A few days ago, Hengyu Environmental Protection issued an announcement on expected loss in 2021, and the company may be delisted risk warning.
2021 performance expected to lose
htmlOn the evening of January 21, Hengyu Environmental Protection announced that it is expected that the net profit attributable to shareholders will lose 8.6 million yuan to 10.3 million yuan in 2021. Compared with the same period last year, the reduction is 54.572 million yuan to 56.272 million yuan. It is estimated that the net profit loss of RMB 20.5 million to RMB 22.5 million in 2021, a year-on-year decrease of RMB 62.1224 million to RMB 64.1224 million.has lost net profit, and Hengyu Environmental Protection's revenue is not optimistic either. The company expects to achieve operating income of RMB 83 million to RMB 85 million in 2021, while this figure is RMB 175 million in 2020, which is also the first time Hengyu's revenue has fallen below RMB 100 million since 2018.
Public information shows that Hengyu Environmental Protection was established in 2006 and was listed on the Science and Technology Innovation Board in 2020. It is located in Jinan City, Shandong Province. It mainly engages in the research and development of organic waste cracking technology and the design, production and sales of related equipment. It is an enterprise integrating the research and development of organic waste cracking technology and the research and development of cracking equipment manufacturing technology.
Hengyu Environmental Protection may become the first *ST company since the opening of the Science and Technology Innovation Board. According to relevant regulations of the Shanghai Stock Exchange, if the company's audited net profit before or after deducting non-operating items is negative and its operating income is less than 100 million yuan, the company will be subject to a delisting risk warning after the disclosure of its 2021 annual report.
Regarding the expected loss of performance, Hengyu Environmental Protection explained that the main reason is that the amount of new orders signed in 2020 is small, which directly affects the amount of revenue recognition in 2021; some projects in 2021 are suspended or suspended due to government approval and other reasons and are affected by factors such as the new crown epidemic. The execution progress of some of the company's on-hand orders is lower than expected; it is expected that the new orders will be delayed or failed to sign; the impact of credit impairment losses and contract assets impairment losses on net profit.
Major customer dependence
Hengyu Environmental Protection stated that the expected loss in this period is the phased performance fluctuation experienced in the company's development stage, and there has been no major adverse changes in the company's core competitiveness and sustainable operating capabilities. But is the situation really as it says? In terms of performance in
, Hengyu ended with a double profit decline in both fiscal years. In 2019 and 2020, the company's revenue was RMB 235 million and RMB 175 million, a year-on-year decrease of 6.64% and 25.65%, and the net profit attributable to shareholders was RMB 64.4265 million and RMB 45.972 million, a year-on-year decrease of 18.39% and 28.64%.
In addition, the reporter also noticed that the number of days for cargo storage in Hengyu Environmental Protection has been extended from 65.39 days in 2018 to 132.24 days in the first three quarters of 2021. The number of accounts receivable turnover days increased from 54.13 days in 2018 to 744.01 days in the first three quarters of 2021. Hengyu Environmental Protection's sales pressure and repayment risks cannot be underestimated.
"Big Customer Dependence" is also the stubborn disease of Hengyu. It once disclosed in its prospectus that from 2017 to 2019, the operating income of Hengyu Environmental Protection's top five customers accounted for 100%, 98.47% and 99.18% of the current main business income, respectively. Among them, the dirty oil sludge cracking production line business is the company's main source of income, accounting for 66.07%, 64.45% and 59.99% of the main business revenue during the same period.
However, Hengyu Environmental Protection only has Shuntong Environmental Protection in the field of dirty oil sludge treatment. During the above three years, the company's sales revenue to Shuntong Environmental Protection was RMB 30 million, RMB 160 million and RMB 140 million, respectively, accounting for 66.07%, 64.45% and 59.99% of the current revenue.
:00 to 2020, the situation has not yet been significantly alleviated. The 2020 annual report shows that the operating income of Hengyu Environmental Protection's top five customers accounted for 91.47% of the main business income of the current period.
Why do companies rely so much on large customers? Hengyu Environmental Protection stated that the various industrial continuous cracking production lines provided by the company to customers are a large system project with a large investment amount. Customers need to have a certain capital strength and have the industry characteristics of a small number of customers. Since the company's customers are heavily invested, unlike ordinary companies' customers, customers' demand for the company's products is not continuous and stable every year. Customers need to conduct subsequent equipment procurement based on their own organic waste treatment capabilities, treatment needs and capital. The new orders of existing customers do not entirely depend on the company's product quality and technological advancement.
