as early as the beginning of last year, who could have thought that such a “counter attack” took place in the A-share market in the middle of the year: a company with frequent problems caught up with the chemical price dividend period while being dragged down by the controlling shareholder. Under the logic of speculation, it gained 73 limit boards, and the cumulative increase of share price was as high as 260.86%…
On January 18, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) disclosed the disciplinary decision issued by the Shanghai Stock Exchange, with a total of 12 Parties, covering almost all senior executives of the company at that time, including the controlling shareholder of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) as the chairman in time.
On January 19, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) rose the limit to close at 8.12 yuan / share, with a total market value of 5.38 billion yuan.
four violations
Specifically, the Shanghai Stock Exchange decided to publicly condemn Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) , the controlling shareholder Chengxing group, Jiang Yongkang, then chairman and Secretary of the board of directors, Wang Guozhong, then director and general manager, Hua Weiyun, then director and chief financial officer, and Wei Li, then Secretary of the board of directors; Jiang Yiping, the then director, Jiang Jianhong and Wang Zhenghai, the then director and deputy general manager, Song Chao, the then independent director and convener of the audit committee, and Liu Bin and Wang Lingyu, the then independent directors, were criticized.
The Shanghai Stock Exchange also publicly determined that Jiang Yongkang, Wang Guozhong and Hua Weiyun were not suitable to serve as directors, supervisors and senior managers of listed companies within 10 years. In addition, due to the application of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) actual controller Li Xing to postpone the hearing, the relevant violations will be dealt with separately.
At the same time, the four violations of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) were made public, namely, the occupation of non operating funds by the controlling shareholder and its related parties, the inaccurate performance forecast and the failure to disclose the correction announcement in time, the failure to disclose the litigation matters in time, and the failure to disclose the shutdown matters in time.
First, in 2020, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) controlling shareholders and their related parties occupied a total of 3.754 billion yuan of non operating funds, generating 53 million yuan of interest, totaling 3.804 billion yuan, accounting for 218% of the company’s audited net assets at the end of the previous year.
Second, the company’s early performance forecast said that the expected net profit attributable to the parent company in 2020 was – 9 million yuan to 6 million yuan, but the actual performance loss was 2.216 billion yuan, the difference was 2.207 billion yuan, and the difference reached 24500%.
Third, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) received a civil ruling on July 17, 2020, involving an amount of 290 million yuan, accounting for 17% of the audited net assets at the end of the previous year, meeting the interim announcement disclosure standard, but failed to fulfill the letter Phi obligation in time, which was not disclosed until April 16, 2021. On May 15, 2021, the company disclosed that on April 16, 2021, it received a lawsuit for new loan disputes, involving an amount of 251 million yuan, accounting for 14% of the audited net assets of the latest year, meeting the interim announcement disclosure standard. The company failed to fulfill its letter Phi obligations in time and did not disclose it until May 15, 2021.
Fourth, on May 29, 2021, the company disclosed the announcement on the shutdown and resumption of production of Jiangyin factory, which said that the company’s Jiangyin factory began to stop production for rectification from April 9, 2021. In 2020, the operating revenue of Jiangyin factory was 1.258 billion yuan, accounting for 40% of the audited operating revenue of the company in the latest fiscal year. However, the company did not fulfill its obligations on the above-mentioned shutdown in time, and did not disclose it until production resumed.
Public information shows that Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) was listed on the Shanghai Stock Exchange in June 1997. The company is located in Jiangyin, Jiangsu Province, focusing on the production and sales of fine phosphorus chemical products such as yellow phosphorus, phosphoric acid and phosphate. The main products are phosphoric acid, phosphate and yellow phosphorus.
shares held by controlling shareholders are auctioned
The controlling shareholder was miserable Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) .
According to the investigation of Shanghai Stock Exchange, Chengxing group and its related parties, first, through the non operational use of Lvcheng chemical, occupied the capital of the listed company of 3.047 billion yuan, with the corresponding interest of 36 million yuan, totaling 3.083 billion yuan, accounting for 177% of the audited net assets at the end of the previous year. In 2020, more than 100 pen capital transfers occurred. After receiving the funds transferred out by the company through telegraphic transfer and silver note, Lvcheng chemical will pay them to Chengxing group and related parties, and return them to the company after receiving the funds from Chengxing group and related parties. By the end of 2020, the above occupied funds had returned 1.5 billion yuan.
Second, the direct non operating occupation of the company’s funds was 707 million yuan, and the corresponding interest was 17 million yuan, totaling 724 million yuan, accounting for 41% of the company’s audited net assets at the end of the previous year. From January to September 2020, the company issued an e-commerce acceptance bill of 200 million yuan, which was discounted by the subsidiary of Chengxing group and other interested parties, and the bill was actually cashed by the company when it was due; As the acceptor of the 300 million yuan e-commerce acceptance bill issued by Chengxing group, the bill shall be actually cashed by the company when it is due; Xingxia logistics, a wholly-owned subsidiary of the company, repaid 207 million yuan of loans from financial institutions of its subsidiary Hanbang Petrochemical on behalf of the controlling shareholder Chengxing group. By the end of 2020, 150 million yuan of the above occupied funds had been returned.
