The black hole of financing and trade of Guangzhou Langqi

category:Finance
 The black hole of financing and trade of Guangzhou Langqi


On the evening of November 17, Guangzhou Langqi disclosed that due to the shortage of funds, the company and its subsidiaries debts of 704 million yuan were overdue, accounting for 36.88% of the companys latest audited net assets. Beijing Business Daily reporter called the relevant person in charge of Guangzhou Langqi, but as of the time of publication, the phone was not connected.

It is disclosed that among the newly increased overdue debts, the largest creditor is Hang Seng Bank, with a overdue amount of 61.61 million yuan, and the debt type is supply chain financing. In addition, the newly added creditors include Agricultural Bank of China, Changjiang high investment Financial Leasing Co., Ltd. and two commercial factoring companies. The accumulated amount of seven overdue debts is nearly 180 million yuan. Guangzhou Langqi said in the announcement that part of the companys debts overdue are trading business.

On the impact of overdue debt, Guangzhou Langqi said in the announcement that due to overdue debt, the company may face the need to pay relevant liquidated damages, overdue fines and penalty interest, which will lead to the increase of financial expenses of the company. Debt overdue events will lead to the decline of the companys financing ability, aggravate the companys capital shortage, and may have a certain impact on some businesses. In addition, the company is involved in relevant litigation matters and asset impairment matters, which may have a significant adverse impact on the companys current profits and losses.

At the same time, Guangzhou Langqi also disclosed that 11 new bank accounts of the company and its subsidiaries were frozen, with the amount of RMB 16.162 million frozen. Up to now, a total of 39 accounts of Guangzhou Langqi and its subsidiaries have been frozen, of which 23 accounts are caused by the companys disputes with Jiangsu Baohua international and Jiangsu MCC chemical. As of the announcement date, Guangzhou Langqi has frozen a total of 98 million yuan.

As for the freezing of bank accounts, Guangzhou Langqi said, the company still has a bank account to replace the frozen account. The freezing of the companys bank account has not had a significant adverse impact on the companys daily operation and management activities. The companys production and operation are still continuing, and the amount of the companys frozen account accounts accounts accounts for a low proportion of the companys audited monetary fund balance and net assets in the latest year There is no case that the main bank account has been frozen .

Affected by the bad news, Guangzhou Langqi opened high and went low on November 18, hitting a minimum of 4.15 yuan / share, and finally closed down 5.19% to 4.2 yuan / share.

Financing trade explosion

According to the contract contents disclosed by Guangzhou Langqi, the industrial raw materials sold by the company to the above four companies are industrial raw materials.

Taking the sales contract dispute case between Guangzhou Langqi and Xinqian company as an example, Guangzhou Langqi said that since 2018, the company and the defendant Xinqian company had several industrial raw material sales contracts for the purchase and sale of industrial products involved in the case. All the contracts agreed that Guangzhou Langqi sold industrial raw materials to Xinqian company, and Xinqian company paid corresponding payment to Guangzhou Langqi. However, according to the existing inventory evidence, Xinqian company failed to pay the goods according to the contract after signing and confirming the goods right transfer certificate, and there were problems such as sporadic payment not according to the contract amount standard, delayed payment, unable to cash the commercial bill, etc. after Xinqian company finally confirmed by the reconciliation letter, as of June 30, 2020, a total of 69.7648 million yuan of loan principal under the contract was involved in the case, and Xiang Guang failed to comply with the contract State Langqi pays. Therefore, the behavior of Xinqian company has constituted a breach of contract.

It is worth mentioning that the industrial raw materials sold by Guangzhou Langqi to the above four companies are suspected to have been purchased from Baohua company and MCC. On October 31, Guangzhou Langqi mentioned in the reply letter to Shenzhen stock exchange that the company purchased industrial raw materials from Baohua company and MCC company, issued commercial acceptance bill to them according to the contract, and sold the products to the third party after purchase. The third party referred to by Guangzhou Langqi is Xinqian company, fuze company, Fuxin Company and Rudong Taibang.

