A-share performance burst season, Lianjian Optoelectronics 's glorious journey cut off the thunder of goodwill, 23,600 shareholders were sleepless again, and the last time the leeks were cut was due to financial fraud of their subsidiaries. After one year, the burden has reappeared.
htmlOn 27, Lianjian Optoelectronics announced its 2018 record. The company achieved annual revenue of 4.05 billion yuan, a year-on-year increase of 2.6%, and its attributable net profit was -2.888 billion yuan, a decrease of more than 28 times from the previous year. Among them, asset impairment losses increased by 3 times year-on-year to 3.057 billion yuan, and goodwill impairment losses accounted for 2.732 billion yuan.29 opened the stock price and hit the limit quickly and closed at 4.87 yuan per share. Looking back on the 24 billion market value raised in the bull market by crazy mergers and acquisitions, Lianjian Optoelectronics has hurt the hearts of the leeks in the past four years.
On the evening of April 29, Lianjian Optoelectronics disclosed its first quarter report. The company's revenue from January to March 2019 decreased by 1.82% year-on-year to 794 million yuan, and its attributable net profit was -32.7226 million yuan, compared with 15.1437 million yuan in the same period in 2017, a year-on-year decrease of 316.08%. In addition to the recession of the sales industry in the off-season sales season, the main reasons are tight funds, tight funds and tight funds...
01. The trouble caused by financial fraud
Lianjian Optoelectronics once stated in its performance report that due to the investigation last year and the tight monetary tightening, the shortage of operating funds has restricted the development of its subsidiary's business. The high-quality orders that rolled in to 2018 decreased year-on-year, resulting in a decline in gross profit. During the reporting period, the company's financial tension eased but was still not abundant, which affected the subsidiary's development of high-quality projects. During the reporting period, the impact of the company's non-recurring gains and losses on net profit was approximately RMB 8.5 million.
Speaking of investigating the case, Lianjian Optoelectronics became popular in 2017 due to financial fraud of three subsidiaries. Among them, from 2014 to 2016, Time-Share Media, which acquired Lianjian Optoelectronics in 2014, inflated revenue by fictitious advertising business revenue and cross-period recognition of advertising business revenue, etc., accounting for 3.82%, 12.97% and 4.07% of the total profit in that year, respectively. The company has been investigated by regulatory authorities and claimed by shareholders, among which a single shareholder has suffered losses of more than 2 million.
In addition, China National Optoelectronics' other two wholly-owned subsidiaries, Ocean Media and Jingfountain, inflated their net profit by 10.6247 million yuan and 7.0743 million yuan respectively in 2016.
On December 21 last year, an administrative penalty decision on the website of the Shenzhen Securities Regulatory Bureau finalized the charge of inflated profits by Lianjian Optoelectronics and the company's actual controller and legal representative Liu Hujun. The company was therefore punished for being corrected and warned and fined 600,000 yuan at the same time. The relevant responsible persons were warned and fined varying degrees, ranging from 300,000 to 300,000 yuan. In addition, the auditing unit Lixin Accounting Firm also received a warning letter from the Shenzhen Securities Regulatory Bureau in March this year.
On April 2 this year, the Shenzhen Stock Exchange issued another disciplinary notice for Lianjian Optoelectronics. Senior executives of Lianjian Optoelectronics and Liu Hujun were publicly condemned, and other management and independent directors of the company were criticized.
exchange also focuses on Lianjian Optoelectronics' performance bragging. The company announced its 2017 performance report, performance forecast and company annual report on January 31, February 28 and April 28, 2018 respectively. The net profit attributable to shareholders decreased significantly from an estimated 360 million yuan to 480 million yuan to 405 million yuan to the actual 104 million yuan, which is a misleading act.
