Jinyi Culture Deduces A-Share Gold Swallowing?

On April 30, Jinyi culture officially released its 2020 annual report.

During the reporting period, the company's revenue was 3.896 billion yuan, a year-on-year decrease of 63.52%, and a huge net profit loss of 2.667 billion yuan. In the same period of 2019, the profit was 41.3578 million yuan, with a year-on-year drop of 6547.70%.

At the same time, the company expects that the company's loss will expand again in the first quarter of 2021, with a net loss of 117 million yuan.

On April 30, 2020, the company's stock price is 2.72 yuan, and the market value is only 2.63 billion yuan, which means that the loss of Jinyi culture in 2020 exceeds the current market value of the company.

This is another loss of the company after the state owned assets supervision and Administration Commission of Haidian District of Beijing took over Jinyi culture in 2018.

Jinyi culture disclosed that the main reason for the large performance loss was that the main business of the company failed to meet the expectation due to the influence of Xinguan epidemic situation and jewelry industry environment. At the same time, the company made a large amount of bad debt provision for receivables and large amount of goodwill impairment of acquisition funds in the early stage.

In 2020, the amount of bad debt loss and goodwill impairment of Jinyi culture is up to 2.297 billion yuan.

Jinyi culture is doubted by the regulatory authorities that it is a financial "bath" to adjust profits by withdrawing the loss of impaired assets.

A large investment bank researcher analyzed to the 21st century economic reporter that after the listing of Jinyi culture, a large number of mergers and acquisitions, rapid expansion, formed a huge debt and goodwill impairment, causing greater financial pressure on the company's operation.

Taking advantage of the impact of the epidemic situation in 2020, it is possible to make a large amount of withdrawal at one time“ Clearing off the financial pressure is conducive to the company's later performance growth. " It points out.

Since the change of ownership of Jinyi culture in 2018, its operation has not seen obvious improvement. Can the liquidation of asset impairment loss bring expected growth to the company?

Gold gobbler in stock market

Jinyi culture was founded in 2007 and listed on Shenzhen Stock Exchange in January 2014. Its main business is the R & D, design, production and sales of precious metal crafts and jewelry.

Before the change of ownership in 2018, blue sky Longxiang held 17.90% shares of Jinyi culture.

Zhong Cong directly holds 12.89% of the shares of Jinyi culture, and indirectly controls 17.90% of the shares of Jinyi culture through blue sky Longxiang, totally controlling 30.78% of the shares. He is the actual controller of the company.

In the year of listing in 2014, Jinyi culture began a series of crazy mergers and acquisitions and capital operation.

Within half a year of listing, the company launched a merger and acquisition plan. It issued 34.5646 million shares to Chen Baofang, Chen Baokang, Chen Baoxiang, etc., in a non-public way, at a price of 21.13 yuan per share, and acquired 81.15% equity of Yuewang jewelry held by them; Buy 18.85% equity of Yuewang jewelry from Hony investment and others in cash; At the same time, it plans to raise additional supporting funds of 300 million yuan from five specific objects such as Zhong Cong, the actual controller.

After the transaction is completed, the company will directly hold 100% equity of Yuewang jewelry.

At that time, the appraisal value of the 100% equity of Yuewang jewelry was RMB 905 million, the book net assets was RMB 448 million, the appreciation rate was 101.90%, and the final transaction price was RMB 900 million.

From May 2015 to September 2017, the company raised 2.8 billion yuan in the form of issuing corporate bonds and medium-term notes.

After September 2017, Jinyi culture once again made a large-scale acquisition at a high premium. It successively issued shares to Huang Yibin and others to purchase assets and raised matching funds. It successively acquired 100% equity of Jinyi jewelry, 100% equity of Jiefu jewelry, 99.06% equity of zhenbaotong and 49% equity of Guitian diamond.

According to the statistics of 21st century economic report, according to the incremental debt, Jinyi culture has raised 12.831 billion yuan since its listing.

Among them, 7.515 billion yuan was directly raised.

Since the listing of Jinyi culture in 2014, the accumulated net profit is only 988 million yuan, and the accumulated cash dividend is only 104 million yuan. At the end of 2019, the company's net assets were only 4.663 billion yuan, and after a large loss in 2020, the total owner's equity was only 2.339 billion yuan.

