Jiangxi Zhengbang Technology Co.Ltd(002157) is facing liquidity pressure.
Jiangxi Zhengbang Technology Co.Ltd(002157) 4 received the letter of concern from Shenzhen Stock Exchange on April 8. The letter pointed out that as of April 1, the company had returned 27.6 million yuan to the special account for funds raised by public issuance of convertible corporate bonds in 2019, and the remaining 1.102 billion yuan had not been returned, accounting for 69.70% of the net funds raised; Return 30 million yuan to the special account for funds raised by non-public offering in 2020, and the remaining 2.44 billion yuan has not been returned, accounting for 32.63% of the net funds raised this time. In this regard, the Shenzhen stock exchange requires the company to explain the specific reasons for the failure to return the raised funds on time and whether it has been misappropriated and occupied.
China Securities News · China Securities Taurus reporter noted that the controlling shareholders of Jiangxi Zhengbang Technology Co.Ltd(002157) are also facing varying degrees of liquidity pressure. Recently, Zhengbang group has pledged a total of 28.8 million shares, accounting for 85.05% of its shares with those acting in concert.
Jiangxi Zhengbang Technology Co.Ltd(002157) it is estimated that the loss in 2021 will be close to 20 billion yuan. Recently, some institutions believe that the pig cycle is unlikely to reverse this year, and the probability of reversal next year is also low.
exchange inquires about the reasons for the delayed return of funds
Faced with the Jiangxi Zhengbang Technology Co.Ltd(002157) huge delayed return of funds, Shenzhen Stock Exchange attaches great importance to it. In the letter, the company is required to explain in detail the use of raised funds and project construction progress of the company’s public offering of convertible bonds in 2019 and non-public offering of shares in 2020 as of the date of reply, and explain the difference between the relevant raised investment projects and the planned investment progress, and whether there is any slow progress. If yes, explain the specific reasons and the countermeasures taken or proposed to be taken by the company. Based on the answers to the above questions, explain in detail whether the company’s delay in returning the raised funds affects the implementation of relevant raised investment projects, whether it causes losses to the listed company, and whether there is a situation of changing the use purpose of the raised funds in a disguised form.
Jiangxi Zhengbang Technology Co.Ltd(002157) 4-1 issued an announcement on delaying the return of idle raised funds and continuing to be used for temporary replenishment of working capital, saying that it plans to postpone the return of 1102.4 million yuan of funds raised from public issuance of convertible corporate bonds in 2019 and 2440 million yuan of idle funds raised from non-public issuance of shares in 2020 and continue to be used for temporary replenishment of working capital, The deferred return period shall not exceed 12 months from the date of deliberation and approval by the board of directors, and will be returned to the special account for raised funds upon expiration. Postpone the return of idle raised funds and continue to be used for temporary replenishment of working capital, which is limited to the production and operation related to the company’s main business, and will not directly or indirectly use idle raised funds for high-risk investments such as securities investment and derivatives trading.
In this regard, the Shenzhen stock exchange requires the company to explain in detail the actual flow direction and specific purpose of the raised funds of these supplementary working funds, and whether they have been misappropriated and occupied. If yes, specify the specific situation, including but not limited to the actual fund user, occupied amount, etc.
Jiangxi Zhengbang Technology Co.Ltd(002157) delaying the return of idle raised funds and continuing to be used to temporarily replenish working capital attracted the attention of rating agencies. Dagong credit believes that the matter shows that Jiangxi Zhengbang Technology Co.Ltd(002157) current liquidity is tight, which may have a certain impact on the company’s business activities and credit level.
controlling shareholders pledge part of their shares
The reporter noted that the controlling shareholders of Jiangxi Zhengbang Technology Co.Ltd(002157) are also facing liquidity pressure to varying degrees.
Jiangxi Zhengbang Technology Co.Ltd(002157) 4 disclosed on April 7 that the company received a notice from Zhengbang group, the controlling shareholder of the company, on April 2, and learned that it had handled the pledge procedures for part of its equity in the company. Zhengbang group added 28.8 million pledged shares this time, accounting for 3.84% of its shares and 0.92% of the total share capital of the company. The announcement disclosed that the pledge is used for its own financing needs.
As of the disclosure date of the announcement, the Pledged Shares held by Zhengbang group and its persons acting in concert totaled 1.321 billion shares, accounting for 85.05% of its shares and 42% of the total share capital of the company.
For the high pledge proportion, Jiangxi Zhengbang Technology Co.Ltd(002157) explained that the main reason for the high proportion of Pledged Shares of Zhengbang group and its concerted actors is to participate in the company’s private placement and pay financing principal and interest. During the period, due to the fluctuation of capital market and stock price, the controlling shareholders of the company and their persons acting in concert supplemented the pledge for many times, forming a high proportion of Pledged Shares. At present, the shares pledged by Zhengbang group and its persons acting in concert do not have the risk of closing positions. The risk of share pledge is within the controllable range, which will not lead to the change of the actual control right of the company and have no substantive impact on the production and operation of the company.
However, Zhengbang group faces great pressure on short-term debt repayment. As of the disclosure date of the announcement, the interest bearing liabilities of Zhengbang group totaled 6.432 billion yuan, of which the debt to be paid in the next six months was 1.852 billion yuan and the debt to be paid in the next year was 3.96 billion yuan.
fundamentals are worrying
Behind the tight liquidity of Jiangxi Zhengbang Technology Co.Ltd(002157) and controlling shareholders is the poor operating performance.
Jiangxi Zhengbang Technology Co.Ltd(002157) 2021 expected loss of 18.2 billion yuan – 19.7 billion yuan. According to the performance forecast, the reasons for the loss of Jiangxi Zhengbang Technology Co.Ltd(002157) performance are: first, due to the decline of pig market price in China, the pig cycle has a great impact on Jiangxi Zhengbang Technology Co.Ltd(002157) with single industrial structure. Although the sales volume of Jiangxi Zhengbang Technology Co.Ltd(002157) increased by 56.14% year-on-year during the reporting period, the profit was 8.873 billion yuan due to the decrease of sales price. Second, Jiangxi Zhengbang Technology Co.Ltd(002157) is in the period of strategic transformation. In order to further optimize the population, a total of 2.2 million dead sows and backup sows were collected, with a loss of 6.2 billion yuan to 6.8 billion yuan. Third, due to the continuous decline of pig prices in the Chinese market and the impact of the epidemic, the utilization rate of Jiangxi Zhengbang Technology Co.Ltd(002157) overall production capacity during the reporting period was low, resulting in losses such as depreciation of vacant fences. At the same time, inefficient and uneconomic rental farms were cleared, resulting in losses such as prepaid rent, compensation for clearance and materials, totaling about 1.5 billion yuan.
With regard to the deterioration of Jiangxi Zhengbang Technology Co.Ltd(002157) fundamentals, Dagong credit believes that the sharp fluctuation of pig market price and other factors lead to Jiangxi Zhengbang Technology Co.Ltd(002157) significant losses and deterioration of profitability. At the same time, the pressure of short-term debt increases and faces certain pressure on operation and liquidity. Therefore, Dagong international decided on March 18 to adjust the credit rating of Jiangxi Zhengbang Technology Co.Ltd(002157) subject to AA -, the rating outlook to negative, and the credit rating of “17 Zhengbang 01” remained AAA.
