Ideal jewelry is gone

Visual China.

Text |Zebra Consumption, Author |Chen Biting.

After the listing, it launched a strong merger and acquisition, and fell off the altar due to the failure of the bet. Then, the drama of shareholders fighting and exposing each other's scars made the people who ate melons all the way.

After 9 years in the capital market, it has almost become a joke. Now, the jewelry company has come to a dangerous precipice. If nothing else, it will be the first stock to be delisted in 2024.

After having tasted enough thunder, infighting and weak performance, **Jewelry First Stock* ST Eddie (002740.SZ) is irreversible. If nothing else, it will be the first stock to be delisted in 2024.

Compared with the high-profile and noisy landing in the capital market nine years ago, today's companies are in the cold, and investors have accelerated their flight.

Yesterday, the company's share price closed at 056 yuan shares, 12 consecutive trading days ** price below 1 yuan shares. In the next 8 trading days, even if the continuous limit rises, it will be difficult to come back to life.

The collapse of the company's stock price should be related to an announcement.

On December 22, 2023, the company disclosed that a self-inspection found that about 5500 million yuan of accounts receivable and inventory that cannot obtain sufficient and appropriate audit evidence are suspected of being illegally embezzled and damaged by related persons and other illegal embezzlement, breach of trust and damage to the interests of the company, the company has reported to Shenzhen.

After the news was disclosed, the stock price fell 485%, and fell below the 1 yuan life and death line. Since then, it has never returned to above $1.

A few days later, the company disclosed that Wang Junxia, the concerted actor of the largest shareholder Li Yong, held about 962310,000 shares will be auctioned online from December 18 to 29, which has increased the anxiety of small and medium-sized investors The daily decline totaled 976%。

Stepping into 2024, the company continues to have bad news. Among them, the Fujian Longyan Intermediate People's Court did not accept the company's creditors Strait Hakka Company and Donna's application for the company's reorganization, and the only chance for Nirvana's rebirth was cut off.

Signs of risk were already there much earlier. Due to the negative audited net assets attributable to the parent in 2022, the 2022 annual financial report was issued by the audit institution with an audit report that could not express an opinion, and since May 5 last year, the company has been subject to a delisting risk warning.

In the domestic ** jewelry industry, there may not be any listed company that is as embarrassed as *ST Eddie.

Su Riming, who was born as an agricultural technology promoter, founded Ideal in 2002, and within a few years, it became a jewelry enterprise integrating R&D and design, production and processing, and brand chain sales, and landed on the Shenzhen Stock Exchange in 2015, becoming the first listed jewelry company.

At this time, Su Riming's ambitions began to swell. Under his leadership, he launched a number of mergers and acquisitions, which caused a small whirlwind in the industry.

In 2017, 51% of the shares of Shenzhen ** Jewelry were acquired by Ideal with 25.5 billion yuan in the pocket. In the same year, the company launched acquisitions from Chengdu Shumao Diamond and Jiangsu Millennium Jewelry for a consideration of 700 million yuan and 900 million yuan respectively.

In order to reduce the risk for the company, Su Riming "insurance" for these acquisitions:* jewelry promised that the cumulative net profit in the three years from 2017 to 2019 would not be less than 13.8 billion yuan;From 2017 to 2020: Shumao Diamond promises to have a cumulative net profit of not less than 2 in 3 years5.1 billion yuan;Millennium Jewelry promises a net profit of not less than 2 in 3 years9.7 billion yuan.

However, this gamble did not make Su Riming happy for long. By the time of submission, none of their performance commitments had been met.

In 2019, the company made a cumulative impairment provision of 9730 for the goodwill formed by the merger of ** jewelry240,000 yuan. In the following year, a goodwill impairment of 45.3 billion yuan.

Affected by this, Ideal embarked on the road of loss. From 2019 to 2022, the net profit attributable to the parent company will lose about 300 million yuan and 15 million yuan respectively5.9 billion yuan, 77.2 billion and 70.9 billion yuan. In the first three quarters of 2023, it will continue to lose about 21.2 billion yuan.

At the same time, the company was in a liquidity crisis and was heavily indebted. As of the end of September 2023, the total liabilities were 230.1 billion yuan, and the asset-liability ratio soared to 15191%。

It is the genes of Fujian people who are born to sleep on the floor and be the boss, which stimulates Su Riming's entrepreneurial passion. In 1994, he left the countryside and became a worker in a jewelry company.

After immersing himself in the jewelry industry for 4 years, he and his younger brother Su Yongming founded a small jewelry processing factory, which was the prototype of Ideal Jewelry.

In the summer of 2001, the Su brothers and Su Riming's wife Di Ailing jointly established Shenzhen Ideal Jewelry, and the business entered the corporatized operation, and the team was mainly family members.

Even after the listing, Su Riming and Di Ailing and his wife;Su Yongming, Su Qingxiang and his wife are 4 people, and they still hold a total of 44 listed companies80% equity.

After the completion of the above three acquisitions, the company's performance took a sharp turn.

In April 2020, Su Riming resigned as chairman and was replaced by Li Yong, the founder of Millennium Jewelry. As of September last year, the latter held 693% equity, the largest shareholder.

A year later, the infighting between Su Riming and Li Yong began. The former accused the latter of falsely infringing on the company's interests, etc., and proposed to the board of directors to remove Li Yong.

After the frustration of Li Yong's dismissal, Su Riming became a whistleblower. Subsequently, a series of family scandals such as the Millennium Jewelry Void were thrown out and heavily fined by the regulatory authorities.

Affected by debts and lawsuits, in November 2021, the total equity held by Su Riming and his concerted actors (Di Ailing, Su Yongming, and Su Qingxiang) was frozen. In September last year, it disappeared from the top 10 shareholders. So far, all 4108 listed companies held by Li Yong and his concerted actor Wang Junxia have been held960,000 shares were judicially frozen.

This set off a chain reaction. Not only did the company's business deteriorate, but the arrears of wages and lawsuits flew like snowflakes, and the creditors were impatient and directly applied to the court for bankruptcy reorganization.

The two chairmen fought among themselves, and as a result, both sides were defeated. Small investors have suffered heavy losses in the long run. Today, the company's market capitalization is less than a fraction of what it was at its peak.

As of November 20, 2023, the number of shareholders of the company is still 1710,000 households.