There were material omissions in the security matters disclosed in the 2020 annual report; There were false records in its 2020 annual report and 2021 annual report.
Text: Daily Capital
Can the 2023 annual report performance "pre-increase king" really turn over?
Recently, Wuhan Contemporary Mingcheng Culture and Sports Group Co., Ltd. (hereinafter referred to as ST Mingcheng) announced its 2023 performance forecast, saying that it is expected to achieve operating income of 300 million yuan to 4 in 2023500 million yuan, down 40 million year-on-year76%-60.5%；The net profit was 2.2 billion yuan to 3.2 billion yuan, compared with a loss of 50 percent in the same period last year6.8 billion yuan；Deduct non-net profit loss 2500 million yuan to 500 million yuan, a loss of 50 in the same period last year6.7 billion yuan.
Knock on the blackboard! As of March 3, 2024, among the listed companies that have announced their performance forecasts, *ST Mingcheng ranks in the performanceYear-on-year growth at the top of the leaderboard。Moreover, the net profit has increased from a loss of more than 5 billion yuan last year to more than 2.2 billion yuan now, which is rare in the entire A-share market.
As for the reason for the sharp surge in net profit, *ST Mingcheng said that the pre-profit of this performance is mainly due to the companyThe change in the scope of the consolidated statements and the completion of the implementation of the company's reorganization plan as a result of the liquidation of the original holding subsidiary, Mingcheng Hong Kong, were sued for liquidationand other non-recurring gains and lossesThe amount affected is 24500 million yuan to 3.7 billion yuan, with a year-on-year increase of 16772772%～253252.07%Therefore, the company expects a net profit of about 2.2 billion yuan to 3.2 billion yuan in 2023, which will turn losses into profits compared with the same period last year.
To put it simply, this profit has little to do with the main business.
Not only that, *ST Mingcheng's capital chain is quite tight. According to the financial report as of the third quarter of 2023, *ST Mingcheng monetary funds are 6944260,000 yuan, but its short-term borrowings are as high as 18.1 billion yuan, and the non-current liabilities due within one year have reached a staggering 14$8.4 billion. To put it bluntly, *ST Mingcheng's capital chain may break at any time.
However, due to the large profit of *ST Mingcheng in 2023, its ** name may be "star and hat" and become ST**. But the company's various unbelievable performances in the early stage are really flattering.
ST Mingcheng may not be familiar to many investors, but for the story of Hubei's "contemporary system", I believe that many investors who care about financial reports should have heard more or less.
ST Mingcheng was founded in 1992 and initially engaged in energy, raw materials, and student apartment leasing and real estate sales services. On March 3, 1998, Daobo shares were successfully listed on the Shanghai Stock Exchange with an issue price of 529 yuan. In 2015, after Contemporary Group became the owner of Daobo sharesIt has successively completed the investigation of Qiangshi Media, Suzhou Double-edged Sword, Ness International and its subsidiary Borgb.v, Xinying Cayman and other acquisitions, the company's main business gradually developed to film and television business and sports business. In 2016, it was renamed Contemporary Mingcheng.
To be fair, after the acquisition of Contemporary Group, *ST Mingcheng once had unlimited scenery. In terms of sports, *ST Mingcheng has owned the copyright resources of La Liga, AFC and UEFA. In the field of film and television, it has invested in many well-known film and television dramas. For example, the hit drama "Celebrating More Than Years" in 2019, the hit drama "Happiness to Ten Thousand Homes" in 2022, etc.
Judging from the financial report, since 2015, *ST Mingcheng's net profit has begun to soar, soaring from about 50 million yuan to 17.8 billion yuan. This is also the best performance in the history of *ST Mingcheng. However, the sequelae of mergers and acquisitions also made people break out in a cold sweat. In 2018, *ST Mingcheng's monetary funds were 85.3 billion yuan, but short-term borrowings are as high as 131.4 billion yuan, and 4500 million yuan. Obviously, *ST Mingcheng's monetary funds are far from covering short-term debt.
The bigger stake is goodwill. As of 2018, *ST Mingcheng's goodwill is a staggering 389.4 billion yuan. There is no doubt that the impairment of such a large amount of goodwill will have a decisive impact on its performance.
