Suddenly 20cm drop limit, what happened to this Huawei concept stock?
Text | Yang Wanli
On the first trading day of 2024, Huawei's concept stock ST Yilianzhong opened with a 20cm drop limit. As of this writing, the company's share price is 5.46 yuan, and the total market value is 2.348 billion yuan. On the disk, more than 230,000 sell orders are hung on the down limit.
In terms of news, the company's shares have been subject to other risk warnings since the market opened on January 2, 2024, and the stock abbreviation has been changed from "Yilianzhong" to "ST Yilianzhong".
The reason why ST Yilianzhong was put on other risk warnings was that it announced on November 28 last year that the company found that it had not fulfilled any internal control approval/board of directors/shareholders' meeting deliberation and decision-making procedures, provided illegal guarantees for the actual controller/controlling shareholder/then chairman Zhang Xi and his related parties, and Zhang Xi signed illegal loans in the name of the company. As of the disclosure date of the announcement, the company's related illegal guarantees and illegal loans have not been released.
We are concerned that on November 28 last year, the Shenzhen Stock Exchange issued a letter of concern, requiring the company to explain the specific situation of the actual controller Zhang Xi's personal debts and related litigation and arbitration, and asset pledge freezing.
The Shenzhen Stock Exchange also stated that Zhang Xi violated the guarantee and illegal loan in the name of the company, involving a huge amount of money, a long time span, and serious circumstances, and was suspected of violating relevant regulations, and disciplinary proceedings would be initiated against the relevant violating parties.
On November 29 last year, ST Yilianzhong announced that Zhang Xi was investigated by the Securities Regulatory Commission on suspicion of violating laws and regulations.
With ST Yilianzhong "capped" today, the company's stock price has fallen significantly. For the whole year of 2023, ST Yilianzhong's stock price has risen by 13.67%.
According to public information, as of the first half of 2023, ST Yilianzhong's business includes customized software and IC, technical services, other services, system integration and hardware, insurance brokerage, etc.
Straight flush shows that ST Yilianzhong is wearing a number of popular concepts, such as Huawei concept, artificial intelligence, big data, etc. On July 31, 2020, Yilianzhong replied in Interactive Easy that the company participates in the construction of Huawei's HarmonyOS ecosystem, mainly relying on the HarmonyOS system to develop the company's software and systems, and some products are in the R&D and debugging stage.
In terms of performance, the company achieved operating income of 477 million yuan in the first three quarters, a year-on-year increase of 60.49%; The attributable net profit was about 128 million yuan, a year-on-year increase of 170.68%. In terms of institutional holdings, in the first three quarters of last year, 4 securities firms and 2 public fund products ranked among the top 10 circulating shareholders.
Looking further ahead, in 2022, the company will achieve revenue of 539.2 million yuan, a year-on-year decrease of 38.10%, and attributable net profit of -319.8 million yuan, a year-on-year decrease of 192.69%. For the full year of 2022, the company's stock price has fallen by 33.18%.
We will keep an eye on how ST will perform in the future.