Scallop's tv series is not over yet! No, it was named by Ping An Securities and the Shenzhen Stock Exchange!
Since 2014, it seems that every once in a while, Zhangzidao's scallops will have something wrong, either running away, or freezing to death and starving to death, causing market doubts.
Some time ago, the Tonga volcano erupted, there are rumors that the scallops of the South Pacific will pour into Zhangzidao "hedging", how to expect the market to really buy it, Zhangzidao stock should rise and stop, until the company clarified, the stock price only fell back.
Recently, Zhangzidao has staged a new drama - 110 million shares held by the zhangzidao investment and development center in Changhai County, the controlling shareholder, will be auctioned, which may lead to a change in the controlling interest of Zhangzidao.
Not only that, in the "2021 Annual Results Forecast" released by Zhangzidao on January 21, the company expects to make a profit of 6 million yuan to 9 million yuan for the whole year, and the net assets attributable to the shareholders of the listed company at the end of the year are positive.
In the state of continuous losses, it can still achieve positive growth in 2021, and the Shenzhen Stock Exchange asked by name whether there is a surprise transaction at the end of the year to avoid the implementation of the delisting risk warning of stock trading.
Going around, Zhangzidao's "scallop" series continues.....
1
Zhangzidao pledged 110 million shares
Ping An Securities or become the biggest "takeover man"?
Retrospectively announced, earlier, Zhangzidao's controlling shareholder, Changhai County Zhangzidao Investment and Development Center, shareholder Changhai County Zhangzidao Zhangzidao Economic Development Center, and shareholder Changhai County Zhangzidao Economic Development Center pledged 160 million shares, 51.2868 million shares and 38 million shares of the company to Ping An Securities respectively due to financing needs.
Due to the failure to complete the repayment obligation of the share pledge repurchase, 3 shareholders were recourse by Ping An Securities.
On October 15 last year, Zhangzidao disclosed the progress of the matter. Three shareholders received the Shenzhen Court of International Arbitration Award due to the pledge securities repurchase dispute with Ping An Securities, requiring them to repay the principal amount of the financing to Ping An Securities and pay the corresponding liquidated damages and bear the liability for compensation.
The ruling also requires that Ping An Securities enjoy the right of first refusal to reimburse the proceeds of zhangzidao shares held by three shareholders at a discount, sale or auction.
Recently, the case has entered the enforcement procedure, Changhai County Zhangzidao Investment and Development Center, Changhai County Zhangzidao Qiaoqiao Economic Development Center, Changhai County Zhangzidao Economic Development Center as the executors, failed to perform the repayment obligations, the frozen securities should be converted, and the proceeds of the change of value to pay off the debts owed by the judgment debtors.
It is worth noting that the 109.96 million shares that were ordered to be disposed of accounted for 15.46% of Zhangzidao's total share capital, and if it is not split, the buyer who obtains this part of the equity will become zhangzidao's largest shareholder in the future. However, it is still unknown whether the equity will be spun off for auction and sale, and there is uncertainty about whether it can be successfully auctioned or sold.
A lawyer who did not want to be named told reporters that if the equity cannot be successfully auctioned or sold, the court may finally rule that the price is directly compensated to the applicant for execution.
In other words, Ping An Securities may become the largest shareholder of Zhangzidao. For Zhangzidao, as well as the shareholders who hold Zhangzidao, it may be a good turning point.
2
Turning losses into profits, Zhangzidao achieved a reversal
The net profit is expected to be 6-9 million yuan
The "2021 Annual Performance Forecast" released at the same time as the change of the controlling interest, under the supervision of the Shenzhen Stock Exchange, has made people smell a hint of financial fraud.
On January 21, Zhangzidao disclosed the 2021 annual performance forecast, and the company expects to achieve a net profit attributable to the mother of 6 million yuan to 9 million yuan in 2021, and a loss of 80 million yuan to 120 million yuan after deducting non-net profit.
In the first three quarters of 2021, Zhangzidao achieved a net profit attributable to the mother of 30.0009 million yuan, and the owner's equity attributable to the shareholders of the listed company was -26.7962 million yuan. The first three quarters are still negative, how can we immediately turn a loss into a profit in the fourth quarter?
