On January 27, Guangzhou Langqi announced in the evening that the company was informed recently that the company's former vice chairman and general manager Chen Jianbin and former board secretary Wang Zhigang have been investigated by the supervisory authority for alleged violations of the law. Regarding the inventory risks involved in the trading business, the prepayment of receivables and other credits and debts, the suspected criminal offenses and violations of laws and disciplines by related personnel of the company, the investigation and investigation work of the supervisory organs, public security organs and other relevant departments is still in progress.
This is the first time that Guangzhou Langqi admitted that its own executives were involved in the case. The company has been investigated by the Securities Regulatory Commission. On the evening of January 8, 2021, Guangzhou Langqi issued an announcement that the company received the "Investigation Notice" from the China Securities Regulatory Commission on the same day. Due to the company's suspected violations of information disclosure, it decided to deal with the company in accordance with the relevant provisions of the "Securities Law of the People's Republic of China". Conduct a case investigation.
The two executives under investigation have left Guangzhou Langqi's executive positions on July 30, 2020.
On July 30, Guangzhou Langqi changed its board of directors. Chen Jianbin, former vice chairman and general manager, and Wang Zhigang, former secretary of the board, resigned.
According to investigations, on April 27, 2020, the board of directors of Guangzhou Langqi reviewed and approved the proposal of Chen Jianbin's resignation as the general manager of the company. According to the announcement, Chen Jianbin was transferred to Guangzhou Light Industry and Trade Group Co., Ltd. due to job transfer. After resigning as the company's general manager, he will continue to serve as a director and vice chairman of the company's ninth board of directors.
The matter goes back to September 28, 2020. Guangzhou Langqi disclosed that some inventory goods may involve risks. The two batches of goods stored by the company in Ruili warehouse and Huifeng warehouse were missing. The total inventory value was 572 million yuan. Called "washing powder run away."
On September 30, 2020, Guangzhou Langqi disclosed that the company has transferred a person involved in the case to the public security agency regarding some of the inventory goods that may involve risks, and the public security agency has opened a case for investigation.
On December 26, 2020, in the announcement on the progress of some inventory goods that may involve risks, Guangzhou Langqi disclosed that some storage companies that cooperate with the company have sold goods without the company’s formal confirmation. The relevant storage company The actual controller has been filed and investigated by the Guangzhou police for suspected crime.
Such "missing" of 572 million inventory will undoubtedly be a major blow to the company. On September 28 and 29, Guangzhou Langqi continued to drop by one word. As of January 27 this year, the company's share price has been cut in half.
On the evening of December 25, 2020, Guangzhou Langqi disclosed an announcement stating that the company had obtained evidence that the amount of inventory in third-party warehouses and other inconsistent accounts in the trading business had accumulated to 898 million yuan.
Guangzhou Langqi stated that in view of the fact that the amount and possibility of compensation by the responsible person in the future cannot be estimated, the company has transferred 867 million yuan of relevant third-party warehouse inventory to the pending property gains and losses in the third quarter of 2020. Provision for impairment in full amount. The company expects to transfer the aforesaid inventory amount of RMB 31,544,400 to the profit and loss of pending property at the end of this year, and withdraw corresponding impairment provision.
In addition, as of December 30, 2020, the total overdue debts of Guangzhou Langqi and its subsidiaries amounted to RMB 709,920,800, accounting for 37.20% of the company's most recent audited net assets. Due to the overdue debt and the impact of related litigation, the company's financing capacity and capital status, and the development of some businesses have been affected to a certain extent.
The case of Guangzhou Langqi also involved Fu Yongguo, the former chairman of the company.
On November 4, 2020, the Guangzhou Discipline Inspection Commission announced that Fu Yongguo, member of the Party Committee and Deputy General Manager of Guangzhou Light Industry and Trade Group Co., Ltd., was suspected of serious violations of discipline and law, and is currently undergoing disciplinary review and supervision investigation by the Guangzhou Discipline Inspection Commission. Public information shows that Fu Yongguo served as the chairman of Guangzhou Langqi for a long time and resigned in May 2019.
It is understood that Guangzhou Langqi was founded in 1959. Its predecessor was Guangzhou Grease Chemical Factory and Guangzhou Grease Chemical Industry Company. In 1993, Guangzhou Langqi was listed on the Shenzhen Stock Exchange.
Since its listing, Guangzhou Langqi's performance has shown a trend of volatility and rising. In recent years, the financial report found that its revenue has continued to grow, but the year-on-year growth rate in 2018 has fallen to 1.38%; at the same time, net profit has declined in 2015 and 2018, by 27.51% and 16.71% respectively; The net cash flow from activities has been negative for five consecutive years.
At the same time, in recent years, Guangzhou Langqi's gross profit margin and net profit margin have shown a downward trend, while the debt-to-asset ratio has risen significantly. Data shows that its gross profit margin has fallen from 5.29% in 2014 to 3.37% in 2018; its net profit margin has fallen from 0.74% in 2014 to 0.28% in 2018; and its debt-to-asset ratio has risen from 64.26% in 2014 to 2018 73.21% of the total. Therefore, Guangzhou Langqi's operating performance is not optimistic.
It is worth mentioning that Guangzhou Langqi was also involved in multiple lawsuits and some account freezing incidents while its performance fell.
Since October 2020, Guangzhou Langqi has been frozen due to various lawsuits and arbitrations, and due to repeated overdue debts, many of its bank accounts and subsidiary equity have been frozen.
