The regulatory pressure brought by the new delisting regulations has gradually cleared the A-share market. At the same time, individual stocks with stars and hats have begun to show their magic powers and intend to break free from difficulties.
On May 25 and 26, another eight listed companies will pile up and enter the delisting consolidation period. On the other hand, there are also 20 companies that withdrew the risk warning in May, and many ST shares are also releasing good news, and the expectation of taking off the cap is very strong. An asset manager told the financial Associated Press: “it is expected that there is a possibility of speculation. Investors need to carefully identify whether there is a phenomenon of fishing in troubled waters.”
Concentrate on the heavy load and go to battle lightly
This year, many stocks have been sought after by the market due to the expectation of taking off the cap, and some of them will reverse the market. Behind the reversal, whether it is financial tricks or relying on trees, has become an important means to clear the haze and regroup.
The first st share of Kechuang board ST Hengyu ( Niutech Environment Technology Corporation(688309) . SH) is a typical example of “light battle”. The company will focus its pressure on 2021. If everything goes well, it is almost certain that the company will achieve nirvana.
Affected by the combination index of “deducting non net profit + operating income” in the new delisting regulations, ST Hengyu became the first ST company on the science and innovation board due to its poor performance. According to the annual report, the company’s annual operating revenue in 2021 was 845659 million yuan, a decrease of 51.56% over the same period of last year; Net profit deducted from non parent company was -21322300 yuan, a decrease of 151,23% over the same period of last year.
In fact, the company has already indicated the impact of order lag in the risk warning announcement, and updated the latest order data in the first quarterly report. According to the first quarterly report, as of March 31, 2022, the company’s orders on hand were 296 million yuan (including tax). According to the average net sales interest rate for three years (20182020), the net profit brought by these orders was about 80 million.
Further analyzing the annual report data, the company also accrued a total impairment loss of 295985 million yuan of receivables and contract assets, which is also one of the key factors for ST Hengyu’s net profit to loss.
ST Hengyu’s reversal road was revealed from the first quarter. According to the first quarterly report, the company’s current operating revenue was 394015 million yuan, a year-on-year increase of 101.15%, and the net profit deducted from non parent company was 11.542 million yuan, a year-on-year increase of 847.18%. At the same time, the company’s previous accounts receivable preparation also began to be recovered. In the first quarter, it received 56.442 million yuan of repayment from Shuntong environmental protection, and the performance has shown an obvious reversal trend.
The year 2022 is expected to be the year with the strongest historical profitability of the company due to the recovery of accounts receivable, delayed cashing of net profit and income generation from new businesses.
the gross profit margin of St Hengyu’s sales has always been maintained at more than 40%, which is in an absolute leading position in the industry. The gross profit margin of the company’s products sold overseas has reached 97% in 2021. If the overseas market can continue to promote, the profitability of the company will be further strengthened.
Change your face and lean against the big tree
St Longjing ( Fujian Longking Co.Ltd(600388) . SH) also showed a good card of strong combination and M & A in the early stage of wearing a hat. Due to the negative opinion issued by the audited institution in the annual internal control audit report, Fujian Longking Co.Ltd(600388) was subject to other risk warnings, and the stock abbreviation was changed to st Longjing.
However, at the time of panic stampede, the company announced that Zijin Mining Group Company Limited(601899) 1734 billion took over Fujian Longking Co.Ltd(600388) , becoming the largest shareholder, and St Longjing swept away the haze of “wearing a hat” for a time.
Looking at the annual report data of St Longjing, the company’s operating performance in 2021 is also very impressive. In 2021, St long achieved a net revenue of 11.297 billion yuan, a year-on-year increase of 10.96%, and a net profit of 860 million yuan, a year-on-year increase of 22.42%. However, due to the large advance payment made to Mingzhu construction engineering, Dingcheng construction engineering and other related parties in 2021, the audit institution issued a negative opinion on the annual internal control audit report.
St Longjing’s counter attack originated from the appearance of “knight in white”. As early as February this year, Shuangyi signed a strategic cooperation agreement, and Zijin Mining Group Company Limited(601899) became the second largest shareholder of Fujian Longking Co.Ltd(600388) with 823 million yuan. However, unexpectedly, three months later, Zijin Mining Group Company Limited(601899) continued to “buy” to complete the holding of St Longjing.
St Longjing is not an isolated case. The reporter noted that many ST companies are also promoting their own reorganization plans recently Kaile Science And Technology Co.Ltd.Hubei(600260) ( Kaile Science And Technology Co.Ltd.Hubei(600260) . SH) is a typical passive reorganization. The company was sued by creditors for failing to pay off its debts, and the reorganization procedure of listed companies was started with the approval of the court. The pre reorganization period is 6 months.
