Lubao Xinghai’s performance and performance of the impairment loss behind the Lubao Group’s restrictions have been cancelled
On April 13th, with regard to the provision of 2 trillion impairment on Lubao Xinghai’s shareholding, Baili Technology stated in its second inquiry letter response to the Shanghai Stock Exchange that it will enter the China-US trade friction on the industrial chain in 2019.The impact of the continuous emergence, the downstream demand for caprolactam has declined significantly, and the price has generally declined. Lubaoxinghai ‘s average sales price for caprolactam in 2019 has fallen by about 22% from 2018, which is consistent with the overall downward trend of industry prices.The scale of the device is small, the cost is high, and the competitiveness is declining. Lubao Xinghai’s market forecast should be reduced accordingly.  Air Force Baili Technology announced in its 2019 performance announcement that it provided about 200 million yuan for the impairment of Lubao Xinghai ‘s equity investment.Earlier in November 2018, Baili Technology will be against Lubao Xinghai 4.The 7 trillion creditor’s right was converted into equity investment. According to this, Baili Technology’s impairment ratio was close to 50%.  According to the announcement of Baili Technology, the value of all the equity attached to Lubao Xinghai’s debt conversion in November 2018 was 26.800 million yuan.At present, Baili Technology has not disclosed the initial specific estimate of Lubao Xinghai.  In the reply to the inquiry letter of the Shanghai Stock Exchange a few days ago, the data revealed by Baili Technology shows that Lubao Xinghai is expected to achieve revenue in 201910.4.3 billion, down 7 every year.97%, gross profit margin was 22 from the previous year.30% recognized 14.97%.  Baili Technology announced that as of the end of 2019, the asset-liability ratio audited by Lubao Xinghai Certified Public Accountants was about 75%, and the short-term internal financial situation was extremely tight; the conversion of equity was replaced.Bao Group’s financial support for Lubao Xinghai has been reduced.  Behind Baoxinghai is Shanxi Lubao Group, a large private enterprise in Shanxi.In January of this year, Sauna Night reported that Beijing ‘s Third Intermediate People ‘s Court announced the issuance of (2019) Beijing 03 No. 924 Restriction on Consumer Order.Sauna, Yewang noticed that according to the latest query results of the Supreme Law Enforcement Information Disclosure Network, the aforementioned consumption restrictions on Lubao Group and Han Changan have been removed.  Recently, Sauna and Yewang contacted Lubao Group regarding Lubao Xinghai’s business status, but no reply has been received.  After an interval of more than one year, a total of 200 million yuan was impaired. Due to the high level of profit and good expectations, public information on the implementation of debt-to-equity swap shows that Lubao Xinghai is located in Lubao Ecological Industrial Park in Lucheng, Shanxi Province.Investment Co., Ltd. and Shanxi Lubao Group jointly established a large-scale chemical enterprise integrating fine production, processing and sales of coal chemical products.The company was established in February 2012, using the capital strength of Chongqing Xinghai Investment Co., Ltd., and relying on the raw material advantages of Lubao Group in the rough processing of coal coke products. The total investment of the project reached 5 billion US dollars.  In November 2018, Baili Technology will take over Lubao’s Xinghai 4.The debts of RMB 700 million in accounts receivable and other debts were converted into equity investment, and after the investment was completed, 15% equity of Lubao Xinghai was held.  According to the announcement of Baili Technology, Lubao Xinghai’s main products are cyclohexanone, caprolactam, nylon 6 bright slices, short fibers and other chemical products. The core price of this series of products is the price of caprolactam.In 2018, Baili Technology’s shareholding in Lubao Xinghai, the price of caprolactam remained high and fluctuated, and supply and demand were basically targeted; although Lubao Xinghai was affected by environmental protection policies at the time, the construction load remained low for a long time, but overall profitability was significantly enhanced, and corporate profitsThe rate remains at a high level.Based on the expectation that the caprolactam market will continue to have high profits and sustained good development, Baili Technology has implemented a debt-to-equity swap for Lubao Xinghai.  Lu Bao Group Chairman Han Changan once accepted a sauna in August last year. Yewang said in an interview that debt-to-equity swap is an alternative to Baili Technology. Baili Xingye is a materialized deep processing project of Lubao Xinghai coal coke chemical products (1Period) The general contract of the project, which is optimistic about the prospects of the project, proposed to buy shares.”Bailey Technology’s shareholding in Lubao Xinghai is beneficial to our listing. They have made every effort to create Lubao Xinghai. They also understand this company, and it would be better if more listed companies took shares.”” Han Changan said.  Entering 2019, Baili Technology stated that through the continuous escalation of Sino-US trade friction, the downstream demand growth rate of caprolactam has rapidly declined, and the overall market situation has become more severe than in previous years, and the price has hit a new low for nearly two years.Baili Technology said that its combined asset valuation company’s forecast and market environment analysis believe that the price of caprolactam has not recovered enough. It is expected that the price will stay low in the short term and it will be difficult to reach the expected level.Negative profit growth.  The current shareholding structure of Lubao Xinghai is that Lubao Group holds 51%, Chongqing Xinghai Investment Co., Ltd. (hereinafter referred to as “Chongqing Xinghai”) holds 34%, and Baili Technology holds 15%.  