According to public information, Yuanda Petrochemical is a 70% holding subsidiary of Yuanda products, which is a wholly-owned subsidiary of A-share listed company, and is its core business entity. In the futures circle, Yuanda products is a well-known company. As a bulk commodity trading company, its trading varieties cover most of the domestic futures markets. PP is only one of the many futures varieties it trades.
The matter will start from four years ago. The Fushun intermediate peoples court found that: the defendant unit Yuanda Petrochemical Company, chairman of the board of directors (legal representative) of Yuanda petrochemical, and the defendant, Wu Xiangdong, convened a meeting and decided to use his actual control of 18 accounts from May 24 to August 31, 2016, and convert the capital advantage into a position by buying a large number of positions at the market price Advantages. At the same time, through direct purchase, purchasing and holding on behalf of others, and after-sale repurchase, a large number of polypropylene spot stocks were accumulated, which created a strong demand atmosphere for polypropylene, and affected the futures market by reaction, and manipulated the price of pp1609 across the futures and spot markets. The total illegal income of Yuanda Petrochemical Company, the defendant, was more than 436 million yuan, 4.87 million yuan, and that of other 11 accounts involved in the case was more than 100 million yuan. After the case, Yuanda Petrochemical Company, the defendant, actively returned the illegal income.
Futures Daily reporter noted that Yuanda Petrochemical manipulated the price of pp1609 contract for more than three months, a total of 70 trading days. During this period, the contract price of pp1609 started from 6280 yuan / ton and reached a maximum of 8516 yuan / ton, with a cumulative increase of more than 30%.
The defendant directly manipulated the futures market of 1609 PP futures companies through the futures market of 1609 futures companies, which directly affected the futures market of the peoples Republic of China Goods market crime. The defendant, Wu Xiangdong, is the legal representative and chairman of Renyuan Sinopec. He is the person in charge directly responsible for the crime of manipulating the futures market. His behavior also constitutes the crime of manipulating the futures market. The defendant, Yuanda petrochemical, can actively cooperate with the investigation and actively refund the illegal income, so it can be given a lighter punishment according to law. If the defendant Wu Xiangdong can truthfully confess the facts of the crime, which constitutes a confession, he can be given a lighter punishment according to law. The court makes the above-mentioned judgment according to the facts, nature, circumstances and social harm of the defendants unit and defendant.
Yuanda Petrochemical has withdrawn 560 million yuan of estimated loss, and the impact of this judgment needs to be further evaluated
On the evening of September 29, Yuanda holdings issued a notice on the judgment result of the case of Yuanda petrochemical, a holding subsidiary, suspected of manipulating the futures market.
According to Yuanda holdings, the company disclosed the progress announcement of major risk events on October 18, 2018. Yuanda property received the notice from Fushun peoples Procuratorate of Liaoning Province that Yuanda Petrochemical was transferred to Fushun intermediate peoples court for prosecution due to the case of manipulating futures market, and Yuanda property was transferred to Fushun intermediate peoples court for public prosecution without being the defendant unit. Fushun intermediate peoples Court of Liaoning Province will hear the case on May 8, 2019.
As for the possible impact of the judgment result of this lawsuit on the company, Yuanda Holdings said that this judgment is a judgment of first instance. As of the disclosure date of this announcement, this judgment has not yet taken effect. For this judgment, Yuanda Petrochemical will appeal within the appeal period, and the final judgment result is still uncertain. Yuanda Petrochemical has made an estimated loss of 560 million yuan in 2017, and the company will adjust the financial statements of 2017 according to the final judgment. The impact of this judgment on Yuanda Petrochemicals future operation and further on the company needs further evaluation.
According to the data, Wu Xiangdong was the president and director of Yuanda holdings from August 2016 to August 2017. On August 2, 2017, Wu Xiangdong resigned for health reasons. More than a month later, the company disclosed that its products were investigated. As of June 30, 2020, Wu Xiangdong is the fourth largest shareholder of Yuanda holding company, holding 10.7806 million shares, all of which are restricted by circulation, with a shareholding ratio of 1.99%.
