Pi Hai Chau | Cube everyone talks columnist
On the evening of October 24, Haoyue Nursing replied to the Shanghai Stock Exchange that the funds invested in the company's futures would not affect the company's normal production and operation. The company decided to terminate the futures investment in an orderly manner, choose the opportunity to reduce and close the position of the current position, terminate the futures business as soon as possible, cancel the futures account, and the company will still devote its main energy to the main business operation in the future.
According to the "Announcement on the Reply to the Regulatory Work Letter of the Shanghai Stock Exchange" issued by Haoyue Nursing, as of the close of trading on October 22, 2021, the company invested a total of 153.1 million yuan in futures investment in 2021, accounting for 5.49% of the company's audited net assets in 2020, and generated a cumulative loss (including floating loss) of 67.98 million yuan, accounting for 11.28% of the company's audited net profit in 2020. At present, the company's futures account has appropriately reduced the number of positions on the basis of the previous disclosure, and the current margin is sufficient. The maximum loss that the Company may face in 2021 futures investment is the amount of accumulated losses (including floating losses) and the remaining equity of futures accounts, totaling $153.1 million, accounting for 5.49% of the audited net assets in 2020.
The reason why Haoyue Nursing received the regulatory letter from the Shanghai Stock Exchange stemmed from the "Explanation on Matters Related to subsidiary investment futures" issued by the company on the evening of October 12. The note said that the company's subsidiary Jiangsu Haoyue invested a total of 153 million yuan in futures accounts, and still holds a total of 899 coke and coking coal contracts, with a floating loss of 53.4924 million yuan. As of October 11, Jiangsu Haoyue has accumulated a floating loss of 69.3415 million yuan this year. To this end, Haoyue Nursing received a regulatory work letter issued by the Shanghai Stock Exchange that night, namely the "Regulatory Work Letter on Futures Investment Matters of Hangzhou Haoyue Nursing Co., Ltd." Inquiries regarding The Company's futures investment. Therefore, this has led to the release of the "Announcement on the Reply to the Regulatory Work Letter of the Shanghai Stock Exchange" on the evening of October 24.
According to the reply of Haoyue Nursing, all directors, supervisors and senior management of the company apologized for the losses caused by futures investment, and the company warned the main responsible persons and dealt with salary cuts. The company decided to terminate the futures investment in an orderly manner, choose the opportunity to reduce and close the position of the current position, terminate the futures business as soon as possible, cancel the futures account, and the company will still devote its main energy to the main business operation in the future.
As a matter of Haoyue Nursing, it is very necessary to be able to terminate futures investment in an orderly manner, terminate the futures business as soon as possible, cancel the futures account, and even warn and reduce the salary of the main responsible person. Although it is a remedy, it is still of positive significance for the company's future development. Because from the company's point of view, investing in futures is a risky move. As the company itself summarized, although the members of the company's futures trading management team have certain commodity procurement, commodity futures investment and risk management capabilities, but without strict and professional training, the company's futures investment mainly relies on the price judgment formed by long-term commodity price tracking, investment experience, investment capabilities, risk management and control capabilities need to be further improved. At the same time, the company's futures investment personnel do not have a deep understanding of hedging, and the actual futures investment behavior has a high risk. Therefore, it is not appropriate for the company to invest in futures, and the most likely result of further investment is to exacerbate losses.
In this regard, Qin An shares, the "god of futures" among A-share listed companies, have a lesson. QinAn shares began to get involved in futures investment last year, and the initial performance is quite prominent. In the nearly five months from April 15 to September 11 last year, Qinan co., Ltd. carried out a total of 21 futures liquidations, without a single loss, all of which made money, and the cumulative income reached 769 million yuan. However, in the 12 trading days from September 11 to September 25, QinAn shares' futures liquidation lost more than 60% of the previous five months. By September 28 last year, QinAn shares had closed all futures contracts, and the cumulative profit of the company's futures investment was 297 million yuan. After all positions were closed, the company announced its withdrawal from investment futures trading.
However, the company has entered the futures market again this year. Qinan shares announced on the evening of September 14 that from January 1, 2021 to September 14, 2021, the company's futures investment liquidation accumulated losses of 17.5126 million yuan, as of September 14, 2021, the company's futures account floating loss balance was 31.9905 million yuan. As a "futures god" in A-share listed companies, he still can't grasp the investment risks of the futures market, so the sooner a "futures rookie" like Haoyue Nursing exits the futures market, the better. The larger the amount of money invested, the longer it lasts, it will only make itself deeper and deeper, and eventually endanger the development of the company's main business, so naturally it is due to small mistakes. Therefore, the decision of Haoyue Nursing to terminate futures investment and focus on the main business in the future is obviously wise, and the so-called "it is not too late to make up for the dead sheep".
Editor-in-charge: Anqi Liu | Review: Li Zhen | Director: Wan Junwei