On May 7, after being crowned “ST”, St Songyang (603863.sh) fell and stopped for two consecutive days. The company issued the plan of “rescue site” for repurchase shares at night.
The data show that Guangdong Songyang renewable resources Co., Ltd. mainly deals in the R & D, production and sales of environmental protection recycled paper.
Yinshi finance and economics reporter noticed that st Songyang only landed in Shanghai in June 2019, and has been “Thunderbolt” in less than 2 years.
Repurchase not less than RMB 100million
The announcement shows that st Songyang intends to repurchase some shares of the company by centralized bidding transaction with its own funds, which will be used to cancel and reduce the registered capital. The total amount of the repurchase fund is not less than 100million yuan and not more than 200million yuan, and the repurchase price shall not exceed RMB 12.00 yuan / share.
If the total repurchase capital is up to 200 million yuan and the maximum price of repurchase shares is 12 yuan / share, the number of repurchase shares is estimated to be about 1666600 shares, accounting for 8.09% of the total capital of the company at present; If the total repurchase amount is calculated at the price of RMB 100million and 12 yuan / share, the number of shares that can be repurchased is estimated to be about 83.333 million shares, accounting for about 4.05% of the total share capital of the company.
Compared with the closing price of 8.54 yuan / share on July, the price of the highest 12 yuan / share offered by St Songyang is 40%, and the intention of the company to boost the share price through repurchase is obvious. However, the reporter noted that as of March 31, 2021, St Songyang had only 187million yuan in cash on its book, and whether the repurchase of RMB 100-200 million could be implemented remains questionable.
Previously, due to the negative opinions of Guangdong snong accounting firm on the effectiveness of its internal control, according to relevant regulations, St Songyang stock was suspended for one day on April 30 and other risk warnings were implemented from May 6.
Although in the suspension announcement, St Songyang said that the board of directors of the company had solved the problem of capital occupation by April 292021, and recovered the capital principal and interest, and said that the board of directors would comprehensively strengthen internal control management, regulate the capital exchange between the company and the controlling shareholders and other related parties, and prevent such incidents.
But after the resumption of the card, St Songyang still fell for two consecutive trading days, with more than 120000 hand sealing documents on the 7th.
An agency investment told reporters that although the company claimed that the problem of capital occupation had been solved, for companies with moral defects, the funds would “vote with feet”, and the institutions would pull it into the “blacklist”, and the share price has been reflected.
Actual controller takes up funds
According to the annual report of St Songyang in 2020, the company has realized an annual operating income of RMB 499million, a year-on-year decrease of 14.47%; The net profit attributable to the parent company was RMB 76613400, a year-on-year decrease of 14.91%.
In addition to the dilemma of both revenue and profit decline, St Songyang also needs to face the problems of internal control.
By the end of 2020, Wang Zhuang Peng, the controlling shareholder and actual controller of St Songyang, had taken up the company’s funds totalling 392million yuan through prepayment of equipment suppliers, including 239million yuan of the raised funds, but the above-mentioned related party transactions and capital activities did not fulfill the approval procedures and timely information disclosure obligations in accordance with the relevant regulations, Therefore, the annual audit accounting firm issued a negative opinion.
It is worth noting that in the pledge announcement on April 24, the company also mentioned that the controlling shareholders do not infringe the interests of listed companies through non operating capital occupation, illegal guarantee and related transaction. In less than a week, St Songyang was “beaten” by the actual controller.
According to the announcement, Wang Zhuang Peng, the actual controller of St Songyang and Wang Zhuang Jia, the acting person, are pledged by the shares due to the supplementary working capital. Among them, Wang Zhuang Peng pledged 35.66 million shares, accounting for 58.4% of the total capital of the company; Wang Zhuang Jia pledged 17.6 million shares, accounting for 90.4% of the total capital of the company.
If the subsequent st Songyang stock price continues to decline, a high proportion of pledge or risk is faced.
Post time: May-14-2021