As of September 30, 2021, Chengxing group and its related parties still occupied a total of 2.223 billion yuan (Unaudited) of the company’s capital, which has not been returned yet.
The Shanghai Stock Exchange said that the above violations of the occupation of non operating funds by the controlling shareholder Chengxing group and its related parties reflect the confusion of the company’s internal fund management, which belongs to a major defect in the internal control of financial reporting. In addition, the company also has major defects in seal management and internal audit supervision.
But Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) may usher in a new helmsman. Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) disclosed on December 16, 2021 that due to contract disputes, 171 million shares held by Chengxing group, the controlling shareholder of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) , will also be publicly auctioned by Jiangyin court, accounting for 25.78% of the total share capital and 100% of its shares, which have been fully pledged and frozen by the judiciary for many times. If the auction is finally completed, it will lead to the change of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) controlling shareholder and actual controller.
According to the announcement on November 26, due to the dispute over the loan contract, Jiangyin court will publicly auction 106 million shares held by Hanying investment, the second largest shareholder of the company, accounting for 16.01% of the total share capital and 100% of the shareholder’s shares, all of which are frozen.
four times delayed reply to concern letter
The White Knight of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) was not present.
On January 14, the company announced that there were no bidders in the above auctions, and the shares held by Chengxing group will be subject to the second judicial auction, and the auction price will be reduced from 807 million yuan to 646 million yuan; The shares held by Hanying investment have been auctioned twice and will be sold publicly at a selling price of 400 million yuan.
The delay in selling is related to an additional clause. According to the auction content, bidders for shares held by Chengxing group must promise to solve the capital problem limited to 62% of the total capital principal and interest of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) occupied by Chengxing group and its related parties, i.e. RMB 1.378 billion, and obtain the approval of the securities regulatory department; Those bidding for shares held by Hanying investment committed 38%, or 845 million yuan.
Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) the auction of all shares of major shareholders and second shareholders has attracted the attention of regulators. On December 16, 2021, the Shanghai Stock Exchange issued a notice to ask the company and the two shareholders to verify whether the reduction of shares through judicial auction violates the securities law and other relevant laws and rules; Whether there is any collusion between the applicant and the respondent in judicial auction to circumvent the reduction provisions.
Interestingly, so far, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) has not replied to the letter of concern and issued an extension announcement four times. The Shanghai Stock Exchange issued a supervision letter to it on January 7, requiring the company to reply as soon as possible, and said that if it is verified that the company and relevant parties have violations such as malicious delay in replying to major matters and failure to timely fulfill their letter Phi obligations, the Shanghai Stock Exchange will start self-discipline supervision procedures.
crazy about 73 trading boards
Although Chu songs are everywhere and bear the risk of delisting, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) turns into “demon stocks” in the secondary market.
From May 21, 2021 to January 19, 2022, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) gained a total of 73 limit sectors. The share price rose to the high of 14.29 yuan / share on December 17, up 260.86% from the closing price of 3.96 yuan / share at the beginning of 2021.
Why is Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) so favored by investors? On the one hand, or from its rising performance in the first three quarters of 2021. The third quarterly report shows that in the first three quarters of 2021, the company achieved a revenue of 2.491 billion yuan, a year-on-year increase of 10.19%, and the net profit attributable to the parent company was 92.9062 million yuan, a year-on-year increase of 1525.32%. Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) said that this was mainly due to the increase in the sales gross profit margin caused by the increase in the sales price of yellow phosphorus during the reporting period.
However, phosphorus chemical products have strong periodicity, which is difficult to maintain high scenery for a long time. According to the financial report data, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) in the first quarter and the second quarter of 2021, it was in a state of loss.
On the other hand, it is related to the consistent logic of speculation in ST shares, and investors hope that Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) will usher in reorganization. On November 9, 2021, Jiangyin construction and decoration products factory, the creditor of the company, filed an application for bankruptcy reorganization with Wuxi intermediate people’s Court on the grounds that the company could not pay off its due debts and its assets were insufficient to pay off all debts.
However, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) said that at present, the court has not received the ruling on the applicant’s application for company reorganization. There are still major uncertainties whether the applicant’s application can be accepted by the court and whether the company enters bankruptcy reorganization proceedings. If the court formally accepts the reorganization application of the company, the company will be at risk of being declared bankrupt due to the failure of reorganization. If the company is declared bankrupt, according to relevant regulations, the company’s shares will face the risk of delisting.