As early as December 8, 2017, Lianjian Optoelectronics issued an announcement stating that the company was investigated by the China Securities Regulatory Commission for suspected information disclosure violations. Then the company's stock opened and hit the limit at 14.38 yuan per share.
is the one who pays for the leek. Previous reports showed that investors claimed that a total of more than 210,000 shares of Lianjian Optoelectronics were purchased before December 7, 2017, with an average price of about 22.53 yuan, and a total purchase amount of about 4.7861 million yuan. As of the date of investigation announcement, the shareholder suffered a loss of as high as 2.087 million yuan.
02. How tight is the funds
Financial report data shows that it is indeed a fact that Lianjian Photoelectric dynamics are tight.
In the first three quarters of 2018, Lianjian Optoelectronics' operating cash flow was always negative, of which it once reached -74.7677 million yuan in the second quarter, a year-on-year decrease of 178.53%. It was not until the end of the year that the situation was reversed, but it decreased by nearly 50% from the previous year. In the annual report, the company stated that during the reporting period, the company's payment of goods with bank acceptance notes decreased by 238 million yuan, and it was replaced by cash payment.
Looking at the dynamics of Lianjian Photocurrent in recent years, except for the company's operating cash flow in 2016, the liquidity in the rest of the years was not impressive, and it has declined year by year in the following two years. In 2018, this data was only 162 million yuan. In 2016, mainly because companies such as Lima Network were included in the scope of mergers, and companies such as Timeshare Media also increased their collection of accounts receivables this period, resulting in a 96.72% increase in the company's operating cash flow. However, judging from the financial fraud incident, the authenticity of this reason may still need to be investigated in depth.
From the perspective of book monetary funds, Lianjian Optoelectronics has also been declining year by year since 2016, and has decreased by 51% last year to 393 million yuan. The reason is that banks tighten monetary policy, short-term loans and notes payable decreased by nearly 700 million yuan year-on-year, and cash payments increased.
, and shareholder pledge information also shows that almost all of the more than 200 million shares held by the company's top three shareholders are pledged. The company has accumulated more than 50% of the equity of , and the controlling shareholder was once forced to sell the shell because of the risk of pledge closing. The company also received inquiries from the Shenzhen Stock Exchange, but the following was gone later.
Regarding the subsequent funding issues, Lianjian Optoelectronics said that with the stability of the interbank credit relationship and the sale of equity of some subsidiaries, the company's operating cash flow increases and the implementation of the company's strategic adjustments, it is expected that the subsequent company's operating conditions will gradually improve.
Regarding the sale of assets, Lianjian Optoelectronics announced as early as December 17 last year that the company reached an agreement with the People's Government of Dongchangfu District, Liaocheng, Shandong and Zhongtian Hongyuan Asset Management (Shenzhen) Company, which will establish a special fund with a total scale of 400 million yuan, and invest in the company's wholly-owned subsidiary Lianjian Optoelectronics and Yishida through capital increase, and will acquire part of the equity of the two respectively. In response to this, Lianjian Optoelectronics' argument at that time was that the company would use this to establish a northern regional headquarters to further explore the northern market.
In 2019, Lianjian Optoelectronics began a drastic selling operation, and its subsidiary mainly in Timeshare Media began a series of asset divestitures. Currently, 4 of the five new restructurings have been implemented, and 1 has passed the shareholders' meeting.
It is worth noting that Zhongtian Hongyuan, the equity investor that the aforementioned company is introducing may also be a capital player. The latter was established on June 30, 2015 with a registered capital of 100 million yuan. Its assets have no investment company assets. Its shareholders and legal representatives Zhu Haitao and Shenzhen Yihuada Technology Co., Ltd. hold 99% and 1% of the shares respectively. Zhu Haitao also serves as the legal representative of Shenzhen Huaming Huifu. He has served as an industry researcher for Ping An Securities and Guosen Securities , assistant to the president of Guosen Hongsheng Venture Capital Co., Ltd., and has also invested in Shenzhen Sanggu Medical and Shenzhen Ruihong Technology. He is also an executive of Dajia Laser.
