Fujian Oriental Silver Star Investment Co.Ltd(600753) (600753, SH) disclosed on January 25 that its wholly-owned subsidiary Ningbo Xinggeng Supply Chain Management Co., Ltd. (hereinafter referred to as Ningbo xinggeng) was suspected of being cheated by relevant upstream parties when engaging in crude oil trade, and there was uncertainty in the recovery of about 55 million yuan of purchase money.
The reporter of “daily economic news” noted that at present, Fujian Oriental Silver Star Investment Co.Ltd(600753) lacks physical business support, and the company focuses on bulk trade such as coal. In 2021, due to the obvious fluctuation of coal price, Fujian Oriental Silver Star Investment Co.Ltd(600753) should not make any money. The net profit attributable to the shareholders of the listed company in the first three quarters of last year was only 3.9572 million yuan. The foregoing may be a heavy blow to the company’s trading business and even the overall performance.
It is worth mentioning that as of the closing on January 26, Fujian Oriental Silver Star Investment Co.Ltd(600753) share price fell by the limit to close at 13.92 yuan / share.
suspected of being cheated in crude oil trade
According to the announcement of Fujian Oriental Silver Star Investment Co.Ltd(600753) , on January 11 this year, Ningbo xinggeng received the notice of accepting cases from Shanghai Fengxian District People’s court.
It is reported that on May 19, 2021, Ningbo xinggeng signed the oil purchase and sales contract with the upstream supplier Shanghai Nanying Petrochemical Co., Ltd. (hereinafter referred to as Shanghai Nanying) and the downstream customer Nanjing CLP panda Trade Development Co., Ltd. (hereinafter referred to as Nanjing CLP), which agreed that Ningbo xinggeng would purchase 15000 tons of crude oil from Shanghai Nanying and sell it to Nanjing CLP, It involves the payment of 55.2408 million yuan for crude oil procurement. Due to Shanghai Nanying’s failure to actually perform the delivery obligation and its refusal to return the purchase money paid by Ningbo xinggeng, Ningbo xinggeng filed a lawsuit with the people’s Court of Fengxian District of Shanghai on December 31, 2021 and submitted an application for property preservation.
Ningbo xinggeng is mainly engaged in commodity supply chain trade. In recent years, Ningbo xinggeng has carried out business with “black series” coal chemical related varieties as the core. The industrial chain includes upstream coal mines, coal washing plants, coking plants, downstream steel plants, power plants, etc.
Fujian Oriental Silver Star Investment Co.Ltd(600753) said that from the second half of 2020 to the beginning of 2021, the coal transaction showed a weak market situation of supply and demand. Later, due to environmental protection and production restriction, the transaction scale of coal chemical business decreased greatly, the coal price fluctuated and the transaction risk increased. In order to reduce the risk of single trade category and maintain the business scale of the company, Ningbo xinggeng actively adjusted the structure of business varieties and tried to introduce trading categories such as natural gas and crude oil from the second half of 2020. At the beginning of 2021, Ningbo xinggeng carried out crude oil business with the help of introducers.
Due to the lack of direct resources for oil trade, Ningbo xinggeng had to obtain trade orders through the matchmaking of the introducer. The business development process was planned and coordinated by the introducer. Ningbo xinggeng did not carry out business independently in the upstream and downstream, and did not directly control the right of goods. The transaction model also laid a mine for the company’s problems in this trade.
After receiving the advance payment of 5.595 million yuan from Nanjing CLP and completing the formalities of goods right transfer, Ningbo xinggeng paid 55.2408 million yuan to Shanghai Nanying. However, the upstream supplier Shanghai Nanying did not actually fulfill the delivery obligation, while the downstream Nanjing CLP refused to pay for the goods on the ground that it did not actually receive the goods. According to the listed company, Ningbo xinggeng seems to have been cheated in this transaction. It is said that according to the investigation of Ningbo xinggeng, in this business, the upstream supplier did not actually perform the obligation of goods delivery, and the relevant individuals and relevant units may have economic crimes.
Ningbo xinggeng has reported the case to the police
It is understood that Ningbo xinggeng failed to communicate with upstream, downstream and introducers for many times. He has reported the case to the Economic Investigation Detachment of Minhang branch of Shanghai Public Security Bureau, but the case has not been officially filed.
According to qixinbao, Shanghai Nanying was founded in 2018 with a registered capital of 90 million yuan. The company’s business scope includes the wholesale and retail of petroleum products and paraffin products. The number of social security contributors of the company in 2020 is only 2.
For the impact of the above matters, Fujian Oriental Silver Star Investment Co.Ltd(600753) said that the main business operation of the company was stable. By the end of last year, the company’s monetary capital balance was about 60.15 million yuan, all of which were unrestricted funds, and the interest bearing liabilities due within one year were 5.9945 million yuan. “The current capital can meet the needs of daily operation, and the above matters will not have a significant impact on the company’s daily production and operation.” The company said.
However, the matter may have a great impact on the performance of listed companies. Up to now, Fujian Oriental Silver Star Investment Co.Ltd(600753) has paid 55.275 million yuan in advance to Shanghai Nanying, accounting for 24.77% of the company’s latest audited consolidated net assets. The company said that due to the uncertainty of the recovery of the funds involved, the company may withdraw large asset impairment losses.
Fujian Oriental Silver Star Investment Co.Ltd(600753) at present, it is mainly engaged in the supply chain management business of bulk commodities such as coal (including coke) and natural gas. In the first three quarters of last year, the company realized a net profit attributable to shareholders of listed companies of 3.9572 million yuan, a year-on-year decrease of 58.05%.
