Yangtze River Business Daily news ● Yangtze River Business Daily reporter Cai Jia
In the past, the "stock king" of the two cities, Tencent Shares (300392. SZ) was "shelled" by its own executives for the authenticity of its earnings report.
On the evening of October 26, Tencent disclosed the third quarterly report as scheduled. In the first three quarters of this year, the company achieved operating income of 287 million yuan, a year-on-year decrease of 68.04%; net profit attributable to shareholders of listed companies (referred to as net profit, the same below) was -40.4758 million yuan, a year-on-year decrease of 2014.53%.
However, for the third time, The performance report of Tencent shares was abstained or opposed by the company's executives. On the same day, Tencent disclosed that the company's directors Wu Zhifeng, Dang Guojun and Zhang Shaohua objected to the three quarterly reports.
The reporter of Changjiang Business Daily noted that although the three directors who raised objections have not been in office for a long time, they have raised objections to the annual report, semi-annual report and the three quarterly reports of Tencent shares since this year, and pointed out that there are major defects in the company's internal control system, and the authenticity of related business cannot be guaranteed.
The above situation also reflects the internal governance chaos of Tencent shares and the doubts about financial authenticity. From its fundamental point of view, the operation of the former largest high-priced stock listed in 2014 and whose stock price once exceeded that of Moutai in Guizhou is not optimistic.
Since its listing in 2014, Tencent has only had three years of net profit after deducting recurring gains and losses. The reporter of Changjiang Business Daily roughly calculated that the company's net profit after deducting non-profit has been 384 million yuan since its listing.
In addition, Xu Wei, the controlling shareholder and actual controller of Tencent Shares, began to plan to transfer control in 2018 but has not followed for many years. As of the end of September this year, 32.37% of the company's shares held by Xu Wei were basically pledged and frozen.
The Company's directors objected to the financial statements for three consecutive times
The performance report of Tencent shares was once again disputed by its own executives.
On the evening of October 26, Tencent disclosed three quarterly reports. In the first three quarters of this year, the company achieved operating income of 287 million yuan, a year-on-year decrease of 68.04%; net profit - 40.4758 million yuan, a year-on-year decrease of 2014.53%. Among them, in the third quarter, the company achieved operating income and net profit of 5.7072 million yuan and 378,500 yuan respectively, a year-on-year decrease of 98.09% and 96.66%.
However, in the process of the board of directors of Tencent Holdings holding a meeting on the same day to deliberate on the three quarterly reports, the company's directors Wu Zhifeng, Dang Guojun and Zhang Shaohua abstained from voting on the proposal and expressed objections to the company's three quarterly reports.
Among them, director Wu Zhifeng believes that in view of the internal control system defects in the company's illegal guarantee issues, as of the date of the current board meeting, no relevant rectification report has been received, and it is impossible to judge whether the company still has the situation of violating the guarantee or other internal control system defects, based on this, it is impossible to express opinions on the company's third quarter report in 2021.
The other two directors, Dang Guojun and Zhang Shaohua, pointed out: "The company's third-quarter report shows that the operating income fell by 98.09% year-on-year to 5.707 million yuan, and the prepaid accounts rose by 289.3% year-on-year to 545 million yuan, which lacks rationality." We actively verify and review the relevant contracts, but are unable to determine whether large advance payments have commercial substance. ”
The reporter of Changjiang Business Daily noted that this is the third consecutive time that the executives of Tencent shares have raised objections to the company's performance report, and it is concentrated in this year.
At the end of April this year, Tencent disclosed the 2020 annual report and the first quarterly report of 2021, when Wu Zhifeng, a director of the company, voted against and abstained from voting against and abstaining from the annual report and the first quarterly report respectively, on the grounds that the company may have major defects in the related party trading system, there are major defects in the management and preservation of accounting data files, there are major defects in the internal control system, and the authenticity of the relevant business cannot be guaranteed.
