On the evening of May 5, *ST Oupu announced that on April 29, the China Securities Regulatory Commission issued an "Investigation Notice" to Chen Lihao, a member of the company's actual controller family, for suspected violation of securities laws and regulations. The China Securities Regulatory Commission decided to open a case to investigate. Data shows that *ST Opu's main business is steel logistics services and supply chain financial services, but it is in trouble due to various reasons. The company was issued audit reports with no opinion for two consecutive years in 2018 and 2019, and its net assets were negative at the end of the period. Trading was suspended on April 30. The more pressing risk is the face value delisting crisis: the company's stock price has been below the face value of 1 yuan for 10 consecutive trading days before the suspension.
01. Another high-risk stock delisted! The controlling shareholder applied for bankruptcy liquidation, and the actual controller was placed under investigation
*ST Oupu's largest shareholder is Foshan Zhongji Investment Co., Ltd., with a shareholding ratio of 47.43%, and the actual controller is the Chen Lihao family, with a shareholding ratio of 21.18%. According to Tianyancha data, Chen Lihao is the legal representative of China Base Investment, with a shareholding ratio of 43.16% in China Base Investment, making him the largest shareholder and actual controller; Chen Lihao’s daughter Chen Qianying holds 37.76% of the shares and is the second largest shareholder. He is also the person acting in concert with Chen Lihao.
It is reported that Foshan City Lecong Town, Shunde District, where China Base Investment and *ST Oupu are located, is the main steel distribution center in Guangdong and even South China. In 2002, Chen Lihao and two other private enterprises engaged in steel trade established Shunde Oupu Steel Co., Ltd., which focuses on deep processing of steel. In 2003, 400 million was invested to build the South China International Steel Logistics Center. In 2005, Oupu Zhiwang was established and landed on the Shenzhen Small and Medium Enterprises Board in 2014. In the 2018 Hurun Global Rich List, the Chen Lihao family ranked 13th richest in Foshan and 563rd in the country with a wealth of 7.1 billion. However, in the same year, China Base Investment and Chen Lihao were included in the list of dishonest persons subject to enforcement. It was announced that China Base Investment had basically lost its normal financing function, had difficulties in capital turnover, and had tight liquidity. In November 2018, China Base Investment, which had pledged all of its *ST Oupu shares, once planned to transfer control rights to a third party to ease debt pressure. However, the transfer was ultimately blocked due to opposition from China Base Investment's board of directors and shareholders' meeting. Planned abortion.
On the evening of September 10, 2019, *ST Oupu issued an announcement that its controlling shareholder, Zhongji Investment, had applied for bankruptcy liquidation due to its inability to pay off its due debts, and reminded the company of the risk of change of control.
As of the end of 2019, *ST Oupu's accumulated illegal guarantees were approximately 1.384 billion yuan, of which the illegal guarantee amount to the company's controlling shareholder Zhongji Investment was approximately 517 million yuan, the illegal guarantee amount to the company's actual controller Chen Lihao was 412 million yuan, and the illegal guarantee amount to other parties The illegal guarantee is 455 million yuan.
On April 29, 2020, the China Securities Regulatory Commission issued an "Investigation Notice" to Chen Lihao. Because of his suspected violation of securities laws and regulations, according to the relevant provisions of the "Securities Law of the People's Republic of China", the China Securities Regulatory Commission decided to investigate Chen Lihao. Open an investigation.
02. For two consecutive years, an audit report with no opinion was issued and the net assets at the end of the period were negative
In 2018, *ST Oupu began to have a liquidity crisis due to the net withdrawal of funds from its wholly-owned subsidiary Oupu Small Loan. At the same time, due to a series of reasons such as the high stock pledge rate, the continued decline in stock prices, and the liquidation and passive reduction of holdings by the controlling shareholder Zhongji Investment, the company's operations have deteriorated.
On April 29, 2020, the company issued an announcement stating that since the audit opinion types of the audit reports for two consecutive years in 2018 and 2019 were all disclaimer of opinion, and the audited net assets at the end of 2018 and 2019 were negative for two consecutive years, The Shenzhen Stock Exchange will suspend trading in the company's shares starting from the date of disclosure of the company's 2019 annual report, and will make a decision on whether to suspend the listing of the company's shares within 15 trading days after the suspension. The company's shares have been suspended from trading on April 30. According to
annual report data, *ST Opu's operating income in 2019 was 184 million yuan, a year-on-year decrease of 96.24%; net profit was 56.067 million yuan, a year-on-year increase of 101.34%. Operating income in the first quarter of 2020 was 39.4992 million yuan, a year-on-year decrease of 28.3%; net profit was -10.8909 million yuan, a year-on-year increase of 50.11%.
According to the company, the year-on-year growth rate of total operating income in 2019 was -96.24%. This was mainly due to the fact that the company was involved in multiple lawsuits, which resulted in the company's land, real estate, and bank accounts being seized. The company's reputation and credit were greatly affected. The parent company Steel Trading The business and processing business have stagnated; the year-on-year growth rates of operating profit, total profit, net profit attributable to shareholders of listed companies, basic earnings per share, and weighted average return on equity were 101.42%, 101.64%, 101.53%, and 101.52% respectively. and -955.14%, mainly due to the increase in income of 138 million yuan from part of the government's land acquisition and storage company; the company's equity in Shunde Rural Commercial Bank was auctioned, which increased investment income by 48 million yuan; according to the evaluation results, the remaining goodwill of Yehui Company's equity was fully Impairment of RMB 32 million; for some contingent liabilities arising from litigation, related interest, penalty interest and late payment fees increased, and a provision of estimated liabilities of RMB 52 million was made; the company's reversal in 2018 due to the pledge with Zhongtai Trust Co., Ltd. The estimated liability accrued in the securities repurchase dispute case was RMB 96 million.
