ST Energy Conservation announced the cancellation of the delisting risk warning and other risk warnings on August 16. The company's abbreviation has also changed from ST Energy Conservation to Shenwu Energy Conservation, and the stock code is still 000820. Once the announcement was issued, the company recorded six consecutive daily limits, and its stock price quickly soared from 4.02 yuan to 7.57 yuan. But not long after, because it received another regulatory letter from the Shenzhen Stock Exchange, Shenwu Energy-saving's stock price once again started to fall.
Shenwu Energy-saving stock price has experienced repeated fluctuations in just half a month, and fell again by 8.12% on the afternoon of the 9th of this month.
In fact, the stock price fluctuations like roller coasters have long been common for Shenwu Energy Saving. Since the end of October 2008, Shenwu Energy Saving's stock price has been rising steadily, reaching a new historical height of RMB 44.98 per share (pre-reproper re-rights) in March 2017, with a total market value of RMB 28.7 billion, becoming a super bull stock that has been 16 times in nine years.
However, Shenwu Energy Saving fell into a financial fraud storm in 2017. Since then, the company's stock price has been in a downturn. At present, due to the reorganization of the company's 's and the annual report data, coupled with the high popularity of energy-saving themes, Shenwu Energy Saving's stock price has once again ushered in hopes. However, whether it is the company's operations or financial report data, the company still has many potential problems to be solved.
01
Annual report on the problem may hit investor confidence
In recent times, Shenwu Energy Saving has successively disclosed retrospectively adjusted financial reports for each fiscal year, mainly because of the several "letters" received by the company in 2021. Last year, the company received five letters of concern and three letters of inquiry, which were basically doubts about the company's individual financial data from 2017 to 2021.
But this year, Shenwu Energy Saving once again received inquiries from regulatory agencies about the company's annual report last year. It is worth noting that the inquiry letter was issued on April 30, during which Shenwu Energy Conservation made several delayed responses, and the final reply supervision time was August 17, which means that the company took four months to clear the problems.
After responding to the 2021 annual report inquiry letter and successively disclosed the financial report data for each year, Shenwu Energy-saving's stock price ushered in an upward trend. However, on the 1st of this month, the company received another regulatory letter, and the upward trend came to an abrupt end.
The company once again started a plunge mode, with a cumulative closing price falling by 23.01% in three consecutive trading days.
Shenwu Energy Saving received the regulatory letter still revolves around the company's financial report data disclosure. According to the announcement, "Your company received the "Administrative Penalty Decision" in the early stage, which involved illegal information disclosure behaviors such as false records in the "Announcement on Correction of the Company's Early Accounting Errors" disclosed by your company on April 29, 2020 to correct some of the contents of the false records. After your company's recalculation, the net profit in 2017 was reduced by 19.8971 million yuan and the net assets were reduced by 19.8971 million yuan; the net profit in 2018 was increased by 1.9897 million yuan, and the net assets were reduced by 17.9074 million yuan; the net profit in 2019 was increased by 17.9074 million yuan."
Shenzhen Stock Exchange stated that "the above behavior violates the "Stock Listing Rules (2014 Articles 1.4, 2.1 of the "Stock Listing Rules (Revised in November 2018)" and Articles 1.4 and 2.1 of the "Stock Listing Rules (Revised in November 2018). Our firm hopes that your company and all directors, supervisors and senior management personnel will learn lessons, make timely rectifications, and prevent the recurrence of the above problems."
From this we can see that although the company has recently redisclosed various financial data, there are still cases where false data has not been corrected. To some extent, it may have an impact on investors' confidence in the company's rectification.
02
Financial fraud caused tragedy
Shenwu Energy Saving Financial fraud case in 2017 caused a thousand waves.
According to information, Shenwu Energy Conservation is a technical solution provider and engineering general contractor for industrial energy conservation, environmental protection and comprehensive utilization of resources. Its formerly was Jincheng Paper Co., Ltd. . Its establishment was in 1993. Five years later, it was officially listed on the Shenzhen Stock Exchange in 1998.
"Yetan Finance" published an article titled "Shenwu Group: Sorry Jabs, I used your routine to realize your dreams", which clearly pointed out the financial fraud of Shenwu Environmental Protection and Shenwu Energy Conservation relying on related transactions.
It mentioned that in 2016, Shenwu Energy-saving's revenue jumped from 240 million in the previous year to 865 million, and its net profit also suddenly increased from 11.45 million to 333 million, and its gross profit margin rose from 17.72% to 61.96%. However, the company's operating net cash flow fell sharply, from -292,100 to -104 million.
Moreover, Shenwu Energy Saving's performance in 2016 basically relies entirely on Indonesian Dahe Nickel Alloy Co., Ltd., which brought 637 million yuan in revenue to Shenwu Energy Saving this year, accounting for a high proportion of 73.66% of the total revenue for the whole year. However, most of the results have never been turned into actual profits. The default settlement resulted in Shenwu Energy-saving debt of 512 million yuan, accounting for as much as 80.38% of the revenue contributed.
