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Original title: Relying on “demolition compensation” to turn losses and then lose money!Zhaoxin SharesHas the delisting risk really dissipated? | Inquiry
For the 2021 performance, Zhaoxin Co., Ltd. needs to explain the reason and rationality of the actual operating performance still falling sharply, and explain whether there is uncertainty in the ability to continue operations, etc., and may be issued a risk warning again.
“Investment Times” researcher Yu Fei
Shenzhen Zhaoxin Energy Co., Ltd. (hereinafter referred to as Zhaoxin Shares, 002256.SZ), which has recently taken off its hat, will fall into losses again in 2021.
The 2021 performance report disclosed by Zhaoxin recently showed that the company achieved operating income of 340 million yuan during the reporting period, a year-on-year decrease of 18%; net profit and net profit after deduction were -497 million yuan and -222 million yuan, a year-on-year decrease. 992.92% and 151.74%.
The researcher of “Investment Times” noted that Zhaoxin’s operating income has declined for four consecutive years, which is another huge loss since the company’s withdrawal of the delisting risk warning on August 3, 2021.
Previously, Zhaoxin shares were issued a “delisting risk warning” due to negative net profit for two consecutive years in 2018 and 2019, and the company changed its name to *ST Zhaoxin.
After successfully protecting the shell with a demolition compensation payment in December 2020, Zhaoxin Co., Ltd. stated in its reply to the inquiry letter of the 2020 annual report, “The company’s main business revenue and profitability are stable, and the debt problem is gradually alleviated. The loss of the main business will be significantly improved.”
The Shenzhen Stock Exchange is concerned about Zhaoxin’s heavy losses again in 2021. In this regard, Zhaoxin Co., Ltd. needs to explain the reasons and rationality for the substantial decline in actual operating performance in 2021, whether there is insufficient and inaccurate information disclosure, and whether there is uncertainty in the ability to continue operations, etc. Circumstances in which risk warnings are implemented.
Transformation to new energy leads to huge losses
Zhaoxin Co., Ltd. was established in 1995 and listed on the Shenzhen Stock Exchange in 2008. The company’s main business includes fine chemicals, indoor environmental management, biodegradable materials, new energysolar energyPower generation, new energy vehicle operation, new energy vehicle charging investment, etc.
At the beginning of its listing, Zhaoxin’s main business was concentrated in the field of fine chemicals. In 2014, the company began to transform and invested and established Shenzhen Yongsheng New Energy Co., Ltd. for the investment and operation of new energy photovoltaic power plants. It is the company’s expansion into photovoltaic, new energy and other fields that paved the way for the losses in recent years.
In 2016, Zhaoxin raised 1.5 billion yuan through non-public issuance of shares, and plans to invest in distributed photovoltaic power generation projects of 200MW in Zhejiang and Anhui, and the rest will be used as supplementary liquidity.
However, the project progress was not implemented in accordance with the fundraising plan. The company first adjusted the fundraising plan and changed some projects to acquire the equity of Shanghai Zhongli. Then, Zhaoxin Co., Ltd. announced on December 10, 2018 that due to the influence of photovoltaic and new energy vehicle policies and the failure of Shanghai Zhongli’s performance to meet expectations, the company intends to terminate the “Zhejiang 80MW distributed photovoltaic power generation project” and “acquisition”. Shanghai China Lithium 80% Equity Project” investment, and will raise funds of 1.044 billion yuan and all interest to permanently supplement the working capital.
The transformation for several consecutive years has not achieved results, and the performance of Zhaoxin shares has also begun to be under pressure. In 2018, Zhaoxin achieved an operating income of 604 million yuan and a net profit of -208 million yuan. The reason for the loss is due to the provision of 226 million yuan in asset impairment losses for fixed assets, construction in progress, inventories, etc. in the current period.
In 2019, the company’s performance continued to decline, with operating income of 431 million yuan, a decrease of 172 million yuan or 28.55% over the previous year; net profit of -275 million yuan, a decrease of 74.49 million yuan over the same period of the previous year, a decrease of 37.12%.