After listing, Jinyi culture has burned up 10 billion yuan of market capital, and its cash return to investors is only 100 million yuan.

Such a "gold gobbler", where does the financing go?

In addition to M & A expansion of the main business, microfinance companies, private banks, smart wear and other new business layout of Jinyi culture.

According to the reporter of 21st century economic report, in 2015, the company purchased 60% equity of Shenzhen Kani micro loan held by Shenzhen Carney jewelry at a price of 480 million yuan. In the same year, as the main sponsor, it planned to jointly set up Ruijin bank with its own capital of 300 million yuan.

In 2016, Jinyi culture signed an investment agreement with Guangdong Leyuan digital and leliuping, increased capital by RMB 187 million, obtained 11% equity of Guangdong Leyuan, and obtained 40% equity of Guangdong Leyuan digital held by leluping with RMB 680 million, and arranged intelligent wear business.

Wanton business expansion, high premium mergers and acquisitions, layout of new business did not bring about the stable performance growth of Jinyi culture. As a result, in 2018, the company suffered a loss for the first time and had to sell himself to the SASAC of Haidian District, Beijing.

Hot potato with state owned assets

In 2018, the capital chain crisis occurred in Jinyi culture. Zhong Cong, the actual controller, and the controlling shareholder, blue sky Longxiang, held 257 million shares of the company (accounting for 30.78% of the total share capital of the company at that time), which were in a high proportion of pledge or judicial freeze.

In particular, the company's actual controller Zhong Cong directly held 108 million shares of the company (accounting for 12.89% of the total share capital of the company), 93.24% of which are in the state of pledge, of which 54.52% touch the closing line and face the risk of being forced to close positions.

At that time, Zhong Cong, the actual controller, and the controlling shareholder, blue sky Longxiang, were unable to further raise funds, add margin or add collateral to resolve the pledge risk of Jinyi culture stock.

In August 2018, Jinyi culture announced that Zhong Cong and Zhong Xiaodong, the controlling shareholders of blue sky Longxiang, and Beijing Haidian technology financial capital holding group (hereinafter referred to as "haikejin group") have completed the equity transfer agreement.

Zhong Cong and Zhong Xiaodong transferred 69.12% and 4.20% shares of blue sky Longxiang respectively to haikejin group. After the transfer, haikejin group will hold 73.32% equity of blue sky Longxiang.

Blue sky Longxiang holds 17.90% shares of Jinyi culture and is still the controlling shareholder of the listed company.

Haikejin group indirectly controls 17.90% of the shares of Jinyi culture through blue sky Longxiang. Beijing Haidian SASAC, the actual controller of Haike gold group, has become the actual controller of Jinyi culture.

According to the transfer agreement at that time, haikejin group obtained the control right of Jinyi culture with the transaction consideration of 1 yuan.

Haikejin group has made a loan commitment. Beijing Haidian District State owned assets center, haikejin group and the member enterprises of haikejin group will timely provide liquidity support to the company according to the operation situation of Jinyi culture, with an accumulated amount of no less than 3 billion yuan.

After haikejin group became the owner, it solved part of the capital problem of Jinyi culture by making use of its strong state-owned capital background.

In 2018, haikejin group and its controlling shareholders provided 10 billion yuan of financial support to Jinyi culture by providing loans and credit guarantee.

However, the state-owned capital has not completely changed the management dilemma of Jinyi culture, and the company still faces a huge funding gap.

According to the 21st century economic report's annual report, by the end of 2017 before Beijing Haidian state owned assets supervision and Administration Commission, Jinyi culture had a debt of 11.645 billion yuan, a goodwill of 2.768 billion yuan, and a debt ratio of 67.43%, including short-term loans of 3.344 billion yuan and non current liabilities of 590 million yuan due within one year. In 2017, Jinyi culture had a large number of bank loans overdue, Several of the company's bank accounts have been subject to judicial freeze.

On the other hand, its annual report shows that the net cash flow from operating activities of Jinyi culture was negative for four consecutive years from 2014 to 2017, and was negative by 1.665 billion yuan in 2017.

