On the evening of April 7, “Zhumao” Muyuan Foods Co.Ltd(002714) announced that Qin Yinglin, the actual controller and chairman of the company, had violated relevant regulations and turned over all the proceeds of more than 86 million yuan to the company. Another executive Xu shaotao also traded convertible bonds in the short term, and the income of 69000 yuan was also returned to the company.
The newly released Forbes rich list in 2021 shows that Qin Yinglin, the “pig king”, ranks first in the rich list in Henan, ranking 44th in the total list with a wealth value of US $33.5 billion, and beats Netease Ding Lei to rank 9th among Chinese entrepreneurs on the list. The announcement said that Qin Yinglin and Xu shaotao apologized for the adverse effects caused by this behavior and sincerely apologized to the majority of investors. In the follow-up, they will strictly abide by relevant regulations to prevent such incidents from happening again.
On January 19 this year, Muyuan Foods Co.Ltd(002714) disclosed the performance forecast. It is estimated that the annual operating revenue will be about 77-80 billion yuan, and the attributable net profit will be about 6.5-8 billion yuan, a decrease of 70.86% – 76.32% over the same period of last year. Although the performance of Muyuan Foods Co.Ltd(002714) fell sharply due to the sharp decline of pig price, it is still the only profit maker among listed pig enterprises.
company claims no subjective intention
According to the announcement, Muyuan Foods Co.Ltd(002714) chairman Qin Yinglin and senior manager Xu shaotao sold part or all of the company’s convertible corporate bonds held by them respectively on February 17, 2022 and February 15, 2022 (bonds are referred to as muyuan convertible bonds for short). The above transactions constitute short-term transactions.
Among them, Qin Yinglin bought 37.85 million muyuan convertible bonds on August 25, 2021 at a price of 100 yuan / piece, and sold 5.79 million bonds on February 17, 2022 at a price of 115 yuan / piece, making a profit of 86.88 million yuan.
Xu shaotao made a profit of 69000 yuan in the short-term trading of the company’s convertible bonds. The details are as follows:
According to the company, the first day of issuance of muyuan convertible bonds, the date of subscription, the date of priority placement and payment by the original shareholders, the starting date of duration and the starting date of interest calculation are August 16, 2021, and the bondholders have obtained the relevant rights of convertible bonds since August 16, 2021. According to this calculation, six months from August 16, 2021, i.e. August 16, 2021 to February 15, 2022, is the prohibition period of short-term trading. Therefore, Qin Yinglin understands that selling convertible bonds after February 16, 2022 (including the same day) does not constitute the short-term trading referred to in the regulations. The company said, “Mr. Qin Yinglin does not have the subjective intention of short-term trading, and there is no purpose of using short-term trading to seek benefits”.
According to the announcement, after the above acts occurred, Qin Yinglin and Xu shaotao took the initiative to explain the relevant situation to the company and handed over the proceeds of this transaction to the company. At the same time, they carefully studied the relevant laws, regulations, departmental rules, normative documents and other rules. Qin Yinglin and Xu shaotao apologize for the adverse effects caused by this behavior and sincerely apologize to the majority of investors. In the follow-up, they will strictly abide by relevant regulations to prevent such incidents from happening again.
According to Article 44 of Chapter III of the securities law, if the directors, supervisors, senior managers and shareholders holding more than 5% of the company’s shares of a listed company violate the relevant provisions of the securities law and sell their shares of the company or other equity securities within 6 months after buying, or buy them again within 6 months after selling, the board of directors of the company shall recover their income and timely disclose the illegal trading of relevant personnel The amount of income, the treatment measures taken by the company and the specific circumstances of the company’s recovery of income, etc.
“Zhumao” is expected to reduce its performance by 70% in 2021
Netizens have different views on Qin Yinglin’s short-term trading of his own equity securities.
Some said that they had misunderstood the rules, which was understandable and did not need to be too harsh, while others thought that some were unreasonable, and the board secretary and securities affairs representative were in default. Some also said that why the income should be turned over to the company and “it is also his to pay to the company”, and whether it is more reasonable to use this part of the income for repurchasing the shares of the company and canceling them.
Up to now, Muyuan Foods Co.Ltd(002714) has not disclosed the performance in 2021, but the company disclosed the performance forecast on January 19 this year. It is estimated that the annual operating revenue will be about 77-80 billion yuan, and the attributable net profit will be about 6.5-8 billion yuan, a decrease of 70.86% – 76.32% over the same period of last year; It is estimated that the attributable net profit after deducting non profits will be about 7-8.5 billion yuan, a decrease of 71.9% – 76.86% over the same period of last year.
As for the reasons for the sharp decline in performance, Muyuan Foods Co.Ltd(002714) said that during the reporting period, the number of pigs sold by the company increased significantly compared with the same period last year. However, due to the gradual recovery of pig production capacity in China, the pig price in 2021 decreased significantly compared with the same period last year, resulting in a significant decline in the company’s operating performance in 2021 compared with the same period last year.
Although the net profit fell sharply, in fact, Zhumao has been regarded as a “clean stream” in the “large pig farmers”, because most of other pig enterprises have huge losses, ranging from billions to tens of billions.
According to the previous performance express of Wens Foodstuff Group Co.Ltd(300498) pig farmer Wens Foodstuff Group Co.Ltd(300498) previously, the company realized an operating revenue of about 64.963 billion yuan in 2021, a year-on-year decrease of 13.31%; The attributable net profit loss realized was about 13.337 billion yuan. While Jiangxi Zhengbang Technology Co.Ltd(002157) is expected to have a loss of 18.2 billion yuan to 19.7 billion yuan in 2021, a year-on-year decrease of 416.84% to 442.96% compared with the profit of 5.744 billion yuan in 2020.