On the evening of November 17, Guangzhou Langqi disclosed an announcement that due to the tight capital situation, the company and its subsidiaries had overdue debts of 704 million yuan, accounting for 36.88% of the company's most recent audited net assets.
According to disclosures, among the newly overdue debts, the largest creditor is Hang Seng Bank, with an overdue amount of 61.61 million yuan, and the type of debt is supply chain financing. In addition, the recent new creditors include the Agricultural Bank of China, Yangtze River 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 company's overdue debts are all trading businesses.
Regarding the impact of overdue debt, Guangzhou Langqi stated in the announcement that due to overdue debt, the company may face the need to pay related liquidated damages, late fees and interest penalty, which will lead to increased company financial expenses. Overdue debts will lead to a decline in the company's financing capabilities, aggravate the company's capital shortage, and may have a certain impact on some businesses. In addition, the company is involved in related litigation matters and asset impairment matters, which may also have a material adverse effect on the company's current profit and loss.
At the same time, Guangzhou Langqi also disclosed that 11 new bank accounts for it and its subsidiaries were frozen, and the frozen amount of the account was 16.162 million yuan. Up to now, a total of 39 accounts of Guangzhou Langqi and its subsidiaries have been frozen, of which 23 have been frozen due to the company's financial loan contract disputes with Jiangsu Baohua International and Jiangsu MCC Chemical. As of the announcement date, Guangzhou Langqi has accumulated a total of 98 million yuan in frozen funds.
Regarding the freezing of bank accounts, Guangzhou Langqi said, “The company still has available bank accounts to replace the frozen accounts. The freezing of the company’s bank accounts has not had a significant adverse impact on the company’s daily operations and management activities. The company’s production and operations are still continuing. In addition, the company’s frozen account amount accounts for a relatively low proportion of the company’s audited monetary fund balance and net assets in the most recent year, and there is no situation where the main bank account is frozen."
"Thunder" has continued all the way, and what is quite paradoxical is that Guangzhou Langqi once won two daily limit twice in November and December 2020 when the inventory destination is unknown and the company is entangled in lawsuits. Judging from the news, this is related to the huge amount of land compensation expected to be received.
In November 2020, Guangzhou Langqi announced that it had obtained the Land Transfer Confirmation Letter from the Guangzhou Land Development Center. After adjusting the accounting confirmation method, the transaction is expected to realize a pre-tax income of approximately 2.247 billion yuan. Although Guangzhou Langqi's financial treatment method has attracted many regulatory inquiries, it is still a major benefit for shareholders. On January 11, Guangzhou Land Development Center sent a letter to Guangzhou Langqi, stating that it had allocated 206 million yuan in compensation and 449 million yuan in frozen compensation in accordance with the requirements of the relevant courts, so it was temporarily unable to pay the remaining compensation to Guangzhou Langqi.
When all parties were in chaos, the quality of Guangzhou Langqi's letter was once again questioned by supervision. In December 2020, the Shenzhen Stock Exchange issued a regulatory letter to Guangzhou Langqi, involving four major letter violations:
First, it failed to disclose in a timely manner the failure to pay off major debts that were due.
In March, August, and September of 2020, Guangzhou Langqi experienced some overdue commercial acceptance bills and factoring payables. However, it did not disclose the overdue debts until September 25, and the relevant information was not disclosed in a timely manner.
Second, it failed to fully disclose the relevant inventory risks in a timely manner.
Regarding the inventory issue, Guangzhou Langqi learned that Huifeng Company replied to deny signing the storage contract and confirmed that Huifeng Warehouse did not store the goods, and the legal representative of Hongshen Company denied that the company's goods had been kept and transported, and the related inventory had significant risks. Failure to perform information disclosure obligations in a timely manner and insufficient disclosure of related risks.
Third, it failed to disclose the receipt of the land transfer confirmation in a timely manner.
On November 14, 2020, Guangzhou Langqi announced that it had obtained the Land Transfer Confirmation Letter from Guangzhou Land Development Center on October 29, but did not disclose information until November 14, and failed to perform its information disclosure obligations in a timely manner.
Fourth, the information disclosure before and after the accounting treatment of land purchase and storage matters is inconsistent.
Guangzhou Langqi’s disclosure of information before and after the accounting treatment of land purchase and storage matters was inconsistent, and it had a significant impact on the company’s profits, which caused certain misleading to investors’ decision-making.
The previous series of questions exposed the chaos in the management of Guangzhou Langqi, and the dark thunder continued.
The net loss of the first three quarters is 1.17 billion yuan
In addition to account freezing and falling into overdue debts, Guangzhou Langqi has other dark thunders.
Entering 2020, Guangzhou Langqi has been in a state of loss. In the first three quarters, it achieved operating income of 5.342 billion yuan, a year-on-year decrease of 47.81%; net profit loss attributable to shareholders of listed companies was 1.17 billion yuan; non-recurring gains and losses attributable to shareholders of listed companies were deducted The net profit loss of 171 million yuan; basic earnings per share-1.86 yuan, compared with the same period last year from profit to loss.
As of the end of the reporting period, the net assets of Guangzhou Langqi attributable to shareholders of listed companies were RMB 726,102,138.26, down 61.96% from the end of the previous year; the net cash flow from operating activities was RMB -1,309,571,077.93, a year-on-year decrease of 706.30%.
Source: Mobile Public Account