As the company lost money for two consecutive years in 2018 and 2019, Zhaoxin shares were issued a delisting risk warning. At the same time, the audit institution issued a “non-standard” opinion on Zhaoxin’s 2019 annual report. The company’s five directors, three supervisors and four senior managers all stated that they could not guarantee the authenticity, accuracy and completeness of the company’s annual report.
In response to this matter, the CSRC’s official website issued the “Statement on Matters Related to Zhaoxin’s Annual Report”, expressing its high concern, and immediately issued a letter of regulatory concern, interviewed relevant responsible persons, and took administrative measures to order corrections. regulatory measures. The China Securities Regulatory Commission stated that the actions of Zhaoxin’s directors, supervisors, and senior executives out of consideration for exemption from liability violated the basic principles of information disclosure, disrupted the order of information disclosure, and were of a bad nature.
The company’s ability to continue as a going concern is in doubt
After two years of losses from 2018 to 2019, Zhaoxin’s main business in 2020 is still not improving, and it is also involved in debt disputes.
On the evening of August 20, 2020, the company disclosed an announcement saying that due to repeated debt collection by Shenzhen Kerns, it has never fulfilled the contract to repay the over 90 million yuan in arrears. The company received the “Execution Ruling” from the Luohu Court, and decided to seal up and seize property of equivalent value to pay off the debts in this case, including 24 properties owned by the company.
However, when it was about to be delisted due to three consecutive years of losses, a “windfall” saved Zhaoxin shares from delisting.
Zhaoxin Co., Ltd. announced in December 2020 that Shenzhen Lianxi Investment Development Co., Ltd. intends to compensate all land and property rights within the scope of the company’s urban renewal unit project in Bao’an District, Shenzhen, in monetary form, and compensation for demolition and relocation The total price is RMB 250 million.
Relying on this expensive compensation for demolition and relocation, Zhaoxin shares realized a net profit of 55.64 million yuan that year, avoiding the end of three consecutive years of net profit losses. However, the performance of its main business was dismal, and the net profit after deducting non-deductibles in 2020 was -191 million yuan.
According to the 2021 annual report performance data disclosed by the company a few days ago, the main business of Zhaoxin Co., Ltd. still performed poorly, operating income continued to decline, and non-net profit deducted was -222 million yuan.
In this regard, in the inquiry letter of the annual report of the Shenzhen Stock Exchange, the company is required to explain whether the main bank account has been frozen, the ability to continue operations is uncertain, etc., and the risk warning may be re-implemented based on the conditions and progress of the risk warning that was withdrawn in the previous period. .
In addition, the inquiry letter also raised many questions regarding the financial data disclosed in Zhaoxin’s 2021 annual report.
Among them, the “payment of other cash related to operating activities” in the company’s cash outflow from operating activities is as high as 129 million yuan, accounting for 33.85% of the total cash outflow from operating activities. According to the requirements, Zhaoxin Co., Ltd. needs to explain the background and reasons for the formation of the relevant funds and the rationality of the substantial increase.
At the same time, the management expenses and financial expenses of the company’s obvious growth have also attracted attention. The annual report shows that Zhaoxin’s management expenses during the reporting period reached 124 million yuan, a year-on-year increase of 103.36%. The company said that it was mainly due to the substantial increase in consulting fees and consulting fees; the company’s financial expenses were 130 million yuan, of which the new financing intermediary fee was 16 million yuan. .
Oddly, there are high interest payments. At the end of the reporting period, the company’s short-term loans were 896,600 yuan, long-term loans and non-current liabilities due within one year were 31 million yuan and 22 million yuan, down 28.57% and 96.36% year-on-year. But even so, the company’s interest expense is still as high as 114 million yuan.
According to the requirements, the company needs to explain the details and amounts of consulting fees, consulting fees and financing intermediary fees in a list, and explain the background and reasons for the formation of the relevant funds and the rationality of the substantial increase, and explain that the interest-bearing liabilities have dropped significantly year-on-year. , the reason and rationality of interest expense still maintaining a high level.
Zhaoxin’s net profit
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Responsible editor: Feng Tiwei