Wulong dividend of water shares is said to boost stock price, increase income but not profit, net profit stays unchanged for 6 years

In the morning of January 12, Wuxian, the company’s controlling shareholder, actual controller and chairman, announced that the annual profit distribution plan proposed by Wuxian was cancelled. On the evening of January 11, the company just disclosed Wu Xian’s “proposal letter” on annual profit distribution, proposing to pay 1 yuan (including tax) for every 10 shares converted into 7 shares. The company is mainly engaged in the R & D, production, sales and technical services of modified engineering plastic alloy, modified general plastic and high-performance functional polymer materials, and has become a national high-tech enterprise. < / P > < p > however, the company’s profitability is not strong. Since 2015, the net profit attributable to shareholders of listed companies (hereinafter referred to as net profit) has almost remained unchanged. < / P > < p > in spite of the trouble, in the secondary market, on January 12, water shares performed strongly and closed at the limit. However, since its listing in 2017, the overall performance of water shares is average. Although it rose sharply on January 12 to close at 26.49 yuan / share, and the subsequent recovery price is 40.05 yuan / share, it is still lower than 40.85 yuan / share when the company’s new shares were issued. < p > < p > on the evening of January 11, wute shares disclosed that recently, the company received the proposal letter on profit distribution and capital reserve conversion to share capital in 2020 (referred to as the proposal letter) from Wu Xian, the actual controller. The main content is that in order to improve the return of shareholders, combined with the company’s undistributed profits, under the premise of meeting the profit distribution principle stipulated in the articles of association and ensuring the normal operation and long-term development of the company, as the controlling shareholder, actual controller and chairman of the board of directors of the company, the company can appropriately improve the cash dividend strength in the annual cash dividend scheme. It is planned to distribute cash dividend of 1.00 yuan (including tax) to all shareholders for every 10 shares based on the total share capital on the date of equity registration when the distribution plan is implemented in the future, and to increase 7 shares for every 10 shares to all shareholders with capital reserve. When disclosing Wu Xian’s proposal letter, wute said that after receiving the proposal letter from the controlling shareholder, the board of directors of the company analyzed the company’s operation and development plan and profitability, and believed that the proposal of profit distribution and capital reserve conversion to share capital was feasible. The company will seriously discuss the above contents as soon as possible and formulate appropriate plans. < / P > < p > at the same time, water shares also disclosed the 2020 annual performance forecast. The company expects to make a profit of 60.11 million yuan to 70.9961 million yuan, a year-on-year increase of 27% – 50%. The net profit after deducting non recurring profit and loss (hereinafter referred to as deducting non net profit) was 50.31 million yuan to 61.1961 million yuan, an increase of 173.26% – 232.38% year on year. However, on the morning of the 12th, water shares announced again that it would cancel the annual profit distribution proposal because the company’s annual report has not been audited by an accounting firm, and all parties concerned decided to cancel the proposal. After the company’s 2020 annual report and relevant data are audited by the accounting firm, the board of directors of the company will formulate the profit distribution plan according to the company’s development plan and comprehensive analysis of profitability, and submit it to the general meeting of shareholders for deliberation. < / P > < p > generally speaking, the annual report is not officially published, and there may be differences between the data approved by the financial department and the accounting firm, so the operating performance is uncertain. In this case, the dividend scheme will not be considered. A company’s official announcement is subject to multi-party review, and it is a serious content of Xinpi. Why should water shares “turn back”? < / P > < p > despite the trouble of profit distribution, there are positive expectations. Business performance is good, and profit distribution is expected in the future. This expectation, superimposed on the dividend plan disclosed by the first company in the two cities, transmitted to the secondary market with a sharp rise in the share price. < p > < p > in the morning of January 12, water shares opened at the limit price. After opening the limit board at 10:53, it fluctuated at a high level. At the end of the afternoon, it closed the limit strongly and closed at 26.49 yuan / share. < / P > < p > the actual controllers of Wuxian and Hezheng are Wuxian and Shenzhen Yinqiao Investment Co., Ltd. On December 24, 2020, the company disclosed that the overall pledge rate of the above three parties was 44.32% after the partial pledge was lifted, among which there was some pledge of restricted shares. In August last year, the pledge rate of He Zheng’s shares was as high as 87.77%. < / P > < p > according to the official website, water was founded in 2001. The company claims that it is responsible for filling the gap in the national industry. After nearly 20 years of development and precipitation, it has become one of the leaders in the field of new materials in China. < / P > < p > according to the financial report, water shares have technical advantages. Focusing on the material characteristics of 5g base station and communication terminal, the company has carried out research and development of a variety of low dielectric constant and high dielectric constant materials and Research on preparation process. The products have been replaced by imported ones and have been in stable mass production. The company continues to optimize the existing liquid crystal polymer polyester (LCP) production line process. As an enterprise with continuous production technology of type I, type II and type III LCP resins and their composites, the product technology has reached the international leading level. < p > < p > in 2012, the company achieved an operating income of 291 million yuan and a net profit of 16 million yuan. In 2015, the operating revenue increased to 585 million yuan and the net profit increased to 63 million yuan. However, from 2016 to 2018, although the operating revenue continued to grow, the net profit continued to decline. The net profit was 55 million yuan, 40 million yuan and 35 million yuan respectively, with a year-on-year decrease of 12.77%, 26.83% and 13.17%. < / P > < p > in 2019, the net profit turned from decrease to increase to 47 million yuan, with a year-on-year increase of 35.05%, but the non net profit decreased significantly. In that year, the non net profit deducted was 18 million yuan, a year-on-year decrease of 33%. In fact, from 2017 to 2019 and in the three years after listing, the net profit deducted from non profit is declining, of which the decline rates in 2017 and 2018 are 18.60% and 25.25% respectively. < / P > < p > the net profit and non net profit of water from 2014 to 2019 are basically standing still. In 2014, the deducted non net profit was 33 million yuan, and only 18 million yuan in 2019. < / P > < p > in 2020, from the performance of the forecast, it seems to achieve a bumper harvest. The net profit of the company increased by at least 27% year-on-year, while the non net profit doubled at least year-on-year. The company explained that its liquid crystal polymer (LCP) materials have successively passed downstream customer certification and entered the stage of mass supply. The IPO project of the company has been put into operation gradually, and the material products have entered the stage of mass supply. < / P > < p > in fact, in addition to the above factors, there is also an important reason, that is, the demand for medical materials to fight the epidemic, such as masks, has increased sharply.

Voight shares also novel coronavirus pneumonia in Guangdong, China. The company has been included in the new crown pneumonia epidemic prevention and control material production enterprise in Hunan Province. The products of the epidemic prevention category are PP and MF, which are used for manufacturing medical bedsheets. The medical bedplate of customers is used for epidemic prevention and control hospitals. PA and CF are important materials for customers to build epidemic prevention and kill UAVs. < / P > < p > from the operating performance of the first three quarters of 2020, the company’s performance has declined. Among them, the net profit and non net profit decreased significantly in the first quarter, and the net profit was 33 million yuan and non net profit was 32 million yuan in the second quarter, with a year-on-year growth of 210.83% and 447.91%. The net profit and non net profit of the third quarter were 10 million yuan and 07 million yuan respectively, which dropped significantly compared with the previous quarter. < / 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. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk. < p > < p > Chinanet is a state key news website under the leadership of the Information Office of the State Council and the management of China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website publishes information 24 hours a day. It is an important window for China to carry out international communication and information exchange.