Since the third quarter of 2021, there have been at least 10 or 20 listed companies stepping on leihengda, but it is still rare for state-owned enterprises to step on leihengda.
On the evening of April 18, Shanghai Electric Group Company Limited(601727) released its annual report. The operating revenue decreased by 4.3%, but it was still as high as 131.3 billion yuan. However, the net profit suffered a huge loss of nearly 10 billion yuan, compared with a profit of 3.758 billion yuan the previous year. The main reason for this result is that the previously disclosed subsidiaries suffered from “private network communication” scams, and some subordinate enterprises held assets related to Evergrande group and accrued impairment losses of more than 2 billion, which also had an impact on the performance.
Many investors said they could not understand the company’s continuous stepping on thunder, ” Shanghai Electric Group Company Limited(601727) is so awesome that thunder must be stepped on” and “who made the decision”. In July 5th last year, the China Securities Regulatory Commission (CSRC) had filed a top note of the company’s alleged disclosure of information, which is still under investigation.
several subsidiaries step on leihengda
provision for impairment exceeds 2 billion
Shanghai Electric Group Company Limited(601727) held the 66th meeting of the 5th session of the board of directors on April 18, 2022, deliberated and adopted the proposal on the provision for impairment of assets held by subordinate enterprises related to Evergrande group.
As of December 31, 2021, the notes receivable of Shanghai Electric Group Company Limited(601727) subsidiary to Evergrande group and its member enterprises was 2.173 billion yuan, the accounts receivable was 1.781 billion yuan, and the contract assets were 275 million yuan, totaling 4.229 billion yuan (hereinafter referred to as “accounts receivable”). Due to the difficulties in the operation of Evergrande group, some subsidiaries of the company have successively overdue receivables related to Evergrande group. The company believes that there are obvious signs of impairment, so it is necessary to withdraw individual impairment reserves.
Based on the above, in 2021, based on the historical credit loss, business model, current situation and prediction of the future situation of each subsidiary of Evergrande group, the company evaluated the different situations of the expected cash flow distribution under multiple scenarios, and made corresponding provision for impairment according to the expected credit loss rate under different scenarios and the probability weight of each scenario.
Finally, the subsidiaries of the company made provision for impairment of receivables of Evergrande group totaling RMB 2.023 billion. The impact of the above provision on the company’s net profit attributable to shareholders of Listed Companies in 2021 was a loss of RMB 761 million.
2021 huge loss of 10 billion
netizen: thunder will step on
On the evening of the 18th, Shanghai Electric Group Company Limited(601727) synchronously announced the company’s annual performance in 2021.
The company achieved an operating revenue of 131388 billion yuan, a year-on-year decrease of 4.3%; During the reporting period, the company’s gross profit margin was 15.07%, a year-on-year decrease of 1.69 percentage points, mainly due to the significant increase in the company’s overseas engineering project investment and the increase in project costs compared with the same period last year due to the epidemic and the rise in the price of bulk materials.
In 2021, the net profit attributable to the shareholders of the parent company directly collapsed, which was -9.988 billion yuan, compared with 3.758 billion yuan in the same period last year. The basic earnings per share in 2021 was -0.64 yuan, compared with 0.25 yuan in the same period of last year. The company’s loss after deducting non recurring profits and losses reached 11.9 billion.
The company said that the main reasons for the sharp decline in net profit compared with the same period of last year are as follows: 1) provision for relevant losses on risk matters of communication companies; 2) The operation cost of overseas projects has increased; 3) The price fluctuation of raw materials leads to the rise of costs; 4) Major losses of some associated enterprises accounted by equity method of the company; 5) Withdraw credit impairment losses on assets related to Evergrande group held by some subordinate enterprises; 6) Provision for goodwill impairment of some subsidiaries.
The communication company mentioned in Shanghai Electric Group Company Limited(601727) is the holding subsidiary Shanghai Electric Group Company Limited(601727) Communication Technology Co., Ltd. On May 31, 2021, it disclosed that the communication company fell into the “private network communication” scam woven by Sui Tianli. The accounts receivable were generally overdue and the collection was stagnant. The inventory of the communication company was mainly prepared for the contract, and there was also a certain impairment risk.
According to the disclosure of the annual report, the communication company finally accrued a total impairment loss of 9.222 billion yuan in 2021, and the impact on the net profit attributable to the shareholders of the listed company in the consolidated financial statements of 2021 was a loss of 8.354 billion yuan.
The controlling shareholder of Shanghai Electric Group Company Limited(601727) is Shanghai Electric Group Company Limited(601727) holding group, and the actual controller is Shanghai SASAC. As a state-owned enterprise, it has stepped on “private network communication” and Evergrande group, and many netizens said they couldn’t understand it. Some said ” Shanghai Electric Group Company Limited(601727) is too awesome. It’s necessary to step on every thunder”, “who made the decision” and “what else can we talk about if hengdalian can’t afford to pay back the interest”.
Shanghai Electric Group Company Limited(601727) was founded in March 2004. It is a large comprehensive equipment manufacturing group. Its leading industry focuses on three fields: energy equipment, industrial equipment and integrated services. As of March 31 this year, the number of shareholders was 288400.
2021 no dividend
CSRC is still investigating
In 2021, Shanghai Electric Group Company Limited(601727) group plans not to distribute profits, nor to convert capital reserve into share capital. In previous years, the dividend rate of the company’s dividends was good. The company said that according to the relevant provisions of the articles of association, the cash dividend adopted by the company should meet the conditions that the profit of the current year and the accumulated undistributed profit is positive. The net profit attributable to the shareholders of the listed company in 2021 is negative and does not meet the conditions for cash dividends.
the performance of Shanghai Electric Group Company Limited(601727) 2022 may also be under some pressure from the perspective of new orders.
In 2021, the company achieved 144.18 billion yuan of new orders, a decrease of 22.3% over the same period last year. As of the end of the reporting period, the company’s orders on hand amounted to 286.1 billion yuan, an increase of only 3.6% over the end of the previous year. Among the orders on hand at the end of the reporting period, the company’s energy equipment amounted to 143.25 billion yuan (including 36.22 billion yuan for wind power equipment, 27.17 billion yuan for nuclear power equipment, 3.03 billion yuan for energy storage equipment, 49.09 billion yuan for coal-fired power generation equipment), 12.38 billion yuan for industrial equipment (including 4.16 billion yuan for elevators) and 130.47 billion yuan for integrated services (including 109.79 billion yuan for energy engineering services).
It is worth mentioning that the company received the notice of investigation from the CSRC on July 5, 2021. Because the company is suspected of illegal information disclosure, the CSRC decided to file a case for investigation according to the relevant provisions of the securities law of the people’s Republic of China.
As of April 18, the CSRC’s investigation was still in progress. If the company is finally determined by the CSRC to constitute an illegal act of information disclosure due to the above filing and investigation matters, the company will face the risk of administrative punishment, and the company may face the risk of litigation by investors.
Since the outbreak of the “private network communication” case, Shanghai Electric Group Company Limited(601727) less than a year, the share price fell by 22%. As of the press release of the reporter on April 19, it was 3.99 yuan, up slightly by 0.7%.