This also makes Shenwu Energy Saving deeply involved in rumors of financial fraud. China Merchants Securities , as a financial consultant of Shenwu Group, spoke out to refute the rumors, and said that the content mentioned in "Ye Tan Finance" is not true. However, does not have an airtight wall in the world. The financial data in the following years is the most powerful proof of previous speculation.
Shenwu Energy Saving's operating income in 2018 was about 12.8955 million yuan, a decrease of 98.82% compared with the same period last year; the net profit attributable to shareholders of listed companies was about -700 million yuan, a year-on-year decline of 539.42%; after 2019, due to the impact of liquidity tightness, the projects under construction almost faced stagnation, and the business scale was greatly reduced, and the net profit attributable to shareholders of listed companies was about -2.043 billion yuan in 2019.
In addition, according to data, Shenwu Energy Saving's bad debt loss in in 2017 was 51.65 million, while the bad debt loss in 2018 reached 294 million. "Indonesia Dahe Nickel Alloy Co., Ltd." is one of its sources of bad debts.
Shenwu Energy Conservation and its wholly-owned subsidiary Jiangsu Metallurgical Design Institute Co., Ltd. were successively listed as dishonest executors in 2019, and the company also entered the ranks of "ST" due to illegal guarantees.
Shenwu Energy Saving disclosed the "Special Explanation on the Occupy of Non-Operating Funds and Fund Transactions of Other Affiliated Parties" in April 2020, which mentioned that "the company has received a written reply from the controlling shareholder Shenwu Group, confirming that 587.2 million yuan of the above-mentioned advance payments were transferred to Shenwu Group and affiliated enterprises through some suppliers, and the actual use and path of the 636.728 million yuan of advance payments have not been verified clearly."
In November of the same year, China Securities Regulatory Commission filed a case against Shenwu Energy Conservation and its controlling shareholders for suspected illegal and irregular information disclosure. Later, Shenwu Energy Conservation, which was once regarded as a blue-chip stock of , began to be abandoned by capital, and securities institutions also left one after another, and the once highly sought-after Shenwu energy conservation was no longer prosperous.
03
The performance after "dehydration" is worrying
Shenwu Energy Saving has currently completed bankruptcy reorganization, and the business during the reporting period has also returned to normal. However, after "exhausting water", the company has no outstanding performance.
According to data, in the first half of 2022, the company achieved operating income of 21.2141 million yuan, an increase of 15.60.45% over the same period last year. Among them, the revenue of the metallurgy industry and the chemical industry was 10.0822 million yuan and 6.2288 million yuan respectively, and the revenue of the coal industry was 4.9031 million yuan, an increase of 283.77% compared with the same period last year. The attributable net profit turned from profit to loss year-on-year, with a loss of 3.1404 million yuan, and its attributable net profit in the same period in 2021 was 1.962 billion yuan. Shenwu Energy-saving's net profit after deducting non-operating items was also in a loss state in the first half of 2022. In terms of gross profit margin, Shenwu Energy Saving's gross profit margin in the first half of this year was 20.72%, a year-on-year decline of 31.74%; the net profit margin was -22.15%, a year-on-year decrease of 154,411.03%. In the second quarter of this year, the company's gross profit margin was 27.50%, down 24.96% compared with the same period last year, up 15.13% from the previous quarter; the net profit margin was 1.27%, down 156,620.38% year-on-year and up 52.25% month-on-month. In terms of inventory changes, as of the end of June this year, the company's inventory book balance was 14.0329 million yuan, accounting for 17.19% of its net assets, a decrease of 604,200 yuan compared with the end of last year. Among them, the inventory impairment provision for was 13.8117 million yuan, and the proportion of to was 98.42%; in terms of debt repayment ability, as of the end of March this year, the company's debt-to-asset ratio was 49.50%, a decrease of 7.46% compared with the end of last year.
In addition, the net cash flow generated by the company's operating activities during the reporting period was -22.1128 million yuan, an increase of 53.9674 million yuan over the same period last year, mainly due to the company's large-scale repayment of debts in the same period of 2021, etc. After the company's normal production and operation, the net cash flow of net increased year-on-year; financing activities cash flow 2 2021 The net amount was -194,900 yuan, a decrease of 131 million yuan from the same period last year, mainly due to the company's investment of 200 million yuan from new shareholders in the same period of 2021 and repaying debts in accordance with the bankruptcy reorganization plan. The remaining final payment was paid in accordance with the bankruptcy reorganization plan last year; the net cash flow of investment activities was 6.1064 million yuan, compared with 27.4437 million yuan in the same period of last year, mainly due to the large cash flow obtained by the company's auction of real estate in the same period of 2021, and this period was mainly due to the low cash flow obtained from the redemption of bank wealth management products.
However, although Shenwu Energy Saving's revenue in the first half of this year was only 20 million. According to data, since Shenwu Energy Saving's stock price once again hit the daily limit on the 7th of this month, its stock price has achieved 22 daily limits in the past year. With such performance, companies can frequently hit the daily limit, and investors need to be more cautious.
END
Source: Global listed company club
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