Four years ago, Qingshan Paper (600103. SH), which was weak in operation, suddenly raised nearly 2.1 billion yuan, hoping to transform itself into a “white horse stock” with a “ultrasonic pulping” technology. < p > < p > the first finance and economics reporter sorted out the public information and found that the 1.7 billion idle raised funds contributed “half of the country” to the profits of Qingshan Paper Industry in recent years. What’s more, the reason why the project has not been implemented in the past four years may not be that the company claims that “the pilot test effect is not up to standard”, but that the key patent technology involved in the raised investment project is involved in the “infringement lawsuit”, and this key patent technology is the key to the implementation of the 2 billion project. But the company has not fully disclosed the information. < p > < p > on the evening of October 25, Qingshan Paper announced that nearly 2.1 billion capital was raised by private placement in September 2016. After deducting the issuance expenses and some used funds, the total balance of raised funds, income and interest income is 1.736 billion yuan, which is idle in the account. < / P > < p > the board of directors of Qingshan Paper decided to take 1.736 billion as the maximum amount, and carry out rolling cash management of the idle funds within the validity period of the board’s authorization. However, as of the end of June 2020, the book monetary capital of Qingshan Paper Industry, together with the “trading financial assets” mainly composed of financial products and structural deposits, totaled only 1.67 billion yuan. This shows that the book of Qingshan Paper looks “very rich”, but in fact, after removing the idle funds, there is basically no money in the book. As of October 23, 2020, 527.6 million yuan has been used in this fund-raising. As of November 13, 2020, it is estimated that the accumulated financial income and interest income will reach 212 million yuan. < p > < p > from 2017 to the first half of 2020, the consolidated net profit of Qingshan Paper Co., Ltd. was only 440 million yuan, and the fruits of more than 1.7 billion idle funds reached 212 million yuan, accounting for nearly 50% of the total. This shows that nearly half of the net profit of Qingshan Paper Industry in recent years relies on this idle fund to “eat interest”. < / P > < p > 526.6 million yuan has been used, of which 400 million yuan is used to supplement the working capital, and 127.6 million yuan is used for the reconstruction of the No.3 paper machine of the first phase project of the original raised fund investment project, namely, the reconstruction of the production line of 130000 tons of high-grade packaging base paper (food and non food packaging), and the production capacity of non food packaging base paper at the same scale during the transition period is provided. The project has been put into use in the second half of 2016. As of the end of the report period, a total of 127.6 million yuan has been invested in the project. < / P > < p > the benefit of the reconstruction project is not ideal. According to the previously disclosed information, the realized benefit of 3 × 10 paper machine products in 2019 is – 37.2686 million yuan, and that in the first half of 2020 is – 29.0366 million yuan. < / P > < p > and the main project of the raised investment project is the “technical transformation project of 500000 tons of food packaging base paper with an annual output of 500000 tons”, with a total planned investment of 2.2 billion yuan. But in addition to the above-mentioned No. 3 paper machine renovation project, the main project has not made progress. < p > < p > Shi Jian, chief investment officer of ZHENGJING consulting, who has been paying close attention to the private placement plans of listed companies for a long time, told the first finance and economics reporter that the general judgment of “private placement” projects of listed companies is unreliable. There are four factors to be investigated: first, the company’s main business is weak in sustainable profitability, and if it continues to raise funds to invest in projects, it will not increase income but not increase profits; second, the company’s use of the raised funds to increase income Third, the capital contribution ability and status qualification of the fixed increase objects are also one of the key points of the investigation, whether there may be equity mortgage and minimum guarantee agreement signed by the major shareholders or the actual shareholders; in addition, the market prospect of the raised investment projects. < / P > < p > after the raised funds were in place in September 2016, Qingshan Paper Co., Ltd. put into the pilot production line of ultrasonic bamboo wood pulping in April 2017, and organized in-depth R & D and trial production of bamboo and wood as raw materials. However, according to the company, the process and indicators of relevant pilot products have not been up to expectations. In addition to the significant changes in external environment since then, the project has not been pushed forward as planned. < p > < p > in 2016, when Qingshan Paper released the feasibility analysis report and the private placement plan of the project, it had expected that after the project was completed and put into operation, the average annual after tax net profit was 468 million yuan, and the after tax internal rate of return was as high as 24.82%. Before that, the company’s annual net profit did not exceed 50 million yuan. < p > < p > in 2015, Qingshan Paper introduced patents and related talents of ultrasonic pulping by means of merger and acquisition. In addition, it set up a subordinate research institute in 2017 to deeply research and develop ultrasonic pulping technology, and directional additional issuance is just to seek industrialization of this technology. The bad signs of < / P > < p > appeared shortly after the acquisition of technology. In fact, the patent technology involving 2 billion investment has been accompanied by litigation disputes since the raised investment funds are in place, and the ownership of its patent right has even been controversial for a long time. < / P > < p > in July 2017, the company announced that it had received a civil complaint. The two natural person plaintiffs held that the “related patent technology” transferred by Qingshan Paper was not licensed by the two persons. Qingshan Paper Co., Ltd. was asked to stop using 28 patented technologies, and two defendants, including Qingshan Paper, were asked to compensate 72 million yuan for the loss. As for the above-mentioned patent litigation, Qingshan Paper said that the company has completed the procedures for payment of patent payment and change of patentee under the legal procedures, the in-depth research and development of relevant patents and the promotion of industrialization are in progress, and the normal production and operation and technology research and development of the company are not substantially affected. The essence of the case is the interest rectification formed by the plaintiff and other defendants due to historical reasons It has nothing to do with our company. From this, senior market participants infer that the failure of the trial may be one of the reasons for the failure of the trial, and the more important reason may be the problem of patent dispute. But the company may not have fully disclosed this. < / P > < p > at the beginning of the lawsuit in July 2017, Qingshan Paper Co., Ltd. has not explicitly disclosed “relevant patent rights”, that is, “ultrasonic pulping technology”, but uses fuzzy words “patent technology of this case” and “related patent technology”. It was not until the 2018 annual report that the dispute involved “ultrasonic pulping technology”. Even so, the company has not clear whether the technical dispute directly affects the implementation of the project. < p > < p > according to the analysis of a professional legal person to the first finance and economics reporter, in July 2017, when the patent litigation occurred, the core information of the case was not fully disclosed by Qingshan Paper, and the relevance between the case and major raised investment projects was not clearly revealed. Only in the 2018 annual report did it disclose “one star and a half points”, with a time span of nearly one year. And this major investment project directly affects investors’ value judgment of Qingshan Paper Industry. If the above-mentioned relevance is a major event, the company is suspected of deliberately concealing or false disclosure. < p > < p > the first finance and economics reporter found that Qingshan Paper acquired the technology in 2015, but suddenly made “asset impairment” in 2018 This patented technology, named “an integrated process of ultrasonic pulping bleaching”, is listed in the “intangible assets”. The original book value of the intangible assets is 300 million yuan, and the amortization value at the end of 2018 is 230 million yuan. Because the use of this technology fails to make the pilot product quality of the raised project meet the design requirements, the company has made another impairment of its assets by 30 million yuan in 2018. < / P > < p > at present, Qingshan Paper Co., Ltd. has won the first instance of “ultrasonic pulping” patent litigation, whether the losing party continues to appeal, and the impact on the project raised and invested has not been disclosed by the company. < / P > < p > for the company’s 500000 tons of food packaging paper investment project, whether it failed to start smoothly due to the patent dispute, and whether the information disclosure of the company’s patented technology was incomplete and inaccurate, the first financial reporter called Qingshan Paper, but the company did not reply to the publication. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. 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