The Accumulated A-Share Raised More Than 10 Billion Yuan, And Yihua Is Hard To Escape The Liquidity Dilemma

February 5 is a watershed between heaven and earth for Yihua's life.

On this day, * ST Yisheng (formerly referred to as Yihua life, 600978. SH) once again dropped its limit and closed at 0.7 yuan / share.

According to the relevant provisions of the Shanghai Stock Exchange, the closing price of 20 consecutive trading days is lower than 1 yuan, which will touch the situation of delisting. Since January 19, the closing price of * ST Yisheng has been lower than 1 yuan for 14 consecutive trading days.

This means that even if * ST Yisheng continues to rise and limit for the next six trading days, its share price will be difficult to return to above 1 yuan, becoming the first par value delisted stock under the new delisting rules, which is basically "a certainty".

According to the relevant rules, the shares of trading companies which are forced to delist will not enter the delisting consolidation period. *St Yisheng's A-share tour has only six trading days left.

Behind it is a larger story of Yihua.

Five year "Metamorphosis"

The great turning point of Yihua's life is that in April 2020, the CSRC filed a case for investigation into the illegal information disclosure of Yihua life.

Ten months later, on January 29, 2021, the survey conclusion was released.

"It is preliminarily verified that there are serious false records in the periodic report of Yihua life from 2016 to 2019. The first is to increase profits by more than 2 billion yuan through fictitious sales business and false increase in sales volume; the second is to increase bank deposits by more than 8 billion yuan by forging bank documents; and the third is to disclose more than 30 billion yuan of capital transactions with related parties according to regulations. " The SFC said.

"Yihua life is suspected of financial fraud. The circumstances are serious and the amount of money involved is huge. The total amount involved in the fraud is about 40 billion yuan. At present, the State implements the "zero tolerance" policy for illegal securities activities, especially financial fraud and fraud. In the future, it is not ruled out that Yihua life and the persons responsible for the relevant violations will be subject to top administrative punishment, criminal accountability and huge civil compensation. " Zang Xiaoli, a lawyer from Beijing Shixuan law firm, said.

For * ST Yisheng investors, the investors can sue for compensation after the regulatory authorities complete the filing and investigation procedures and issue the effective "administrative punishment decision".

Yihua life was listed in 2004. It is mainly engaged in the R & D, design, production and sales of furniture, wood flooring and other household products. Its product positioning is medium and high-end. At present, it has formed the whole industry chain integration of "afforestation cutting processing R & D production sales".

But from the big bull market attention to trouble, but only five years.

Back to six years ago, the stock price of * ST Yisheng (then Yihua wood industry) began to rise rapidly from about 6 yuan / share in January 2015. Five months later, the highest closing price rose to 23.4 yuan / share, with an interval increase of nearly three times.

However, since 2016, its share price has fallen continuously.

In May 2020, due to the audit report of "unable to express opinions" in the financial report of 2019, the company's shares were warned of delisting risk, and the stock abbreviation changed from "Yihua life" to "* ST Yisheng".

According to the 21st century economic reporter's understanding, the risk was revealed at the time when Yihua's financial reports were "high in both deposits and loans".

On April 30, 2019, Yihua life received an inquiry letter from the exchange, requiring the company to make supplementary disclosure on 19 issues such as monetary capital, daily operation and assets.

On May 16 of the same year, Yihua life said in the reply letter that compared with other home furnishing enterprises, the company's business area is wider and the product coverage is more varieties, resulting in more varieties of material procurement. At the same time, the market pricing of main materials such as solid wood and leather has its own particularity. In addition to meeting the demand of normal working capital, it also combines with the possible existing in the business process According to the needs of project investment fund payment, emergency procurement fund and repayment of due interest bearing debt, the plan of holding funds shall be made.

With the SFC's findings released, these explanations have become weak.

At the same time, what makes the market pay attention to is Yihua system, which used to be "good at dancing long sleeves" in the capital market, but now faces difficulties.