Among the above shareholders of Lubao Xinghai, Chongqing Xinghai’s shareholders were natural persons Jiang Shunli and Han Zeshuai after the equity split.According to the attempted information, Chongqing Xinghai shareholder Han Zeshuai is the shareholder, legal representative and executive director of a company called “Shanxi Red Sun Tourism Development Co., Ltd.”Shanxi Red Sun Tourism Industrial and Commercial Registered Address is located in Lubao Ecological Industrial Park, and according to the company ‘s certified WeChat public account, Shanxi Red Sun Tourism is the operator of the Chairman Mao Museum of the Lubao Group ‘s red tourism sector.  In terms of Baili Technology, it released its 2019 annual performance forecast in late January saying that it expects to achieve a net profit of -6.0 million to -7.200 million yuan, initially due to the decline in the provision for asset impairment and bad debt provision in 2019, which includes the estimated impairment provision of about 200 million yuan for Lubao Xinghai’s equity investment.  The Shanghai Stock Exchange subsequently issued an inquiry letter to Baili Technology, asking the listed company to make an explanation on the provision for impairment.After Baili Technology replied, the Shanghai Stock Exchange issued a second inquiry letter, proposing that Baili Technology used the short-term changes in caprolactam price as the basis for accruing equity impairment and accrued an impairment rate close to 50%, based on full, reasonable, and 2018Whether there is any repetition of the accrual standards for accounts receivable year-on-year and 2019.  In its reply on April 13th, Baili Technology stated that the average sales price of Lubaoxinghai Caprolactam in 2019 fell by about 22% from 2018, which is consistent with the overall downward trend of industry prices; coupled with the new domestic increase in the past three yearsCaprolactam production capacity is mostly single line 30 insertion / year. By the end of 2019, the total production capacity of single line 30 insertion / year enterprises has reached 55% of the industry ‘s total production capacity. Lubao Xinghai ‘s 10 probe / year device has a small scale, high cost, and competitivenessdecline.Due to the fundamental changes in the market supply situation and the long-term decline in product prices, it is difficult to reverse Lubao Xinghai ‘s market assessment, and the company ‘s equity investment in Lubao Xinghai should also be impaired accordingly.  In addition, Baili Technology accrued 90% of bad debt provision for Lubao Xinghai’s account receivable balance in 2019.In the announcement in late March, Baili Technology stated that as of December 31, 2019, Lubao Xinghai’s asset-liability ratio was about 75% (declaration audit), and the balance of book cash and cash equivalents was only 0.14 trillion, but the current debt balance is as high as 23.US $ 7.5 billion, long-term loans and long-term payables8.At 1.3 billion US dollars, Lubao Group has no plan to provide financial support to Lubao Xinghai recently. Lubao Xinghai’s funding situation is extremely tight in the short term.  In the announcement on April 13, Baili Technology Uniform stated that in 2018 and before, Lubao Group held 60% of Lubao Xinghai ‘s shares and absolutely controlled Lubao Xinghai; after the company participated in Lubao Xinghai,Lubao Group’s equity has been reduced, and its shareholding ratio exceeds 51%. Since 2019, Lubao Group’s financial support for Lubao Xinghai has been reduced.  Lubao Group’s consumption restriction order has been removed and reorganized. As the controlling shareholder of Lubao Xinghai, Lubao Group has been involved in litigation and was issued a consumption restriction order by the court.  In January this year, Sauna Night reported that the Third Intermediate People ‘s Court of Beijing issued on December 26, 2019 (2019) Jing 03 issued No. 924 Restrictions on Consumption, which restricted Shanxi Lubao Group Coking Co., Ltd. and the company Han Changan fromImplement a series of high-consumption and non-essential consumer behaviors.The Lubao Group frequently litigates, or may be involved in providing a guarantee for Jinhui Group, another privately-owned enterprise in Shanxi.  The reporter contacted Lubao Group and the actual controller Han Changan, but did not get a reply.  At present, according to the query results of the Supreme People’s Law on Information Opening Network, the aforementioned consumption restriction order for Lubao Group and Han Changan has been removed.  Information shows that Lubao Group was established in 2001, holding Lubao Xinghai, Shanxi Jiantao Lubao Chemical Co., Ltd., Shanxi Lubao Group Jingang Zhaofeng Coal Chemical Co., Ltd., Shanxi Lu’an Huaneng Coal Char Chemical Co., Ltd.11 subsidiaries including the company, Lubao Group and its subsidiaries are mainly engaged in the production and operation of coal and coke chemicals, and have ranked among China’s top 500 private enterprises for many years.  According to Lubao Group’s official website, Chairman Han Changan issued new blessings to employees on the first day of the opening year of 2020. Summarizing the results in 2019, the new projects have been completed and put into operation one after another, realizing the extraction of silk from 100% coking by-product materialsThe myth covers the world gap; the high-end specialty raw material pharmaceutical factory was successfully completed; the construction of the emerging hydrogen energy industry started successfully; new projects such as extra large coking are also under construction.  Han Changan said that in 2020, we may encounter some difficulties in the market tide, but Lubao people’s greatest self-confidence and strength is not afraid of difficulties and able to overcome all difficulties.  Sauna, Ye Wang Zhu Yueyi Editor Sun Yong proofreading Wei Zhuo