ST Furun released the news of the share repurchase proposal 1 month later, and pressed the "termination button" on the grounds that the conditions for the implementation of the share repurchase were not ripe for the time being, but during this period, the company's stock price once gained 6 consecutive daily limits.
*: Photo.comST Furun repurchased shares "no-show".
On March 1, ST Furun (600070.)SH) issued the "Announcement on the Termination of the Company's Share Repurchase Proposal", pointing out that after the company's multi-party consideration and comprehensive consideration, the conditions for the implementation of the share repurchase are not ripe for the time being, and the company decided to terminate the company's share repurchase proposal.
ST Furun is mainly engaged in the operator's 5G user development business, live broadcast e-commerce business, Internet monitoring service business, and Internet live broadcast supervision platform construction business.
Previously, on February 2, 2024, the board of directors of the company received the letter from Zhao Linzhong, the actual controller and general manager of the company, and Chen Liwei, the chairman of the company, on proposing that Zhejiang Furun Digital Technology Co., Ltd. repurchase the company's shares.
On the evening of the same day, the company announced that Zhao Linzhong and Chen Liwei proposed that the company repurchase part of the company's issued RMB ordinary shares (A shares) through the Shanghai ** Exchange trading system with its own funds, and the total amount of funds repurchased should not be less than 10 million yuan and not more than 20 million yuan; The repurchase of shares shall not exceed 150% of the average trading price of the company in the 30 trading days before the board of directors passed the resolution to repurchase shares; The period for repurchasing shares is 6 months from the date of approval of the repurchase plan by the board of directors of the company.
For the repurchase, the company said that in order to establish and improve the company's long-term incentive mechanism, fully mobilize the enthusiasm of the company's employees, effectively combine the interests of shareholders, the company and the personal interests of employees, and promote the healthy and sustainable development of the company, the repurchased shares will be used for employee stock ownership plans or equity incentives.
From the perspective of stock price, the company's share price continued to decline in the first three working days after the repurchase proposal was issued, and from February 5 to February 7, the company's *** price increased from 169 yuan shares fell all the way to 153 yuan shares, after 7 consecutive working days (that is, February 8 to February 26), the company's price remained **, from 155 yuan shares rose all the way to 208 yuan shares, and harvest 6 daily limits.
According to the information of the Dragon and Tiger List, in the past month, GF ** shares *** Hangzhou Jinhua South Road ** business department, Hengtai ** shares *** Shenyang Fengtian Street ** business department, Dongwu ** shares *** Shaoxing Shengli East Road ** business department vigorously **ST Furun**, the amount of which is 199680,000 yuan, 155030,000 yuan, 136500,000 yuan.
However, in just one month, the buyback pressed the "stop button".
Judging from ST Furun's report for the third quarter of 2023, the company's book cash is not abundant, and as of the end of the third quarter of 2023, the company's monetary funds are only 3733400,000 yuan. And the company's 2023 performance forecast also shows that the company will face huge losses. In 2023, the company's net profit is expected to lose 400 million yuan to 4600 million yuan.
The 2023 performance forecast loss was asked
Before ST Furun's repurchase of "releasing pigeons", the company also received an inquiry letter from the Shanghai ** Exchange due to matters related to the 2023 performance forecast.
On January 26, ST Furun released the "2023 Annual Results Pre-loss Announcement", and in 2023, the company expects to achieve operating income of 1 in 20233 billion yuan, after deducting business income unrelated to the main business and income without commercial substance, the operating income is about 12.2 billion yuan.
In this regard, the inquiry letter requires the company to disclose in detail the development of its main business, including the development period, business model, revenue recognition method, etc., whether it is a first-class business; Disclose the name, business dealings, transaction amount, etc. of the company's top ten customers and merchants, and explain whether there is any related relationship; Combined with comparable companies in the same industry, contract terms, and the company's responsibilities and obligations, explain the revenue recognition method and specific basis, and whether it complies with the "Accounting Standards for Business Enterprises" and other relevant regulations.
The performance forecast also shows that in 2023, the company's net profit is expected to be -400 million yuan to -4600 million yuan, deducting non-net profit is expected to be -3600 million to -4RMB200 million was mainly due to the provision of credit impairment losses on some accounts receivable and the decline in the fair value of other non-current trading financial assets held by the company during the reporting period.
In response to this situation, the exchange requires the company to disclose the amount of relevant accounts receivable, transaction partners, aging structure, etc., explain the specific basis for the impairment provision, and whether there is insufficient provision in the previous period; Explain the specific details of other non-current trading financial assets, the recognition and presentation in the previous period, the specific reasons for the decline in fair value, whether it is in line with the industry trend, whether the fair value measurement has been evaluated and the specific valuation process.
In fact, the company's performance has been sluggish in recent years and has been in a state of loss. In addition to the projected loss in 2023, the net profit attributable to shareholders of the parent company from 2020 to 2022 was -40.8 billion yuan, -55.5 billion yuan, -5$8.6 billion; Net profit after deducting non-recurring gains and losses was -44.8 billion yuan, -57 billion yuan, -48.8 billion yuan, -2$1.4 billion.
The inquiry letter pointed out that in the past four years, the company's net profit before and after deducting non-profits has continued to lose, operating income has declined sharply, and the operation of important subsidiaries has stagnated.
At the same time, the exchange requires the company to recognize the operating income in accordance with laws and regulations, and deduct the business income unrelated to the main business and the income without commercial substance. If the company's deducted operating income touches the financial delisting, the company** will be subject to a delisting risk warning. In this regard, the exchange emphasized that the company should fully warn of the relevant risks.
In addition, the company also changed its accounting firm before the annual audit in 2023.
On December 18, 2023, ST Furun issued the "Announcement on the Change of Accounting Firm", proposing to change the company's 2023 financial report audit institution and internal control audit institution from Tianjian Certified Public Accountants (Special General Partnership) (hereinafter referred to as Tianjian Firm) to Asia-Pacific (Group) Accounting Firm (Special General Partnership) for a period of one year.
According to the data, Tianjian issued a qualified audit report with an emphasis paragraph and an internal control evaluation report with a negative opinion for the company's financial report in 2022. Among them, the company's 2022 annual report with the reserved opinion of the highlighted paragraph, mainly involves the accounts receivable of the subsidiary Hangzhou Taiyi Zhishang Technology, the recognition of related business revenue, and the occupation of funds by related parties.
In this regard, the Exchange requested the company to explain the progress of the resolution of the matters involved in the above-mentioned qualified opinions in the "Inquiry Letter on Matters Related to the Company's Performance Forecast", and fully reminded the relevant risks, and required the annual audit accountants to pay full attention to the resolution of non-standard audit opinions in previous years, and to express audit opinions objectively and fairly.