Yangtze River Business Daily News ● Yangtze River Business Daily reporter Shen Yourong
The risk of delisting is coming, Yatai Group (600881. SH) major state-owned shareholders urgently intervened.
On the evening of June 30, Yatai Group issued an announcement that Changchun City Development Investment Holding (Group) Co., Ltd. (hereinafter referred to as "Changfa Group"), which was designated by the State-owned Assets Supervision and Administration Commission of Changchun City to perform the duties of the investor, was the main body to increase its holdings of the company's shares through centralized bidding transactions on the Shanghai Stock Exchange with its own funds, with an increase of not less than 150 million yuan and no more than 300 million yuan.
Changchun SASAC is the controlling shareholder of Yatai Group, and at present, it holds 12.46% of the shares of Yatai Group together with Changfa Group.
Behind the plan of major state-owned shareholders to increase their holdings in a large amount, the share price of Yatai Group fell below 1 yuan and faced the risk of delisting.
Yatai Group is a diversified enterprise involved in real estate, cement, medicine, commerce and other industries, but industrial diversification has not significantly enhanced the company's profitability. In recent years, the company's real estate, building materials and other business operations have been under pressure, making the company's operating performance data not very good.
Wind data shows that in the 19 years from 1995 to 2023, Yatai Group has accumulated losses of about 3 billion yuan.
Yatai Group is under great financial pressure. By the end of 2023, the company's asset-liability ratio reached 84.72%, and the financial expenses for the year were as high as 2.005 billion yuan.
Many parties have made efforts to start the battle to defend the delisting
The major shareholders of state-owned assets made efforts to start the delisting defense battle of Yatai Group.
According to the latest announcement, Changchun SASAC designated Changfa Group, which performs its duties as an investor, as the main body, to increase its holdings of the company's shares through centralized bidding transactions on the Shanghai Stock Exchange with its own funds, with an increase of not less than 150 million yuan and no more than 300 million yuan. The increase price does not exceed the company's reported net assets per share of 1.62 yuan in the first quarter of 2024, and the implementation period of the increase plan is 6 months from the disclosure date of this announcement (July 1, 2024).
Changchun SASAC is the major shareholder of Yatai Group, and it is also the controlling shareholder of Changfa Group. At present, Changchun SASAC holds about 295 million shares of Yatai Group, accounting for 9.08% of the company's total share capital; Changfa Group holds about 110 million shares of the company, accounting for 3.38% of the company's total share capital, and the two together hold 12.46% of the company's shares.
Changchun State-owned Assets Supervision and Administration Commission and Changfa Group promised not to reduce their holdings of the company's shares during the implementation of the shareholding increase plan and the statutory period.
Behind the increase in holdings by major shareholders, the share price of Yatai Group has fallen below 1 yuan.
The K-line chart shows that on June 20, Yatai Group closed at 0.99 yuan per share, lower than 1 yuan for the first time. By June 28, the company's closing price was 0.85 yuan per share, and the closing price had been lower than 1 yuan for seven consecutive trading days.
In addition to the major shareholders to increase their holdings with real money, on June 30, Yatai Group also received a letter of commitment from shareholders not to reduce their holdings. The shareholder, Jilin Jinta Investment Co., Ltd. (hereinafter referred to as "Jinta Investment"), promised not to reduce its holdings of the company's shares in any way within 12 months from July 1 this year to July 1, 2025. During the above-mentioned commitment period, Jinta Investment also abides by the above-mentioned commitment not to reduce the number of new shares due to the conversion of the company's capital reserve into share capital, distribution of stock dividends, allotment of shares, additional issuance, etc.
The main shareholders of Jinta Investment are the senior executives of Yatai Group, the members of the affiliated enterprise team (the middle level of the headquarters) and the core backbone management personnel. As of the disclosure date of the announcement, Jinta Investment held 155 million shares of Yatai Group, accounting for 4.77% of the company's total share capital, all of which were tradable shares with unrestricted conditions.
