According to the company's preliminary self-inspection, as of December 31, 2021, SI Longchuang's unaudited receivables totaled approximately RMB 2.615 billion, some of which may involve financing trade. The receivables involved in this type of business There may be risks of irrec

Article | "Financial World" Weekly Edited by Zhang Mengyi

| Sun Yue

After Shanghai Electric , another state-owned enterprise's billions of receivables suddenly exploded.

htmlOn the evening of November 11, Shanghai Industrial Development Co., Ltd. received a regulatory letter from the Shanghai Stock Exchange, requiring the company to conduct self-examination and verification on the business nature and risks related to receivables of its holding subsidiary Shanghai Longchuang. and fulfill corresponding information disclosure obligations. In accordance with the requirements of the regulatory letter, the company carried out self-examination on the accounts receivable of Shanghai Shangshi Longchuang Intelligent Energy Technology Co., Ltd. (hereinafter referred to as "Shanghai Longchuang"), a subsidiary of the company.

According to the company’s preliminary self-inspection, as of December 31, 2021, SI Longchuang’s unaudited accounts receivable totaled approximately RMB 2.615 billion, some of which may involve financing trade. The applications involved in this type of business There may be a risk of irrecoverability of receivables, and the company is stepping up further verification of the specific amounts involved. SI Development said, "It will continue to do its best to identify the above-mentioned matters and carefully assess the impact of the above-mentioned matters on the company's operating performance in 2021."

"Financial World" weekly noted that SI Development in the four years from 2017 to 2020 The net profits attributable to the parent company are 872 million yuan, 658 million yuan, 782 million yuan, and 818 million yuan respectively. If this receivable cannot be recovered, SI Development will be equivalent to working in vain for four years.

2.6 billion in receivables disappeared?

html On the 112th, when opened , SI Development once plunged more than 7%. As of the close on the 12th, SI Development reported 3.99 yuan per share, a decrease of 5.23%. On the 13th, SI Development’s stock price had stabilized and opened slightly higher.

There may have been signs of trouble with the receivables of Shanghai Industrial Development subsidiary. In March 2021, SI Development issued an announcement stating that in 2020, the company had made provision for impairment of various assets of approximately 231 million yuan, of which the provision for bad debts of other receivables was approximately 80.7805 million yuan. Among the major projects, some projects of the holding subsidiary Shanghai Longchuang involve contract disputes. Based on the default risk and the expected credit rate of duration , the expected credit loss is calculated to be approximately 50.4583 million yuan. In addition, the company's 50.1134 million yuan provision for impairment of contract assets is also related to Shanghai Shi Longchuang. According to SI Development's 2021 mid-term report, its shareholding ratio in SI Longchuang is 69.78%.

This big thunder is just adding insult to injury to SI Development's sluggish performance. In the first half of 2021, SI Development achieved operating income and net profit of 4.025 billion yuan and 344 million yuan, a year-on-year decrease of 10.4% and 19.84% respectively. Among them, SIIC Longchuang lost 152 million yuan, and the cash flow from operating activities was -585 million yuan. The change in operating income achieved by SI Development was mainly due to the decrease in carry-over income from real estate sales.

By the end of the third quarter of 2021, SI Development’s operating income and net profit were 5.108 billion yuan and 408 million yuan respectively, a year-on-year decrease of 3.52% and 8.75% respectively. The monetary funds on hand were 3.9 billion, and notes receivable and Accounts receivable are 1 billion yuan, and other receivables are approximately 469 million yuan. If there are losses in accounts receivable, SI Development's performance in 2021 will continue to "change".

According to Qichacha , Shanghai Industrial Development Co., Ltd. was formerly Shanghai Pudong Stainless Steel Sheet Co., Ltd. The company’s business scope includes real estate development, real estate operations, information consulting services related to real estate business, and domestic trade. The real estate projects currently owned by the company include Shanghai Industrial Building, Admiralty Plaza , Gaoyang Business Center, etc. The company's subsidiary Shanghai Shangshi Property Management Co., Ltd. manages projects including China's tallest building " Shanghai World Financial Center ". On September 25, 1996, SIIC Group was listed and traded on the Shanghai Stock Exchange.

The subsidiary involved had participated in idling trade.

It was financing trade that caused the explosion. The so-called financing trade refers to the parties participating in the trade relying on property rights such as rights to goods and revenue accounts in the process of value exchange of goods and services.Comprehensive use of various trade means, financial instruments and guarantee instruments to achieve the purpose of obtaining short-term financing or increasing credit holdings, thereby increasing the cash flow of trading entities. Since 2014, financing trade has repeatedly been exposed to risks, and regulators have repeatedly issued documents to restrict it.

In 2014, Guangdong issued the regulatory policy "Guiding Opinions on Promoting Guangdong Provincial Commercial Business Risk Prevention and Control and Enterprise Transformation and Innovation" prohibiting financing trade, which clearly stated that financing laundering for the purpose of lending funds to earn interest differentials Net trade business must be liquidated within a time limit, and false trade business such as false invoices for the purpose of financing must be resolutely prohibited. Subsequently, the State-owned Assets Supervision and Administration Commission of Jiangsu Zhenjiang and the State-owned Assets Supervision and Administration Commission of the State Council also issued a document requiring that it be prohibited to carry out financing trade business that is in the name of trade business but is actually lending funds and has no commercial substance.

Before the development of SIIC, Shanghai Electric, another state-owned enterprise in Shanghai, also disclosed accounts receivable risk . On May 30, 2021, Shanghai Electric issued a major risk warning announcement stating that since the end of April 2021, the company has successively discovered that holdings The accounts receivable of the subsidiary Communication Company are generally overdue. As of that time, the accounts receivable of the Communication Company were 8.672 billion yuan, the book inventory balance was 2.23 billion yuan, and the total shareholder loans provided by the company to the communication company were 7.766 billion yuan. The above situation has posed a significant risk to the company. Subsequently, the number of listed companies that exploded expanded to nearly ten, all of which had participated in a financing trade network in the name of " private network communication business" and were associated with Sui Tianli.

It is worth noting that SIIC Longchuang, which was hit by the thunder this time, was exposed to be involved in idling trade. According to the China Judgment Documents Network, he was the former director of the International Operations Department of the 38th Research Institute of China Electronics Technology Group Corporation, director of the International Business Department of China Electronics Bo Microelectronics Technology Co., Ltd., and Nanjing Hengerhui Network Technology Co., Ltd. of Bo Microelectronics. After meeting the actual controller Yu, he entered the idling business circle.

According to disclosures, Tan Jianbo took advantage of his position as the general manager of Bowei Information Company. After completing the internal approval procedures, he signed an idle trade contract with the company arranged and designated by Yu, using Bowei Information Company as an idle trade platform. The transaction objects included Jiangsu Fruit Holding Company, Shanghai Shangshi Longchuang Intelligent Energy Technology Co., Ltd., Zhejiang Dahua Zhilian Co., Ltd., Shenzhen Huaxun Ark Radar Technology Equipment Co., Ltd., etc. Shenzhen Huaxun is one of the holding subsidiaries of ST Huaxun, which is one of the main participants in Sui Tianli’s financing trade scam.

This article was originally produced by AI Finance and Economics, an account of "Financial World" weekly. Please do not reprint it on any channel or platform without permission. Violators will be prosecuted.