At the end of August, Tencent disclosed the 2021 semi-annual report, the company's directors Zhang Shaohua and Dang Guojun voted against the proposal, and director Wu Zhifeng abstained, pointing out that Tencent shares were in the process of being investigated by the Securities Regulatory Commission, and on June 15, 2021, the Beijing Securities Regulatory Bureau took administrative supervision measures to issue a warning letter due to the illegal handling of the certificate of deposit pledge guarantee, and said that it had repeatedly asked the company for verification, and failed to obtain sufficient and reasonable information to determine whether the company still had the problem of illegal guarantee.
At the same time, the three directors also pointed out that it was impossible to judge whether the company's monetary funds were restricted and whether the company had funds occupied, as well as the authenticity of some accounting accounts.
It is worth mentioning that the three directors who disagreed with the three quarterly reports did not have a long tenure in the company. Among them, Wu Zhifeng, a director who has repeatedly objected to the company's performance report, began to serve as a director of Tencent shares in March 2020, and another director, Zhang Shaohua, is also the financial head of Tencent shares, with the same term starting date as Wu Zhifeng, and Dang Guojun was elected as a non-independent director of the company in January this year.
What was once a 100-yuan high-priced stock is currently trading at less than $7
Tencent shares, which were "shelled" by their own executives for serious internal control deficiencies and untrue businesses, were actually not optimistic about their operating conditions.
According to the data, Tencent co., Ltd. is one of the earliest companies engaged in Internet marketing services in China, and landed on the CHINext board in September 2014 with the halo of "the first share of Internet marketing".
Shortly after the listing, the stock price of Tencent soared, rising from the issue price of 26.1 yuan / share to 158.51 yuan / share in only two months, once surpassing Guizhou Moutai and becoming the highest priced stock in the two cities.
Not only the management problems reflected by the above three executives, only from the fundamentals of Tencent shares, the company's profitability in recent years has not been good, and in the third year of listing, the company's performance began to show losses.
According to the data, from 2014 to 2017, Tencent achieved operating income of 839 million yuan, 1.452 billion yuan, 1.349 billion yuan and 1.624 billion yuan, and net profit of 0.9 billion yuan, 147 million yuan, -266 million yuan and -137 million yuan, respectively.
In 2018, although the company that relied on the sale of assets turned a profit, the good times were short-lived, and its actual profitability was no longer what it used to be. From 2018 to 2020, Tencent achieved operating income of 1.332 yuan, 1.481 billion yuan and 891 million yuan, and net profit of 0.16 billion yuan, 0.34 billion yuan and -105 million yuan, respectively.
If you look at the net profit after deducting non-recurring gains and losses, in the seven years from 2014 to 2020, Tencent shares have four years of non-net profit losses. If you count the first three quarters of this year, the company has accumulated a loss of 384 million yuan in non-net profit since its listing.
In last year's annual report, although Tencent did not identify internal control deficiencies related to financial reports and non-financial reports, at this time, director Wu Zhifeng voted against the proposal of the internal control self-evaluation report, and the regulatory authorities also inquired about this situation, and the company said that it would complete rectification before the end of September this year.
However, from the current situation, the serious defects in the internal control of Tencent shares seem to have not yet been resolved, and the internal disagreements among executives are still increasing.
It is worth mentioning that as early as June 2018, Tencent shares had planned to change owners. Xu Wei, the controlling shareholder and actual controller of the Company, intends to transfer the shares of the listed company with the second largest shareholder, Tester, to transfer control. However, since then, Tester has successfully completed the transfer of shares, and Xu Wei has not lifted the ban on the shares he holds and is restricted in the proportion of reductions, and the matter of changing ownership will not be resolved.
As of the end of September this year, Xu Wei directly held 124 million shares of Tencent shares, accounting for 32.37% of the company's total share capital, and the number of shares with limited sale conditions was 88.48 million shares, and the company's shares he held were basically in a state of 100% pledge and freezing.
As of the close of trading on October 27, The stock price of Tencent shares fell to 6.39 yuan per share, falling by more than 30% in the past four months, with a total market value of only 2.454 billion yuan.
Editor-in-charge: ZB
This article originated from the Yangtze River Business Daily