Although the bankruptcy reorganization has been completed in 2019, the business situation has not improved: in 2021, the net profit attributable to shareholders of listed companies was -863 million yuan, and the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was -2.826 billion yuan. The net profit is negative for 4 consecutive years, the deduction of non net profit is negative for 10 consecutive years, and the net cash flow from operating activities is negative for 9 consecutive years… This is the current situation of Shenyang Machine Tool Co.Ltd(000410) .
On April 17, the exchange sent an annual report inquiry letter to Shenyang Machine Tool Co.Ltd(000410) asking for 14 questions in the company’s financial report, involving operation, R & D, litigation, current accounts and other financial details. Lawyer Wang Zhibin of Shanghai Minglun law firm analyzed that Shenyang Machine Tool Co.Ltd(000410) ‘s sustainable operation ability is in doubt.
continuous loss operation is hard to say sustainability
Shenyang Machine Tool Co.Ltd(000410) completed the bankruptcy reorganization at the end of 2019, and the subsequent financial reports showed that the operation had not been significantly improved. Based on these considerations, in the inquiry letter of the annual report, the exchange asked the company to explain the main reasons for the continuous loss, whether there is a significant difference between the company’s production and operation and the business plan agreed in the reorganization plan, and asked the company to explain whether there is significant uncertainty in the ability of continuous operation.
In addition to the sustainability of operation, Shenyang Machine Tool Co.Ltd(000410) also mentioned a number of “potential risks” in the annual report. For example, in December last year, the court ruled to accept the application for bankruptcy liquidation of its subsidiary Shanghai Younis Industrial Services Co., Ltd. submitted by creditors and appointed an administrator. Therefore, Shenyang Machine Tool Co.Ltd(000410) did not include it in the scope of consolidation; Multiple lawsuits occurred, involving an amount of 869 million yuan; R & D investment increased by 54.44% year-on-year, but the number of R & D personnel decreased by 58.95% year-on-year at the end of 2021.
For these situations, the inquiry letter of the exchange mentioned that the company is required to explain in detail the time node, specific reasons and potential risks of these problems.
As for the situation of Shenyang Machine Tool Co.Ltd(000410) , Lawyer Wang Zhibin explained in an interview with the reporter of Securities Daily that from the annual report of Shenyang Machine Tool Co.Ltd(000410) the company’s sustainable operation ability is in doubt, and long-term losses, sharp reduction of R & D personnel and many related party transactions with controlling shareholders are potential risks to the company’s future performance. In this case, compared with the relevant requirements of financial delisting, the company’s situation is very optimistic.
“The stock listing rules of Shenzhen Stock Exchange have specific requirements on the financial compulsory delisting of listed companies, including net profit, revenue, net assets, etc. However, from the situation of companies that have touched the financial compulsory delisting requirements, it can be seen that the basic operating data match. There is great uncertainty whether a company with long-term net profit loss can avoid these potential risks in the future.”. Wang Zhibin analysis.
become the middleman of the controlling shareholder
Among the 14 financial details mentioned in the attention letter, Shenyang Machine Tool Co.Ltd(000410) and the related party transactions of the controlling shareholders are more concerned by investors.
According to the annual report, Shenyang Machine Tool Co.Ltd(000410) has become the “middleman” of the controlling shareholder to a certain extent: the controlling shareholder general holdings is the largest customer and supplier of Shenyang Machine Tool Co.Ltd(000410) and sold 146 million yuan to it and purchased 186 million yuan from it during the reporting period. Moreover, the “intimate relationship” between the two sides is more than that. The closing balance of Shenyang Machine Tool Co.Ltd(000410) borrowing from general holdings is 800 million yuan.
In this regard, the exchange requires Shenyang Machine Tool Co.Ltd(000410) to explain the specific contents of procurement and sales from the controlling shareholders, including product name, quantity, amount, etc., and explain the reasons and necessity of sales and procurement from them in combination with the above sales and procurement matters; Explain whether there are obvious differences between the sales and purchase prices of related party transactions with the controlling shareholder and the company’s sales and purchase prices to third parties. On this basis, explain the pricing basis and fairness of related party procurement and sales prices; In combination with the company’s procurement and sales from the controlling shareholder, loan arrangement and other factors, explain whether there is significant dependence on the controlling shareholder, whether the controlling shareholder violates the commitment to reduce and regulate related party transactions (if any), and Shenyang Machine Tool Co.Ltd(000410) plans to take specific measures to regulate related party transactions (if any).
The phenomenon of being both a major customer and a major supplier not only appears in the controlling shareholder of Shenyang Machine Tool Co.Ltd(000410) . The financial report shows that during the reporting period, the company sold 79.398 million yuan to Guangzhou CNC and purchased 62.728 million yuan from Guangzhou CNC. In this regard, the exchange requires the company to explain the specific contents of procurement and sales related to Guangzhou CNC, and on this basis, explain the reason, rationality and necessity that Guangzhou CNC is not only the company’s top five customers, but also the top five suppliers.
Securities Daily will continue to pay attention to the situation of Shenyang Machine Tool Co.Ltd(000410) .
