As the main A-share platform of Liu Yonghao, the former richest man in China, New Hope Liuhe shares *** listed for "New Hope") staged a thrilling drama for its 220,000 shareholders on the first trading day of December 2023 - the company's stock price gapped, opened low, fell sharply, and swooped to the fall limit, and finally closed down 880% to 912 yuan shares, a new low in more than 4 years. From the peak of 42 since September 2020Since the 20 yuan share (reweighted price), New Hope has fallen by as much as 80% in the past three years, with a market value of about 160 billion evaporated, and the latest market value is only 41.5 billion yuan.
The fuse that triggered the sharp drop in the stock price was New Hope's disclosure of a refinancing announcement - "2023 Annual Plan for Issuing A Shares to Specific Targets**", according to which New Hope plans to issue A shares** to specific targets, no more than 1,363,732,329 shares (including the number of shares), and the total amount of funds raised will not exceed 73500 million yuan, of which about 3.6 billion yuan was invested in the "pig farm biosecurity prevention and control and digital intelligence upgrade project", 1.5 billion yuan was used to acquire minority shares in two holding subsidiaries, and 2.2 billion yuan was used to repay bank loans.
New Hope hopes to alleviate the problem of the company's capital chain through fixed increase refinancing, and at the same time further upgrade the pig business, but it is clear that the market does not recognize New Hope's development plan. Behind the sharp drop in the stock price of New Hope, there is a round of pig cycle operation, the company has made a lot of money in 2019 and 2020 because of the continuous rise in pork**, and the stock price has also risen sharply, and the market value of the company was once as high as 192 billion yuan, but many pig enterprises have made a lot of money in pork** When it was rising, the situation was misjudged, and the expansion of the pig business was too blind, and even the new hope that had previously been based on pig feed also chose to expand the pig breeding business in a big way, and finally under the transformation of supply and demand in the pork industry, pork ** sharply **, resulting in heavy losses for the enterprise, which was reflected in the financial report, New Hope suffered a huge loss of 95 in 20219.1 billion yuan, and another loss of 146.1 billion yuan, another loss of 38 in the first three quarters of this year5.8 billion yuan, the performance attractiveness of the leading pig feed enterprises with steady growth in the past has disappeared, and the company's stock price has plummeted.
The last decision to expand the pig business was obviously wrong, and now the new hope wants to optimize the pig business again through a large amount of refinancing, in fact, it is in the rotation of the pig cycle, and the layout is waiting for the pork ** to pick up again, and then reverse the fundamental loss, and seek to make a big profit.
Operationally, it is a bit like a shareholder, obsessed with a certain one, bought at a high level, was trapped, and then tried to reduce the cost of holding a position after the stock price reached a certain point, waiting for the rebound to unbundle, but this "** is often a high-risk investment behavior, **copied in the middle of the mountainside abounds. In fact, this is the fourth refinancing for development projects launched by New Hope since 2020, and the first three times have raised a total of 16.1 billion yuan, but none of the projects invested have achieved the promised benefits.
And the 2.2 billion yuan in the refinancing plan to repay bank loans has deepened people's concerns about New Hope's capital chain problem, data shows that as of the end of the third quarter of 2023, New Hope's total liabilities reached 9699.7 billion yuan, more than twice its current market value, and the asset-liability ratio is 7276%, a record high since the company went public in 1998, and finally many investors voted with their feet, so there was a black opening in December. A New Hope