Reporter | Wang Peng On February 28, Zhenjing Co., Ltd. disclosed its first annual report of Sichuan Stock Exchange. Although it took the lead, the first report card was not surprised, but it was a little sad. Its net profit in 2019 declined to a certain extent, and the restructu

Reporter | Wang Peng

html On December 28, Zhenjing Co., Ltd. (603477.SH) disclosed the first annual report of Sichuan stocks. Although he took the lead, the first report card was not surprised, but there was a little sadness.

Its net profit in 2019 showed a certain decline, and the restructuring of operations will take some time, and it is still unknown when it will be completed. Even by comparing shareholder information on regular reports such as annual reports and third-quarter reports, there is always a bit weird before and after the doubled market caused by this restructuring news.

performance decline

Zhenjing Co., Ltd. annual report shows that in 2019, the company achieved operating income of 556 million yuan, a year-on-year decrease of 10.23%, and the net profit attributable to shareholders of listed companies was 39.5118 million yuan, a year-on-year decrease of 33%, and the basic earnings per share fell to 0.16 yuan. Perhaps because of poor performance, on February 28, Zhenjing Co., Ltd. hit the limit directly.

information shows that Zhenjing Co., Ltd. 's main business is the research and development, manufacturing and sales of medium and high-end natural leather. It has three major product lines: automotive leather, upper leather and furniture leather. The main products are cowhide , which are used in car seats and interiors, mid and high-end furniture, uppers, straps, house decoration, etc.

Zhenjing Co., Ltd. regards the automotive leather field as an important business development direction in the future, and has formed a cooperative relationship with automobile companies such as GAC Group , BYD , and GAC Mitsubishi. It is the main designated supplier of automotive leather for some of its models. Upper leather products have been recognized by famous shoe manufacturers such as New Balance, New Balance, and PUMA. In terms of furniture reform, Zhenjing Co., Ltd. has long-term cooperative relationships with Yazhen Home Furnishing, Muslim Home Furnishing, Gujia Home Furnishing, etc.

Zhenjing Co., Ltd. said that due to the slowdown in global economic growth, especially the continued weak sales of passenger car in my country, the company's business development in 2019 has experienced severe tests. Statistics released by the Ministry of Industry and Information Technology show that in 2019, my country's passenger car sales continued to decline, from 23.71 million in 2018 to 21.444 million, a decrease of 2.266 million, a decrease of 9.6%; among them, the Chinese brand passenger cars fell from 9.98 million in 2018 to 8.407 million, a decrease of 1.573 million, a decrease of 15.8%, accounting for 69.42% of the total decline. The market share of Chinese brand passenger cars also fell from 42.1% in 2018 to 39.2%, a decrease of 2.9 percentage points. Therefore, the operating income of Zhenjing Co., Ltd.'s automotive leather products of decreased by 29.86% compared with the previous year.

It is worth noting that Zhenjing Co., Ltd. stated that in order to improve the company's profitability, maximize the interests of the company's shareholders, and achieve the company's sustainable development, during the reporting period, the company began the major asset restructuring related work of "suggesting to issue shares to all shareholders of Juxing Agriculture and Animal Husbandry Co., Ltd. and pay cash to purchase 100% of Juxing Agriculture and Animal Husbandry Co., Ltd.'s shares."

Reorganization will be still waiting for a while

The above mentioned reorganization is that Zhenjing shares intends to purchase Superstar Group , Xingsheng Investment, Hebang Group, Sun Deyue, Li Qiang, Shenzhen Huizhi, Shenzhen Huiming, Xu Xiao, Huang Jia, Borun Investment, Duan Ligang, Gong Siyuan, Xu Chengcong, Su Youqiang, Chengdu Deshang, Wu Jianming, Bakao Culture, Guo Hanyu, Fang Xiake Investment, Zhengkai Investment, Zhang Xufeng, Wang Qingshuang, Wang Zhijian, Ying Yuanli, Liu Jianhua, Luo Yingchun, Yu Hongbing, Yue Liangquan, Wang Shaoqing, Kaibitter, Tao Li, Tang Guangping, Liu Wenbo, Liang Chunyan, Tang Chunxiang, Lu Houqing, Huang Minggang, Zou Yan, Gu Jinhua, Zhu Qiang, and Zhao Peng, a total of 41 trading 100% of the shares of superstar agriculture and animal husbandry held by the counterparty.

is the current controlling shareholder of the listed company because one of the counterparty of the transaction and Bang Group is the current controlling shareholder of the listed company. After the transaction is completed, Jixing Group is expected to hold more than 5% of the listed company, and Jixing Group is a potential affiliate of the listed company. This transaction also constitutes an associated transaction.

