Recently, the market has been weak, and the CSI 300 Index, which is the first Chinese army, actually fell below the low point under the new crown epidemic in early 2020, which shows the downturn in sentiment. Many former white horse stocks have launched buyback plans.
On December 11, Hesheng Silicon Industry (603260., which was deeply involved in the first turmoilSH) also announced a buyback of 500 million yuan to 1 billion yuan, as a leading enterprise in A-share silicones, its cumulative decline since the second half of 2021 has been close to 80%, the company's move is obviously to curb the weak stock price and inject confidence into the market.
However, on the 12th, the share price of Hesheng Silicon continued to **112% and currently close at 4786 yuan shares, market capitalization is only 565800 million yuan, more than 200 billion yuan has evaporated from the highest point. The complete numbness of the capital market to the bulls also seems to be a major feature of the end of the bear market.
The performance has fallen sharply, and the stock price has become a roller coaster
According to public information, Hesheng Silicon Industry was established in 2005, is a domestic industrial silicon and organic silicon double leader, from the output point of view, the company in the domestic industrial silicon market share of about 30%, in the domestic organic silicon market share of about 18%.
Industrial silicon refers to the crude silicon obtained by reducing silica (silicon dioxide) with high-purity carbon in an electric furnace, with a general silicon purity of about 98%, and organic silicon is one of its main downstream applications, known as "industrial monosodium glutamate".
Hesheng Silicon is a typical chemical enterprise, with high energy consumption and high pollution attributes. In 2021, in the context of supply-side reform and environmental protection and production restrictions, the prosperity of the silicon industry driven by superimposed photovoltaics will explode, and the upstream industrial silicon and organic silicon will be stronger, and the data shows that in September 2021, industrial silicon soared to more than 60,000 tons, an increase of about six times in two months, and organic silicon also doubled.
As a result, Hesheng Silicon Industry has also ushered in the highlight moment of its own development, and its performance is full of flexibility. According to the 2021 annual report, the company achieved revenue of 2138.5 billion yuan, a year-on-year increase of 138%, and the net profit attributable to the parent company reached 821.2 billion yuan, a year-on-year increase of 48552%。In 2022, the company's owner, Luo Liguo, ranked among the top 50 of the Hurun Global Richest List, becoming one of the richest people in China with the fastest accumulation of wealth.
However, chemical stocks cannot escape the curse of cyclical reincarnation. In 2022, the company began to increase revenue without increasing profits, and profits fell sharply, and by the first three quarters of 2023, the company's operating situation was still not optimistic.
The data shows that in the first three quarters of 2023, the company achieved revenue of 1988.6 billion yuan, a year-on-year increase of 881%, and the net profit attributable to the parent company was 218.5 billion yuan, a sharp decrease of 52 percent year-on-year03%。
With the decline in performance, the share price of Hesheng Silicon Industry has shown a roller coaster trend, and the company has almost completely swallowed up the gains in 2021, which can be described as a return to the pre-liberation period overnight.
Due to the sharp decline in market value and sluggish turnover, on November 24, the Shanghai Stock Exchange announced that Hesheng Silicon was excluded from the Shanghai Stock Exchange 50 Index, and the company lost face as a big white horse.
Not only that, the company's cash flow is actually stretched, as of the end of September 2023, the total debt of Hesheng Silicon Industry is 4393.9 billion yuan, of which the total current liabilities are 1984.9 billion yuan, while the company's monetary funds and transactional financial assets totaled only 398.8 billion yuan.
In the case that the cash on hand is not very abundant, Hesheng Silicon still does not hesitate to spend a huge amount of money to repurchase shares, which shows that the company is eager to boost the stock price.
The company announced that it intends to repurchase with its own funds in a centralized bidding transaction, with a total amount of not less than 500 million yuan, no more than 1 billion yuan, and no more than 80 million yuan40 yuan shares, which is a lot of room from the current stock price, and the subsequent related shares will be used for employee stock ownership plans or equity incentives.
Caught in the ** turmoil, the outside world is constantly questioning
When it comes to equity incentives, we have to mention the recent "** turmoil" in Hesheng Silicon Industry, where the family of Fang Hongcheng, the former general manager of the company, made a real-name report, which brought the company back to the focus of investors.
On November 12, Sun Lichen, the wife of Fang Hongcheng, the former general manager of Hesheng Silicon, released an article titled "Real-name Report on Zhejiang 100 Billion Billionaire Luo Liguo: Threatening City Leaders to Interfere with Justice and Frame Zhongliang by Relocating Listed Companies", saying that Luo Liguo, chairman of Hesheng Silicon, had signed an agreement before Fang Hongcheng refused to pay after Fang Hongcheng left his post. Among them, a total of 131 including equity incentives50,000 shares of the company, based on the current stock price, this part of the equity is worth more than 60 million yuan.
According to the data, Fang Hongcheng was originally a member of Xin'an (600596SH) employeesHe joined Halcyon Silicon in 2011, and has been serving as the general manager of the company since then, and has been concurrently serving as a director of Halcyon Silicon since 2015, and in October 2017, Halcyon Silicon successfully landed on the A-share market, and Fang Hongcheng is the hero behind the listing.
However, at the end of 2018 after the listing, Fang Hongcheng resigned, and the former "meritorious" and "old club" turned against each other, and went to court many times, which is embarrassing. It is said that the two sides have a huge difference in management philosophy, and the contradictions are accumulating more and more.
Nowadays, it is not uncommon for professional managers and big bosses to have conflicts so far. However, it is a bit difficult to understand whether the founder of the company is suspected of "unloading the mill and killing the donkey", the outside world does not know.
As of the end of the third quarter of this year, Halcyon Group and its concerted actors Luo Liguo, Luo Yi and Luo Yedong directly held a total of 9 shares of the company2.9 billion shares, accounting for 7859%, Luo Yedong and Luo Yi are both Luo Liguo's children, the company can be described as a typical family business, and the Luo family has the sole power.
To the surprise of the "melon-eating masses", the equity dispute is only the tip of the iceberg. On November 13, Fang Hongcheng's family once again released the article "Fang Hongcheng, the former general manager of Hesheng Silicon Industry: How I was framed in prison".
The article mentioned that Hesheng Silicon accused Fang Hongcheng of building a low-boiling hydrolysis oil project without authorization for personal gain, and receiving commercial bribes from his brother Fang Hongxing by disposing of hydrolysis oil for profit. However, in fact, Luo Liguo was fully aware of and allowed the treatment of the hydrolysis oil project, and accused Hesheng Silicon of being suspected of the crime of polluting the environment and the crime of illegal production and operation of hazardous chemicals.
In September last year, Luo Liguo was arrested on suspicion of being arrested on suspicion of ** and has been detained in the detention center since the counterclaim party Hongcheng "harmed the company's interests and embezzled his duties" due to the "hydrolysis oil" project.
Epilogue——
At present, things are becoming more and more confusing, and the two sides insist on their own words, which is no longer a simple economic dispute. The already depressed stock price has made matters worse, and since early November, the share price of Halcyon Silicon has continued to fall by about 15%. At this time, the company's management did not hesitate to invest in the launch of the repurchase plan, I don't know if it can have an effect, investors and wait and see.
Author: Flying Fish.