Regarding the issuance of an unexpressed audit opinion, Zhongxinghua Accounting Firm (Special General Partnership) stated that the main reasons were:
1. Illegal guarantee litigation matters: the former chairman, legal representative, and general manager acted without any approval process of the company and If authorized, sign a guarantee contract with the creditor in the name of the company. As of the date of the audit report, the company was involved in 16 illegal guarantee cases, including 2 settled lawsuits and 14 pending lawsuits. At the end of the reporting period, the company had confirmed estimated liabilities of 972 million yuan for illegal guarantee cases based on the principle of prudence. The Supreme People's Court released the " National Court Civil and Commercial Trial Work Conference Minutes " in November 2019. We are unable to judge the impact of the minutes on the amount of estimated liabilities in illegal guarantee cases.
2, involving large amounts of transactions: Guangdong Oupu Lecong Steel Logistics Co., Ltd., a wholly-owned subsidiary of Oupu Zhiwang , entered into an agreement with Foshan Shunde District Sihai Youcheng Commercial Co., Ltd. and Foshan Shunde District Steel Logistics Co., Ltd. from February to August 2018. Cai Logistics Co., Ltd. and Foshan Shunde District Zhuoxin Machinery Equipment Co., Ltd. had a total accounts receivable balance of 744 million yuan. From May to September 2018, they had conflicts with Foshan Shunde District Hengxingda Trading Co., Ltd. and Foshan Shunde District Hengxingda Trading Co., Ltd. Huajieda Trading Co., Ltd., Shanghai Kaigang Logistics Co., Ltd., and Shanghai Xunsteel Steel Trading Co., Ltd. have a total prepaid account balance of 449 million yuan; a wholly-owned subsidiary, Foshan Shunde District Oupu Microfinance Co., Ltd., entered into cooperation with 82 companies in 2018 The total short-term loan balance generated by the unit is 406 million yuan. It has not been recovered at the end of the reporting period and as of the date of issuance of the audit report. The company has partially sued and won the lawsuit, but no property available for execution was found during the execution process. The company has made full provision for bad debts for the above-mentioned amounts. We are unable to obtain sufficient and appropriate audit evidence to determine the nature of the above-mentioned large transactions and whether the business has commercial substance, whether there is a related relationship between OPZhiwang and the above-mentioned company, and the possible impact on the financial statements.
Currently, most of *ST Oupu Bank's loans are overdue, current liabilities are far greater than current assets, the solvency is weak, and funds are severely tight. At the same time, the company's existing litigation and arbitration cases involve a total amount of more than RMB 3 billion in dispute. As a result, its core assets such as equity, real estate, and land have been frozen, and there is a risk that major assets will be auctioned.
03. The stock price has been less than 1 yuan for ten consecutive trading days, and it may face delisting at face value
But the most pressing situation for the company may still be the risk of delisting at face value. On April 30, the company issued an announcement stating that the closing price of the company's stock has been lower than the par value of the stock for 10 consecutive trading days (April 16, 2020 to April 29, 2020). According to the " Shenzhen Stock Exchange Stock Listing According to the relevant provisions of "Regulations ", the company's stocks may be terminated from listing.
As of the first quarter of this year, *ST Oupu has 37,000 shareholders, with a total share capital of 1.056 billion shares. The top ten shareholders hold a total of 578 million shares, accounting for 54.72% of the total share capital, a change of -34.1842 million shares from the previous period. Among them, Guorong Securities Co., Ltd., CITIC Securities Co., Ltd. , and Yunnan Huiquan Investment Partnership (Limited Partnership) withdrew from the list of the top ten shareholders this quarter.
*ST Oupu was listed in 2014 with an issue price of 18.29 yuan per share and a market value of nearly 4 billion yuan on the first day of listing. In 2015, the stock price once reached 125.55 yuan, with a market value of 17.821 billion yuan. The stock price fell below 2 yuan in May 2019, and has been hovering around 1 yuan since then. Since the beginning of this year, the stock price has fluctuated downwards. As of April 30, before trading was suspended, the stock price had been less than 1 yuan for 10 consecutive trading days, and the market value was only 813 million yuan.
As of the 30th, companies with face values below 1.2 yuan in the two markets include delisted Baoqian, ST Ruidian, *ST Oupu, Jinya Technology , Midu Energy , Tianguang Zhongmao, Shenwu Environmental Protection, etc. Among the 22 companies, 14 shares are in normal trading. ST Ruidian has confirmed that it will terminate its listing, becoming the first face value delisting stock this year, and will enter the delisting consolidation period on May 13. *ST Oupu, Jinya Technology , Meidu Energy , *ST Kaidi, Mengzhou Shares, *ST Gongxin, and *ST Qiulin have suspended their listings.
PS: Perhaps by coincidence, the company's stock code is actually "STOP"...
