Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) ( Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) . SH) was detained for allegedly refusing to execute the judgment. At present, the company is also accompanied by a series of huge risks, such as being unable to revoke the delisting risk warning, the shares held by the controlling shareholders being auctioned by the judiciary, and being filed for investigation by the CSRC for violation of laws and regulations.
However, in the context of risks, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) share price was hyped, with five trading limits recorded in nearly six trading days. In the half year of last year, the stock also rose six times.
Some market analysts told the financial associated press that Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) the reason for this trend is the expectation of the company to solve the delisting risk and the recognition of the value of the company’s phosphate rock resources.
Due to the continuous tight market supply, the price of yellow phosphorus, its main product, has been rising. According to the quarterly report of 6 Guangdong Xinhui Meida Nylon Co.Ltd(000782) 022, the net profit attributable to the parent company was 67.563 million yuan, turning losses into profits year-on-year.
actual controller Li Xing was detained and warned by the CSRC
Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) recently disclosed that the family members of the actual accuser Li Xing have received the “detention notice” from Jiangyin public security bureau about Li Xing’s alleged refusal to execute the judgment and ruling, and are now detained in Jiangyin detention center.
It is understood that according to the provisions of China’s criminal law, those who refuse to execute the judgment and ruling, if the circumstances are serious, shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention; If the circumstances are especially serious, he shall be sentenced to fixed-term imprisonment of three to seven years.
Statistics show that Li Xing was born in 1953 and is 69 years old this year. He has a college degree and is a senior economist. He is currently the chairman and President of the board of directors of Chengxing group ( Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) the largest shareholder), the chairman of the working committee of Petrochina Company Limited(601857) and small and medium-sized enterprises of Chemical Industry Association, and the chairman of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) from September 2006 to October 2018.
In addition to refusing to execute the judgment, Li Xing, the actual accuser, was also punished for the company’s filing for investigation twice by the CSRC. In December 2015, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) was filed for investigation by the CSRC due to the company’s alleged failure to disclose information as required. At that time, the CSRC ordered Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) to make corrections, gave a warning and imposed a fine of Shanghai Pudong Development Bank Co.Ltd(600000) yuan; Li Xingyu was warned and fined 300000 yuan respectively.
On December 7, 2021, after a lapse of six years, the situation escalated. On the same day, the company and Chengxing group received the notice of filing a case from the CSRC. Due to suspected illegal information disclosure, the CSRC decided to file a case against the company and Chengxing group in accordance with the Securities Law of the people’s Republic of China, the administrative punishment law of the people’s Republic of China and other laws and regulations. Up to now, the above investigation is still in progress.
Although Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) tried to clarify that Li Xing’s detention did not affect the company’s operation, it could not change the fact that the company had “bad deeds”.
demon stocks are full of color, and what is the logic of soaring
In addition to the detention of the actual accuser, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) is also at risk of delisting. In 2020, the company made a full provision for bad debts of up to 2.178 billion yuan, resulting in a loss of current net profit, and the company’s shares were warned of delisting risk.
Although Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) creditors applied to the court for bankruptcy reorganization of the company, the company still faced the risk of termination of listing without regulatory approval.
However, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) is another scene in the capital market, and the stock price is highly sought after by the market. From the lowest price of 1.86 yuan / share on May 21, 2021 to the highest price of 14.29 yuan / share on December 17, 2021, the range rose or fell by 585.79%. Even though the company has repeatedly announced the existing risk issues, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) is still high, with five trading limits recorded in nearly six trading days, showing the true color of “demon stock”.
As of May 23, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) closed at 11.14 yuan / share, with the latest market value of 7.4 billion yuan.
Some market analysts told the financial associated press that Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) has a strong performance in the secondary market. First, investors have strong expectations that the delisting risk of the company may be lifted, and the company has made a draft settlement agreement with major creditors and other stakeholders; Second, under the high prosperity of the new energy industry, the supply and demand of phosphorus raw material products are unbalanced and the price continues to rise. Investors recognize the value of phosphate rock resources owned by the company.
In terms of phosphate rock resources, the financial Associated Press reporter learned that Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) is mainly engaged in the production and sales of fine phosphorus chemical products such as yellow phosphorus, phosphoric acid and phosphate. The company’s yellow phosphorus production capacity is 180000 tons / year, phosphoric acid production capacity is 720000 tons / year and phosphate production capacity is 95000 tons / year; China’s yellow phosphorus production capacity is 2.2 million tons. It can be seen that Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) ‘s yellow phosphorus production capacity accounts for 8.18% of China’s total production capacity.
letter Phi has been repeatedly questioned, and there are many abnormalities in the annual report
It is worth noting that although Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) performance has increased and net assets have changed from negative to positive through a series of accounting operations, the information disclosure related to the company’s annual report has still been questioned by regulators.
In fact, after a loss of 2.272 billion yuan in 2020, 6 Guangdong Xinhui Meida Nylon Co.Ltd(000782) 021 realized a net profit attributable to the parent company of 2.015 billion yuan, an increase of 187.60% over the same period of last year. However, the net profit deducted from the non parent company is – 125 million yuan, which also means that the company’s main business has not turned losses. The increased net profit is the recovery of previously impaired receivables and contract assets.
According to Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) disclosure, the manager of the company has received the cash payment of RMB 2.256 billion from Jiangsu Asset Management Co., Ltd. (hereinafter referred to as “Jiangsu assets”) on April 15, 2022. After receiving the payment, the company transferred back the bad debt provision of other receivables of RMB 2.125 billion and the interest bad debt provision of RMB 526786 million, totaling RMB 2.178 billion, in the financial statements of 2021. The net assets of the company also changed from negative to positive.
However, this operation was questioned again. The Shanghai Stock Exchange believes that the above operation of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) is the main accounting treatment for the company to maintain its listing status. The Shanghai stock exchange requires the company and the annual audit accountant to reply on whether the nested fund occupation scheme of the settlement agreement constitutes a package deal and the fairness of accounting treatment, but the company has not replied so far.
The Shanghai Stock Exchange also said that Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) still failed to reply to a number of inquiries and failed to disclose relevant information truthfully, accurately and completely, which directly affected investors’ judgment on major matters such as whether the company’s control right had changed and whether the company’s shares had been delisted due to financial data.
In fact, although Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) has the expectation of lifting the delisting risk warning, the company still has many difficulties to be solved. Global high price shipping and tight cash flow will affect the company’s operation and profit.
