The hottest performance was reduced by senior exec

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How long can we play the "dangerous game" of Jianlang hardware with good performance reduced by executives

original title: how long can backward executives play the "dangerous game" if they want to reduce their holdings

source: Shanghai Securities News

⊙ Zhu Wenbin ○ Qiu Jiang

on August 6, Jianlang hardware issued two announcements: one good and one bad

not long ago, Jianlang hardware, which has been listed for three years, ushered in the tide of lifting the ban. In the face of the long-term break of the stock price, the company issued favorable announcements again and again, but failed to reverse the embarrassment of the break, and failed to stop the executives' impulse to "improve their lives" in the face of the lifting of the shareholding ban

the two directors shouted to reduce their holdings

Jianlang hardware announced on the 6th that the company has recently obtained two invention patents. At the same time, two directors announced their reduction plans

among them, Wang Xiaoli, the director and vice president of the company, plans to reduce her holdings of no more than 1million shares in the secondary market in the next six months after 15 trading days (accounting for 0.31% of the total share capital of the company). Wang Xiaoli currently holds 4.05% of the company's shares

Zhao Jian, another director of the company, also plans to reduce his holding of no more than 500000 shares. In the previous may, her spouse Li Li had reduced her holdings twice. At present, Zhao Jian holds 2.4116 million shares of the company. According to the company's announcement on March 27, Zhao Jian has pledged 2.435 million shares. In addition to serving as a director of the company, Zhao Jian has another identity, that is, the manager of Zhengzhong Zhujiang Certified Public Accountants (special general partnership)

according to the previous announcement, the above two directors are shareholders who obtained the lifting of the restricted shares at the end of March this year. The reasons for this reduction are also "personal capital needs"

it is noted that on July 3, a month ago, Jianlang hardware released a performance forecast, and it is expected to achieve a net profit of 95.0346 million yuan to 118 million yuan in the first half of this year, an increase of 202.2% to 275.71% over the same period last year

in 2017 and 2018, that is, the two full fiscal years after the listing of Jianlang hardware, the company's net profit showed a downward trend. Take down the damaged samples, with a decline of 24.52% and 9.93% respectively

under the background of the improvement of the company's performance, the reduction plan of Wang Xiaoli and Zhao Jian is somewhat eye-catching

2019 is the year when the restricted shares of Jianlang hardware are lifted. Since the beginning of this year, Jianlang hardware has continuously released good news, from announcing repurchases to the commitment of controlling shareholders and some directors not to reduce holdings, from obtaining invention patents to announcing a turnaround in the first quarter, which means a lot to maintain the stock price

it is embarrassing that although the stock price of Jianlang hardware has been in a bright trend this year, it is still in a broken state under the stimulation of these positive releases one after another

just after the release of the bright first half performance express on July 3, the share price of Jianlang hardware opened high and fell, which seemed to make some executives and shareholders who had lifted the ban lose patience

the profit hit a seven-year low

it grew rapidly before the listing, the performance "changed" after the listing, and the net profit rose sharply in the new year after the lifting of the ban. For such a "digital game", the "routine" of Jianlang hardware does not seem to be wise

looking up the financial data over the years, it is found that from 2012 to 2016, the operating revenue of Jianlang hardware was 1.413 billion yuan, 1.749 billion yuan, 2.025 billion yuan, 2.327 billion yuan and 2.708 billion yuan respectively, and the net profit was 186 million yuan, 223 million yuan, 216 million yuan, 211 million yuan and 253 million yuan respectively, showing a wonderful growth curve

in March 2016, with this wonderful curve, Jianlang hardware successfully landed on the small and medium-sized board. But after that, the company's performance suddenly "changed", and the growth rate of net profit fell for two consecutive years. Among them, the net profit in 2018 was 173 million yuan, even lower than the level in 2012 seven years ago. The operating revenue of Jianlang hardware in 2018 reached 3.853 billion yuan, 2.7 times that of 2012

the situation of increasing income without increasing profit is more reflected in the rapid trend of the company's net profit margin towards "profit is thinner than paper". From 2016 to 2018, the operating net profit margin of Jianlang hardware was 9.31%, 6.07% and 4.39% respectively, with a rapid decline. If such a trend is followed, within a few years, Jianlang hardware may be "losing money and making money"

the capital chain quickly ensures the accuracy of speed. The weird development trend of tight

Jianlang hardware is also testing the company's increasingly tight capital chain

in 2016, the book cash of Jianlang hardware reached 954million yuan, but by 2018, it had shrunk to 447million yuan, and further reduced to 339million yuan in the first quarter of this year. At the same time, the company's notes and receivables in 2016 were 665 million yuan, which has rapidly doubled to 1.390 billion yuan in 2018, and continued to climb to 1.579 billion yuan in the first quarter of this year

the sharp consumption of funds has long been a precursor. During its IPO in March 2016, Kinglong hardware raised a total of 884million yuan, which is planned to be used for five projects, including the expansion of high-performance doors and windows and door control hardware system, the expansion of stainless steel building components and accessories, the enterprise R & D center project, the information system upgrading and transformation project, and the replenishment of working capital in accordance with veterinary drug production quality management regulations, of which the amount of supplementary working capital is 360million yuan

however, one year later, Jianlang hardware terminated the project with the largest investment in the original raised investment plan and changed the purpose of the raised investment. After the change, the amount of Jianlang hardware used to supplement working capital is as high as 7 Generally speaking, 4billion yuan, accounting for 84% of the total funds raised

however, even the raised capital of more than 700million yuan is unsustainable before the rapid expansion of capital consumption

from the perspective of cash flow from operating activities, in 2016, the net cash flow from operating activities of Jianlang hardware was 237million yuan, the next year was -44.2422 million yuan, and in 2018, it was 32.0792 million yuan, while in the first quarter of this year it was -328 million yuan

in 2018, Jianlang hardware saw its first short-term loan of 31.5 million yuan after its listing. In the same year, the financial expenses of the company changed from negative to positive. This means that in just two to three years, the abundant capital situation after the listing and fund-raising of Jianlang hardware has reversed, and the capital chain has begun to show a tightening momentum

if it is allowed to develop, will the "dangerous game" of Jianlang hardware make the company slide from "less than paper" to "less than paper"? Under this trend, it seems understandable that the two directors of Jianlang hardware did not hesitate to reduce their holdings under a series of favorable conditions

: Tian Yuan

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