8. What happens if the limit continues to fall after the limit?

Mondo Finance Updated on 2024-03-01

Text |Yang Wanli.

On the morning of March 1, Huayang Lianzhong opened low and went low, and the long and short sides repeatedly played during the session, and finally closed the fall limit. As of press time, the company is down 996%, and the stock price is 1256 yuan, with a total market capitalization of 318.2 billion yuan.

Previously, from February 19th to February 28th, Huayang Lianzhong had a daily limit for eight consecutive trading days, with a cumulative increase of 11469%, the share price doubled.

On February 28, Huayang Lianzhong issued a ** transaction risk warning announcement, publicly clarifying that "the main business does not involve SORA business for the time being, and is currently not engaged in the basic research and development of AI technology". At the same time, the company clearly warned of the risk, saying that "there is a risk that the short-term stock price will rise too much, and it will be significantly higher".

In the past two trading days, Huayang Lianzhong has been significantly **. On Feb. 29, the company closed down 912%。In early trading today, the company's shares fell again.

According to public information, Huayang Lianzhong's main business is to provide customers with Internet marketing services. As of the first half of 2023, brand marketing accounted for 98% of the company's revenue45%。

*According to the software, Huayang Lianzhong is labeled with popular topics such as "digital economy", "metaverse concept", "big data", and "eastern data and western computing". For example, Huayang Lianzhong once replied to investors' questions, saying, "The company is a shareholder of Shanghai Data Exchange Center, with a shareholding ratio of 6%."

There are so many hot concepts involved, but what about the business? Huayang Lianzhong landed in the capital market in 2017. After listing, the company's performance trend staged "high before low".

From 2017 to 2021, Huayang Lianzhong achieved an attributable net profit of 126.7 billion yuan, 128.4 billion yuan, 192.2 billion yuan, 209.5 billion yuan, 229 billion yuan, with a total profit of about 8 in the above five years8.6 billion yuan.

However, starting from 2022, Huayang Lianzhong has suffered losses. In 2022, the company's attributable net profit loss was 646.6 billion yuan.

According to the 2023 annual performance forecast, Huayang Lianzhong expects an attributable net profit loss of 4400 million to 6400 million yuan.

Huayang Lianzhong explained that the main reasons for the company's pre-loss in the current period include: "the company's business portfolio has been adjusted accordingly according to the customer's situation", "some business orders with too long account period have been abandoned", "more conversion costs have been born", and "it is proposed to make impairment provisions for various assets with signs of impairment".

It is worth mentioning that in 2022 and 2023, Huayang Lianzhong's total loss in two years may exceed 1 billion yuan, which is higher than the total profit from 2017 to 2021.

We will keep an eye on how the stock price of Huayang Lianzhong performs in the future.

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