Once the “apple supply chain concept stock” Jinlong Machinery & Electronic Co.Ltd(300032) , it has fallen into the embarrassing situation of equity auction.
At 9:00 a.m. on January 25, Jinlong Machinery & Electronic Co.Ltd(300032) 132 million shares with a starting price of 852.828 million yuan announced that the auction was closed. It is reported that the equity is held by Jinlong group, the controlling shareholder of the company. Due to the bankruptcy liquidation of Jinlong group by the court, its shares were auctioned on Alibaba auction platform recently.
The 132 million shares held by Jinlong group accounted for 16.49% of the circulating shares of listed companies, which were all auctioned this time. Once the transaction is concluded, the buyer will become the largest shareholder of Jinlong Machinery & Electronic Co.Ltd(300032) . Jinlong Machinery & Electronic Co.Ltd(300032) previously announced that Jinlong group is currently in the process of bankruptcy liquidation, which may lead to changes in the company’s control.
From the once star company to equity auction, no one cares. What happened to Jinlong Machinery & Electronic Co.Ltd(300032) so that it fell here?
the performance of subsidiaries does not meet the standard
drag down the main business of listed companies
On December 25, 2009, Jinlong Machinery & Electronic Co.Ltd(300032) listed on the gem was the first batch of enterprises in Wenzhou to land on the gem. The company is mainly engaged in the R & D, production and sales of motors, silicone plastic structural parts and touch display products. It once ranked among the manufacturers of apple supply chain. When accepting investor research in 2016, Jinlong Machinery & Electronic Co.Ltd(300032) once said that the company’s main customers in 2015 included Heshuo, Foxconn, Microsoft, oppo, Coolpad, Huawei, etc., and the supply to Foxconn was relatively stable.
In 2014, Boyi Optoelectronics Technology and Jiaai motor technology, the two wholly-owned subsidiaries of Jinlong Machinery & Electronic Co.Ltd(300032) that completed the acquisition and consolidation, also provided good performance growth in the early stage. 2014 and 2015 can be described as the highlight moment of Jinlong Machinery & Electronic Co.Ltd(300032) .
In 2014, Jinlong Machinery & Electronic Co.Ltd(300032) achieved a total operating revenue of 1.227 billion yuan, an increase of 175.06% over the same period of last year; The net profit attributable to the shareholders of the listed company was 117 million yuan, an increase of 450.84% over the same period of the previous year; In 2015, Jinlong Machinery & Electronic Co.Ltd(300032) achieved a total operating revenue of 3.034 billion yuan, an increase of 147.33% over the same period of last year; The net profit attributable to the shareholders of the listed company was 327 million yuan, an increase of 180.56% over the same period last year.
With the rapid growth of performance, the share price of Jinlong Machinery & Electronic Co.Ltd(300032) also peaked on April 27, 2015, with an intraday peak of 71.38 yuan / share.
However, the good times did not last long. The two companies acquired by Jinlong Machinery & Electronic Co.Ltd(300032) did not continue to create revenue for them, but became a burden for listed companies. In 2016, Jinlong Machinery & Electronic Co.Ltd(300032) M & a company’s operating performance failed to meet the promised target, the company achieved an operating revenue of 3.376 billion yuan, and the net profit attributable to the parent company was only 136 million yuan, a year-on-year decrease of 58.31%; Deducting non net profit is a loss of 78.6572 million yuan.
To make matters worse, at that time, apple chose Luxshare Precision Industry Co.Ltd(002475) as an alternative supplier for Jinlong Machinery & Electronic Co.Ltd(300032) . Jinlong Machinery & Electronic Co.Ltd(300032) said in the 2021 semi annual report that the company’s linear motor products are mainly for an international major customer. In the process of cooperation with the international customer, the company failed to keep up with its increasing requirements for suppliers, failed to enter its new product motor supply chain since 2017, and the old product motor that has lasted for many years ended its supply that year.
The reporter of Securities Daily dialed Jinlong Machinery & Electronic Co.Ltd(300032) three public contact numbers to ask for details on relevant issues, of which two numbers could not be connected, and the other number was told to be empty. From the performance of Jinlong Machinery & Electronic Co.Ltd(300032) from 2017 to 2020, the company lost 419 million yuan, 2.4 billion yuan and 241 million yuan respectively in 2017, 2018 and 2020, with a profit of 47 million yuan in 2019 and a net profit loss of 96.8135 million yuan after deducting non-profit.
Affected by the performance loss, the company’s share price fell all the way. As of January 25, 2022, Jinlong Machinery & Electronic Co.Ltd(300032) closed at 6.03 yuan / share, down more than 90% from the highest point of the year.
Ruan Chao, the founding partner of Wenyi Fuxin capital, said in an interview with the Securities Daily, “in recent years, Jinlong Machinery & Electronic Co.Ltd(300032) has carried out many large-scale mergers and acquisitions in a short time under the background of the decline of the main business benefits and the need for large-scale financing, but there is a deviation between the results of mergers and acquisitions and the purpose the company wants to achieve, resulting in the poor effect of mergers and acquisitions.”
