Recently, Minshan Huaneng Hi-Tech Co., Ltd. (hereinafter referred to as "Minshan Huaneng") disclosed a prospectus to be listed on the Beijing Stock Exchange IPO, with a public offering of no more than 70 million shares (without considering the over-allotment option) or no more than 80.50 million shares (in the case of full exercise of the over-allotment option of this stock issuance).
Titanium Media APP noticed that Minshan Huanneng has "two mysterious operations", such as selling the first major product with high pollution and high environmental risk at a loss, and helping shell companies improve their corporate image through "unconventional methods".
Sell the No. 1 product with high pollution and high environmental risk at a loss
Minshan Huanneng is a resource production and comprehensive utilization enterprise integrating clean production of non-ferrous and rare precious metals, comprehensive recycling of hazardous waste and solid waste, and manufacturing of high-tech materials.
From 2020 to 2022 and from January to June 2023 (hereinafter referred to as the "reporting period"), Minshan Huanneng achieved operating income of 2.886 billion yuan, 2.814 billion yuan, 2.599 billion yuan and 1.43 billion yuan respectively, and net profit of 97.2768 million yuan, 70.7676 million yuan, 46.1378 million yuan and 23.0763 million yuan respectively, and its performance continued to decline.
From the perspective of the final product form, Minshan Huanneng mainly owns lead ingots, silver ingots, non-standard gold ingots, zinc ingots, copper products, etc., the details are as follows:
Among them, the sales revenue generated by lead ingots was 1.354 billion yuan, 1.209 billion yuan, 1.137 billion yuan and 670 million yuan respectively, accounting for 47%, 43.36%, 43.85% and 47.06% of the main business income in the current period, which was the company's largest product.
It should be noted that during the reporting period, the gross profit margin of lead ingots was 4.17%, 0.62%, -3.76%, and -2.71% respectively, and the gross profit margin showed a downward trend, especially in 2022 and the first half of 2023, the gross profit margin of lead ingots was even more negative. At the same time, due to the negative gross profit margin in the first half of 2022 and 2023, the gross profit realized by the company's lead ingots is -42.6785 million yuan and -18.1642 million yuan respectively. This also means that in 2022 and the first half of 2023, Minshan Huaneng's largest product will be sold at a loss, and perhaps because of this, Minshan Huaneng's performance will continue to decline. So, why is the change in the Minshan Huanneng lead ingot so bad?
In addition, Titanium Media APP also noticed that Minshan Huanneng's lead ingots are mainly composed of primary lead ingots and recycled lead ingots, the details are as follows:
It can be seen that except for the first half of 2023, in the rest of the time period, primary lead ingots are the most important products of Minshan Huanneng. It should be noted that Minshan Huanneng's primary lead ingots are highly polluting and high-environmental risk products.
In particular, in March 2022, the Long'an Branch of the Anyang Municipal Bureau of Ecology and Environment issued a relevant administrative penalty decision to Minshan Huaneng, in response to Minshan Huaneng's failure to formulate a "one plant, one policy" implementation plan in accordance with the requirements of "30% production limit of lead smelting furnaces during the orange warning period" in the "Technical Guidelines for the Formulation of Emergency Emission Reduction Measures for Key Industries in Heavy Pollution Weather (2020 Revised Edition)", as well as penalties for violations of incomplete original monitoring records of emission data: (1) order to correct illegal acts; (2) A total fine of 90,400 yuan was imposed.
In February 2021, the Environmental Protection Bureau of Long'an District, Anyang City, issued the "Administrative Penalty Decision of Long'an District Environmental Protection Bureau" to Anguang Logistics, which punished Anguang Logistics for failing to implement the notice of the Anguang Environmental Pollution Command Office on the implementation of the orange warning (Level II response) special control notice to stop production: Anguang Logistics was ordered to immediately stop the illegal acts and imposed a fine of 10,000 yuan.
Helping shell companies improve their image
There are also many related party transactions in Minshan Huaneng, such as related sales and related party procurement, among which the occasional related party transactions of Minshan Huaneng have attracted special attention from Titanium Media APP. It is reported that in 2020, the amount generated by Minshan Huaneng's related sales to Anyang Kaitai will be 5.5057 million yuan.
In this regard, Minshan Huanneng explained in the declaration draft that the purpose of the above transaction is to allow Anyang Kaitai to generate a certain turnover, improve its corporate image, and enhance bank credit and bank relations.
