The first round of inquiries by the Gonggong Financial and Economic Bureau and Baozhong Baoda brought out the hidden past
The lover and the original children live in peace and manage the company together, this is not a bloody plot of TVB, but a real case that happened to Baozhong Baoda, a company to be listed. Recently, the Shanghai Stock Exchange's inquiry letter to Baozhong Baoda unveiled this family bloody drama.
According to public information, Baozhong Baoda was established in February 2006 and is an enterprise mainly engaged in the manufacturing of chemical raw materials and chemical products. In June 2023, Baozhong Baoda submitted a prospectus to the Shanghai ** Stock Exchange to prepare for listing on the main board. According to the prospectus, the actual controllers of Baozhong Baoda are Chen Rong, Chen Hua and Wang Lin, Chen Rong serves as the chairman of Baozhong Baoda, Chen Hua is the vice chairman of the company, and Wang Lin is the director and general manager. Chen Rong and Chen Hua are the children of Chen Jingen, the original actual controller of Baozhong Baoda, and it is not surprising that they inherited the family business, but Wang Lin and Chen Jingen are not related by blood, but they inherited 15% of the shares of Shengshi Company controlled by Chen Jingen, and Chen Jingen's wife Hu Qinmei only holds 20% of the company's equity.
Therefore, the SSE requested clarification on the inheritance and property dissolution process after Chen Jingen's death in 2019, and whether there were any disputes or potential disputes between the parties. Baozhong Baoda replied to the letter that Wang Lin and Mr. Chen Jingen, Chen Rong and Chen Hua's father, had two children, Wang Sheng and Chen Jiao, and that Wang Lin, Chen Rong and Chen Hua had signed a concerted action agreement, and the three of them constituted a concerted action relationship. Baozhong Baoda said that Chen Rong, Chen Hua and Wang Lin are all "important members of the Chen family" and have participated in the company's operation since its establishment and jointly established a "good relationship of trust".
In addition to the family ethics drama of the actual controller, the performance and pollution problems of Baozhong Baoda are also worth paying attention to. According to the reply letter, from January to September 2023, the company's operating income will be 500 million yuan, a decrease of 27 from the same period in 202253%, net profit after deducting non-profit is 16.7 billion yuan, down 2990%。In this regard, Baozhong Baoda explained that since 2023, the short-term demand of downstream customers in the plant protection industry has been weak, and the industry channel as a whole is in the stage of destocking.
According to the reporter of the Gonggong Finance Bureau, the plant protection business has always been an important income for Baozhong Baoda. In 2022, herbicides including azolexone, mesulfachlor and isoxathone brought 6The revenue of 9.7 billion yuan accounts for more than 7% of the total revenue. However, since 2023, some of Baozhong Baoda's herbicides have been in a dilemma of "falling in volume and price". In the first half of 2023, the sales volume and unit price of mesulfachlor will be 399 tons and 16., respectively680,000 tons, respectively, a year-on-year decline. 12%；In the same period, although the sales unit price of isoxagrass pine increased slightly by 679%, but the number of sales fell by 36 percent year-on-year14%。
At the same time as the performance declined, the company's dependence on large customers gradually increased. From 2020 to 2022, the company's sales revenue from the top five customers accounted for the proportion of operating income respectively. 15%, showing a year-on-year upward trend.
Due to the pollution caused by the production process of herbicides, Baozhong Baoda has also been listed in the 2016 annual report of the Supreme People's Procuratorate for pollution problems. Between 2011 and April 2015, the hazardous waste of Baozhong Baoda and other companies was handed over to Zhang Baifeng, a natural person who was not qualified to dispose of it, and the latter discharged the hazardous waste directly into inland rivers such as the Kushichang River in Dafeng, the Chelu River in Xinghua City, and the Haigou River in Daying Town, bringing serious pollution to the local area. It is worth noting that Baozhong Baoda included the uncertainty in the approval of the technical transformation and expansion project of plant protection products in the prospectus into the investment risk, and said frankly that "in response to market demand, the company has increased production capacity by optimizing the process flow and improving the efficiency of equipment use, so that the actual output of some plant protection products exceeds the production capacity approved by the EIA." If the approval of the technical transformation and expansion project cannot be obtained for a long time, the issuer's subsequent development may be restricted, which will adversely affect its future production and operation plan. ”
In addition to performance flaws and various "black histories", the rationality of Baozhong Baoda's IPO has also been questioned. According to the prospectus, Baozhong Baoda plans to raise 1 billion yuan, of which 9200 million yuan will be used for the construction project of Liaoning production base, and 80 million yuan will be used for the project of industrial technology research institute. However, according to the inquiry letter, Baozhong Baoda was not short of money at all, and even made a large dividend before listing.
From 2020 to 2022, Baozhong Baoda spent 15200 million yuan, 52500 million yuan, 254.9 billion yuan to purchase bank wealth management products. In addition, from 2021 to 2023, Baozhong Baoda has paid a total of 5 cash dividends, with a total of 4$2.9 billion. This 4$2.9 billion has about 29.2 billion yuan flowed to the actual controllers Chen Rong, Chen Hua and Wang Lin, while Chen Rong holds a Hong Kong identity card and Wang Lin is a Canadian citizen. Two of the three actual controllers have overseas identities, what kind of calculation is the IPO of Baozhong Baoda?
On March 1, 2024, the reporter of the Gonggong ** Social Union and the Gonggong Finance Bureau will continue to pay attention to the follow-up situation of "Baozhong Baoda's first round of inquiries lead to the hidden past".
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