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Zhonglai Stock Financial Products Dropped Nearly 80% In A Month: Or Involving Credit Fraud

2021/1/13 7:23:00 0

Financial ManagementProductViolationChairman

Suzhou Zhonglai photovoltaic New Material Co., Ltd. (hereinafter referred to as CLP, 300393. SZ) is now in trouble. On the one hand, affected by the financial loss, the company's performance in 2020 is expected to decline significantly; on the other hand, due to the delayed disclosure of financial loss events and other reasons, Zhonglai shares has received a letter of concern from Shenzhen Stock Exchange.

The "black swan" soon caused a significant impact on the stock price of China to come. On January 12, the company's valuation continued to fall, falling more than 25% in the past three trading days.

In response to this incident, a lawyer pointed out to the reporter of the 21st century economic report that the information disclosure of the loss of financial products of China Lai shares may be suspected of illegal credit. On January 12, the 21st century economic report contacted Lin Jianwei, chairman of Zhonglai shares, and was responded, "our special group is jointly responsible for handling the prosecution and recovery."

In the morning of January 12, the company announced the progress of the announcement and proposed to file a lawsuit or arbitration with the fund manager, the fund trustee and the balance replenishment obligor.

Due to the untimely disclosure, Zhonglai shares received a letter of concern from Shenzhen Stock Exchange. IC photo

Encounter "black swan"

On the afternoon of January 10, the three announcements issued by China Lai Stock Co., Ltd. surprised the capital market.

The first is the performance forecast. The company expects to achieve a net profit of 90 million yuan to 115 million yuan belonging to shareholders of the listed company in 2020, a decrease of 52.71% to 62.99% compared with the same period in 2019.

Compared with the performance of the first three quarters, the change of net profit is surprising. In the first three quarters of last year, the company's performance increased positively, with operating revenue of 3.621 billion yuan, up 44.85% year-on-year, and net profit attributable to shareholders of listed companies was 263 million yuan, up 15.73% year-on-year. In the announcement, Zhonglai shares revealed the reasons for the decrease of net profit: due to the large loss of private funds purchased by the company during the reporting period, the impact of non recurring profit and loss on net profit in the reporting period was about - 125 million yuan.

In the second announcement that followed, Zhonglai shares stated the process of financial loss. From November 2019 to January 2020, the company has successively subscribed for four idle private funds, including 30 million yuan, 50 million yuan, 60 million yuan and 60 million yuan respectively from Hongsheng Tenglong No. 1 private securities investment fund, Hongsheng Tenglong No. 4 private securities investment fund, Fangji Zhengfan No. 1 private securities investment fund, and Zhengfan Shunfeng No. 2 private securities investment fund The total amount of subscription was 200 million yuan. However, as of December 31, 2020, the net value of the above four fund products has decreased significantly. Among them, about 159 million yuan was lost in December 2020 alone, which has a significant impact on the performance of Zhonglai shares. In a short month, nearly 80% fell. According to the explanation of Zhonglai shares, Jimin Pharmaceutical Co., Ltd., the stock invested by the fund, has fallen sharply continuously, and leverage has been used to enlarge the loss.

Therefore, the Shenzhen Stock Exchange issued a letter of concern on this matter. In the third announcement issued by Zhonglai shares, the Shenzhen Stock Exchange asked the company to verify the relevant information. It is worth noting that the Shenzhen Stock Exchange has emphatically pointed out that "in combination with the net value of the four fund products as of June 30, 2020 and other nodes during the investment period, please explain whether the relevant loss or profit has touched the temporary information disclosure obligation, whether your company (Zhonglai shares) has timely and fully disclosed investment risks, and whether the disclosure of relevant periodic reports is accurate." This statement requires or questions whether the letter of China Lai shares is timely.

"I think it may be suspected of violating the trust law." Liu Huahao, a lawyer of Guangdong Huanyu JINGMAO law firm, believed that the net value of general fund products would be updated every trading day. "The loss in December last year was not known until January 4 this year, which is obviously unreasonable. Moreover, it was not disclosed until January 10 after knowing it on January 4, and the disclosure was later than the legal time. " Liu Huahao further believes that "if the credit card problem is punished, the damaged investors can claim compensation."

According to the announcement disclosed in the morning of January 12, the company has filed a lawsuit or arbitration against Hongsheng asset management (Shenzhen) Co., Ltd., Shenzhen Qianhai Zhengfan Investment Management Co., Ltd., fund custodians Shenwan Hongyuan Securities Co., Ltd., Cathay Junan Securities Co., Ltd., and Li Pingping and Li Xiang, the balance replenishing obligors Cut.

