*ST Honggao (002504) shares continued to decline, falling again on May 30 to 06 yuan, with a trading volume of more than 41 million shares. Since May 15, the stock has been closed for 12 consecutive trading days, of which the ** price of 11 trading days is less than 1 yuan.
Even if the next 9 trading days are up and down, *ST Honggao will not be able to return to more than 1 yuan, which means that the stock has determined the fate of delisting at face value in advance ......
2023 is a nightmare for ST shares. As long as they fall below par, they will be ruthlessly sold off by the market, and no one will believe that they can be reborn. The root cause of this result is that their business performance is too poor ......
Honggao Creative is a typical example. The company used to be a star enterprise listed on the backdoor, with a revenue of more than 3 billion, but now it is only more than 100 million, losing money for 6 consecutive years, and the deduction of non-net profit has been negative.
It is understood that Honggao Creative, formerly known as Dongguang Microelectronics, is mainly engaged in semiconductor device business. In 2014, Honggao Design was listed on the backdoor of Dongguang Microelectronics, and then changed its name to Honggao Creative, transforming into a comprehensive service provider of architectural decoration construction and design. The company's goal is to become a leader in the decoration industry, build a comprehensive service platform for the construction industry, and establish a comprehensive service ecosystem for the construction industry.
After the backdoor listing, Honggao Creative's performance was brilliant for a while. From 2014 to 2016, the company's revenue reached 311 billion yuan, 328.9 billion yuan, 363.8 billion yuan, and the net profit attributable to the parent company also exceeded 200 million yuan.
However, with the growth of performance, the company's accounts receivable have also risen. By the end of 2016, the company's accounts receivable reached 457.1 billion yuan, accounting for 125 percent of revenue65%。
In 2017, Honggao Creative's performance fell off a cliff**. Revenue is only 177.1 billion yuan, a decrease of nearly half, net profit attributable to the parent company and non-net profit were both losses. The company explained that this was due to the extended collection cycle of the project, which led to a significant increase in the provision for bad debts of accounts receivable, which affected the net profit.
At the same time, in order to appease investors, Honggao Creative also said that the bad debt provision of accounts receivable does not mean that accounts receivable cannot be recovered, as long as it can be recovered in the future, the previous bad debt provision will be written off.
In 2018, Honggao Creative's revenue dropped to 144.4 billion yuan, although the net profit attributable to the parent company turned losses into profits, the non-net profit was still negative. In the following 2019 and 2020, the company's revenue plummeted, with only 82.9 billion and 45 billion yuan, and the net profit attributable to the parent company is also a loss.
In 2021 and 2022, the company's revenue will be even more miserable, only about 100 million yuan, and the net profit attributable to the parent company will also lose nearly 500 million yuan. The main reason for the loss is the company's large provision of accounts receivable. According to the announcement, in 2021 and 2022, the company will make a provision for 28.3 billion and 3Impairment loss on accounts receivable of $8.9 billion.
In addition, the company's total liabilities reached a whopping 182.3 billion yuan, with a debt ratio of 12023%, already in the predicament of insolvency.
On the evening of May 22, Honggao Creative announced that the company intends to apply to the court for pre-reorganization on the grounds of inability to pay off due debts and lack of solvency.
In the announcement, Honggao Creative admitted that the company's main business has been in an abnormal state in the past two years, with debts unable to be repaid, cash flow drying up, and operating difficulties. However, the company also said that the company has many years of experience in the field of architectural decoration design and construction, and has formed an industrial layout of "design and construction integration", which has a certain reorganization value.
However, prior to this, Honggao Creative had not disclosed any major debt defaults and failed to pay off major debts as they matured. In this regard, the exchange requested the company in the letter of concern to explain in detail the specific circumstances and authenticity of the inability to pay off the debts due, as well as whether the company has evaded debts through bankruptcy reorganization and damaged the rights and interests of creditors and minority shareholders.
In addition, the controlling shareholder is also under tremendous pressure. Due to the default of the pledged repurchase transaction, the shares held by the company's controlling shareholders, Honggao Gaotai and Honggao Huimu, have been judicially auctioned and transferred many times. According to the data, at the end of September 2020, the holdings of Honggao Huimu and Honggao Taitai were 31.1 billion shares and 300 million shares, and by the end of March 2023, Honggao Huimu's shareholding dropped to 17.2 billion shares, and Kota has withdrawn from the list of shareholders.
At present, the company's largest shareholder is Anxin**, with a shareholding ratio of 1831%, while Honggao Huimu is only 1674%。However, according to the reply letter, Anxin** has no intention of controlling the company, so the controlling shareholder of the company is still Honggao Huimu, and the actual controller of the company is still He Ning and his wife.