Eight subsidiaries stopped production and wore hats twice
On April 28, 2018, in order to cooperate with the shutdown of Lianyungang Chemical Industry Park enterprises for self-checking and self-correction of environmental protection, seven subsidiaries and one subsidiary company in Duigougang Town Chemical Industry Park of Guannan County were all shut down. Affected by the suspension of production of eight subsidiaries, the companys stock was implemented on August 14, 2018 as other risk warning. The stock abbreviation was changed to ST Asia.
Just two months after its transformation into ST Yabang, Jiangsu Wall Chemical Co., Ltd. (hereinafter referred to as Wall Chemical), Lianyungang Branch and Lianyungang Yabang Acid Manufacturing Co., Ltd. (hereinafter referred to as Yabang Acid Manufacturing) have officially resumed production. On October 31, 2018, ST Asia submitted an application to the Stock Exchange to cancel other risk warnings on the companys stock, and on November 7, 2018, the company successfully took off its hat.
The leakage happened to rain overnight. Affected by the 3.21 accident of Xiangshui in Yancheng City, Lianyungang Branch, Wall Chemical and Yabang acid-making company have stopped production independently since May 8, 2019, and carried out a large-scale investigation and rectification of potential safety hazards. During the shutdown period, the company was again notified to carry out safety and environmental protection renovation and upgrading actions in the chemical industry throughout the city, and to evaluate all chemical enterprises. Up to now, in addition to the three subsidiaries mentioned above, Lianyungang Yabang Heating Co., Ltd., Jiangsu Daobo Chemical Co., Ltd., Jiangsu Jiamai Chemical Co., Ltd., and Jiangsu Henglong Crop Protection Co., Ltd. (including subsidiary Jinduan Agricultural Co., Ltd.) are shutting down production to improve safety and environmental protection according to the above documents.
Since the total business income of the above-mentioned companies in 2018 accounted for 73.05% of the companys business income in the consolidated statements in 2018, and touched upon the situation of production and operation activities are seriously affected and expected to be unable to return to normal within three months stipulated in Article 13.4.1 of the Rules for Listing of Stocks on the Shanghai Stock Exchange, the companys shares were implemented again on August 13. Other risk warnings.
Referring to the resumption time of the above-mentioned suspension company, ST Asian staff told reporters, This year, the government has improved the safety standards, the company needs to make a safety bid, follow-up acceptance and approval needs to wait for the unified arrangement of the government. The specific time for the resumption of production is not yet clear. While speeding up the rectification of companies, the company will maintain close communication with the government, actively promote the resumption of production, and strive to resume production as soon as possible.
From the analysts point of view, the unstable production of ST Asia is a big problem. In an interview with reporters, an unnamed analyst said, ST Yabang products are high-end products, other companies in the industry are actively entering the field, there is a certain impact on ST Yabang. At the same time, the company itself can not guarantee normal production, it is difficult to provide stable supply to downstream visitors, three months later, in fact, it does not guarantee that the company can immediately return to normal operating conditions.
Two executives reduced their holdings in two days to cash in tens of millions of dollars
Fifty days after the independent shutdown, on June 27, the company disclosed its plan to reduce its senior Executivesholding.
On July 18, Zhou Duogang reduced his holding of 774,200 shares, with an average transaction price of 7.54 yuan per share. The next day, Zhou Duogang and Zhang Yiqing reduced their holdings by 486,800 shares and 114,000 shares respectively, with an average transaction price of 7.48 yuan per share and 7.5 yuan per share. According to the reporters rough estimate, in just two days, the two executives cashed in about 10.33 million yuan.
Reporters learned that Lu Jianping, Zhou Duogang and Zhang Yiqing had promised that, based on their recognition of the companys value and confidence in the companys future development prospects, they would not reduce their holdings of company stocks in any way from June 11, 2018 to June 10, 2019, including the conversion of capital reserve to additional shares due to the shares of listed companies during the commitment period. Shares arising from the distribution of stock dividends, allotments, additional issuance, etc.
Just over half a month after the commitment period, Zhou Duogang completed the reduction of 1261,000 shares in two days, and Zhang Yiqings reduction of shares has been nearly half. Referring to the reasons why executives are eager to sell stocks, ST Yabang said in its announcement that the reduction plan is needed by Lu Jianping, Zhou Duogang and Zhang Yiqing for their own funds.
The above analyst told reporters, From the point of view of cash flow, the companys operating cash flow in the first quarter of 2019 is - 61.64 million yuan, the normal production and operation activities of the company can nothematopoiesis. The centralized reduction of Executivesholdings can not exclude the doubts about the companys prospects in the market.
For companies with environmental risks, regulatory authorities will be more strict in assessing new capacity and restoring old capacity. The second shutdown has a great impact on the overall operation of ST Asia. The analyst added.
Source: Liable Editor of Securities Daily: Yang Qian_NF4425