After the close of the market on November 10, the Yellow River Cyclone (600172.SH) issued an announcement that the company recently received a notice from the company's chairman Pang Wenlong that its stock account bought 500 shares of the company's stock on October 8, 2021 due to misoperation. As of the announcement date, Pang Wenlong, the chairman of the company, held 1,250,500 shares of the Yellow River Cyclone, accounting for 0.09% of the company's total share capital. Pang Wenlong also apologized to the company and the majority of investors for this misoperation, and promised that the above-mentioned stocks would not reduce their holdings within two years from the date of purchase.
The main business of the Yellow River Cyclone is the production and sales of powder and superhard composite materials, and it is the largest diamond production base in China. According to public information, the non-net profit of the Yellow River Cyclone in 2018, 2019 and 2020 was -118 million yuan, -37.8543 million yuan and -631 million yuan, respectively. On the evening of October 29, the three quarterly reports released by the Yellow River Cyclone showed that the company achieved operating income of 1.897 billion yuan in the first three quarters, and the net profit attributable to the shareholders of the listed company was 40.4915 million yuan, turning losses into profits year-on-year. Among them, the net profit in the third quarter was 16.5283 million yuan, and the non-net profit was 18.7309 million yuan.
Perhaps affected by the announcement, the Yellow River cyclone rushed up and down half an hour after the opening of the market today. Since the beginning of the year, the Yellow River Whirlwind stock has seen a continuous rise, with the largest increase of more than 260% during the year.
It is worth noting that the Yellow River Cyclone and its major shareholders have received two regulatory attentions from the Shanghai Stock Exchange and the Henan Securities Regulatory Bureau during the year, and have issued one notice of criticism, one admonition talk and one warning each.
On 31 May 2021, the Shanghai Stock Exchange issued the Decision on Giving Regulatory Warnings to Henan Yellow River Cyclone Co., Ltd., Henan Yellow River Industrial Group Co., Ltd., the controlling shareholder, and relevant responsible persons (hereinafter referred to as the "Decision").
According to the Decision, on July 23, 2020, October 30, 2020 and November 12, 2020, the Company provided a total of 3.19 million yuan of capital loans to Henan Landian Intelligent Technology Co., Ltd., a holding subsidiary of Henan Huanghe Industrial Group Co., Ltd., the controlling shareholder, and 200,000 yuan of capital loans to Henan Huanghe Tianzhong Kemei Pressure Equipment Co., Ltd., a holding subsidiary of The Yellow River Group, on August 15, 2020. The above-mentioned fund lending behavior was determined by the annual audit accountant to constitute non-operating capital occupation, and the total amount incurred was 3.39 million yuan, accounting for 0.1% of the company's net assets at the end of 2020. As of the end of 2020, there are still 2.1427 million yuan that have not been returned, accounting for 0.063% of the company's net assets at the end of 2020. As of April 2021, the above-mentioned funds have been fully repaid.
The Decision also claims that the company provided funds for the controlling subsidiary of the controlling shareholder without the substance of the transaction, which constituted the non-operating capital occupation of the controlling shareholder and harmed the interests of investors. Therefore, it was decided to give regulatory warnings to Henan Yellow River Cyclone Co., Ltd., the controlling shareholder, Henan Yellow River Industrial Group Co., Ltd., pang Wenlong, the chairman of the board of directors of Henan Yellow River Industrial Group Co., Ltd., Chen Zhiqiang, the general manager, Guo Hui, the financial director and secretary of the board of directors, and Yuan Chaofeng, the secretary of the board of directors.
(Editor-in-charge: Zhao Rong)
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