The situation has taken a sharp turn. In 2019, *ST Mingcheng deducted non-net profit for the first time in five years, with a loss of more than 500 million yuan. Immediately after, in 2020, 2021, and 2022, *ST MingchengHuge losses for three consecutive years, with a total of 806.5 billion yuan
Complete one's misery. *ST Mingcheng announced in 2018 that it had purchased the acquired La Liga rights, and the cooperation has been terminated early. *ST Mingcheng said that the current La Liga accounts for about 30% of the company's copyright business revenue, and if the two parties finally terminate the contract, it will cause the company to lose all the copyright of La Liga, and may also face huge claims, the amount involved in the lawsuit is about 67.9 billion yuan.
In addition, *ST Mingcheng also faces major lawsuits, illegal guarantees and other issues. On August 20, 2022, *ST Mingcheng issued an announcement on the company and its holding subsidiaries involved in a major lawsuit, involving an amount of 6666510,000 yuan, HK$1775180,000 yuan.
The day before, *ST Mingcheng also "self-exploded" and found 3 illegal guarantees for a total of 32.5 billion yuan, accounting for 49% of the audited net assets attributable to the parent in 202167%, or 610. of book money funds as of March 30, 202283%。
To make matters worse, there was also a problem with the controlling side of *ST Mingcheng at that time. In the first half of 2021, Hyundai Group achieved an operating income of 1217 billion yuan, down 007%, net operating cash flow was only 60.8 billion yuan; As of the end of the third quarter of 2021, the company's total assets were 9632.6 billion yuan, with total liabilities of 6394.7 billion yuan, while monetary funds are only 654.6 billion yuan. In March 2022, the debt crisis of the "contemporary system" was exposed.
In this case, on June 2, 2021, Xinxing Hanyi, the original controlling shareholder of *ST Mingcheng, and its concerted actors, Contemporary Group, Tianfeng Ruiyuan, signed a package agreement with Guochuang Capital, and the controlling shareholder of *ST Mingcheng was changed to Guochuang Capital, and the actual controller was changed to Wuhan State-owned Assets Supervision and Administration Commission. Subsequently, Guochuang Capital controlled *ST Mingcheng 27. in total through the supplementary agreement39% of the shares correspond to voting rights.
It is worth mentioning that in April 2022, Guochuang Capital sent a letter to Modern GroupThe original plan to acquire Contemporary Culture and Sports by participating in a non-public offering** could not be implemented, and the voting rights entrustment was unilaterally terminatedAt the same time, the three resident directors of Guochuang Capital submitted their resignation letters to ST Mingcheng.
ST Mingcheng's bigger problems are also gradually exposed. On July 26, 2023, *ST Mingcheng received the "Notice of Case Filing" issued by the CSRC, and the CSRC decided to file a case against *ST Mingcheng due to suspected violations of information disclosure laws and regulations.
On February 23, 2024, *ST Mingcheng received the "Advance Notice of Administrative Punishment" issued by the Hubei Securities Regulatory Bureau, and *ST Mingcheng was suspected of a number of illegal information disclosure. Such as,There were material omissions in the security matters disclosed in the 2020 annual report; There were false records in its 2020 annual report and 2021 annual report. 。In particular, in the 2021 annual report, the impairment amount was undercounted by 3100 million yuan, undercounting liabilities of 30 million yuan, inflated total profit of 40.9 billion yuan. Based on *ST Mingcheng's illegal acts, the Hubei Securities Regulatory Bureau intends to decide to give a warning to *ST Mingcheng and impose a fine of 7.6 million yuan. At the same time, a number of senior executives of the company were warned and fined, totaling 15.5 million yuan.
Seeing this, I believe that the vast majority of investors will be stunned by the practice of *ST Mingcheng in the past few years.
The good news is that on November 10, 2023, *ST Mingcheng announced that the company received the "Civil Ruling" served by the Wuhan Intermediate People's Court, ruling to approve the "Wuhan Contemporary Mingcheng Culture and Sports Group Share Reorganization Plan". According to the "Reorganization Plan", after the implementation of the company's reorganization plan is completedThe controlling shareholder of the company will be changed from Guochuang Capital to Liantou Chengyun, and the actual controller of the company will be changed from Wuhan SASAC to Hubei SASAC。I hope *ST Mingcheng can come to work from time to time.
[The article is for communication purposes only, not investment advice, please be aware of investment risks.] It's not easy to code words, if your mobile phone still has power, please help like, **Thank you very much].