However, the company also admitted that "there are great uncertainties in the arbitration and litigation results, time, and follow-up execution results, which may lead to the risk of loss of all the remaining principal."

In A-share, it is not uncommon for listed companies to use idle funds for financial management. It is not the first time that CLC has used idle raised funds for financial management.

In March 2019, the company held a meeting of the board of directors, which approved the company (including subsidiaries) to use part of idle raised funds with a total amount of no more than 500 million yuan for cash management at any time point on the premise of not affecting the implementation progress of investment projects with raised funds and the use of raised funds, and to purchase capital guaranteed financial products with high security and good liquidity.

According to the follow-up announcement, in March and April of 2019, Zhonglai shares purchased a number of bank structured deposit products and obtained several million yuan of income.

However, the four private equity fund products purchased this time have higher investment risk and are directly linked to the fluctuation of the investment target stock price. Affected by the financial loss event, the stock price of Zhonglai shares fell sharply on January 11. At the end of January 12, the company's shares closed at 9.15 yuan, down 3.68%.

Discussion on n-type battery tap

In view of the loss caused by financial management, Zhonglai shares has to make up for it through litigation and arbitration. However, the 21st century economic reporter learned from the company's 2020 performance forecast that in addition to the impact of financial loss, the company's current main business performance has also been tested.

According to the performance forecast, the net profit attributable to shareholders of listed companies after deducting non recurring profit and loss in 2020 will be about 215 million yuan to 240 million yuan, an increase of 13.34% to 26.53% compared with the same period in 2019. However, the company's performance in the first three quarters of last year showed that the net profit attributable to shareholders of listed companies after deducting non-profit during the reporting period was 258 million yuan.

Combined with the data of the performance forecast, this means that in the fourth quarter of 2020, the company's net profit attributable to the shareholders of the listed company after deducting non-profit is calculated to be 18 million yuan to 43 million yuan.

According to the previous year's performance of Zhonglai shares, the company's net profit after deducting non-profit in the fourth quarter has fallen into a state of loss since 2018. However, the above-mentioned calculated data show that the profitability rate of its main business in the fourth quarter of last year is probably lower than that of the same period in 2019.

As a photovoltaic enterprise that dominates the field of auxiliary materials with the backplane, Sinochem has invested heavily in n-type high-efficiency batteries in recent years. In the first half of last year, the company "bet" the n-type TOPCON high-efficiency double-sided solar cell by optimizing the boron expansion process and redesigning the matching metal chemical process, so that the mass production efficiency increased to 23.5%, and the maximum single-chip efficiency was 23.8%. For this reason, Zhonglai once changed the use of part of the funds raised by convertible bonds into "research and development project of key technologies for high efficiency batteries".

Up to now, the company's n-type TOPCON production capacity is 2.1gw, and it is also the only mass-produced n-type TOPCON battery manufacturer in China.

However, the main way to reduce cost after mass production is not only the technical level, but also the continuous improvement of capacity scale.

According to industry media statistics, in the past three years, CLC has successively announced investment plans for high-efficiency solar cells with a total scale of 13.6gw, with an accumulated investment amount of more than 23 billion yuan. However, the 21st century economic report found that the company's expansion project of n-type high-efficiency batteries will inevitably give the outside world a feeling of "big thunder and small rain drop": the progress of several projects failed to achieve the expected effect, such as the "annual output of 2.1gw n-type single crystal double-sided battery project" in 2016 and "10GW in Quzhou" in April 2017 N-type single crystal IBC and double-sided solar cell production base "and" annual output of 1.5gw n-type single crystal double-sided TOPCON battery project "in 2019, the construction progress of most of these projects is lower than expected.

Some industry insiders pointed out to the reporter of the 21st century economic report that although n-type battery technology is regarded as one of the main development directions of the next generation photovoltaic cell technology, the pace of Ecological Industrialization of n-type battery is slow, and only a small number of domestic photovoltaic enterprises, such as Zhonglai shares and a new energy source, have been deeply cultivated.

It is worth mentioning that if we want to continue to expand the scale of production capacity, Zhonglai shares with a cash balance of only 858 million yuan at the end of the period still need to rely on financing. Whether this will have an impact on the subsequent refinancing of the company remains to be seen.

 

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