Still holding * ST huge 370,000 shareholders, it is worried about ushering in a number of days of stop-and-fall. To make matters worse, * ST Pang will not be another denominated delisting stock until the restructuring takes a turn.
Overnight encounter * ST giant group delisting crisis
In the first half of the year, the enterprises with 10 billion yuan in revenue had no more than 17 million yuan in debt, and even faced bankruptcy and restructuring, which crushed the straw of the camel. Why did it weigh so much?
On September 5, * ST issued a huge announcement that creditor Ji Dongfengs application for restructuring of the company was accepted by the court. According to the regulations, the companys stock has been warned of delisting risk since September 9. According to the company, if the reorganization fails, the company will be declared bankrupt by the court. After the bankruptcy, according to the regulations, * ST huge will also face the situation of termination of listing.
Why did the giant group go to the stage of bankruptcy and reorganization? On May 13, this year, the giant group announced that it was unable to pay off its debts due to the shortage of funds, because the giant group borrowed 17 million yuan from Beijing Jidongfeng on May 4, 2017 to replenish liquidity for purchasing. Therefore, Jidongfeng Company applied to the court for reorganization of the huge group.
Strangely, the current size of the giant groups operations does not seem to be worth tens of millions of dollars in loans. Data show that in the first half of 2019, Huge Group realized 10.256 billion yuan in revenue. In 2018, the companys operating income reached 42 billion yuan.
However, from the profit data, it seems to explain the current situation of its operation. Despite its revenue of more than 40 billion yuan last year, Huge Group still lost nearly 6.2 billion yuan, with a loss of 6.8 billion yuan in non-net profit deduction, a 31-fold decrease over the same period last year.
For listed companies, the bad news is not over. September 6, the Shanghai Stock Exchange announced that since September 9, the companys shares will be withdrawn from the two trading targets.
In fact, a few months ago, * ST Huge announced that the company was ready to reorganize, and made corresponding risk warnings. After the announcement of the above risk warning announcement, most of the institutional funds began to flee frantically.
From the perspective of institutional investorsshareholding situation, besides securities and remittance funds, by the end of 2018, there were still some institutional shareholders such as head fund products. However, in the first quarter and the second quarter of this year, almost all institutional investors ran out, leaving only three index funds holding a very small number of stocks.
It is noteworthy that although institutional capital fled rapidly, most small and medium-sized shareholders did not choose to leave immediately, but chose to stick to it. Unexpectedly, four months later, but wait for the companys thunder.
As of June 30, the number of shareholders holding * ST is still as high as 370,000. By contrast, * STs huge number of existing shareholders has exceeded blue-chip stocks such as Construction Bank and Bank of Communications.
Clearly, institutional investors are running out. Why do so many small and medium shareholders stick to it? This may be related to the turnaround of corporate restructuring.
It is worth noting that before bankruptcy reorganization avoids delisting, more investors are worried about * ST being huge or facing the risk of denomination delisting.
By midday on September 9, the shares of Panda Group had only 1.24 yuan per share. From the perspective of capital flow, * ST has a huge net outflow of 2.47 million yuan, of which the proportion of oversold sales orders and big purchases is more than 44%, and the net outflow of funds in the past 20 days is as high as 64 million yuan.
Former auto dealer giants can hardly escape the magic spell of leveraged financing
The huge group in distress once wore the title of global automobile dealer giant and had a glorious history of burning and shining.
As early as 2010, the giant group sold 470,000 vehicles of all kinds. The sales volume of 20 brands sold by the giant group ranked first in the same industry in China, and it has long maintained the honor of Top Ten Enterprise Groups of China Automobile Sales Service.
In 2011, the giant group landed in the A-share market through IPO, and it is also the worlds most valuable automobile dealer group and the private enterprise with the largest amount of single financing (financing more than 6 billion yuan).
In 2015, the market value of Pang Qinghua Group was close to 60 billion yuan, and its founder Pang Qinghua was regarded as the leading figure in Chinas automobile distribution industry. In the Hurun Rich List, the wealth of Pang Qinghua family rose from 4.8 billion yuan in 2010 to 10 billion yuan in 2011, ranking 109 in that year.
In 2015, Huge Group and CITIC Securities signed the Equity Income Swap Agreement. The so-called Equity Income Swap refers to the cash flow exchange between customers and securities firms in accordance with the agreement for the performance of specific stocks and fixed interest rate in a certain period of time in the future. This is a highly leveraged financing method, which has a high risk of bursting or forced liquidation.
