Xishui Stock Co., Ltd. suffered a huge loss of 27 billion yuan in half a year, which was temporarily listed as the second in the two cities, and was asked by the Shanghai Stock Exchange

A huge loss of 27 billion in half a year! The amount of loss is temporarily listed as the second in the two cities. This big financial concept stock has a drop limit. The Shanghai stock exchange quickly asked: is the early performance false? Is profit adjusted? < p > < p > on the evening of August 27, Xishui company successively issued several heavyweight announcements, including provision for impairment, overdue subscription of trust plan, financial report and receipt of regulatory letter. Only by looking at the news can we know why. To sum up the above announcement in a paragraph, it is: “due to the provision of impairment, Xishui shares suffered a huge loss of 27.90 billion yuan in the first half of the year. Such a huge loss makes the Shanghai Stock Exchange suspicious, and urgently asks Xishui: is the early performance false? Is there a profit adjustment? ” < p > < p > < p > after handing over the miserable half year’s returns, we received such a regulatory letter. In today’s open trading, Xishui shares directly fell to a limit of 8.43 yuan / share, with the latest market value of 9.215 billion yuan. < p > < p > the impairment losses of Xishui include long-term equity investment impairment, goodwill impairment and investment asset impairment, which are all attributed to the subsidiary Tian’an property insurance. Up to now, Xishui directly holds 35.88% of the equity of Tianan property insurance, and indirectly holds 14.99% of the equity of Tian’an property insurance through its three partnership enterprises, holding and controlling 50.87% of the equity in total. According to Xishui, there are significant signs of impairment in the investment of equity investment funds held by Tian’an property insurance and trust products issued by new era trust in this period. Through the impairment test of trust products, provision for impairment has been made, and the loss has been confirmed after penetrating the valuation of equity investment fund. By the end of June this year, the net assets of Tian’an property insurance company, a subsidiary of Xishui, was – 35.985 billion yuan. Accordingly, the company decided to make full provision for impairment of long-term equity investment of Tian’an property insurance, with the amount of 14.902 billion yuan. The impairment amount of long-term equity investment withdrawn for Tianan property insurance will be included in the profit and loss of the parent company in 2020, which will lead to a decrease of 14.902 billion yuan in the net profit of the parent company in 2020, and has no impact on the net profit of the consolidated statements in 2020. At the same time, the amount of impairment is included in the company’s consolidated profit and loss of RMB 0.8 billion, which results in the decrease of the company’s net loss of RMB 0.2 billion. The amount of provision for impairment of goodwill accounted for 7.46% of the latest audited owner’s equity of the listed company’s shareholders. On the other hand, due to the substantial breach of trust products and other assets held by Tian’an property insurance company, after testing, the corresponding impairment has been made for such investment, involving an amount of 57.745 billion yuan (the company has withdrawn a total of 57.757 billion yuan of credit impairment loss in the first half of the year), which will reduce the company’s net profit attributable to shareholders of listed companies by 20.724 billion yuan in 2020. < p > < p > the company received the notice from Tian’an property insurance company that the investment principal of “new era trust Lanhai 1061” and “new era trust Lanhai 1069” due on August 26 this year was RMB 990 million and RMB 580 million respectively, the due interest was RMB 54 million and RMB 31 million, and the total principal and interest was RMB 1.044 billion and RMB 611 million, respectively Property insurance did not receive the principal and investment income of the above two trust plans. As of the 27th, there were 15 new era trust products with a total investment principal of 17.150 billion yuan which were due and did not receive investment principal and income. < p > < p > the financial report shows that in the first half of the year, the company realized an operating revenue of 2.813 billion yuan, a year-on-year decrease of 54.46%; the net profit loss attributable to the parent company was 27.090 billion yuan, and the amount of loss (1.544 billion yuan in the same period of last year) increased significantly. The net loss of Tianan property insurance reached 64.67 billion yuan and the net assets was – 35.985 billion yuan. < p > < p > zhongzhengjun found that among more than 3000 A-share listed companies that have disclosed the interim report in 2020, Xishui shares has become the second largest loss maker, with the loss amount second only to PetroChina (with a loss of nearly 30 billion yuan). < / P > < p > such suspected “financial bath” behavior immediately attracted regulatory attention. Shortly after the release of the semi annual report of Xishui, the Shanghai stock exchange immediately issued a regulatory working letter to the company. The speed can be called “lightning”! < p > < p > Shanghai stock exchange requires Xishui company to explain the specific process of assets impairment measurement of the company, including but not limited to the selection of main parameters and basis, and fully demonstrate whether the amount of impairment is accurate and appropriate, and explain the signs of impairment in combination with relevant accounting standards, the specific composition of trust products held by the company in the new era, underlying assets and collateral At the specific time point, it is reasonable and prudent for the company to withdraw relevant impairment until the current period, whether there is insufficient provision in the previous period, whether there is false performance or profit adjustment in the previous period. < p > < p > at the same time, Tianan property insurance company had major accounting errors before, and the Shanghai stock exchange required the company to disclose the specific reasons for the formation of accounting errors and relevant responsible persons. < p > < p > on July 17, the China Banking and Insurance Regulatory Commission (CIRC) announced that it would take over six insurance and trust institutions, including Tianan property insurance and new era trust, according to law, with a term of one year. If the takeover fails to achieve the expected effect, the takeover period shall be extended in accordance with the law. < p > < p > Xishui said that due to the takeover of Tianan property insurance, the company no longer has control over Tian’an property insurance. According to relevant regulations, it is expected that it will not be included in the consolidation scope of financial statements from the third quarter. According to the preliminary calculation, compared with the semi annual report in 2020, it is estimated that the net assets attributable to the parent company in the consolidated financial statements at the end of the third quarter of the company will increase by about 18.3 billion yuan, and the loss attributable to the parent company will decrease by about 17 billion yuan. < p > < p > Xishui shares disclosed the operation of Tianan property insurance in the first half of the year. In the first half of this year, Tian’an property insurance was in normal operation. According to the announcement, in the first half of 2020, Tian’an property insurance accumulated premium income of 8.483 billion yuan, a year-on-year growth of 7.93%, 0.31 percentage points higher than the industry average growth rate; the comprehensive cost rate was 99.86%, 0.13 percentage points better than the annual budget target; the proportion of non vehicle insurance premium structure reached 26.3%, up 1.9 percentage points year-on-year; the growth rate of comprehensive development channel was 77.6%, and that of Bancassurance channel was 60% 8%, and the growth rate of e-commerce channel was 41.9%. < / 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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