Invisible Rich Author | August Editor | Zhaorui *ST Zhongqian's stock price rose sharply. Since mid-July, *ST Zhongqian's stock price has continued to rise, once tripled. As of the close of August 16, *ST Zhongqian's stock price was 18.95 yuan per share, with a total market value

Invisible Rich

Author | August

Edit | Zhaorui

*ST Zhongqian's stock price rose sharply.

Since mid-July, *ST Zhongqian's stock price has continued to rise, once tripled. As of the close of August 16, *ST Zhongqian's stock price was 18.95 yuan per share, with a total market value of 3.871 billion yuan.

Regarding the stock price upward, on August 9, the Shenzhen Stock Exchange issued a letter of concern stating that from July 18 to August 8, 2022, *ST Zhongqian's stock price rose by 102.97%, which was a high deviation from the ChiNext Index during the same period. During this period, the abnormal fluctuation standard of stock price was touched. In this regard, listed companies were required to explain whether the stock price increase matched the fundamentals.

In the reply, *ST Zhongqian stated that according to the 2022 semi-annual performance report, the company's operating income in the first half of 2022 was 24.4656 million yuan, an increase of 74.19% over the same period last year. The company's operating income in the first half of 2022 mainly comes from diving and swimming products; the net profit attributable to shareholders of listed companies in the first half of 2022 was -8.1286 million yuan, a decrease in loss ratio compared with the same period last year was 77.41%, mainly due to the company's active disposal of idle assets, increasing revenue and reducing operating costs, etc.

Since the beginning of 2020, the new crown epidemic has caused a major impact on the outdoor products and the global tourism industry, and *ST's China-South Business has been seriously affected. In order to enhance the ability to continue operating, the company is looking for new business growth points and invested RMB 51 million to increase its capital in Jiangsu Ruizhi Zhonghe New Energy Technology Co., Ltd. (referred to as "Jiangsu Ruizhi Zhonghe"). After the capital increase is completed, the company holds 51% of Jiangsu Ruizhi Zhonghe's shares, which will be included in the scope of the company's financial statements since July 2022.

*ST suggests that the company is still in a critical period of business transformation and there is a risk of investment failure. "The company's stock short-term growth in recent stocks is significantly higher than that of listed companies in the outdoor products industry. The company specifically reminds investors to pay attention to investment risks, make rational decisions, and invest prudently."

In June 2022, *ST Zhongqian disclosed an announcement stating that the company's controlling shareholder Juemeng Investment (Hong Kong) Co., Ltd. (referred to as "Hong Kong Juemeng") was frozen by the Shanghai Public Security Bureau, accounting for 100.00% of the company's shares held by it and 24.54% of the company's total share capital.

In reply to the Shenzhen Stock Exchange's letter of concern, *ST Zhongqian said that on August 10, 2022, *ST Zhongqian once again verified with the controlling shareholder Hong Kong Juemeng and actual controller Yang Zhihui, "As of now, there is no progress in the above-mentioned freezing matters, and there is no situation where other assets have been frozen or compulsory measures have been taken by the public security organs."