“ST” warning: quick recovery of diamond

On the evening of October 27, the Shenzhen Stock Exchange issued an ultimatum to yudiamond. If the company has not explained the problems in the letters issued on September 1 and 14 before November 27, or the above situation has not been eliminated, the Shenzhen Stock Exchange will implement other risk warnings and relevant suspension and resumption of trading of the company’s shares. < p > < p > according to the regulatory information of Shenzhen Stock Exchange, since 2020, the exchange has issued 10 regulatory letters to Yu diamond, but only 3 have been answered. In the morning of October 28, yudiamond issued an announcement to reply to the concern letter of Shenzhen Stock Exchange. As of 14:10 p.m., Yu diamond shares still fell more than 11%. < p > < p > Shenzhen Stock Exchange pays more attention to the control right of Henan diamond. This time, it proposes that “the shareholding purpose of xingkaiyuan No.8 asset management plan, whether the increase or decrease of shares of Listed Companies in the next 12 months will lead to the change of the company’s control right, and whether there is a follow-up plan to adjust the assets and business of the listed company”. < p > < p > in response to this problem, Yu diamond said that in November 2016, Xinghan asset management, on behalf of xingkaiyuan No.8 asset management plan, granted entrusted loans to sky Hongding, which provided pledge guarantee for the entrusted loan with 91.954 million shares of Yu diamond shares held by sky Hongding. However, since June 2018, sky Hongding failed to pay the interest of the entrusted loan on schedule, which was based on the need to accelerate the resolution of project risks Xinghan asset management, on behalf of xingkaiyuan No.8 asset management plan, acquired all yudiamond shares held by sky Hongding through participating in judicial auction. The court ruling has been obtained and the transfer has not been completed. < / P > < p > the company also said that Xinghan asset management on behalf of xingkaiyuan No.8 asset management plan will apply for lifting the three-year fixed increase restrictions on the sale of Yu diamond shares after the transfer of shares. In the next 12 months, Xinghan asset management on behalf of Xingyuan No.8 asset management plan will reduce its holding of yudiamond shares according to the relevant provisions on the reduction of holdings. This series of increase and decrease plans will not lead to the company’s control There is no follow-up plan to adjust the assets and business of listed companies. < / P > < p > it is worth mentioning that since May 5, 2020, Shenzhen Stock Exchange has successively issued inquiry letters on annual report in 2019, notice on inspection of violations, and inquiry letter on semi annual report in 2020. As of October 20, yudiamond has only replied to some of the above-mentioned letters. Due to the large amount of work involved in the litigation, there is still a lot of work to be done after the verification of the litigation parties. In response to the remaining inquiries, the company said that it would “strive to complete and fulfill the obligation of information disclosure as soon as possible”. < p > < p > according to the public data, Yu diamond is a company integrating the production and sales of superhard materials and their products in the industrial chain, and its products mainly include graphite ore, synthetic diamond, large single crystal diamond and micron diamond wire. Because its products involve materials in the fields of national defense and military industry, electronic technology and clean energy, it was once referred to as the third generation semiconductor, photovoltaic industry and other hot concepts. < / P > < p > since 2018, some cooperative banks and non bank financial institutions of Henan diamond have broken loans, withdrawn loans or asked the company to repay in advance, which hindered the company’s financing channels. The Shenzhen stock exchange requires the company to explain whether there is still liquidity risk in the company’s available monetary capital balance so far. < p > < p > Yu diamond replied that up to now, the balance of available monetary funds of the company is about 1.34 million yuan. At the same time, as of June 30, 2020, the company’s interest paying debts totaled 1.926 billion yuan, and the estimated liabilities were 2.951 billion yuan. The company has great debt pressure and liquidity risk. < p > < p > in terms of performance concerns, Yu diamond said that in 2019 and the first half of 2020, the company’s net profit attributable to the parent company and net profit after deduction of non-profit were all large losses, and there were still operational risks such as loss by the end of the third quarter of 2020. From July to September 2020, the company expects a net profit loss of 100 million yuan to 150 million yuan. For specific financial data, please refer to the third quarter report. In terms of stock price, from July 20 to October 20, 2020, the stock price of Yu diamond has increased by 290.83%, and the price to book ratio is significantly higher than that of Listed Companies in the same industry. According to the latest financial data, the recent stock price rise of the company deviates greatly from the company’s fundamentals. The company draws investors’ reasonable expectation and rational judgment, and pays attention to the risk of secondary market transactions. < / 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. The content of this paper is for reference only and does not constitute investment advice. 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