China-Singapore Jingwei client, June 22 (Zhang Shunan) Excellent companies are similar, unfortunate companies have their own misfortunes. The client of Sino-Singapore Jingwei found out that in the first half of the year, the actual controllers of A-share listed companies frequently "had an accident". They were arrested or investigated, and many others were warned, involving more than 570,000 shareholders.
A real controller once made the Hurun Report
According to incomplete statistics from Sino-Singapore Jingwei client, two real controllers of listed companies were arrested, five real controllers of listed companies were issued warning letters, and four others were investigated.
Since the end of last year, Lanzhou Minbai's actual controllers and supervisors have been subject to criminal measures. The announcement on January 17 showed that Zhu Baoliang, the actual controller of Lanzhou Minbai, was approved for arrest, but he did not serve in the company. According to Tianyancha, Zhu Baoliang has actual control over more than 60 companies, covering department stores, commerce, hotels, tourism and many other fields. "The Hurun Rich List 2019" shows that Zhu Baoliang and Hong Yidan and his wife ranked No. 1008 with 4.1 billion yuan.
Zhu Baoliang was also known as the "A-share dividend king". Lanzhou Minbai's 2018 annual report disclosed that the company distributed a cash dividend of 16 yuan (including tax) for every 10 shares to all shareholders, and the total dividend cash was 1.253 billion yuan. On October 10, 2018, and November 29, 2018, Lanzhou Citizens paid dividends in half a year and in the third quarter, with a total of 313 million yuan in dividends. From this calculation, in 2018, the Lanzhou people's 103 dividends totaled 1.566 billion yuan, accounting for 99% of the company's 2018 net profit. At that time, Lanzhou Min became the "dividend king" of more than 3,000 listed companies in the Shanghai and Shenzhen stock markets.
In the category of issued warning letters, on the evening of February 12, *ST Boxin announced that the company and its actual controller, former chairman Luo Jing, had received warning letters respectively due to violations of the listed company’s management methods. Born in 1971, Luo Jing is known as the "Magnolia of Business", but now she is in prison. On July 5, 2019, *ST Boxin announced that Luo Jing was detained on June 20, 2019, and relevant matters are yet to be further investigated by the public security organ.
When it comes to the arrest of the actual controller of a listed company, one that needs to be mentioned is Wang Zhenhua, then chairman and actual controller of Xincheng Holdings. On July 10, 2019, Shanghai Putuo District People's Procuratorate arrested him on suspicion of child molestation. On June 17, 2020, Wang Zhenhua was sentenced to five years in prison for child molestation. On June 18, Chen Youxi, one of Wang Zhenhua’s defense lawyers, issued a statement saying that Wang Zhenhua had clearly filed an appeal and requested a second trial acquittal.
The case aroused widespread discussion. Xi Peizhi, deputy secretary general of the Shanghai Youth Crime Prevention Research Association, believes that in terms of information disclosure, the verdict of this case is legal, but there are significant discrepancies between the punishment results and the public's psychological expectations, which has caused social controversy. Zhao Jun, a professor at the Academy of Criminal Law Science of Beijing Normal University, said that the key to the case lies in the specific location of the harm caused by the "secondary injury". How is it formed? This needs further clarification.
Share price shocks of many listed companies
After *ST Boxin’s actual controller Luo Jing was arrested in 2019, the top management changed a lot. Since then, *ST Boxin’s stock price has soared from about 12 yuan to about 30.65 yuan in February this year. On April 28 this year, *ST Boxin disclosed the 2019 annual report. The company achieved total operating income of 170 million in 2019, a year-on-year decrease of 89.1%; net profit attributable to mother was -6.727 million, compared with -524.47 million in the same period last year.
Due to the loss of net profit for two consecutive years in 2018 and 2019, *ST Boxin announced on April 27, 2020 that after a day of trading suspension on 28th, Boxin’s shareholding was changed to *ST Boxing. Then the stock price fell off a cliff, and as of June 18 closed, it was only 3.43 yuan per share.
In addition, on the evening of June 5, *ST Anxin announced that the company’s actual controller, Gao Tianguo, was criminally detained by the Shanghai Public Security Bureau on suspicion of illegally issuing loans. It is worth noting that on June 1, *ST Anxin shares resumed trading after being suspended for 2 months. However, under the favorable circumstances of disclosing the progress of the reorganization, the stock price suffered four consecutive daily stops. As of the close of June 18, the stock price was only 2.10 yuan / share, the peak period reached 12.2 yuan.
It was less than two months before ST Group’s actual controller Wang Sanshou was issued a warning letter and ordered corrective measures. ST Group announced on June 2 that the company was filed and investigated for suspected information disclosure violations. Affected by this, the opening of June 3rd, ST Qunxing limit, as of June 18th, the company's stock price fell 4.85% to 3.14 yuan.
What are the risks of listed companies?
New latitude and longitude in the data map
Guosen Securities Research said that the risk points of listed companies are mainly divided into two categories: financial aspects and non-financial aspects. The main financial aspects are bond defaults; asset impairment; lower incomes, rising costs, rising expenses, non-recurring increases, and reduced investment net income, which lead to listed companies' performance below expectations.
The non-financial aspects are relatively broader in scope and cover a variety of forms. According to the actual situation, the common ones include major negative news of major shareholders or actual controllers in the company; executives of listed companies appear to be running, black, and losing Unauthorized use of funds of listed companies, major scandals, etc.
As for how to prevent risk points, Tianfeng Securities has issued a research report analysis. The early warning system contains two types, one is based on the public information of regulatory authorities, intermediaries, and companies, and the other is the abnormal analysis of financial statement items.
Tianfeng Securities reminds that companies that are expected to lose money for two consecutive years may be subject to delisting risk warnings and should be avoided. If the performance of the listed company is revised down, this indicates that there may be a problem with the business operation or the quality of the financial report.
In addition, the deviation of receivables and revenues should also be paid attention to. When the increase in accounts receivable deviates from the growth of operating income, the company may have the possibility of using the accounts receivable to artificially increase profits. When the stock triggers three or more early warning signal sources in the past year, the stock has a greater risk, so it is included in the early warning avoidance portfolio. (Sino-Singapore Jingwei APP)
(The opinions in this article are for reference only, and do not constitute investment advice. Investment is risky and you need to be cautious when entering the market.)
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