The performance has declined for 3 consecutive years, the loss in the first three quarters has been nearly 100 million, the delisting risk warning has been implemented, the annual report has been issued by the accounting firm with reservations, and the exchange has issued a letter of inquiry and concern every three or five times 300799SZ) stock price can still go all the way up, which can be called the strongest "demon stock" of the year.
On the evening of December 1, *ST Zuojiang announced that it received a notice of filing a case issued by the China Securities Regulatory Commission, and the company was suspected of violating laws and regulations in information disclosure, and the CSRC decided to file a case against it.
Perhaps, this will reveal the "secret" of *ST Zuojiang's stock price rising instead of falling.
Question 1: Nearly 100 million losses have been implemented *ST, why can the stock price go all the way up?
ST Zuojiang is mainly engaged in the design, development, production and sales of software and hardware platforms, boards and chips related to national network information security applications.
The financial report shows that in the past three years, *ST Zuojiang's performance has declined in free fall. In 2020, *ST Zuojiang achieved an operating income of 200 million yuan and an attributable net profit of 9364160,000 yuan;In 2021, *ST Zuojiang's performance suddenly changed face, and its operating income was almost "cut in half", which was 11.8 billion yuan, down 41 percent year-on-year04%, and the attributable net profit fell sharply by 9395% and 566500,000 yuan.
In 2022, *ST Zuojiang's revenue situation will deteriorate further, with a year-on-year decline of 5018% to 5896120,000 yuan, and the attributable net profit fell sharply by 269304%, a loss of 14.7 billion yuan. In addition, the delisting indicator of "negative audited net profit and operating income of less than 100 million yuan in the most recent fiscal year" of the GEM listing rules was triggered, and the company** was implemented *ST from May 4, 2023.
At the same time, *ST Zuojiang's financial and accounting report for 2022 was also issued an audit report with a qualified opinion by the accounting firm. The reason for the formation of the qualified opinion is that some accounts receivable have not been able to carry out on-site interviews, nor have they been able to obtain confirmation and reply, and due to the limited interviews, confirmation and other important audit procedures have not been effectively implemented, the accounting firm has not been able to obtain sufficient and appropriate audit evidence to judge the feasibility of the book value of the above-mentioned receivables.
It is worth noting that the company's third quarterly report shows that its operating performance has not improved, and only achieved operating income of 3372 in the first three quarters210,000 yuan, far from the annual revenue target of 100 million yuan;In terms of profit, the loss in the first three quarters was 9732730,000 yuan, the risk of delisting has become more and more large.
It stands to reason that under such performance and the "risk warning" of the accounting firm, the stock price of *ST Zuojiang should "plummet", but in fact, on the contrary, *ST Zuojiang has been soaring all the way, completely ignoring the delisting risk warning.
Wind data shows that during the year, *ST Zuojiang rose by as much as 7172%, and the stock price hit a high of 29980 yuan, the latest report is 22386 yuan, which is the highest share price among more than 100 risk warning stocks, ranked among the top five in the year.
This has also alarmed the exchanges. The Shenzhen Stock Exchange has been conducting key monitoring of *ST Zuojiang for three consecutive weeks. In the stock bar, many investors have smelled the smell of risk, "If you don't run, there will be no bones left." One investor put it this way.
Question 2: Is there any suspicion that the stock price has been manipulated if the large order is rising?
An intriguing piece of information is that *ST Zuojiang has a total share capital of 102.1 billion shares, of which the total shareholding ratio of the controlling shareholder and persons acting in concert is 6453%, that is, less than 40 million shares** of companies actually circulating in the market.
At the end of 2021, the number of shareholders of the company reached 10,000, and since then it has been declining, less than 5,900 by the end of 2022, and as of the end of September this year, the number of shareholders is only about 2,800
Around October 20, on the eve of *ST Zuojiang's disclosure of the third quarterly report, the stock price once fell to about 200 yuan, and on October 25, *ST Zuojiang disclosed the third quarterly report and made a special reminder of its delisting risk, on the same day, its stock price was once again bizarre**, once reached 245 yuan shares.
Since November 17, perhaps affected by the exchange's public inquiry, the company's share price has appeared for several days, and on November 24, it fell below 200 yuan shares again, but in the last 15 minutes of the market closing, a number of large orders suddenly appeared**, directly pulling its stock price back to more than 200 yuan.
Under the risk of delisting, where does such a large amount of ** come from?In the context of many declines and being pulled back to 200 yuan, it seems that 200 yuan has become the "bottom line" of some funds.
Question 3: Is the layout of the DPU a real technology or a false proposition?
DPU is the abbreviation of data processor, which belongs to a class of special processors, and the market's high attention to *ST Zuojiang stems from its layout of DPU.
Since 2021, *ST Zuojiang has continued to disclose that it is conducting research and development of "programmable network data processing chips", and for the performance, "**ST Zuojiang also explained that the company's new products under development and programmable network data processing chips (DPU) are in the key development stage, which is embodied in the fact that "entrusted R&D is also in the main R&D stage, and R&D investment has increased a lot." Revenue decreased, R&D investment increased, and one increase and one decrease led to further expansion of losses. ”
And in the relevant announcement in 2023, it said that "the first domestically produced independent and controllable DPU in China has been successfully developed, and it has now reached the two-way 200Gbps network data processing capacity".
Since the main manufacturers of DPU products are foreign companies including NVIDIA, *ST Zuojiang's announcement on the research and development of such products has obviously attracted enough market attention.
On the Shenzhen Stock Exchange, many investors paid attention to the R&D progress of its DPU, while *ST Zuojiang only said that the company's DPU matters were carried out as planned, and the company has a professional R&D team with senior industry background and experience. Compared with the original products, the security products developed based on programmable network data processing chips have the characteristics of high performance, low latency and low power consumption, which can reduce costs and increase efficiency.
As for the specific order situation, there is no mention of it. Up to now, the company has only publicized its 12.61 million yuan of DPU chip revenue in the 2023 semi-annual report inquiry letter reply announcement. It is worth noting that the contract for the transaction was signed on December 27, 2022, and the delivery was completed on January 3, 2023.
In the inquiry letter of the third quarterly report, the Shenzhen Stock Exchange directly questioned the reasonableness of the delivery within 5 days of the signing of the contract, whether the customer is the end user of the product and whether it has commercial substance.
So far, *ST Zuojiang has not responded to the exchange's inquiries.
Although *ST Zuojiang has been disclosing DPU R&D in the past 3 years, its financial report shows that its total R&D investment in 2021 and 2022 is less than 200 million yuan, and its R&D expenditure is much lower than that of domestic listed companies in the same industry.