It is worth noting that the executive meeting of the State Council held on September 23 made arrangements to further improve the quality of listed companies, protect the rights and interests of investors, and promote the sustained, stable and healthy development of the capital market. The meeting pointed out that further improving the quality of Listed Companies in accordance with the arrangements of the CPC Central Committee and the State Council is conducive to promoting the sustained, stable and healthy development of the capital market and increasing support for the real economy. We should give full play to the joint efforts of departments and strengthen supervision. We should solve the problems of stock pledge risk, illegal occupation of funds and illegal guarantee. We will increase penalties for market manipulation, insider trading and other illegal activities, and substantially increase the cost of violations.
It is understood that Yuanda holding is an enterprise mainly engaged in commodity trade, and its core business entity is Yuanda products, a wholly-owned subsidiary. Yuanda products is mainly engaged in bulk commodity trade, export, warehousing and logistics, among which the main categories of bulk commodity trade business are petrochemical, energy chemical, metal, agricultural products, rubber, etc.; the main categories of export business are daily necessities, small mechanical and electrical products, etc.; the warehousing and logistics business mainly focuses on the storage of bulk commodities, and provides customs declaration, inspection and short distance distribution Delivery and other services.
Yuanda products is mainly engaged in petrochemical products, and its main products are polyethylene (PE), polypropylene (PP), polystyrene (PS), ABS, etc.
According to the semi annual report of Yuanda holdings, in the first half of 2020, the company realized 23.379 billion yuan of operating income, a decrease of 28.55% over the same period of last year, and the net profit attributable to the shareholders of the parent company was -99.0604 million yuan, a decrease of 313.33% compared with the same period of last year.
During the reporting period, the operating revenue of Yuanda was 23.301 billion yuan, a decrease of 29.09% compared with the same period of last year; the net profit of - 67.6869 million yuan, of which the net profit attributable to the shareholders of the parent company was - 103.4517 million yuan, a decrease of 315.57% compared with the same period of last year.
During the reporting period, Yuanda Petrochemical realized a revenue of 3.028 billion yuan, a year-on-year decrease of 29.91%, and a net profit of 21.8102 million yuan, a year-on-year increase of 9.09%.
Yuanda Holdings said novel coronavirus pneumonia outbreak and the Sino US trade war had caused a sharp fluctuation in global commodity and financial markets during the reporting period. Entities faced with high inventory prices, difficult sales, poor operation of industrial chains and tight funds. In the first quarter of 2020, the companys main commodity market was greatly affected by the outbreak of the epidemic, and the supply and demand and prices fluctuated violently. As the severity and scope of the epidemic exceeded the companys expectations, the companys business strategy deviated from the market performance to a certain extent. At the same time, due to the breakdown of the negotiation between Saudi Arabia and Russias crude oil, the irrational fluctuation of crude oil price in the international market also affected the companys economy In the first quarter, there was a loss. In the second quarter of 2020, the company timely adjusted its business strategy according to the development of epidemic situation at home and abroad and the situation of returning to work and production, partially making up for the loss in the first quarter.
The semi annual report also shows that in the first half of this year, the actual profit and loss amount of Yuanda Holdings derivatives investment was - 52.4813 million yuan, of which the actual profit and loss amount of commodity futures, commodity options and forward foreign exchange investment were - 50.693 million yuan, - 41.81 million yuan and 1.37 02 million yuan respectively.
According to the announcement issued by Yuanda holdings in December last year that the subsidiary will continue to carry out derivatives investment business in 2020, the main mode of derivative investment of Yuanda products is hedging and arbitrage trading, and the secondary mode is one-way trading. The main trading varieties cover most varieties of black, non-ferrous metals, energy and chemical industry, agricultural products, financial futures and other sectors. In terms of credit line, the margin investment amount of Yuandas derivatives investment business in 2020 shall not exceed 1.9 billion yuan at any time point, and the contract amount shall not exceed 19 billion yuan at any time point.
In terms of stock price performance, on September 30, the share price of Yuanda holdings opened low and went low. It once went down to a low of 6.26 yuan in nearly three months, and finally closed at 6.46 yuan, down 5.97%, with a total market value of 3.51 billion yuan. In the first three quarters of this year, the share price of Yuanda holdings fell by 14.10%.