On April 28, 2017, Pang Da received the Notice of Investigation from China Securities Regulatory Commission. The main reason for the investigation was the Equity Income Swap Agreement signed between the company and Guoxin Securities in 2015, and the relevant departments found that the company had some illegal problems such as information disclosure.
On July 4, 2018, Huda formally received the Decision on Administrative Punishment from CSRC. Illegal facts include: 1. Pang Qinghua and Huge Groups did not disclose the changes of rights and interests truthfully; 2. Huge Groups did not disclose related transactions as required; 3. Huge Groups did not disclose their suspected crimes and were investigated by judicial organs. The SFC will impose fines and warnings on relevant personnel.
In fact, a leveraged financing violation is only the trigger of a huge group crisis. Behind the company, its business model of heavy asset financing expansion has laid the groundwork for the subsequent corporate crisis.
Nearly a year after the listing, the giant group has expanded wildly, adding 410 new automobile operating outlets. At the same time, the company has also purchased Bochai Vehicle, and then involved in parking business and online car appointment.
This has also resulted in the companys net profit facing a huge loss despite its revenue exceeding 10 billion yuan.
After the case investigation in 2017, the financing cost of large groups began to rise, and the pace of national deleveraging accelerated, which also exposed the risks of enterprises relying on high financing and high debt.
Earlier, Pang Qinghua had said in an interview with the media, Banks have withdrawn 24.2 billion yuan for more than a year, and Pang Qinghua has been drained. Nowadays, banks are frightened birds. They cant bear to take out so much money a year, let alone huge ones, for state-owned enterprises.
* The founder of STs giant broken arm survivors left the scene gloomily
The risk of delisting is very high * ST is huge, and the year has not passed satisfactorily.
Since 2018, there has been a huge loss in the operation of enterprises. According to the annual report of 2018, * ST has achieved a huge turnover of 42.034 billion yuan, down 40.37% from the same period last year. The net profit attributable to shareholders of listed companies was - 6.155 billion yuan, compared with 212 million yuan in the same period last year, a sharp drop of 300.23% over the same period last year.
In last years top 10 losses of A shares, Huge Group ranked fourth, behind Tianshen Entertainment, ZTE Communications and * ST Huaye. In the eight years since listing, the huge group has lost 7.618 billion yuan in non-net profit deduction.
In 2019, the business data did not get much improvement, on the contrary, they encountered more difficulties. Data show that in the first quarter of 2019, * ST continued to lose 489 million yuan, down nearly 10 times from the first quarter of 2018.
For the huge * ST, relying on the traditional automobile sales can not bring about the expectation of business turnaround. It is reported that in the first half of this year, the cumulative sales of new cars of Panda Group were 50.1 million, down 71.22% compared with the same period last year. According to the latest data of the China Automobile Association, passenger car sales in January-July this year were 11.654 million, down 12.8% from the same period last year.
It is reported that in order to save the enterprise, in 2018, the giant group successively sold 19 4S stores of Mercedes-Benz, Lexus, Guangzhou Automobile Toyota and other brands, which made the most money, and obtained 266 million yuan in cash. At the same time, enterprises also actively reduce the profitability of poor 4S stores, the national distribution network has been reduced to 806.
To investorspessimism, Pang Qinghua, the founder of the company, withdrew from the board of directors a few months before the delisting risk warning was issued, despite expressing confidence.
On the evening of June 20, * ST issued a huge announcement that Pang Qinghua, chairman of the board of directors, director and general manager of the strategic committee of the board of directors, resigned on June 20, 2019.
However, as the founder of the company, Pang Qinghua still holds 20% of the shares and is the largest shareholder and actual controller of the company. But all the shares held have been pledged 100%.
From the secondary market, the huge stock price of * ST has dropped from the highest price of 8.36 in August 2015 to 124 yuan, with the stock price falling by more than 84% and the market value evaporating by only 8.2 billion yuan.
Its hard for a large group to get back to its former state. Auto industry analyst Zhong Shi said that the debt problem of the giant group covers a wide range, and all parties do not want to liquidate the bankruptcy of the giant group, and restructuring is a relatively compromise. However, even if the restructuring is successful, the future revenue of the giant group is likely to continue to decline and the debt will remain serious.
Source: Yang Bin_NF4368, Responsible Editor of China Foundation Newspaper