03, more than 10 mergers and acquisitions have appeared in
Lianjian Optoelectronics not only has many subsidiaries, but also a large number of subsidiaries themselves. Part of the company's liquidity is due to the increase in R&D and other expenses, and the other part is also the main reason for crazy investment in mergers and acquisitions. The company has also developed from a single LED business to digital equipment and digital marketing. The latter has gradually risen to the company's main business, but its performance is far from meeting expectations, and the huge goodwill during the merger and acquisition is also time to be fulfilled. The performance of Lianjian Optoelectronics has been hit by more than 90% of the reasons for the impairment of goodwill to these companies.
Open the company's official website. Lianjian Optoelectronics is a national-level high-tech enterprise with net assets of 5 billion yuan, annual revenue of 4 billion yuan, more than 3,800 employees, and more than 230 nationally authorized patents."
According to the 2018 annual report, Lianjian Optoelectronics' main business includes digital marketing and digital equipment, but before 2016, the company's main business was also called simple LED business.
Lianjian Optoelectronics was established in 2003 and listed on the Shenzhen Stock Exchange in 2011. It mainly engages in LED business. However, data shows that after its listing, Lianjian Optoelectronics' profits were not outstanding, and its performance has decreased year by year. Under the difficulties of business, Lianjian Optoelectronics joined the army of mergers and acquisitions in 2015. The company's business began to carry out media business including digital marketing around LEDs. The LED sector has also quietly changed its name to the digital equipment sector, and the company "transformed" from an electronic component company into a light-asset media-led enterprise.
Incomplete statistics, Lianjian Optoelectronics acquired a total of 13 companies from 2014 to 2017, spending 5.429 billion yuan and forming goodwill of 4.637 billion yuan. Among them, it reached its peak from 2015 to 2016, and the company's stock price also surpassed the market to 44.58 yuan per share.
The crazy mergers and acquisitions saved Lianjian Optoelectronics for a while, but failed to protect the company for a lifetime. Then the subsidiary "tells stories" together, and the company's stock price plummeted.
In 2018, Lianjian Optoelectronics experienced its first loss since its establishment. Among the losses of nearly 2.9 billion yuan, the goodwill impairment provision for the acquisition of subsidiaries was as high as 2.73 billion yuan, of which time-sharing advertising was about 440 million yuan. Accurate Focus Media, Green One Media, Shanghai Chengguang, Yishida, Youtuo Public Relations , Huahan Culture, Litang Marketing, Lima Network, Ocean Linger, and Aipu New Media were all on the list...
As early as January this year, affected by the huge expected loss in performance, Lianjian Optoelectronics hit the limit for two consecutive days on January 30 and 31. The company's first loss since its establishment was recently, and it was another limit down...
claims to be an LED full value chain enterprise that provides "advertising equipment + creative planning + media delivery" in the domestic market. Lianjian Optoelectronics does have a glamorous resume. Major project companies such as the Sanjun Command and Dispatch Center, Tencent Multifunctional Hall, Alibaba Exhibition Hall, Abbott Exhibition Hall, Hollywood Walk of Fame, and the Brazil World Cup have all undertaken it, but the performance problems are still difficult to solve. In addition to the problems of insufficient funds in
, Lianjian Optoelectronics' gross profit margin is declining year by year, and it does not have an advantage in both the media and electronic components field. In the first quarter of this year, Lianjian Optoelectronics continued to suffer losses.
It is worth noting that many of the more than 10 marketing subsidiaries that have raised goodwill impairment this time have direct or indirect relationships with the actual controllers Liu Hujun and Xiong Jinyu. Public information shows that Liu Hujun has worked in Shanxi Huahan Culture, Shanghai Litang Marketing, Shanghai Youtuo Public Relations, and Beijing Ocean Linge. Xiong Jinyu served as a director of Shenzhen Yishida. The goodwill impairment losses of these five companies totaled 960 million yuan.
As of now, Lianjian Optoelectronics still has goodwill of 1.111 billion yuan on the books.