Yatai Group itself is also trying its best to "protect the disk". On the evening of June 26, the company announced that it intends to use its own funds to repurchase the company's shares in a centralized bidding transaction, with a repurchase amount of not less than 30 million yuan and no more than 50 million yuan, and the repurchase price is not more than 1.6 yuan per share.
Major shareholders increased their holdings, the company repurchased by itself, and the main executives and core backbone personnel indirectly promised not to reduce their holdings.
On July 1, stimulated by the above-mentioned positive factors, Yatai Group's share price opened with a daily limit, an increase of 10.59%, and closed at 0.94 yuan per share.
The two sectors dragged down the net profit for three consecutive losses
Yatai Group's delisting battle has begun, and the company's operation is still in a predicament and needs to be extricated urgently.
In the first quarter of this year, Yatai Group's operating income was 1.001 billion yuan, a year-on-year decrease of 37.79%; The net profit attributable to shareholders of the parent company (hereinafter referred to as "net profit") was -516 million yuan, a year-on-year loss increase of 0.65%.
In the past three years, Yatai Group has continued to lose money. Specifically, from 2021 to 2023, the company's operating income will be 19.653 billion yuan, 12.968 billion yuan, and 9.252 billion yuan respectively, with year-on-year changes of 0.80%, -34.02%, and -28.65%; The net profit was -1.254 billion yuan, -3.430 billion yuan, and -3.947 billion yuan, with a significant loss for three consecutive years, and a total loss of 8.631 billion yuan for three years.
Yatai Group landed on the A-share market in 1995, and through years of layout, Yatai Group has formed a business development pattern with building materials group, real estate group, pharmaceutical group, financial investment, e-commerce and commercial operation as the core.
The layout of the company, there is no shortage of acquisitions. According to the Wind system, Yatai Group has successively acquired part or all of the shares of Jiamusi Hongji Group Co., Ltd., Jinyuan Cement, Yatai Biopharmaceutical Co., Ltd., Yatai Star Pharmaceutical Co., Ltd., Beibu Gulf Company, Sanling Cement, New Century Boda, Jixiatai, Longxin Pharmaceutical, Qishuo Liquor, Yatai Construction and other companies.
There is no shortage of acquisitions with high premiums and the formation of huge goodwill. At the end of 2014, the goodwill of Yatai Group was 1.659 billion yuan.
The diversification of the industry, and the real estate, cement and building materials are in the field of heavy assets, which has obvious pressure on the operation and finance of Yatai Group.
In 2023, Yatai Group explained the reasons for the company's operating losses, saying that the cement market demand is weak, competition is intensifying, the sales price of cement and clinker market has decreased significantly year-on-year, the real estate market continues to be sluggish, and the sales price of the company's real estate business has been declining. In order to ensure the stability of cash flow, the company accelerated the cash return through pre-sale of cement, clinker and real estate promotion, resulting in a decline in revenue and profit of the main business.
In that year, the company made an asset impairment provision of 1.772 billion yuan, including a credit impairment loss of 176 million yuan on receivables, a provision of 469 million yuan for inventory decline, an impairment provision of 530 million yuan for other current assets of Tianjin land consolidation project, and a provision for goodwill impairment of 597 million yuan.
From 2015 to 2020, except for the net profit of 802 million yuan in 2017, the rest of the years have lost nearly 200 million yuan or made a profit of less than 200 million yuan.
Wind data shows that from its listing in 1995 to 2023, the cumulative net profit realized by Yatai Group will be about -3 billion yuan.
Yatai Group is under great financial pressure. As of the end of 2023, the company's asset-liability ratio was 84.72%; At the end of the period, the company's monetary funds were 738 million yuan, and interest-bearing liabilities were 27.735 billion yuan.
From 2019 to 2023, the company's annual financial expenses will be around 2 billion yuan.
How can Yatai Group's operation get out of trouble?
Visual China Diagram