Yangtze River Business Daily News ● Yangtze River Business Daily reporter Pan Ruidong
*ST Meishang (300495.SZ), which was punished for financial fraud, credit disclosure violations, and fraudulent issuance, will come to the final stage of delisting.
On the evening of May 9, *ST Meishang announced that it had received the "Prior Notice" issued by the Shenzhen Stock Exchange. Since the closing price of the company's shares for 20 consecutive trading days was lower than 1 yuan, touching the situation of "delisting at par value", the Shenzhen Stock Exchange intends to decide to terminate the listing and trading of the company's shares. Trading in the company's shares will be suspended from the market open on May 9, 2024.
The Yangtze River Business Daily reporter noticed that as of the suspension of trading, the company's stock price was only 0.13 yuan per share. Judging from the previous compound price, at the highest price of the company's stock price of 24.924 yuan per share on January 11, 2016, the share price of *ST Meishang fell by 99.48%.
In addition, it is worth noting that at present, *ST Meishang is already in an insolvent situation, and as of the end of the first quarter, the company's debt-to-asset ratio reached 100.48%.
In eight and a half years, the net profit was inflated by 457 million
According to the announcement issued by *ST Meishang, since April 8, as of May 8, the company's stock closing price for 20 trading days has been lower than 1 yuan, touching the "par value delisting" situation. As of the close of trading on May 8, the company's share price was 0.13 yuan per share.
In fact, before the risk of delisting at face value, *ST Meishang was already facing multiple risks such as financial fraud, credit disclosure violations, and fraudulent issuance.
Back to the announcement, on the evening of March 31, *ST Meishang announced that it received the "Administrative Penalty Decision" issued by the China Securities Regulatory Commission, and from 2012 to 2019 and the first half of 2020, the company inflated its net profit for eight and a half consecutive years.
It is worth noting that *ST Meishang was listed at the end of December 2015, and the company's inflated net profit of 66.7274 million yuan that year, accounting for 60.52% of the disclosed net profit in the current period; In 2018, the company inflated its net profit by about 148 million yuan, accounting for 38.34% of the disclosed net profit for the current period. According to the rough calculation of the announcement, the Yangtze River Business Daily reporter has inflated its net profit by as much as 457 million yuan in eight and a half years.
Specifically, *ST Meishang's means of inflating net profit include falsely recording uncollected accounts receivable in the books and recovering them in advance, preparing false original vouchers to accrue interest and recording them in the accounts, falsely recording bank interest income, not adjusting project income according to the approved amount, and inflating the income of subsidiaries. Among them, the company does not adjust the project income according to the approved amount of more than 10 projects. In these projects, *ST Meishang did not reduce the revenue recognized in the previous period according to the approved amount of the project jointly confirmed by the builder, the builder and the third-party auditor, resulting in the company's continuous inflated profits from 2015 to 2019, and the annual inflated amount amounted to tens of millions of yuan.
The inflated net profit for many years has led to a significant reduction in the "authenticity" of *ST Meishang's regular reports, and the company's non-public issuance of shares constitutes a fraudulent issuance.
Specifically, on March 25, 2019, *ST Meishang was listed on a non-public offering of shares, raising a total of 930 million yuan, and the three-year financial data period declared and disclosed was from 2015 to 2017 and from January to September 2018. According to the penalty decision, the company did not meet the issuance conditions and obtained the issuance approval by deception by deception according to the occupation of non-operating funds by the actual controller during the non-public offering of *ST Meishang and the false records in the three-year financial statements on which the issuance application documents were based.
Therefore, the CSRC warned and fined Qian Renyong, then the company's financial manager and chief financial officer, Wu Yundi, then the head of the company's accounting institution, Ji Bin, then the company's supervisor, Zhou Fangrong, the company's deputy general manager at the time, Hui Feng, the company's deputy general manager at the time, and the chairman of Jindian Garden.
The market capitalization is less than 100 million
*ST Meishang was founded in 2001, headquartered in Shenzhen, and listed on the Shenzhen Stock Exchange in 2015.
In 2021, ST Meishang achieved an operating income of 214 million yuan and a net profit loss attributable to the parent of 1.045 billion yuan, in 2022, it achieved an operating income of 133 million yuan and a net profit loss attributable to the parent of 687.5 million yuan, and in 2023, it achieved an operating income of 87.5 million yuan and a loss of 545 million yuan attributable to the parent company.
In the first quarter of 2024, *ST Meishang's revenue will only be 784,800 yuan, a year-on-year change of -95.47%; The net profit attributable to the parent company was -170 million yuan. Roughly calculated, in the past three years or so, *ST Meishang has accumulated losses of 2.447 billion yuan.
From the perspective of hematopoietic capacity, from 2019 to 2023, the net cash flow of *ST Meishang's operating activities continued to be under pressure, with -158 million yuan, -20.3621 million yuan, -808 million yuan, 55.8301 million yuan, and 10.381 million yuan respectively. In the first quarter of 2024, the company's indicator will be -13.0091 million yuan.
The performance is sluggish, the operation is under pressure, and the asset-liability ratio of *ST Meishang has increased year by year. From 2021 to 2023, the company's debt ratios will be 76.07%, 82.68%, and 96.17% respectively, with significant increases. By the end of the first quarter of 2024, *ST Meishang was officially insolvent, with a debt ratio of 100.48%.
And Wang Yingyan, the actual controller of *ST Meishang, tried to make waves in the secondary market and manipulated his own stocks in order to make a profit.
According to the announcement on February 21, 2024, from June 12, 2018 to July 3, 2020, Wang Yingyan and Ji Yun of Shanghai Yongshu Asset Management Co., Ltd. actually controlled 113 securities accounts including "Wu" to manipulate *ST Meishang stocks, with a transaction amount of 80 billion yuan.
During the period, 113 accounts bought a total of 3.141 billion shares of Meishang Ecology, and the number of shares traded accounted for an average of 32.18% of the market turnover of the stock, and the craziest day was June 17, 2019, with a turnover of 58.66%. Such a large trading volume has caused the stock price of Meishang Ecology to deviate from the relevant index many times during this period. From June 12, 2018 to March 21, 2019, the company's stage rose by 34.60%, which deviated from the GEM Composite Index (-0.97%) by 35.57% over the same period.
However, Wang Yingyan manipulated her own stocks and finally failed to make a profit, and after deducting commissions and related taxes, she lost 238 million yuan.
The Yangtze River Business Daily reporter noticed that from the point of view of the non-reinstatement state, *ST Meishang was as high as 153 yuan / share on January 11, 2016, as of now, the company's stock price is 0.13 yuan / share, and the total market value is only 87.66 million yuan, less than 100 million yuan.
Considering ex-rights factors such as stock dividends and splits, from the perspective of the previous compound price, *ST Meishang 153 yuan/share corresponds to 24.924 yuan/share, based on this calculation, as of now, the company's shares have fallen by as much as 99.48%.
Flush data shows that as of now, *ST Meishang still has 21,002 shareholders. After the delisting, *ST Meishang will also face claims from numerous investors.