February 13, BDO Runda announcement that the company intends to make provision for impairment of assets of about 321 million in 2017; In addition, the end of 2017, the company scrapped some assets for sale, the loss of about 234 million yuan , A total of about 556 million yuan.
This announcement is like a fire in the dry season, ignited a lot of sentiment investors BDO Some people questioned the performance of listed companies have 'shower' suspicion, some people questioned why the company in the hot industry, there is no earned money.
Another notice by the listed company also caught the attention of the reporter in Securities Weekly Market. On November 2, 2017, the listed company announced that 368 million A shares subscribed to be issued by the Company were listed on November 6, 2017 , The net increase of 1.96 billion yuan to raise funds raised, all for LED flip chip business.
However, under the premise of a huge amount of government subsidies, the Company has not developed its main business and every year, it is necessary to rely on non-recurring profit and loss to maintain its performance. What is the prospect of translating flip chip?
Fundamentals hardly optimistic
BDO's performance in recent years is not optimistic .2012-2016, listed companies deducted non-return net profit were -26 million yuan, -1.81 billion yuan, -26 million yuan, -567 million yuan and -3.25 billion , Respectively, attributable net profit of 162 million yuan, 8.83 million yuan, 13.95 million yuan, 1986 yuan and 31.72 million yuan, which means that non-recurring gains and losses directly determine the company's net profit level.
In 2012, BDO Runda reached operating profit of -24.33 million yuan and non-recurring gains and losses of 188 million yuan. The government subsidy included in the current profit and loss was 224 million yuan. Government grants became the most important factor for the Company's profitability.
2013 and 2012 are exactly the same, the above several data were -2 billion, 190 million and 232 million.
In 2014, BDO's operating profit was -268 million yuan, but the non-recurring gains and losses soared to 274 million yuan. Among them, the government subsidy included in the current profit and loss was 157 million yuan, and the government subsidy alone could not guarantee the profit , The Company sold 100% equity of its subsidiary Zhuhai Yingrui Energy Saving Technology Co., Ltd. (hereinafter referred to as 'Zhuhai Yingrui') to its controlling shareholder Wuhu Dehao Investment Co., Ltd. (hereinafter referred to as 'Wuhu Dehao Investment') for a total amount of 168 million Yuan income.
According to BDO's announcement on December 16, 2014, Zhuhai Yingrui's net profit for 2012-2013 and January-November 2014 was -2 million, -8684 yuan and -739 yuan, respectively. The equity transfer price As high as 290 million yuan, this related party transactions, the company's net profit barely positive.
In 2015, the operating profit of listed companies was -669 million yuan, making it the highest historical loss while the non-recurring gains and losses also reached a historical high of 586 million yuan, of which the subsidy credited to the current profit and loss was 234 million yuan. Profit and loss on disposal of non-current assets 466 million yuan.
2015's operating practices are the same as in 2014.
According to the announcement of the listed company on December 12, 2015, the Company transferred 100% equity of Zhuhai Carlyle Motor Co., Ltd. ("Carlyle Motor"), a wholly owned subsidiary, to a wholly owned subsidiary of BDO, Wuhu Zhuhai Yingrui , Bringing the company 466 million yuan of disposal proceeds.It is not difficult to see that this is still the controlling shareholder and listed companies related party transactions between the Carlyle motor 2013, 2014 and 2015 January-October net profit respectively 1260000 yuan, -1940000 yuan and3860000 yuan, but the transaction price is as high as 573000000 yuan.
BDO Runda 2016 operating profit of -1.41 billion yuan, non-recurring gains and losses of 3.57 billion yuan, of which included in the current profits and losses of government grants 221 million yuan, non-current assets disposal of 192 million yuan profit and loss, the sale of listed companies The assets of BDO (Hong Kong) Optoelectronics Technology Co., Ltd. (hereinafter referred to as 'Hong Kong DHL Optoelectronics'), BDO said equity transfer is due to better focus on the domestic LED business.
Through a series of equity transfers, especially related party transactions in 2014 and 2015, BDO's other receivables on its books grew rapidly. From 2014 to 2016, it was 348 million yuan, 921 million yuan and 1.097 billion yuan respectively, The corresponding provisions for bad debts of 16.98 million yuan, 38.46 million yuan and 55.7 million yuan, which will gradually phagocytose the net profit of enterprises.
Probably for the purpose of alleviating the pressure of provision for bad debts, the listed company made an accounting estimate change on December 2, 2017. The standard for single amount of receivables and withdrawal of bad debt provision separately from the balance of receivables at the end of the period is 50 Million yuan change to more than 10 million yuan.
However, relying solely on government subsidies, disposal of assets and the use of accounting techniques to adjust the profit is difficult to cover up the fact that the fundamentals of the company deteriorated gradually.According to the performance of the newspaper, the company realized net profit of -896 million yuan in 2017, more than the company net profit since the return of the parent company Sum.