At present, the company is publicly recruiting and selecting reorganization investors, but the temporary manager of the company also puts forward requirements for reorganization, requiring the intended reorganization investors to put forward the business plan of the future listed company and provide the profit target for the next three years from 2023 to 2025 in addition to paying off the bankruptcy expenses.
Guanfu Holdings Co.Ltd(002102) ( Guanfu Holdings Co.Ltd(002102) . SZ), who was affected by the violation of the original controlling shareholder, also plans to change the actual controller of the listed company through equity transfer and voting right entrustment in the near future. If the voting right entrustment takes effect, Chengfa capital will become the controlling shareholder of the company and Jingzhou SASAC will become the actual controller of the company.
Clear the haze and clear the sky after rain
Looking at the new ST companies this year, many companies are forced to wear hats because their subsidiaries are out of control. The root cause is mostly due to performance compensation disputes. After the disputes, it is expected to be sunny after the rain.
St Zhongjia ( Zjbc Information Technology Co.Ltd(000889) . SZ) has sufficient confidence in solving performance compensation disputes. Around this dispute, the company recently invited many people from the legal profession to discuss it. They all believed that the other party should fulfill the performance compensation clause. The company has no liability for breach of contract and has the right to claim compensation for its losses.
The company’s current dilemma stems from the failure of the performance of Jiahua information, the subject of acquisition in 2018, which led to a compensation dispute with the original shareholders. St Zhongjia believes that the original shareholders of Jiahua information should compensate the listed company according to the compensation agreement, while the original shareholders refused to compensate on the grounds that the listed company failed to pay all cash consideration on schedule and interfered with the operation of the company.
The once “sweet” parties are now facing Bo GONGTING, but the dispute has not been decided yet. St Zhongjia has lost the integrity of the annual report disclosure of listed companies due to its inability to resolve the situation that its subsidiaries are out of control for the time being.
The confidence to clear the haze stems from the prosecution of performance commitment parties by regulators in history. This year, the regulatory authorities have publicly punished Zhejiang Jindun Fans Co.Ltd(300411) for its performance compensation scheme. In addition, the counterparties of Jiawei Renewable Energy Co.Ltd(300317) ( Jiawei Renewable Energy Co.Ltd(300317) . SZ), Ningxia Xinri Hengli Steel Wire Rope Co.Ltd(600165) ( Ningxia Xinri Hengli Steel Wire Rope Co.Ltd(600165) . SH) and other companies have also been disciplined by the Shanghai and Shenzhen stock exchange for violating the performance compensation commitment. From the final arbitration result, the performance commitment party still has to fulfill the compensation obligation.
“Reborn” quality needs to be examined
It is worth mentioning that even if a listed company applies for “removing its hat and stars”, it also needs to obtain the approval of the corresponding exchange in order to truly restore its “true body”. In this process, the regulators will also closely examine its transformation authenticity.
After consulting the announcement, the reporter found that the regulators reviewed the annual reports of listed companies applying for “taking off the hat and removing the star” more strictly, and the inquiry focused on the reasons for the fluctuation of financial indicators and whether there was a phenomenon of falsely increasing profits.
For example, in the annual report inquiry letter of Vanfund Urban Investment&Development Co.Ltd(000638) ( Vanfund Urban Investment&Development Co.Ltd(000638) . SZ), the Shenzhen Stock Exchange questioned that some of the company’s businesses significantly exceeded the past and asked the company to explain the reason. In terms of software service business, only in October and November, the company’s software service business recognized revenue as high as 82 million yuan.
In addition, Zhuding University of technology, the military industrial standard acquired by the company during the reporting period, achieved a net profit of RMB 209376 million in 2021 when it only achieved a net profit of RMB 882300 and RMB 122800 in 2019 and 2020. This phenomenon also attracted the attention of the regulators. Even for military industrial standards, regulators also require them to issue bidding information, contracts, acceptance certificates and other relevant supporting materials.
For another example, Jiangsu Boxin Investing & Holdings Co.Ltd(600083) ( Jiangsu Boxin Investing & Holdings Co.Ltd(600083) . SH) also received the annual report inquiry letter of the exchange after disclosing the 2021 annual report. The exchange needs the company to further supplement the information on the reasons for the sharp growth in the fourth quarter, whether the private brand business of intelligent hardware is authentic, whether it belongs to non recurring profits and losses, and confirm whether there is connected transaction.
