#以书之名#
If you go back to 2004, the University of Technology and the University of Technology Group jointly built the "Harbin Yellow River Park" project
The project is constructed in the way of "Gongda Group out of the land, and Gongcheng High-tech entrusts its subsidiary Gongcheng Real Estate Construction".
During the period, the University of Technology also prepaid a construction project payment of 203 million yuan, resulting in a negative net cash flow from operating activities that year.
This huge advance payment is 15 times the net profit of the year (13 million yuan) and 68% of the book money funds of the year
So, what is the commercial essence of this advance and where is it going?
Unfortunately, this question has become a mystery.
In the annual report of the University of Technology, it did not disclose the actual whereabouts and reasons
To sum up, looking back at its performance at this stage: the real estate business was weak, and then mergers and acquisitions were loaded into new assets. As a result, the stock price first fell and then rose.
Well, see this, it's not over yet. We also need to continue to think from the perspective of shareholders: what is the performance of the newly injected assets?
Let's take a look at the revenue and net profit data:
Obviously, the performance is not optimistic, revenue first increased and then declined, net profit is still small profit, and even in 2007 to 2008, and from 2014 to 2015, there were two consecutive net profit losses, on the verge of delisting.
Since there was a loss in net profit, ROE and ROIC also correspondingly showed losses
You see, when you get to this place, you can no longer say that the value is worn out, but directly enter the state of "value damage".
If you had chosen to become their long-term shareholder at that time, you would have had to say just four words: good luck.
At this stage, we split its ROE into three phases:
1) From 2007 to 2008, it lost money for two consecutive years
There are two reasons for the loss of profits:
First, the price of raw material soybeans has risen, resulting in a decline in gross profit margin
In 2007, due to frost in Heilongjiang, its output fell from more than 7 million tons in previous years to more than 4 million tons. As a result, soybean prices have risen by 60%
Second, the management cost has risen - in 2007, the Industrial University Group transferred the land use right of the above-mentioned Yellow River Park project to the Industrial University High-tech, and the Industrial University High-tech paid an advance payment of 300 million yuan, which was included in the "intangible assets" account
Subsequently, the land property rights could not be changed, so in 2008, the University of Technology and High-tech transferred this part of the amount to "prepaid accounts"
In the current year, the amortization of intangible assets accrued in the previous year was 29.65 million yuan, which was transferred to the provision for bad debts, which increased the management expenses of the current period
The cost side and the expense side encountered double pressure, which made the University of Technology High-tech lose money for two consecutive years and became *ST High-tech.
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