Recently, the Shenzhen Stock Exchange disclosed information showing that Anhui Jiuyi Agricultural Co., Ltd. (hereinafter referred to as "Jiuyi Shares" or "Jiuyi Agriculture") and its sponsor Guoyuan Securities withdrew their listing application documents. As a result, the Shenzhen Stock Exchange has decided to terminate its review of its initial public offering and listing on the GEM.
According to Beduo Finance, Jiuyi Agriculture submitted a prospectus in June 2022 and is preparing to be listed on the GEM. In this sprint listing, Jiuyi Agriculture originally planned to raise 938 million yuan, which will be used for the synthesis project of 5,000 tons/year of the new broad-spectrum fungicide prothioconazole.
It is worth mentioning that Jiuyi Agriculture will meet in March 2023 and successfully passed. Since then, the company has also updated its reply to the inquiry letter issued by the Shenzhen Stock Exchange and the implementation letter of the audit center, but the company did not submit the prospectus (registration draft) until the withdrawal of the order.
Tianyancha App information shows that Jiuyi Agriculture was established in February 2001, formerly known as Hefei Jiuyi Agricultural Development Co., Ltd., located in Hefei City, Anhui Province. At present, the registered capital of the company is about 53.765 million yuan, the legal representative is Shen Canal, and the main shareholders include Shen Canal, Sun Yuwen, etc.
According to the prospectus, Jiuyi Agriculture's main business is the research and development, production and sales of pesticide raw materials and preparations, and the leading products are prothioconazole, cyclosulfonone, nicosulfuron and benzuron-methyl raw materials and preparations. Among them, prothioconazole is one of the top ten fungicide varieties in the world, and cyclosulfonone is a new generation of HPPD inhibitor post-emergence herbicide in corn fields.
In 2019, 2020, 2021 and the first half of 2022, Jiuyi Agriculture's revenue was 529 million yuan, 666 million yuan, 928 million yuan and 895 million yuan respectively, the net profit was 26.7306 million yuan, 38.7323 million yuan, 76.1684 million yuan and 153 million yuan respectively, and the net profit after deducting non-profits was 22.5053 million yuan, 38.4291 million yuan, 74.9173 million yuan and 148 million yuan respectively.
According to the prospectus, Jiuyi Agriculture's revenue in 2022 will be about 1.473 billion yuan, an increase of 58.61% from 928 million yuan in 2021; net profit was about 216 million yuan, a year-on-year increase of 183.89%; The net profit after deducting non-profits was about 207 million yuan, a year-on-year increase of 176.07%.
For the significant increase in operating performance in 2022 compared with the previous year, Jiuyinong said in the prospectus that the main reason is that the company's prothioconazole products have strong market demand, good product sales, and significant revenue growth compared with the previous year. At the same time, it launched a new product, cyclosulfonone, in 2022, and the market sales are good, which further increases the company's operating income.
It is worth mentioning that Jiuyi Agriculture had a safety accident in 2020. According to the prospectus, on September 25, 2020, a leakage and deflagration accident occurred in the company's benzensulfuron workshop at the bottom of the reactor during solvent treatment, resulting in 2 deaths and 3 injuries (hereinafter referred to as the "9.25 safety production incident").
Then, Jiuyi Agriculture stopped production for rectification as required, and did not resume production until December 2020. According to Bedo Finance, after the "9.25 safety production incident" occurred in 2020, the company transformed the production workshop of benzensulfuron TC where the accident occurred into a production workshop of new product cyclosulfonone TC.
In response to the 9.25 safety production incident, the Hefei Emergency Management Bureau fined Jiuyi Agriculture 360,000 yuan, Shen Hehe, chairman and general manager of the company, 30% of the annual income of the previous year (i.e., 80,716 yuan), and Yu Zhenglian, director and deputy general manager of the company, was fined 26,000 yuan.
At the same time, the Hefei Emergency Management Bureau issued a warning to Lu Shouyun, the former safety director of Jiuyi Agriculture and the minister of safety and environmental protection, and imposed an administrative penalty of a fine of 8,000 yuan. In addition, Yu Kuan, the former deputy director of Jiuyi Agriculture, was given a warning and imposed an administrative penalty of a fine of RMB 8,000.
