Nanjing Red Sun Co.Ltd(000525) 4 April 7 released last year’s performance express and the announcement of pre increase in the first quarter of this year.
The net loss of the company reached 3.726 billion yuan last year, and the net profit in the first quarter of this year increased by 12 times in advance to turn losses into profits.
The company frequently received letters of concern and regulatory letters from the exchange due to a number of violations, such as the occupation of non operating funds by the controlling shareholder and its related parties, illegal provision of guarantees, untimely correction of performance forecast, and the chairman still in office after being punished.
“roller coaster” performance
On April 7, Nanjing Red Sun Co.Ltd(000525) disclosed the annual performance express of 2021. During the reporting period, the company achieved a revenue of 4.683 billion yuan, a year-on-year increase of 16.44%; The net loss attributable to shareholders of listed companies was 3.726 billion yuan, a year-on-year decrease of 232241%. The net loss attributable to the shareholders of the listed company after deducting non recurring profits and losses was RMB 237 million.
Source: Nanjing Red Sun Co.Ltd(000525) 2021 annual performance express announcement
On the same day, the company released the performance forecast for the first quarter of 2022. Compared with the large loss in 2021, the profit in the first quarter is expected to be 286318 million yuan, with a year-on-year increase of 119424% – 133905%.
Source: Nanjing Red Sun Co.Ltd(000525) 2022 first quarter performance forecast
It is worth noting that in the first three quarters of 2021, the company had a revenue of 3.035 billion yuan and a net profit of 363143 million yuan. According to the calculation of the annual performance express, the net loss in the fourth quarter of 2021 alone is about 3.762 billion yuan.
As for the “increase in revenue without increase in profit” and the net loss of RMB 3.726 billion in 2021, Nanjing Red Sun Co.Ltd(000525) said that from the third quarter, the company’s main products gradually “increased both in volume and price”, driving the operating revenue to increase by 16.44% year-on-year in 2020. However, due to the strategic operation constraints of “low price before high price”, contract order before supply, the implementation of the “dual control of energy consumption” policy resulted in insufficient operating rate, unable to fully release the production capacity, and also led to the rise of comprehensive operating costs, which had a certain impact on the company’s operating profits.
For the performance of the first quarter of 2022, the net profit soared by 119424% – 133905% year-on-year. The company said that during the reporting period, the company seized the historical opportunity of stable growth in demand for green pesticides brought by ensuring food security and rigid demand. Its main products continued the favorable situation of “simultaneous rise in volume and price” since the third quarter of 2021. Relying on the advantages of the “three major” green pesticide industry chain, on the one hand, the company steadily improved its revenue level by actively organizing production and developing markets outside China, and achieved sufficient long-term product orders The development trend of stable price and sufficient goods; On the other hand, through management innovation, cost reduction and efficiency increase, the company’s efficiency can be continuously improved.
multiple violations have the risk of being terminated from listing
The reporter of China Securities Journal found that Nanjing Red Sun Co.Ltd(000525) performance began to decline from 2019. Due to negative deduction of non net profit for three consecutive years, a letter of concern from Shenzhen Stock Exchange was received on February 7 this year.
Over the past two years, Nanjing Red Sun Co.Ltd(000525) has committed a number of violations and frequently received letters of supervision and concern from the exchange.
In July 2020, Nanjing Red Sun Co.Ltd(000525) was investigated by China Securities Regulatory Commission on suspicion of illegal information disclosure.
On August 27, 2021, Nanjing Red Sun Co.Ltd(000525) announced that in 2019, the company repaid bank loans for the controlling shareholder Dongnan Yinong group and its related party red sun group, which constituted the occupation of non operating funds by the controlling shareholder and its related parties; From May 7, 2020 to July 22, 2020, the amount of guarantee provided by the company for red sun group exceeded the total amount of guarantee considered by the general meeting of shareholders, and the excess capital was 2202535 million yuan. The company failed to fulfill the corresponding review procedures and information disclosure obligations in time; The annual performance forecast of the company in 2020 is quite different from the audited net profit, and the nature of profit and loss has changed. The company failed to correct the performance forecast in time as required.
The company also received the decision on disciplinary action against the company and relevant parties issued by Shenzhen Stock Exchange. Among them, Yang Shouhai, chairman of Nanjing Red Sun Co.Ltd(000525) board of directors, shall resign within one month according to regulations after being determined that he is not suitable to serve as the director, supervisor and senior manager of listed companies for five years. However, four months after being punished, Yang Shouhai sent his resignation report to the board of directors on December 29, 2021.
On April 6 this year, Shenzhen Stock Exchange issued a supervision letter to Nanjing Red Sun Co.Ltd(000525) government. From 2016 to 2018, the accounting of some inventory falling price reserves was inaccurate, and there was a false increase in some sales in 2014 and 2018, resulting in misstatement of operating revenue, net profit or net assets in the company’s annual reports from 2014 to 2020.
On the evening of April 7, Nanjing Red Sun Co.Ltd(000525) released the progress announcement of other risk warning items implemented on the company’s shares, saying that due to the non operational occupation of the company’s funds by the controlling shareholder Nanyi agricultural group and its related parties, Nanjing Red Sun Co.Ltd(000525) 2020 was issued with a negative internal control audit report by Lixin Zhonglian Certified Public Accountants (special general partnership). As of April 28, 2021, the fund balance of the company occupied by Nanyi agricultural group and its related parties was 2.964 billion yuan. As of April 6, 2022, the fund balance of the company occupied by Nanyi agricultural group and its related parties was 2.952 billion yuan.
In addition, on the evening of April 7, the company also issued an announcement on the progress of case filing and investigation and risk warning, saying that at present, the investigation work of the CSRC is still in progress. At the same time, the company reminds that if the company is subject to administrative punishment by the CSRC and the illegal act is a major illegal compulsory delisting, the company’s shares may be subject to the risk of termination of listing.
