Reporter | Zhao Yangge
November 8 Tianlong Group (300063.SZ) disclosed that due to the continuous provision for large amounts of goodwill impairment, the company suffered losses for two consecutive years in 2017 and 2018. According to relevant regulations, if the company continues to suffer losses in 2019, it may be suspended from listing by the Shenzhen Stock Exchange. Here is a risk warning.
Today, Tianlong Group's stock price was also sluggish, closing at par, and the current price is less than 3 yuan, which is far from the historical high of 21.76 yuan.
data shows that in 2018, the impairment loss of Tianlong Group's assets was as high as 1.004 billion yuan, of which the loss of goodwill impairment provision was 961 million yuan. Looking further, the units that generate impairment losses are Beijing Yutang Lianchuang Information Technology Co., Ltd. (hereinafter referred to as Yutang Lianchuang), Beijing Youli Interactive Advertising Co., Ltd. (hereinafter referred to as Beijing Youli), Beijing Zhichuang Infinity Advertising Co., Ltd. (hereinafter referred to as Beijing Zhichuang), and Guangxi Jinxiu Songyuan Forest Products Co., Ltd. (hereinafter referred to as Guangxi Jinxiu).
is a coincidence. In 2017, Tianlong Group also suffered a loss of goodwill impairment provision of about 500 million yuan, which was also shared on Yutang Lianchuang, Beijing Youli, Beijing Zhichuang, and Guangzhou Orange Fruit Advertising Co., Ltd. (hereinafter referred to as Orange Fruit Advertising).
behind the large-scale goodwill impairment in succession is the crazy high premium acquisition of Tianlong Group in the past. Data shows that in mid-2013, Tianlong Group prepared to acquire 60% of the shares of Guangxi Jinxiu with oversubsidized funds of 18 million yuan; in September 2014, Tianlong Group planned to acquire 60% of the shares of Chengguo Advertising by 60 million yuan; in September 2014, the company planned to acquire 20% of the shares of Beijing Zhichuang for 46.8 million yuan; later, in February 2015, it completed the matching of 187 million yuan. The acquisition of the remaining 80% of the equity of Beijing Zhichuang; in 2015, Tianlong Group acquired 10% of Beijing Youli's shares for a price of 26.6 million yuan, and completed the acquisition of the remaining 90% of the equity for 239 million yuan in 2016; in April 2015, Tianlong Group also disclosed that it would acquire 100% of Yutang Lianchuang's equity through issuance of shares and cash purchases. The transaction involved the largest amount, reaching a huge amount of 1.3 billion yuan.
From the later performance, the target of the merger and acquisition is not satisfactory. For example, Orange Fruit Advertising only completed its performance commitments in 2014, and its performance in 2015 and 2016 was far smaller than the promises; in addition, Beijing Youli did not complete its performance commitments in 2017. Only after all the above provisions have been made.
After two years of "financial bath", Tianlong Group in 2019 also gave risks to the suspension of listing, but also gave the market peace of mind.
It said that the company's main business is currently in a stable development state. Previously, the losses in 2017 and 2018 were due to the provisions for goodwill impairment. After deducting factors such as goodwill impairment provisions, the company's operating profits in the first two years were positive; and after the initial provisions for large goodwill impairment, as of September 30, 2019, the company's goodwill book balance was 85.0754 million yuan, and the company's goodwill impairment risk faced by the company in 2019 has been greatly reduced. In the first three quarters of 2019, the net profit attributable to shareholders of Tianlong Group was 83.9686 million yuan, and the revenue of the Internet marketing business segment was stable; the performance of the ink chemical business segment increased significantly compared with the same period last year; the Forest Chemical business segment maintained its scale advantages and technological leadership in the industry. At the same time, the company has various measures to ensure profits in 2019.
