"In order to improve the quality of listed companies, in addition to making efforts at the operational level, they should also further comply with regulations and improve the level of corporate governance. Song Qinghui, a well-known economist, told the "Securities Daily" reporter.
The downward revision condition triggered by the conversion price of "Wanqing Convertible Bonds" was not disclosed in a timely manner, and the Shenzhen Stock Exchange issued a regulatory letter to Wan Nianqing
Securities Daily reporter Cao Qi
On April 8, the Shenzhen Stock Exchange issued a regulatory letter to Wan Nianqing. Wan Nianqing violated the relevant regulations by failing to disclose the indicative announcement in a timely manner five trading days before the expected triggering of the conversion price correction condition, and failing to disclose the indicative announcement of the correction or non-amendment of the convertible bond conversion price before the market opens on the next trading day after the triggering of the conversion price correction condition.
Affected by the sluggish demand in the cement industry, Wan Nianqing's performance was under pressure and the stock price was sluggish. Bai Wenxi, vice chairman of the China Enterprise Capital Alliance, believes that in order to achieve sustainable development of the cement industry, it is necessary to improve the added value and competitiveness of the industry, on the one hand, it is necessary to strengthen technological innovation and intelligent transformation, for example, the use of new dry cement production lines to improve the firing efficiency and quality of clinker; on the other hand, it is necessary to extend the industrial chain, such as entering the fields of ready-mixed concrete and prefabricated components, to provide one-stop building material solutions.
The downward revision conditions triggered by the conversion price of "Wanqing Convertible Bonds" were not disclosed in a timely manner
According to the announcement, Wan Nianqing has publicly issued 10 million convertible corporate bonds on June 3, 2020, with a face value of 100 yuan each, with a total issuance of 1.000 billion yuan, and the net funds raised are intended to be invested in Jiangxi De'an Wannianqing Cement Co., Ltd. to build a 6600t/d clinker cement production line (supporting waste heat power generation) project and Jiangxi Wannianqing Cement Co., Ltd. Wannian Cement Plant 2×5100t/d clinker cement production line (supporting waste heat power station) off-site technical transformation and environmental protection relocation project.
After a number of equity distribution, the "Wanqing Convertible Bonds" conversion price was adjusted from the initial 14.16 yuan/share to 12.40 yuan/share, and on March 25, Wannianqing has appeared in any 30 consecutive trading days for 15 trading days The closing price is lower than 80% of the current conversion price of 12.40 yuan/share (i.e. 9.92 yuan/share), which has triggered the downward revision of the conversion price. On March 26, the company's board of directors deliberated and passed the "Proposal on Proposing to Downward Revise the Conversion Price of "Wanqing Convertible Bonds", which still needs to be submitted to the 2023 Annual General Meeting of Shareholders for deliberation, but it has not been disclosed to the public in a timely manner.
Famous economist Song Qinghui
Bedside economics ¥59.8 to buy
"In order to improve the quality of listed companies, in addition to making efforts at the operational level, they should also further comply with regulations and improve the level of corporate governance. Song Qinghui, a well-known economist, told the "Securities Daily" reporter.
In recent years, the share price of Wan Nianqing Company has been sluggish, and since September 2020, the stock price once soared to 18.94 yuan per share and then fell rapidly, most of the time in the downward channel. On April 9, Wan Nianqing's share price closed at 6.15 yuan per share.
The long-term downturn in the stock price is obviously related to the pressure on the company's performance. According to the annual report, in 2023, Wan Nianqing will achieve operating income of 8.19 billion yuan, a year-on-year decrease of 27.4%, a net profit attributable to shareholders of listed companies of 229 million yuan, a year-on-year decrease of 41.17%, and a net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses of 182 million yuan, a year-on-year decrease of 49.08%.
"Affected by multiple factors such as the slowdown in the growth rate of fixed investment, the continued bottoming out of the real estate market development investment, the continuous contraction of the cement sales market, and the increasingly stringent off-peak production, cement demand has fallen for the third year since 2021, and the market demand has been sluggish throughout the year. The sluggish demand for cement market led to an overall low decline in cement market prices throughout the year. Wan Nianqing said.
Industry demand needs to be improved
According to the annual report, the gross profit margin of the cement sector in 2023 will be 14.09%, a decrease of 3.95% from the previous year, the gross profit margin of the concrete sector will be 25.17%, an increase of 3.17% from the previous year, and the gross profit margin of the aggregate sector will be 31.94%, a decrease of 11.65% from the previous year.
In this regard, Wan Nianqing said that from the perspective of raw material prices, all the limestone used by the company is mined by the company's own mines, and the mining cost is relatively low, which has little impact on business performance, but the cement manufacturing process is greatly affected by coal and electricity prices. Since 2023, the relationship between coal supply and demand has been relatively stable, and the annual average price has fallen compared with 2022, but coal prices are still relatively high and fluctuate in a narrow range. The company has reduced fuel costs by strengthening cooperation with large coal enterprises and developing new procurement channels and resources, while reducing energy costs by refining production control to reduce coal power consumption and increasing technology research and development to find alternative fuels. During the reporting period, the company's cement and commercial concrete production costs decreased by 13.16% and 11.83% respectively, effectively increasing profits.
Looking forward to 2024, will the market demand of the cement industry improve? Wan Nianqing said that the current economic recovery of China, the construction of affordable housing, the construction of public infrastructure for both ordinary and emergency purposes, and the transformation of urban villages "three major projects" will be accelerated, and the accelerated implementation of infrastructure projects such as the Changjiu high-speed railway, the third phase of the reconstruction and expansion of Changbei Airport, and the Poyang Lake water conservancy hub project will play an important supporting role in cement demand. However, at the same time, real estate investment continues to decline, investment growth slows down, new production capacity and other actual conditions still exist, will further exacerbate the contradiction between supply and demand, but opportunities often coexist with challenges, the current mainland household registration urbanization rate, per capita railway mileage, per capita highway mileage and the United States, Japan and other developed countries There is still a certain gap, in the long run, there is still some room for improvement in the per capita infrastructure level of the mainland, or to form a certain support for cement demand. Original title: The downward revision condition triggered by the conversion price of "Wanqing Convertible Bonds" was not disclosed in a timely manner The Shenzhen Stock Exchange issued a regulatory letter to Wan Nianqing
(Edited by Shangguan Monroe)