenue; In 2021, top’s revenue from Tesla was 2.6 billion yuan, accounting for 30% of its revenue. The company’s overall performance is also good. In the third quarterly report of 2021, its total operating revenue reached 7.823 billion yuan, a year-on-year increase of 81.14%, and the net profit attributable to the parent company reached 753.3 million yuan, a year-on-year increase of 94.44%. The net profit deducted from non profits reached 730.9 million yuan, a year-on-year increase of 103.47%.
At present, the company is still increasing its production capacity. On Ningbo Tuopu Group Co.Ltd(601689) November 19, it announced that it plans to publicly issue convertible corporate bonds with a total amount of no more than 2.5 billion yuan. After deducting the issuance expenses, it will fully invest in the construction project of lightweight chassis system with an annual output of 1.5 million sets and the construction project of lightweight chassis system with an annual output of 3.3 million sets.
Affected by the recall event, Ningbo Tuopu Group Co.Ltd(601689) there was a sudden large-scale diving at the end of December 3, which once fell by the limit, and the closing decline narrowed, but it still fell sharply by 8.86% to close at 57.2 yuan / share.
(China Fund News)