At the same time, Hengyu Environmental Protection admitted that from 2017 to 2021, the company had a total of 15 top five customers, and only 5 companies had annual overlaps. Overall, the company's customers do not have obvious stability. The company needs to continuously develop new customers and maintain old customers, and undertake new businesses in order to ensure the sustained and stable growth of operating performance. If the company develops new customers and the business demand for existing old customers has dropped significantly, it may have a significant adverse impact on the company's performance.
stock price plummeted
Perhaps because he smelled the risk of delisting, Hengyuhuan kept more than 5% of the shares and frequently reduced his holdings.
From August 5 to November 22, 2021, Fengchuang Bio and its joint actor Mu Liming reduced their holdings by a total of 1.528 million shares, accounting for 1.93% of the total share capital. According to the share reduction plan, Fengchuang Bio, Fengderui, Mulimin and Sang Lubei plan to reduce their holdings by no more than 4.8006 million shares, that is, no more than 6% of the total share capital. Mu Liming serves as executive partner among Fengderui's fund managers and serves as legal person, director and general manager among Fengderui's fund managers. Fengderui and Fengderui are jointly managed and controlled by Mu Liming; Sang Lubei is the spouse of the main investor of Fengderui's fund managers. The four constitute a relationship of concerted action.
In addition, from August 11 to November 24, 2021, Rongxin Yuanchuang and its joint action Renyuanchuang Hyundai reduced its holdings by 851,800 shares, accounting for 1.06% of the total share capital; from November 25 to December 15, 2021, the two reduced their holdings by 823,000 shares, accounting for 1.03% of the total share capital.
performance is frequent and difficult, and Hengyu shares are also not popular among investors. On July 14, 2020, Hengyu Co., Ltd. first entered the capital market. At that time, the issue price was 24.79 yuan/share, with a price-to-earnings ratio of 31.44 times, and hit a historical high of 97.44 yuan/share on the first day of listing. However, after its launch, Hengyu Environmental Protection has been in the secondary market. As of January 24, its latest closing price was 16.49 yuan per share, falling below the issue price, down 80% from the high point of the day of listing. Wind data shows that as of the end of the third quarter of 2021, the total number of Hengyu Environmental Protection shareholders was 5,941.
This article is from International Financial News
At the same time, Hengyu Environmental Protection admitted that from 2017 to 2021, the company had a total of 15 top five customers, and only 5 companies had annual overlaps. Overall, the company's customers do not have obvious stability. The company needs to continuously develop new customers and maintain old customers, and undertake new businesses in order to ensure the sustained and stable growth of operating performance. If the company develops new customers and the business demand for existing old customers has dropped significantly, it may have a significant adverse impact on the company's performance.
stock price plummeted
Perhaps because he smelled the risk of delisting, Hengyuhuan kept more than 5% of the shares and frequently reduced his holdings.
From August 5 to November 22, 2021, Fengchuang Bio and its joint actor Mu Liming reduced their holdings by a total of 1.528 million shares, accounting for 1.93% of the total share capital. According to the share reduction plan, Fengchuang Bio, Fengderui, Mulimin and Sang Lubei plan to reduce their holdings by no more than 4.8006 million shares, that is, no more than 6% of the total share capital. Mu Liming serves as executive partner among Fengderui's fund managers and serves as legal person, director and general manager among Fengderui's fund managers. Fengderui and Fengderui are jointly managed and controlled by Mu Liming; Sang Lubei is the spouse of the main investor of Fengderui's fund managers. The four constitute a relationship of concerted action.
In addition, from August 11 to November 24, 2021, Rongxin Yuanchuang and its joint action Renyuanchuang Hyundai reduced its holdings by 851,800 shares, accounting for 1.06% of the total share capital; from November 25 to December 15, 2021, the two reduced their holdings by 823,000 shares, accounting for 1.03% of the total share capital.
performance is frequent and difficult, and Hengyu shares are also not popular among investors. On July 14, 2020, Hengyu Co., Ltd. first entered the capital market. At that time, the issue price was 24.79 yuan/share, with a price-to-earnings ratio of 31.44 times, and hit a historical high of 97.44 yuan/share on the first day of listing. However, after its launch, Hengyu Environmental Protection has been in the secondary market. As of January 24, its latest closing price was 16.49 yuan per share, falling below the issue price, down 80% from the high point of the day of listing. Wind data shows that as of the end of the third quarter of 2021, the total number of Hengyu Environmental Protection shareholders was 5,941.
This article is from International Financial News