According to the announcement, we see that the calculation of its 2021 annual net profit mainly comes from two aspects:
1. Impairment of some assets
Zhangzidao said that due to the new crown epidemic and the international trade situation have a greater impact on the company's import and export business, the input and output capacity of marine ranches has not yet fully recovered, the continuous appreciation of the renminbi has led to foreign currency asset exchange losses, shareholder litigation case settlement compensation and expected liabilities bring corresponding expenses, and some assets have been impaired, dragging down the company's overall performance.
2. The income of non-recurring profit and loss items increased
During the reporting period, the company sold the relevant assets of Long Island Company and Zhuanghe Branch, and received government subsidies and other non-recurring profit and loss items, and the company expects to make a profit of 6 million yuan to 9 million yuan for the whole year, and the net assets attributable to the shareholders of the listed company at the end of the year are positive.
Among them, the increase in profit is mainly due to the "increase in the income of non-recurring profit and loss items", which makes people feel very confused. After all, non-recurring profit and loss is a regular customer of a company's financial fraud.
Non-recurring profit and loss: A frequent customer of financial fraud
The income of the operating enterprise mainly includes recurring income and non-recurring profit and loss. Reflecting a company's long-term profitability is recurring earnings. In the short term, it is generally more difficult to increase recurring gains, and it is relatively easier to increase non-recurring gains and losses.
Recurring income is the core income of the enterprise, with the characteristics of sustainability, investors can predict the future profitability of the enterprise and judge the future sustainable development ability of the enterprise; non-recurring profit and loss has the characteristics of one-time and occasional, and the benefits brought by it are temporary.
Non-recurring gains and losses are reflected in the income statement as other business profits, investment income, non-operating income, etc., and sometimes through management expenses, financial expenses and other accounts.
For example, in order to increase the profit of the current period, some companies adjust profits by obtaining other business income through the leasing of high-quality assets of the enterprise; some companies do not recognize non-operating expenses such as the loss of fixed assets; and treat income items that should not be recognized as non-operating income, such as income from the donation of physical assets, and the appraisal and appreciation of assets invested abroad.
Therefore, although non-recurring profit or loss is also an integral part of the company's total profits, the impact on profits is temporary because it is not long-term and stable.
The special nature of non-recurring profit and loss items provides opportunities for companies to manage profits, and it should be noted that some non-recurring profits and losses are themselves illusory.
In this regard, the Shenzhen Stock Exchange requested the company to elaborate on the reasons and rationality of the changes in financial indicators in the fourth quarter, and to explain whether the company had a surprise transaction at the end of the year to avoid the implementation of the delisting risk warning for stock trading.
Zhangzidao, on the other hand, said in its reply:
In the fourth quarter, the company received the government's subsidy for the suspension of work and production in the cold chain industry affected by the new crown pneumonia epidemic in Dalian, and the sale of related assets of the Zhuanghe branch increased the company's income by about 120 million yuan; the new capital of the company's e-commerce subsidiary increased the capital reserve of the listed company's consolidated statements by about 40 million yuan.
The above-mentioned asset sale and investment absorption transactions have commercial substance, conform to the company's development strategy and shareholders' interests, the transaction pricing is reasonable and fair, there is no year-end surprise transaction to avoid the stock transaction to implement the delisting risk warning, and the relevant income is recognized and accounting treatment is compliant.
In addition, the Shenzhen Stock Exchange also asked for clarification on whether Zhangzidao's civil lawsuit arising from the misrepresentation was accrued to the estimated liabilities, the reasonable compliance of the basis for the provision, and the adequacy of the amount of the provision.
Zhangzidao said that the above-mentioned settlement payments, first-instance judgment compensation amount and unsold estimated liabilities totaled 29.3118 million yuan, the company has accrued an estimated liability of 6 million yuan in the "2020 annual report", and the remaining 23.3118 million yuan The company has fully calculated the estimated liabilities or included in non-operating expenses when disclosed in the "2021 Annual Performance Forecast".
3
Once glorious fallen
The running scallops became "a joke"
Regardless of the truth, the realization of a turnaround in the first quarter and a positive net profit is indeed very amazing.
However, most investors still do not buy it, indeed, compared with the glory of Zhangzidao, today's Zhangzidao is really miserable for shareholders....
The former Zhangzi Island is absolutely worthy of the word "brilliant".
Founded in 1958, the company has grown from a humble fishing production cooperative.
On September 28, 2006, Zhangzidao was listed as the first share of aquatic products, opening at 60.890 yuan / share, an increase of 143.56%; at the beginning of 2008, Zhangzidao's stock price was even higher than 150 yuan / share, becoming the stock king of Shanghai and Shenzhen, and also the first hundred yuan stock of mainland agriculture, even Guizhou Moutai can only hope for dust.
