Yesterday, the limit was also raised. This morning, the situation suddenly changed, and the opening moment was pressed on the limit board. What is the situation?
On April 13, Hainan Ruize New Building Material Co.Ltd(002596) ( Hainan Ruize New Building Material Co.Ltd(002596) , SZ) dived straight into the limit just one minute after the opening of the market in the morning, although there was a buying rocker in the trading session, there was no choice but to sell too much and the stock price remained unchanged.
As of the close of the market, Hainan Ruize New Building Material Co.Ltd(002596) closed at RMB 555, down 10.05% from the limit. The latest market value was RMB 6.369 billion. The number of sales orders reached 526000. The investors killed in yesterday have been “bored”, especially the retail investors who entered the limit have suffered heavy losses. Recently, the capital construction theme of the two cities has received great attention from the capital, and the capital construction concept stock Hainan Ruize New Building Material Co.Ltd(002596) once walked out of the six companies. On April 11, the high platform diving closed down by nearly 8%, and the stock price changed its previous strength.
It is reported that Hainan Ruize New Building Material Co.Ltd(002596) main businesses mainly include the production and sales of commercial concrete and cement, landscaping and municipal sanitation. It is one of the largest commercial concrete production enterprises in Hainan Province.
However, from the Hainan Ruize New Building Material Co.Ltd(002596) early performance, the profitability of the company is not optimistic. In 2021 Hainan Ruize New Building Material Co.Ltd(002596) achieved a revenue of 2.778 billion yuan, a year-on-year decrease of 4.32%; The net profit attributable to the parent company was -1.141 billion yuan, a year-on-year decrease of 285291%; The net profit attributable to the parent company after deducting non-profit was -1.153 billion yuan, a year-on-year decrease of 735616%; The basic earnings per share was a loss of 0.99 yuan. As of December 31, 2021, its cash flow from operating activities was -257565 million yuan, a year-on-year decrease of 110%.
Hainan Ruize New Building Material Co.Ltd(002596) said in the annual report that in recent years, with the acceleration of China’s industrialization and urbanization process and the gradual availability of financial funds such as special bonds of local governments, infrastructure construction has become the primary focus of current economic stabilization. The work reports of provincial and municipal governments have defined specific objectives for traditional infrastructure such as traffic construction, water conservancy projects and urban pipe network construction, Form a strong support for the market demand of cement products.
It should be noted that in early April, the Shenzhen Stock Exchange issued an annual report inquiry letter to the company, questioning many issues such as the performance change of the subsidiary Guangdong lvrun after the commitment period, excessive impairment, project delay, high proportion pledge of shareholders, high debt financing and loan extension.
According to the financial Associated Press, in response to the sharp year-on-year decline in Guangdong lvrun’s performance, Yu Qingchi, the Secretary of the board, responded to the reporter that it was mainly “affected by the comprehensive impact of factors such as the intensification of competition, the reduction of new winning projects, the increase of labor and material costs and the withdrawal of preferential tax policies.”
It is reported that Hainan Ruize New Building Material Co.Ltd(002596) 2018 obtained 100% equity of Guangdong lvrun, and the completion rates of Guangdong lvrun during the performance commitment period from 2017 to 2020 were 103.89%, 101.12%, 92.44% and 108.08% respectively, with an overall completion rate of 101.59%. In the first year after the performance commitment period ended, its net profit decreased by 67.34% year-on-year. The Shenzhen Stock Exchange also asked the company whether there was a false increase in profits in the early stage and cross period adjustment of profits.
It is reported that Hainan Ruize New Building Material Co.Ltd(002596) made provision for goodwill impairment of 651 million yuan for Guangdong lvrun. In addition, due to the advance of commercial concrete and landscaping business projects in the early stage and the slow collection of the project, made provision for bad debts of 167 million yuan for accounts receivable. In 2021, the total amount of provision for impairment of various assets accrued by the company was 1.068 billion yuan, accounting for 93.64% of the absolute value of net profit attributable to the parent company, directly reducing the net profit attributable to the parent company by 974 million yuan.
The annual report also shows that “in recent years, the total amount of debt financing of the company is high, and the loan extension has occurred during the reporting period. The company has liquidity risk, and the interest generated by financing will also have a great impact on profits.”