It is not difficult to see from the above transactions that Guangzhou Langqi only acts as a middleman, and the above transaction is also known as financing trade by the market.

Wang Jiyue, a well-known investment bank personage, said in an interview with Beijing Business Daily that the essence of financing trade is financing, and trade is only for collateral or credit enhancement. If there is no false VAT invoice, it is a legal act. From the perspective of purchasing industrial raw materials from Baohua company and MCC, Baohua company and MCC company will pledge the commercial acceptance bill issued by Guangzhou Longqi to financial institutions for financing.

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In addition to debt, bank accounts have been frozen, Guangzhou Langqi has long been in financial crisis. In March 2019, Guangzhou Langqi was accused of being in arrears of nearly ten million US dollars.

In addition, the former chairman of Guangzhou Langqi was also investigated recently for suspected violations of discipline and law. On November 4, the supervision commission of Guangzhou Municipal Commission for Discipline Inspection announced a notice on its website that Fu Yongguo, member of the Party committee and deputy general manager of Guangzhou Light Industry and Trade Group Co., Ltd., is suspected of serious violation of discipline and law, and is currently under disciplinary review and supervision investigation by the supervision commission of Guangzhou Municipal Commission for Discipline Inspection.

According to the public information, Guangzhou Longqi parent company is the Guangzhou Light Industry and trade group. It was the first company mainly engaged in the production and marketing of daily chemical products and chemical raw materials. Its two major washing products brands, Langqi and gaofuli, have a wide user base.

In the view of Shen Meng, director of Xiangsong capital, Guangzhou Langqi, as a state-owned enterprise, has been suffering from financial problems, which shows that the internal control of the enterprise has failed and the operation system lacks transparency. The overdue debt and capital freeze will affect the cash flow of daily operation, resulting in operational instability, which will greatly affect the performance.

According to the public financial data, as of the third quarter of 2020, the total liabilities of Guangzhou Langqi reached 7.77 billion yuan, including 419 million yuan of long-term loans and 3.079 billion yuan of short-term loans, while the monetary capital of the company was only 746 million yuan. In the first half of this year, the operating revenue of Guangzhou Langqi was 3.888 billion yuan, a decrease of 43.36% compared with the same period of last year; the net profit changed from profit to loss, with a loss of 115 million yuan; the net profit of the same period of last year was 26.15 million yuan, a year-on-year decrease of 538.66%. In the first three quarters, Guangzhou Langqi continued to suffer losses, and its net profit fell by 2878.65% to 1.17 billion yuan.

In this regard, Guangzhou Langqi said in the announcement that the company is actively negotiating with the relevant creditors on the settlement plan, striving to reach an agreement with the relevant creditors on the debt solution as soon as possible, including but not limited to extension, partial repayment and other ways; meanwhile, it is making every effort to raise debt repayment funds by accelerating the recovery of accounts receivable, properly handle the freezing of bank account number, and early release the debt settlement Freeze the account and return to normal state to minimize the adverse impact of the above matters on the company.

However, in recent years, due to the increasingly fierce competition in the field of washing products, Guangzhou Langqi began to seek diversified development. In 2013, Guangzhou Langqi acquired Jiangsu Qiheng Agricultural Chemical Co., Ltd. and set foot in the agricultural pharmaceutical industry. In 2018, Guangzhou Langqi plans to purchase 97.42% shares of Baihua flavor held by light industry group with cash of 188 million yuan, and purchase 100% shares of Huatang food held by Huaqiao sugar factory and light industry group with cash of 430 million yuan. However, in September 2019, Guangzhou Langqi plans to terminate the acquisition of 97.42% equity of Baihua flavor due to the fact that the equity delivery of Baihua flavor has not been completed and some accounts receivable are difficult to recover.

Source: Beijing business daily Author: Bai Yang Ma changes Wang Xiao, responsible editor: Wang Xiaowu_ NF