The response to the Shenzhen Stock Exchanges letter of concern raised a bigger financial problem for the old pharmaceutical company.
According to the reply of Guizhou bailing to the letter of concern of Shenzhen Stock Exchange, the company takes Guizhou Yibo economic and Trade Co., Ltd. (hereinafter referred to as Yibo economic and Trade Co., Ltd.), Chaozhou Meiyuan Printing Co., Ltd. (hereinafter referred to as Meiyuan Printing Co., Ltd.), Anshun Baolin science and technology traditional Chinese medicine beverage Co., Ltd. (hereinafter referred to as Baolin science and Technology) as the intermediary, and only plans in 2019 The contribution is 2.085 billion yuan.
It is worth noting that such a transfer of funds continued until May this year. From January to May 19 this year, there were also cases of illegal use of funds through suppliers.
In the letter of concern, Guizhou bailing listed the fund transfer with these three suppliers in detail. The reporter found that Guizhou bailing and the three suppliers made frequent fund transfers for bank loans. Basically, Guizhou bailing transferred the funds to the account of one of the above suppliers. After a week or so, these suppliers transferred the funds to Guizhou bailing.
When the capital flows frequently, there will be such in and out of the account every day. In September 2019, for example, Guizhou bailing transferred 100 million yuan to Yibo economy and trade every day for three consecutive days on September 25, 26 and 27, respectively. On September 26, 27 and 29, 2019, Yibo economy and trade planned to transfer 300 million yuan into Guizhou bailing account with a slight change in the amount of capital.
Guizhou bailing said that the reason for such bank reverse lending was that the company returned the due working capital loan to the financial institutions on schedule. After the loan was returned on schedule, the bank issued a new phase of working capital loan. The bank was entrusted to pay to the companys designated supplier, and the supplier received the loan and then transferred it to the companys designated account.
According to the data, Guizhou bailing allocated 492 million yuan to suppliers in 2019 and 550 million yuan to suppliers, all of which were non operating occupation of related parties. The daily maximum balance of funds of the company with non operating occupation of actual controller reached 410 million yuan, accounting for 10.11% of Guizhou bailings audited net assets in 2019.
It is worth noting that such behaviour has continued throughout the year. According to the data, Guizhou bailing transferred 197 million yuan from January 1 to May 19, 2020 to the suppliers and 197 million yuan from the suppliers. Guizhou bailing said the payment was entrusted payment and recovery of normal loans. In the same period, the actual controller of Guizhou bailing occupied 566 million yuan.
The relationship behind the three sub loan suppliers or mutual intersection becomes a mystery
In fact, it is not uncommon for enterprises to reverse loans. Shanxi Coking, a listed company, previously replied to the inquiry letter from Shanghai Stock Exchange on the companys annual report review in 2018, saying that in order to ensure the stability of the capital chain and prevent a working capital gap, about 500-1 billion yuan is needed for bank reverse loans.
Similarly, the above two companies are not directly listed in the supplier list of Guizhou bailing. However, in the 2012 annual report, as the former five suppliers of Xiang, Guizhou bailing purchased 15.5775 million yuan from Xiang, accounting for 2.79% of the total purchase amount of that year.
Behind the frequent back loans, Guizhou bailings actual controllers non operational occupation of the companys funds is also very serious.
According to the special audit notes on occupation of non operating funds and other related capital transactions issued by the accounting firm, in 2019, Guizhou bailing accumulatively transferred 2.086 billion yuan of funds to the actual controller of the company and recovered 2.144 billion yuan (including interest), all of which are non operating.
Data shows that Guizhou bailings financial expenses in 2019 are 54.18 million yuan, an increase of 251.95% compared with the same period in 2018. In terms of operation, Guizhou bailing achieved an operating revenue of 2.85 billion yuan in 2019, down 9.13% year on year; the net profit attributable to shareholders of listed companies was 290 million yuan, down 48.27% year on year. In 2019, the gross profit margin of Guizhou bailings Chinese patent medicine business also fell to 57.69%, 5.44% lower than that in 2018. In 10 years of listing, this is the first time that Guizhou bailings income and profit have declined. Source: Yang Qian, editor in charge of Beijing News_ NF4425
Data shows that Guizhou bailings financial expenses in 2019 are 54.18 million yuan, an increase of 251.95% compared with the same period in 2018.