Huayu Software (300271) burst into a melon!
On the evening of August 29, the company released its semi-annual report, revealing a major incident that occurred more than 5 months ago: Chairman Shao Xue was investigated and liened by the Beijing Municipal Commission of Supervision for suspected bribery in March this year, and failed to perform relevant duties and express opinions on the semi-annual report. It is understood that the above-mentioned case filing and investigation matters are only for Shao Xue personally and have nothing to do with the company. According to public information, Shao Xue is the actual controller of Huayu Software and is currently the general manager of the company.
In terms of performance, affected by business development and a low base in the same period last year, the company achieved a significant increase in revenue and net profit in the first half of this year, recording operating income of 2.154 billion yuan, an increase of 157% year-on-year; net profit of 215 million yuan, an increase of nearly 12 times year-on-year.
The actual controller was filed and investigated more than 5 months ago
In fact, as early as March 22, more than five months ago, Huayu Software had already received a notice from the Beijing Municipal Commission of Supervision that Shao Xue had been filed for investigation, and learned that he had been placed in lien on March 21. It is reported that Shao Xue was investigated for suspected bribery. Huayu Software said that it is understood that the case filing and investigation is only for Shao Xue personally and has nothing to do with the company.
So, why did Huayu Software keep shao Xue's case under investigation secret until the relevant announcement on August 29? In this regard, the company said that because the above-mentioned incident was still in the investigation stage of the relevant departments, and before the semi-annual report of the board of directors was held on August 27, there was no situation in which Mr. Shao Xue could not perform his duties, and combined with the relevant legal provisions, it believed that the matter did not constitute a major event that needed to be disclosed. However, on August 27, the board of directors of the company's semi-annual report did not receive Shao Xue's opinions on the proposal related to the periodic report, Shao Xue failed to perform the duties of a director in this board of directors, superimposed on the factors of his retention, and the secretary of the board of directors, Wei Guangyu, believed that the above situation may constitute a major event that needs to be disclosed, and reported to the board of directors to disclose.
At the same time, Hoau Software has developed a solution: add a provisional proposal to the semi-annual report of the board of directors, and elect director Zhao Xiaoming to perform the duties of chairman and general manager.
According to the relevant provisions of the Supervision Law of the People's Republic of China, the Supervision Organs may, in accordance with regulations, employ retention in custody measures to retain persons involved in cases suspected of bribery or joint job-related crimes; the period of retention in custody must not exceed three months, and in special circumstances, it may be extended once, and the extension period must not exceed three months. An industry insider familiar with the rules told reporters that the liuzhi personnel are in a state of monitoring, which will restrict certain personal freedom, and the parties generally cannot attend the meeting on the spot, but may be able to perform their duties through writing or communication, depending on the severity of the case and the need for confidentiality.
The securities times e company reporter paid attention to the fact that since Shao Xue was investigated, he has not appeared on the company's board of directors. Combing through the announcements of the previous board resolutions of Huayu Software, it can be found that at the 21st and 22nd board meetings of the seventh session of the board of directors held on April 20 and June 28, Shao Xuedu was unable to attend for some reason, and authorized director Zhao Xiaoming to exercise voting rights.
According to public information, Shao Xue can be called the soul of Huayu Software, who has been the chairman of the company since 2003, and is currently the general manager and the actual controller of the company. As of the end of the half year, Shao Xue held 110 million shares of listed companies, with a shareholding ratio of 13.21%, equivalent to a market value of nearly 2 billion yuan.
The half-year performance increased by nearly 12 times
Although the chairman of the board of directors was investigated, The business of Huayu Software is still stable. According to the data, in the first half of the year, the company achieved operating income of 2.154 billion yuan, an increase of 157% year-on-year; net profit of 215 million yuan, an increase of 1190% year-on-year; net profit attributable to the mother after deduction of non-profit was 204 million yuan, an increase of 2703% year-on-year.
The reason for such a large increase is related to the low base of the same period under the influence of the epidemic in the previous year. Looking back at the first half of 2020, the company only achieved a net profit of 16.66 million yuan, a sharp drop of more than 90% over the same period in 2019. Therefore, if the results of the first half of this year are compared with the same period in 2019, they are more comparable. According to calculations, Hoau Software's operating income in the first half of this year increased by 57% compared with the same period in 2019, with a large increase; net profit fell slightly by 5.7% compared with the same period in 2019.
However, in terms of the single quarter of the second quarter, The development of Hoau Software's business has achieved remarkable results. Excluding the impact of equity incentives, the net profit attributable to the parent in a single quarter was 195 million yuan, an increase of 14.15% over the same period in 2019 and a year-on-year increase of 367.57%. In this way, the overall performance of Hoau Software remains in a benign range.
Born from Tsinghua University, Huayu Software is mainly engaged in the product development and service of e-government systems, mainly providing application software, system construction services and operation and maintenance services for the government, courts, procuratorates, etc., and its main business includes legal technology, education informatization, smart government affairs, and enterprise services. From the listing in 2011 to 2019, it has maintained positive growth in net profit, and the growth rate has mostly stabilized between 20% and 40%; until 2020, there was a first year-on-year decline in net profit, and the net profit for that year was 290 million yuan, down 49.51% from 2019.
In the first half of this year, the company's business began to rebound, the main new contract amount of 1.7 billion yuan, an increase of 56% year-on-year, of which the legal technology business new contract amount of 1.014 billion yuan, a sharp increase of 92% year-on-year; the end of the period of the contract in hand 4.679 billion yuan, an increase of 81%. However, the gross profit margin of the legal technology business, which accounts for nearly half of the main business, was only 29.87% in the first half of the year, down 13.91 percentage points year-on-year.
It is worth mentioning that Hoau Software is quite popular with investors, receiving a total of 7 investor surveys in the first half of the year, and communicating with hundreds of institutional and individual investors on the company's business development. In the secondary market, the company has fallen by more than 5 percentage points in the past six months, and the trend is weaker than the overall level of the industry, with the latest stock price of 17.97 yuan / share and a market value of 14.9 billion yuan.
(Editor: Peng Bo)