#挑战30天在头条写日记#
During the reporting period, it acquired four enterprises not under the same control, namely 51% equity of China Shore Logistics, 51% of China Shore Customs Declaration, 51% of Jiangsu Overseas Economic Cooperation, and 51% of China Shore Shipping
The four companies were acquired at a premium, with premium rates of 21%, 0.62%, 89% and 0.06% respectively, and a total of 3.28 million yuan of goodwill was recognized.
So the question is, where does the more than 20 million non-recurring income come from?
This question is not only perplexed by us, but also by the regulators, so we sent a letter of inquiry
IT IS EXPLAINED AS A RESULT OF THE CAPITAL INCREASE OF AN OFFSHORE COMPANY, STEELMAG SAS CORPORATION.
This company is mainly engaged in the production and sales of magnets and casing assemblies
IN 2012, ITS MAJOR CUSTOMER CANCELLED THE ORDER, RESULTING IN STEELMAG SAS NOT BEING ABLE TO CONTINUE AS A GOING CONCERN AND THE BUSINESS AND ASSETS WERE DISPOSED OF UNDER THE AUSPICES OF A LOCAL COURT
The transaction, with a consideration of 140,000 euros (1.2 million yuan) and a non-recurring gain of 20.42 million yuan, finally recognized a non-recurring income, looks like a good deal
However, there is another detail to note, although in 2014, its net profit was -04 million yuan, but the ROE was positive, and at the same time, the ROIC was negative, why is this?
In this case, the ROE is positive and the ROIC is negative, because the calculation of ROE is based on the calculation of "net profit attributable to the parent company".
In 2014, its two subsidiaries, which held 30% and 40% of the shares respectively, magnified their losses in this year, and because of their low shareholding ratio, most of the losses were borne by minority shareholders
Therefore, the profit and loss of minority shareholders in the current period was -07 million yuan, so the net profit attributable to the parent company became positive, which was 04 million yuan.
At the same time, according to the formula: ROE = net profit attributable to the parent / net assets of equity;
ROIC = NOPAT (Operating Profit Before Interest and Taxes) / IC (Invested Capital), where: Invested Capital (IC) = Net Operating Assets = Net Debt + Shareholders' Equity
In terms of numerators, the difference between net profit attributable to parent and NOPAT is that the numerator does not include minority shareholders' interests, normal interest payments, and after-tax income of minority shareholders
In this case, since the net profit attributable to the parent company is positive, the ROE is positive, but the ROIC will take into account the profit and loss of the minority shareholders, so that the NOPAT is negative, so the ROIC is negative
You see, in this case, it's clear that ROIC is a more important indicator of the return on capital invested by shareholders that deserves to be looked at.
Going back to the situation at the time of this case, it is clear that the quality of profits is worrying.
At the same time, the quality of its accounts receivable is not high, and it is amplifying year by year, which is another warning sign
From 2011 to 2014, accounts receivable and bills were 237 million yuan, 313 million yuan, 443 million yuan and 563 million yuan respectively, accounting for 26.51%, 28.87%, 31.50% and 27.32% of revenue
Accounts receivable grew in absolute terms in 2014, but as a percentage of revenue, down slightly – due to an accounting detail that is easily overlooked
Predict the follow-up and listen to the next breakdown
It does not constitute any investment advice, the stock market is risky, and you need to be cautious when entering the market