Superstar Agriculture and Animal Husbandry was established on July 7, 2008 with a registered capital of 253 million yuan. Its business involves livestock and poultry breeding sales, feed production and sales and other industries. The main products include pigs, yellow feathered chickens and feed. In 2018 and the first half of 2019, Jixing Agriculture and Animal Husbandry's operating income was RMB 1.117 billion and RMB 613 million, respectively, and its net profit was RMB 21.4341 million and RMB 23.425 million, respectively.According to the arrangement of Zhenjing Co., Ltd. , after the completion of this transaction, the listed company's main business will add livestock and poultry breeding and sales, and feed production, processing and sales. Through the transaction, the listed company will enrich its business types, effectively expand its profit sources, and enhance its sustainable development capabilities, risk resistance and subsequent development potential.

, however, there is still an uncertain unknown to this reorganization. According to the latest restructuring progress announcement on February 22, the relevant work of the transaction is being carried out and auditing, evaluation and other work have not been completed. Zhenjing Co., Ltd. stated that after the above-mentioned related work is completed, the company will convene a board of directors to review the relevant matters of the transaction, and the board of directors will convene the shareholders' meeting to review the above-mentioned proposals and other proposals related to the transaction.

"specialized" natural person shareholder

Although the restructuring still requires multiple conditions, the news does not hinder the sharp rise of Zhenjing Co., Ltd. .

shows that since resumed trading on on September 24, 2019, it has been like using stimulants, starting a rapid rise mode. From September 24, 2019 to October 23, 2019, a total of 17 trading days, the cumulative increase of Zhenjing Co., Ltd. of achieved a rapid doubling, with a cumulative turnover rate of 277.14%, and active trading. On the day of resumption of trading on the 24th, it is the day when Zhenjing Co., Ltd. disclosed its private placement transaction plan.

also on September 24, 2019, Zhenjing Co., Ltd. also disclosed the "Announcement on the Shareholding of the Top Ten Shareholders", which showed that there are many natural persons in the list of shareholders of Zhenjing Co., Ltd. . According to the semi-annual information, the "new" shareholders include Wang Heng (the seventh largest circulating shareholder), Shi Xiaoyan (the ninth largest circulating shareholder), and Min Bin (the tenth largest circulating shareholder), with shares holdings of 2.1747 million shares, 1.454 million shares, and 1.4289 million shares respectively, which is the shareholders who intervened on the eve of the big rise on September 24. Looking at the details of shareholders in the third quarter report, I found that the above three figures were still on the list as of the end of September. In the annual report, the above three have quickly "quit". You should know that the tenth largest circulating shareholder held 825,100 shares as of the end of December 2019, which is smaller than the shares held by these three people, so it should be a true "exit".

through position online query, Wang Heng, Shi Xiaoyan and Min Bin only held Zhenjing shares in history, and the scout is not only accurate but also dedicated.

Let’s look at the third quarter report again. It is only a few days away from the list disclosed on September 24. Two shareholders, Yuan Boyin and Diao Su, also appeared, ranking the sixth largest circulating shareholder and the tenth largest circulating shareholder with 3 million shares and 1.638 million shares respectively. Because Min Bin, the tenth largest circulating shareholder in the list disclosed on September 24, 2019, has a shareholding of 1.4289 million shares, both of which are less than the shareholding of these two, it can be confirmed that these two shareholders were bought in a few days between the resumption of trading on September 24 and the end of September, which can be said to be quite hard-core. In the fourth quarter, one of the shareholders, Diao Su, also chose to hide his fame and withdraw from the list.

According to the query, Diao Su and Yuan Boyin only hold Zhenjing shares in the historical records of shareholding, which is an accurate and dedicated type.

In comparison, in this wave of upward trend, he only tasted a little sweetness, but another natural person shareholder who was eliminated early was much more regretful of his operations. Comparing the shareholder list disclosed on September 24 and the shareholder list as of the end of September, we can see that after Shuai Kaili, who originally held 1.9574 million shares, started a big increase mode after resuming trading on September 24, he hurriedly reduced his holdings or cleared his position, and disappeared from the list of the third quarter report. According to information, Shuai Kaili is a dedicated shareholder who only holds Zhenjing shares in the first quarter.