The claim seems debatable. First of all, Anyang Kaitai was established in April 2014, and He Zhijun, the core technical staff of Minshan Huaneng, once held 36% of the shares and served as a legal person and chairman. At the same time, Anyang Kaitai is a shell company with no actual business and assets. Does a company of this quality need to improve its image?
Secondly, the national enterprise information credit publicity system shows that Anyang Kaitai was cancelled in September 2021. This also means that in 2020, Minshan Huaneng just helped Anyang Kaitai improve the company's image, and immediately canceled it the following year, which is really incomprehensible.
Finally, in 2020, the balance of accounts receivable between Minshan Huanneng and Anyang Kaitai was 30.008 million yuan, and all the funds in this part were provided for bad debts.
It should be noted that the main reason for the above-mentioned accounts receivable balance is that in July 2017, Minshan Huanjiang submitted a related party to Shijiazhuang Dasong Technology Co., Ltd. (hereinafter referred to as "Dasong Technology") through its related party Anyang Kaitai The prepayment of lead concentrate purchase money of 30 million 80 million yuan, which formed other receivables of 30 million 80 million yuan from Minshan Huanneng to Anyang Kaitai, and 30 million yuan of receivables from Anyang Kaitai to Dasong Technology, after Dasong Technology failed to deliver on time, because Anyang Kaitai is a shell company with no actual business and assets, it cannot recover funds from Dasong Technology, and it cannot transfer funds to Minshan Huaneng.
In June 2021, Anyang Kaitai transferred 30.008 million yuan of debt receivable from Dasong Technology to Minshan Huaneng, and the transfer of its receivables from the company was offset against the same amount of debt of Anyang Kaitai to Minshan Huaneng. Due to the abnormal operation of Dasong Technology (involving more than 10 cases of recovery of various private loans and financial loans, which has been listed as a dishonest person subject to execution), Minshan Huaneng's continuous recovery is invalid, and the above-mentioned amount has been confirmed by the company's prudent judgment to be irrecoverable, and it will be written off in 2021 (credit impairment losses have been fully accrued in 2019).
In short, Minshan Huanneng should have recovered the money from Anyang Kaitai to ensure that its interests were not lost, but in June 2021, after Anyang Kaitai transferred its 30 million yuan debt to Dasong Technology to Minshan Huaneng, it left easily, and cancelled the company in September of the same year, so the account was "rotten" in the hands of Minshan Huaneng.
Based on the above situation, people can't help but wonder, is it just because the core personnel of Minshan Huaneng are shareholders of Anyang Kaitai, Minshan Huaneng is so "friendly" to Anyang Kaitai? Is there a deeper correlation between the two?
In fact, in addition to related party transactions, Minshan Huaneng's related party procurement is also full of doubts. According to the prospectus, Minshan Huaneng purchases goods/accepts labor services from related parties as follows:
Among them, from 2020 to 2021, the purchase amount from Jiyuan Anhua Trading Co., Ltd. (hereinafter referred to as "Anhua Trading") was 64.5111 million yuan and 5.904 million yuan respectively.
Tianyancha shows that Anhua Trading was established in 2018 and is 100% owned by Gao Bo. At the same time, as of the end of 2020, the paid-in capital of Anhua Trading was 100,000 yuan, and the number of employees who paid social security and provident fund was 0.
At the same time, Gao Bo was an employee of Minshan Huaneng and left the company in February 2021. In other words, in 2020, the transaction between Minshan Huanneng and Anhua Trading was a large purchase from the company's employees. This makes people wonder whether Gao Bo is using his position to seek his own interests. At the same time, with a paid-in capital of only 100,000 yuan and no employees paying social security, where did Anhua Trading get the funds to provide more than 65 million yuan of goods to Minshanhuan?
Coincidentally, Anhua Trading's 2021 annual report shows that Gao Bo transferred 100% of his equity to Chu Guifang, and it was this year that Minshan Huaneng's purchases from Anhua Trading fell sharply, and there will be no purchases in 2022 and the first half of 2023.
In particular, the National Enterprise Information Credit Publicity System shows that Anhua Trading has been cancelled in April 2024. So, why did Gao Bo no longer be a shareholder of Anwar Trading, and the procurement between Minshan Huanneng and it came to an abrupt end? And why did Anwar trade suddenly deregister? (This article was first published in Titanium Media APP, author|Deng Haotian)