If you open zhangzidao's resume, a series of honors are really impressive:
In January 2006, the "Zhangzidao" brand trademark became the first well-known trademark of aquatic products in China;
In 2007, he became the first founding member of the "Global Growth Company Community" in Davos;
In 2007, he was elected as "CCTV Employer of the Year";
In 2008, it was listed as a potential enterprise of Forbes China;
In 2010, it was rated as one of the top ten most trusted brands in China......
However, Zhangzidao's years of painstaking management ushered in a turning point in 2014.
On the evening of October 30, 2014, Zhangzidao issued an announcement that more than 100 mu of Ezo scallops sown in 2011 and at the end of 2012 were almost completely out of harvest due to natural disasters caused by cold water mass changes, resulting in the impairment of the company's assets, and Zhangzidao Group also suffered a huge loss of 812 million yuan.
As soon as the news came out, the market was in an uproar, and Zhangzidao seemed to transform into the "second blue ocean shares" overnight, which was highly criticized.
Who would have thought that this was just the beginning, and then Zhangzidao repeated the same trick one after another:
On January 30, 2018, the company suddenly issued an announcement like four years ago, claiming that the scallops were abnormal, but unlike the last time, the disaster was not affected by cold water masses, but due to the increase in sea water temperature, resulting in a sharp decline in marine life, scallops due to insufficient bait and a large-scale reduction in production, the company's performance in 2017 also changed from the previously expected profit of 0.9 billion yuan to 110 million yuan to a loss of 530 million yuan to 720 million yuan;
On April 27, 2019, the company released a quarterly report claiming that due to the impact of the 2018 marine ranch disaster, scallop shell receiving resources decreased, and the company's performance also fell off a cliff again;
In November 2019, the company also issued an announcement that the Ezo scallops sown in 2017 and the end of 2018 had "large-scale natural death" in a short period of time, resulting in a significant risk of inventory impairment, and it was expected that the total amount of inventory write-off costs and provisions for inventory decline would be about 290 million yuan, accounting for about 90% of the book value of 307 million yuan at that time.
In just six years, Zhangzidao actually had four "scallop escapes"! The company said that the scallops were missing, the scallops returned, the cold water balls froze to death, and the next said that they died of high temperatures...
It is as if these scallops have grown ears and legs, and they all run when they should run, return when they should go back, and die when they should die, each time they are stuck in the company's performance losses, "running", which is really magical.
Interestingly, according to the regulations of the Shenzhen Stock Exchange, small and medium-sized board enterprises have been suspended for two consecutive years of losses, suspended from listing for three consecutive years, and will be terminated for four consecutive years, while Zhangzidao has cleverly avoided these problems by relying on the trick of scallops "running back and forth".
4
Financial fraud exposed
May there be no next "Zhangzidao scallops"
Review zhangzidao's performance since its listing. It can be seen that from 2014 to 2018, except for the slight profits in 2016 and 2018, all the losses were made.
Source: Listed company annual report, Mustang Financial Statistics
The SFC has a 002069 against Zhangzidao. SZ's Administrative Penalty Decision Letter and Market Prohibition Decision Disclosed that in 2016 and 2017, Zhangzidao had performance fraud. In 2016, Zhangzidao inflated its net profit by 130 million yuan, and in 2017, it artificially reduced its net profit by 270 million yuan. In this regard, the CSRC decided to impose a penalty of 600,000 yuan on Zhangzidao.
After combing through Zhangzidao's fraudulent data, it is not difficult for experienced financial people to find that because Zhangzidao lost money continuously in 2014 and 2015, in order to be forced to delist, Zhangzidao made the following actions:
In 2016, Zhangzidao created the illusion of profitability by inflating costs, so that Zhangzidao successfully removed its hat.
In 2017, in order to make up the cost, the cost of the 2016 reduction was added up, and the operating profit was inflated by 279 million.
In 2018, with the blessing of last year's inflated operating profit, it successfully "just" turned a loss into a profit.
Zhangzidao uses a very classic financial fraud method, called inflated profits.
In recent years, investors have also been voting with their feet for scallops. At present, Zhangzidao's market value has shrunk by 90%. Whether from the supervision or the market, it should be said that the scallops have made due reactions and handling.
In the days to come, I hope to have the "glory" of the next Zhangzidao, but don't have any more "Zhangzidao" scallops running around!