Business reputation explodes when concept repeatedly rubs off

On the evening of December 23, Beijing Digital Technology Co., Ltd. (hereinafter referred to as digital technology, 300038. SZ) announced a notice on the risk of goodwill impairment. At the opening of the next day, the company’s share price dropped by the limit, and the closing price dropped by 19.93%. Shortly after that, the Shenzhen stock exchange immediately sent a letter to the company to get to the bottom of the matter. In the evening of December 23, the company announced that due to the continuous deterioration of the operating conditions of the four acquired companies, the company’s operation and management will be adversely affected, and the amount of impairment is expected to be about 5.6 billion to 6.1 billion yuan. < / P > < p > according to the calculation of the announcement, in 2019, the goodwill impairment of the above companies began to increase significantly, from 58.4311 million yuan in 2018 to about 127 million yuan, and the main objects of the provision are sun moon peer and jinzhilu. < / P > < p > or affected by this, the stock price of digital technology fell about 30% on December 24 and 25. At the same time, the total market value of the company has also evaporated nearly 2 billion yuan, which is only 4.4 billion yuan at present. < / P > < p > in this regard, Shenzhen Stock Exchange issued a letter of concern to digital technology, requiring the company to give a detailed description of the goodwill impairment of the four companies, and ask them to explain whether there is a big performance review in this reporting period. < / P > < p > in this regard, asked the industry that the provision of asset impairment is a way to adjust the net profit. Because both external investors and auditors can not confirm the specific amount of impairment loss, which is a factor of active judgment. Some companies can’t deal with it well and withdraw from the market after losing money in three years. Some companies can clear up the losses once and then go into battle with light weight. < / P > < p > some people also think that such a huge amount of goodwill impairment is rare, so we must put a question mark on the real situation of the acquired object, which indicates that the due diligence work is not done in place during the merger and acquisition. Because the acquired object is originally the assets controlled by the actual controller, the performance changes, reflecting the non-standard internal governance system of the company. < / P > < p > it is reported that digital technology, formerly known as matteno, is currently mainly engaged in information infrastructure investment and operation and big data + artificial intelligence. Since its listing in 2010, the accumulated net profit of the company in the past 10 years is less than 2.2 billion yuan. That is to say, the goodwill explosion has eaten up all the net profits of the company since its listing. < / P > < p > as for how the company should deal with the impact of goodwill impairment, once sent an email to the Secretary of digital technology to verify, but it didn’t get a reply; it also couldn’t get through to dial the office phone. < / P > < p > in addition to the explosion of goodwill, the company also heard that major shareholders illegally occupied funds. It is reported that due to the acquisition of BBHI, from 2019 to the first half of this year, Shanghai nuomi and its related parties occupied about 1.6 billion yuan of the company’s capital for non operating purposes. Therefore, Zhang Zhiyong, the company’s actual controller and chairman, was ordered to correct by Beijing Securities Regulatory Bureau. < / P > < p > in March 2017, digital technology purchased 100% equity of BBHI from Shanghai nuoyu and Ningbo nuoyu with RMB 6.3 billion. It is worth noting that Shanghai nuoyu and Ningbo nuoyu are controlled by Zhang Zhiyong, the actual controller of the company. < / P > < p > in this transaction, digital technology has given a premium rate of nearly 29 times, corresponding to the high performance commitments made by Shanghai nuomi and Ningbo nuoyu: < / P > < p > to ensure that BBHI’s net profit after deducting non assets from 2017 to 2019 will not be less than US $71.587 million (about RMB 472 million) and US $85.905 million (about RMB 472 million) respectively 567 million yuan) and 99.931 million US dollars (about 660 million yuan). < / P > < p > “investor net” found that in the past three years, performance commitments have been completed. According to the agreement, Suntech will pay about 3 billion yuan in the balance. But just after the gambling period, BBHI’s performance changed. The net profit in the first three quarters of this year was only about 70 million yuan, only about one tenth of the full year profit in 2019. < / P > < p > history is always amazingly similar. In addition to BBHI, two other companies acquired by Sunmoon and jinzhilu also changed their faces after the performance commitment period. In the first three quarters of this year, the net profit of daily and monthly peers was -1879400 yuan, a year-on-year decrease of 116.25%; the net profit of jinzhilu was -8427800 yuan, a year-on-year decrease of 174.98%. < / P > < p > in fact, since 2013, digital technology has been undergoing large-scale M & a transformation, and the biggest deal is the acquisition of BBHI to lay out the field of big data and artificial intelligence. In this regard, the company has also said that in the context of mobile Internet internationalization, the successful merger and acquisition of BBHI group is the first international attempt after the company’s business transformation. < / P > < p > according to the introduction, BBHI is a global Internet marketing leading enterprise, its main customers include Yahoo, Microsoft, Google, etc., of which the revenue from Yahoo used to account for about 80%. However, found that as early as 2016, Yahoo sold its core Internet assets to Verizon, an American telecom company, for $4.83 billion. < / P > < p > for the cooperation between BBHI and Yahoo, some investors have questioned whether the declining performance of Yahoo will affect its performance. In this regard, digital technology has replied that BBHI is the company’s largest customer. After the renewal of the contract with Yahoo, the certainty of future performance has been enhanced. < / P > < p > in addition, some investors have questioned the fact that the profits of bbhl abroad are not remitted back to China. In this regard, we only reply that BBHI pays profit dividends to its parent company every year in order to share the development achievements. < / P > < p > in fact, the goodwill explosion of digital technology may have foreboding. From 2017 to 2019, the net profit of digital technology was 496 million yuan, 639 million yuan and 575 million yuan respectively, of which BBHI contributed 516 million yuan, 634 million yuan and 635 million yuan each year. This may mean that its domestic business generates little or no net profit. < / P > < p > and in terms of stock price performance, since 2016, although the stock price of digital technology will rise intermittently every year, the overall trend is still down. Or to boost the stock price, the company has also rubbed the concept in various forms in the past two years. < / P > < p > according to choice, so far, the concept blocks of digital technology include 5g concept, cloud computing, artificial intelligence, venture capital, blockchain, big data, byte concept, mobile game concept, xiong’an new area, etc. Previously, some market participants said that because BBHI’s vast majority of business is in the United States, digital technology is likely to become the leader of Trump’s tax reduction concept stocks. < / P > < p > during this period, the company’s major shareholders and actual controllers madly reduced their holdings. During the period from July 10 to September 29, Ms. Zhang Min, one of the actual controllers of Shanghai nuomiuhe company, reduced the company’s shares by 5% through call auction and other means, with a reduction of 84.4792 million shares, accounting for 7.21%. < p > < p > previously, on November 17, the company announced that Shanghai nuomi and Zhang Min had reduced their holdings by 19.7 million shares, accounting for 1.68%, cashing out 124 million yuan in total. In early November, Shanghai nuomi transferred 27.76 million shares it held to Qiu Xiaohua, with a total cash out of 208.2 million yuan. Up to now, Shanghai nuomi holds 13.07% of the equity of digital technology, and is still the controlling shareholder of the company; while Zhang Zhiyong and his wife Zhang Min hold only 0.9% and 0.02% respectively. < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. 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