In addition, according to Beduo Finance, Jiuyi Agriculture has also had many reloans. In this regard, the Shenzhen Stock Exchange required the company to itemize the specific amount and number of reloans, the underlying contract and its actual implementation, whether there was any inflated income or inaccurate revenue recognition, as well as the corrective measures and rectification.
According to reports, Jiuyi Agriculture has a total of 14 reloans from 2019 to 2021. Among them, in 2019, the company signed loan contracts with Industrial and Commercial Bank of China Changjiang East Road Branch, Agricultural Science Bank Amber Branch, and Huishang Bank Wulidun Branch, and transferred back a total of 16.78 million yuan through a third-party supplier, Zhejiang Rongkai Technology Development Co., Ltd. (hereinafter referred to as "Rongkai Technology").
Also in 2019, Jiuyi Agriculture signed a loan contract with Feidong Branch of Bank of Hangzhou and Feidong Branch of Bank of China, and transferred back 8.7 million yuan through Suzhou Fengbei Biotechnology Co., Ltd., a third-party supplier, after obtaining the loan. In the same year, the purchase transaction amount between Jiuyi Agriculture and these two companies was 11.055 million yuan and 13.2378 million yuan respectively.
In 2020, Jiuyi Agriculture signed a loan contract with Luyang Branch of Agricultural Science Bank and Wulidun Branch of Huishang Bank, and transferred back a total of 4.44 million yuan through Rongkai Technology after obtaining loans, and signed a loan contract with Feidong Branch of Bank of Hangzhou, and transferred back 398,100 yuan through Beijing Yingli Refining Technology Development Co., Ltd., a third-party supplier, after obtaining loans.
In 2021, Jiuyi Agriculture signed a loan contract with Wulidun Branch of Huishang Bank, and transferred back a total of 1.5203 million yuan through Shandong Volize Biotechnology Co., Ltd. after obtaining the loan, and signed a loan contract with Luyang Branch of Agricultural Science Bank, Feidong Branch of Bank of Hangzhou, and Wulidun Branch of Huishang Bank, and transferred back 7 million yuan of funds through Shijiazhuang Kelida Fine Chemical Co., Ltd.
Jiuyi Agriculture said that according to the interpretation of the "Answers to Several Questions on Initial Offering Business (Revised in June 2020)" on re-lending, the above-mentioned re-lending funds are not re-lending except for the part of 14.475 million yuan entrusted to pay to the supplier Zhejiang Rongkai Technology Development Co., Ltd. in 2019 that exceeds the purchase transaction amount, and the rest does not belong to re-lending.
In fact, the act of on-lending is a violation of laws and regulations. According to Article 13 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Law in the Trial of Private Lending Cases, where a loan is taken from a financial institution for on-lending, the people's court shall find that the private lending contract is invalid.
Article 157 of the Civil Code also clearly states that after a civil juristic act is invalid, the property acquired by the actor as a result of the act shall be returned; The party at fault shall compensate the other party for the losses suffered thereby; Where all parties are at fault, they shall each bear corresponding responsibility.
Previously, the judge of the Third Civil Division of the Beijing No. 1 Intermediate People's Court pointed out in an article that the act of arbitraging financial institutions to re-lend violates the provisions of relevant financial laws and regulations in the mainland, which not only increases financing costs, but also disrupts the financial order. In the process of arbitraging loans from financial institutions, there may be fraudulent acts of obtaining bank loans.
Prior to this listing, Shen Hehe directly held 62.85% of the shares of Jiuyi Agriculture and served as the chairman and general manager of the company. At the same time, Shen Canal's wife, Sun Yuwen, holds 4.67% of the shares and does not hold a position in the company. However, Shen Canal and Sun Yuwen and his wife together controlled 67.52% of the company's shares and were identified as the actual controllers of the company, and Shen Canal was the controlling shareholder of the company.
In particular, Sun Yuwen is still a typical "academic school", and has been working as an associate professor at Anhui Agricultural University since September 2001.