“This has sounded an alarm for other listed companies engaged in M & A. M & A is not a financial technology displayed to cooperate with a certain capital operation. M & A is a highly difficult professional transaction based on industrial logic.” Ruan Chao said.
actual controller over proportional reduction
punished by regulatory authorities
It rains at night when the house leaks. On October 20, 2021, Jinlong Machinery & Electronic Co.Ltd(300032) issued an announcement that the controlling shareholder Jinlong group and its persons acting in concert received the decision on administrative punishment from Zhejiang securities regulatory bureau.
It is reported that during the period from August 15, 2018 to March 10, 2020, Jinlong group and its persons acting in concert reduced a total of 72.2942 million shares of Jinlong Machinery & Electronic Co.Ltd(300032) shares, accounting for 9% of the total share capital, due to the convertible bonds, Xu’s active reduction of shares, court enforcement and other reasons. On December 31, 2019, 3.13% of the shares of Jinlong Machinery & Electronic Co.Ltd(300032) held by Jinlong group were judicially disposed of and the equity registration of share transfer was completed. So far, the proportion of Jinlong Machinery & Electronic Co.Ltd(300032) shares held by Jinlong group and its persons acting in concert has decreased by more than 5% for the first time (including Xu’s active reduction).
After the occurrence of the above events, Jinlong group and its persons acting in concert failed to perform the obligations of reporting and announcement in time. Since then, Jinlong group reduced 8 million Jinlong Machinery & Electronic Co.Ltd(300032) shares due to judicial disposal from January 15, 2020 to February 7, 2020, and jinmeiou reduced 2 million Jinlong Machinery & Electronic Co.Ltd(300032) shares due to judicial disposal on March 10, 2020. On August 19, 2020, Jinlong group and its persons acting in concert supplemented and disclosed the report on changes in equity on the above matters.
On May 10, 2021, Jinlong Machinery & Electronic Co.Ltd(300032) announced that Jinlong group and jinmeiou were filed for investigation by the CSRC for information disclosure.
On September 8, 2021, Zhejiang Securities Regulatory Bureau issued the “prior notice of administrative punishment” to Jinlong group and its person acting in concert, Jin Meiou. Zhejiang Securities Regulatory Bureau believes that the above acts of Jinlong group and its persons acting in concert violate the provisions of paragraph 2 of Article 86 of the securities law of 2005 and paragraph 2 of Article 63 of the securities law of 2019, and constitute the illegal acts mentioned in paragraph 2 of Article 193 of the securities law of 2005 and paragraph 1 of article 197 of the securities law of 2019.
On October 20, 2021, Zhejiang securities regulatory bureau decided to order Jinlong group and jinmeiou to make corrections, give a warning and impose a fine of 700000 yuan for their excessive reduction of holdings without timely reporting and announcement.
Among them, Jinlong group was fined 400000 yuan and jinmeiou was fined 300000 yuan; Jin Shaoping, the person in charge directly responsible for the illegal acts of Jinlong group, was given a warning and fined 100000 yuan.
A senior lawyer, who asked not to be named, said in an interview with Securities Daily, “Securities Law” Article 84 stipulates that if the issuer and its controlling shareholders, actual controllers, directors, supervisors and senior managers fail to fulfill their commitments and cause losses to investors, they shall be liable for compensation according to law. The injured investor has the right to require Jinlong group and its persons acting in concert to bear the liability for compensation based on this clause; In addition, if the issuer fails to fulfill its obligation of information disclosure according to law, the injured investor may file an infringement claim lawsuit in accordance with the relevant provisions of the securities law and several provisions on the trial of civil compensation cases for misrepresentation in the securities market. “
Although Jinlong Machinery & Electronic Co.Ltd(300032) said in the third quarterly report of 2021 that the company’s current production and operation are normal, the operating revenue in the first three quarters of 2021 was 1.326 billion yuan, a year-on-year increase of 13.67%; The net profit attributable to the parent company was 207 million yuan, a year-on-year increase of 1852.41%; The non net profit deducted was 9.7155 million yuan, turning losses into profits year-on-year.
However, referring to the announcement of the company on November 22, 2021, it can be seen that Xingke electronics, a wholly-owned subsidiary of Jinlong Machinery & Electronic Co.Ltd(300032) , has been sued in the United States for infringing the exclusive right to use the registered trademark of SINCO technologies Pte Ltd, or needs to pay damages totalling about 92.51435 million yuan. On the same day, Jinlong Machinery & Electronic Co.Ltd(300032) the board of directors passed a resolution to sell the ownership of some idle houses and buildings and land use rights at the price of 48 million yuan.
Jinlong Machinery & Electronic Co.Ltd(300032) where is the future? Who will eventually spend part of the equity auctioned? Securities Daily will continue to pay attention.