Ten billion "gold sucking weapon" is silent

It used to be a self-made inspirational story.

Liu Shaoxi, the actual controller of Yihua department, founded a furniture factory at the age of 24, also known as the "king of wood industry".

According to the Hurun global rich list in 2020, Liu Shaoxi has a fortune of 7.5 billion yuan.

According to the company's official website, the main business of Yihua group includes living, medical care, real estate hotel and capital finance.

Yihua is one of its listed companies, including Yihua life, which was listed in 2004, mainly engaged in the production and sales of wood furniture, and Yihua health, which was listed on the back door in 2007, and the predecessor of Yihua health was Yihua real estate.

The listing of Yihua life opened the prelude to the capital operation of Liu Shaoxi's family, while the healthy listing of Yihua showed that "Yihua family" was good at dancing in the capital market.

Since then, the two listed companies have become Liu Shaoxi's "gold sucking weapon".

According to wind data statistics, since its listing, Yihua life has raised 16.072 billion yuan, including direct financing of 10.012 billion yuan, including 448 million yuan of initial fund-raising, 3.384 billion yuan of equity refinancing, 1.331 billion yuan of rights issue, 2.054 billion yuan of additional private placement and 6.180 billion yuan of bond financing.

In the third year of listing, Yihua life issued short-term financing bonds in 2006, raising 300 million yuan, which opened the prelude of direct financing of 10 billion yuan.

In 2007, Yihua life issued an additional 1.21 billion yuan. In the same year, Yihua life issued another short-term short-term financing bonds (the first short-term financing bonds of Guangdong Yihua Wood Industry Co., Ltd. in 2007), with a scale of 380 million yuan.

Since then, the financing means of Yihua life have been more diversified. In 2009, Yihua life issued corporate bonds (hereinafter referred to as "09 Yihua bonds"), financing a total of 1 billion yuan. In 2010, Yihua life launched another private placement, raising a total of 844 million yuan.

Two years later, Yihua life financing accelerated again. Almost every year, there were one or two large amount of direct financing, including short-term securities lending, rights issue, corporate bonds, etc.

Yihua crossroads

In recent years, the assets of Yihua group have shrunk rapidly. As of the interim report of 2020, the group's net assets were 14.737 billion yuan, only 67.65% of the net assets at the end of 2017; as of the half year report of 2020, the monetary capital on the book of Yihua group was only 141 million yuan.

Now, the two listed companies directly controlled by Yihua are on the verge of being out of control.

According to the reporter of 21st century economic report, * ST Yisheng is still locked in "face value delisting" through its efforts to save itself. Yihua health, another listed company, is also facing a serious debt crisis.

As of December 31, 2020, overdue debts of Yihua health and its subsidiaries totaled 1.259 billion yuan, accounting for 138.04% of the latest audited net assets of the company. As of January 18, 2021, the company's new debt maturity is about 330 million yuan.

At the beginning of 2021, Yihua health put forward the fixed increase plan to transfer the control right of listed companies to solve the debt crisis. According to the plan, the company plans to raise no more than 664 million yuan to repay bank loans and supplement working capital.

The fixed increase object is Beijing new mileage Health Industry Group Co., Ltd. (hereinafter referred to as "new mileage health").

Before the issuance, new mileage health directly held 4.00% of the total equity of Yihua health, plus the voting power entrustment of 10% equity of Yihua group. If the calculation is carried out according to the upper limit of shares issued in this non-public offering, after the completion of this issuance, new mileage health will control 33.85% of the voting rights of Yihua health and become the controlling shareholder of the company.

According to the latest performance forecast released by Yihua health, during the reporting period of 2020, the net profit loss of Yihua health attributable to shareholders of listed companies was 550-750 million yuan, and the net loss after deducting non recurring profit and loss was 483-683 million yuan. After a huge loss of 1.572 billion yuan in 2019, the loss will reappear in 2020, and Yihua health will be on the verge of delisting.