If it is not for the acceptance of state-owned assets, Jinyi culture will face the risk of direct collapse.

In the second half of the year when Haike gold group took over Jinyi culture, Jinyi culture suffered a huge loss of nearly 200 million yuan. The first annual loss after listing in 2018 was RMB 94.1895 million and the net profit attributable to the parent company was RMB 545.819 billion.

In the two years since the state-owned assets took over, Jinyi culture has not achieved any improvement in performance. The company's revenue has continuously declined from 14.944 billion yuan in 2018 to 3.869 billion yuan in 2020. In 2019, Jinyi culture made a profit of 41.3578 million yuan, and then fell into a huge loss of 2.667 billion yuan in 2020.

Debt remains elusive

According to the statistics of 21st century economic report, the company's liabilities are still as high as 7.973 billion yuan, including current liabilities of 6.545 billion yuan. By the end of 2020, the debt ratio of the company has risen to 77.32%. After the provision of impairment, the company still faces the goodwill of 227 million yuan. In the first quarter of this year, Jinyi culture lost money in advance again, and the amount of loss even expanded, with a net loss of 117 million yuan.

After more than two years of blood transfusion, Haike gold group can only provide support to Jinyi culture in the form of loan, which again puts pressure on the debt of Jinyi culture.

According to the related party loan proposal of Jinyi culture in 2019, the company intends to apply to haikejin group and its subsidiaries for an interest bearing loan with a total amount of no more than 4 billion yuan, with an annual interest rate of no more than 7.16%, and a total interest of 260 million yuan within the validity period. The loan term is valid for 12 months from the date of deliberation and approval.

In September 2020, Jinyi culture's new related party loan proposal will increase the loan amount by 1 billion yuan and the interest limit by 70 million yuan on the basis of the above proposal.

As for the credit guarantee provided by haikejin group for Jinyi culture and its subsidiaries, haikejin group also draws guarantee money, and provides joint liability guarantee with no more than 6 billion yuan. Haikejin group and its subsidiaries charge a guarantee rate of 2% per year, and the total guarantee fee will reach 65 million yuan.

In the first half of 2018, haikejin group had total assets of 6.966 billion yuan, total liabilities of 4.308 billion yuan, and net assets of 2.658 billion yuan. The current revenue was 700 million yuan and the net profit was 120 million yuan.

This also means that haikejin group may not have enough strength to continuously transfuse Jinyi culture.

In December 2020, the equity of Jinyi culture held by blue sky Longxiang, the controlling shareholder of Jinyi culture, was auctioned by judicial auction. Haikejin group could only bid through its wholly-owned subsidiary Beijing Haixin assets.

Haixin assets successfully won 40 million shares and 109 million shares of Jinyi culture held by blue sky Longxiang through judicial auction on the 9th and 24th of the month respectively.

In 2020, blue sky Longxiang and Zhong Cong, the former actual controller of Jinyi culture, were waiting for freezing and judicial auction for their shares of Jinyi culture due to the case involving small loan, financial loan and enterprise loan dispute. Haixin assets successively won all the shares that had been auctioned in the early stage. The controlling shareholder of Jinyi culture was also changed from blue sky Longxiang to Haixin assets, with a shareholding ratio of 29.98%. The actual controller is still Beijing Haidian SASAC.

According to Wande data, up to now, the total amount of equity pledge of Zhong Cong, Chen Baofang and Chen Baokang of Jinyi culture still reaches 233 million shares, accounting for 24.23% of the company's shares.

18.16% of the company's shares held by Zhong Cong, Chen Baofang, Chen Baokang, Yuewang investment and other shareholders have also been frozen, pending the court's disposal.

This shows that whether Haixin assets can continue to take over is still full of suspense.

Whether the equity auction of Jinyi culture under the connection of Haixin assets will continue to take over, and will the controlling shareholders continue to transfuse Jinyi culture?

By the end of the year, the company has 139 Direct stores and 78 franchise stores.

Due to the general loss of stores, whether the company will continue to reduce stores is still unknown; If the business shrinks again, the cash flow of Jinyi culture will be under pressure again, and the company will still face the risk of huge debts being unable to repay.