For performance issues, BDO Runda relevant person in charge explained that by the LED industry boom has also been hovering in the low and intense market competition, the provision for impairment of assets and other factors, the combined effect of non-return to the parent company Net profit has been negative; other receivables increase because the company sold non-core assets in previous years is paid in accordance with the contract, part of the payment has not yet reached the payment period is normal; changes in accounting estimates in 2017, can objectively reflect the company currently The management and management of the Company is expected to reflect the actual situation of major receivables of the Company more reasonably and objectively and to comply with the relevant provisions of Accounting Standards for Business Enterprises.
Business transformation effectiveness to be tested
Some investors also believe that BDO Runda 2017 'performance shower' suspects.
'Performance bathing' is usually manifested as the write-off of assets or inventories to reduce future depreciation or increase future earnings; large accounts receivable or impairment losses on inventories for future reversal; the recurrent costs included in one-time Expenses in order to reduce future costs, etc .. Use 'performance shower' companies usually use a variety of methods in a few years ago to adjust the profit into a state of profit, a big loss can be less pre-accrued losses and over-capitalization brought Amortization pressure released, laying the foundation for the coming year profit.
According to the announcement, BDO Runda amounted to approximately RMB141 million for impairment of fixed assets for 2017, up by nearly 150 times as high as RMB1,942,900 in 2016. Provisions for bad debt provision for receivables as of the end of 2017 1.06 billion yuan in 2016 to 53.93 million yuan; Provision for inventories depreciation of 73.57 million yuan in 2017 was basically the same as in 2016. In addition, the loss on disposal of assets of the Company in 2017 was 234 million yuan, compared with the revenue of 192 million yuan in 2016 .
Announcement said the above asset impairment and asset disposal totaling about 556 million yuan, taking into account the impact of income tax, the company will reduce the net profit attributable to shareholders of listed companies in 2017 about 556 million yuan is not difficult to find that the huge asset impairment And asset losses are far more than the level of the same period of previous year, is there any suspicion of 'bathing performance'?
The person in charge of the listed company said that provision for impairment of relevant assets was carried out in accordance with the relevant provisions of the Accounting Standards for Business Enterprises, and there was no 'big show of performance'.
According to the announcement, BDO Ruanda huge provision for asset impairment and the disposal of assets on the one hand due to the need for flip chip, on the other hand is out of the equipment and products not suited to development needs.But the "Securities Market Weekly" reporter Found that listed companies do not have too many competitive advantages in the market since they set foot in the LED products. In particular, they still suffer from losses in the case of huge government subsidies. The effectiveness of the transition flip chip business will be tested in the future.
Since the company entered the LED industry, the successful refinancing of fixed assets has been implemented in 2010, 2012, 2014 and 2017, respectively, with total fund raising over 6.435 billion yuan. According to the report of BDO in 2010, The average annual sales revenue of 1.806 billion yuan, net profit of 209 million yuan, the project construction period of two years.
In view of the performance of BDO Runda over the past years, the expected effect of a fixed increase has not been achieved far, and the subsidy received by the government from the government has exceeded 1.6 billion yuan since 2010, but there is still no satisfactory performance.
However, the peer LED listed companies have not encountered such an awkward situation.As Ru, San An Optoelectronics (600703.SH) is expected to achieve net profit of 31.5 billion in 2017 to 3.25 billion yuan , An increase of 45.39% to 50%; Hua Can Optoelectronics (300323.SZ) in 2017 is expected to achieve operating income of 2.63 billion yuan, an increase of 66.23% over the same period the previous year, attributable to shareholders of listed companies Of the net profit of 502 million yuan, an increase of 87.92% over the same period the previous year.
Moreover, since 2016, the LED chip industry picks up. When San'an Optoelectronics and Huacan Optoelectronic seize the opportunity to enhance market concentration, BDO Runda claimed that some chip equipment capacity was idle and a large amount of some of the inventories Falling prices, but also disposed of a lot of scrapped products.
From the company's annual report and refinancing situation, BDO Runda will be the next step will focus on the transition to flip chip business.Listed companies in plowing for many years in the market are not very good performance, then whether in the new area will Have better development?
The official said the first is the company will actively promote the implementation of raise investment projects to enhance the company's continued profitability; the second is to increase investment in research and development, enhance the company's core competitiveness of products; speed up the integration with NVC lighting , To promote the success of the transition.
BDO Runda recent action is also worth noting January 2, BDO Runda release notice of suspension, said it is planning a major acquisition of equity, the subject of the company belongs to the LED lighting product distribution industry. January 16, the company also issued a notice Said that in view of the company's shares in the December 28, 2017 trading process has touched the controlling shareholder of Wuhu Dehao investment pledged shares of the open line, the company's shares will continue to be suspended, suspension of time not exceeding 10 trading days.
However, January 26, BDO Runda announcement that the company decided to terminate the planned merger and acquisition of LED lighting distribution company a major stake in the acquisition, instead of the acquisition of LED lighting assets, and has signed a purchase agreement of intention. Rapid replacement of short-term acquisition In order to continue suspension of the subject, in order to facilitate the lifting of the collateral crisis for the majority of shareholders to provide space?