In the Chinese stock market, where various themes, concepts, and black technologies are gathered, many people are not interested in talking about agricultural stocks because the industry is really too old, too traditional, and too unimaginative. Moreover, the agricultural sector still has an "excellent" tradition, which is fraud.
From Yinguangxia, to Lantian, to Greenland, to Wanfushengke, A-share agricultural listed companies have a long history of fraud. Today, another company has become a new member of this “Glorious History”, which is ChuYing Agro Pastoral Gourp/CYAP.
Dare to take risks, the young eagle farmer and herd quietly rises
Like many self-employed entrepreneurs, when CYAP chairman Hou Jianfang founded the company in 1988, he only borrowed 200 yuan from the start-up capital.
Open chicken farms, in the eyes of many people can not get high profits, due to "chicken cockroaches" and other reasons, the risk of raising chicken is not small.
However, Hou Jianfang repeatedly relied on the “counter-cycle” operation that did not shrink during the “chicken disease” period. After the “sick chicken” incident, the egg price rose sharply, but it also gained rare profits in the industry.
Other farmers in the avian flu clearance sale, Hou Jianfang did the opposite, choose to increase investment, contrarian expansion, which shows that he is a risk-taking person.
Adventure can make people succeed twice, but the risk of light chicken is great. When the bird flu will end, it is impossible to bet every time.
As early as the 1990s, Hou Jianfang began to raise pigs and hedge the risk of raising chickens. After slowly getting enough funds, Hou Jianfang began to standardize and streamline the management of pigs.
By sharing the farm construction and equipment investment, the company is only responsible for solving land problems and aquaculture management methods, reducing operating costs and making the company stronger and bigger.
In 2010, Hou Jianfang's CYAP was successfully listed on the Shenzhen Stock Exchange's small and medium-sized board, known as the "China's first pig raising."
The whole industry chain layout, the company was questioned for fraud
As a traditional agricultural company, CYAP has little imagination, but the company's vision is not small.
After the listing, the company began to lay out the "full industry chain" and made a lot of exploration between the upstream and downstream of the pig industry.
In the upstream industrial chain, the company set up a farmer's company, mainly engaged in the procurement and processing of feed; in the downstream industrial chain, the company invested in pig slaughtering projects and cold meat cold chain logistics projects, and launched its own brand “Qianmuxiang”.
All of this seems to indicate that the company is booming.
But in 2013, a report from Tencent Finance gave the company a shadow.
Tencent Finance, in the company research column on April 19, 2013, titled “CYAP “Eco-pig” allegedly falsified”, mainly reported the following:
1. The company's ecological pig false advertising deceives consumers;
2. The company invests 12.6 billion in aggressive expansion or breaks the capital chain;
3. The company has overcapacity or mine.
After this report came out, CYAP began to leave the impression of "falsification."
To tell the story, the company went public, Hou Jianfang is naturally not short of money, his son Hou Geting likes e-sports, he will pay for his son to set up an e-sports club.
The OMG e-sports club of Hou Geting, the chairman of the board, is still quite impressive. He not only competes with the "national husband" Wang Sicong, but also has won the international competition.
Entrepreneurs, money is earned by themselves. How to spend nothing is a matter of righteousness. But a company, and a publicly-supervised listed company, if it is financially fraudulent, it is a serious violation of the bottom line.
On June 13, 2018, the securities industry research institute "Market Value" published an article "Exclusively Heavy and Long Words Strongly Questioned CYAP Suspected of Serious Financial Fraud", for CYAP "available financial assets, fixed assets, construction in progress, The authenticity of holding assets for sale, investment income, and disposal of non-current assets is openly questioned.
Perhaps it was the impact of this incident. On the evening of June 13, CYAP issued an emergency notice:
Due to the continuous decline in stock prices, the board of directors Hou Jianfang and some of his politic stocks held by the concerted parties touched the liquidation line and there may be risk of liquidation.
In order to protect the interests of investors and avoid abnormal fluctuations in the company's stock prices, according to relevant regulations, the company has suspended trading since the market opened on the morning of June 14, 2018. The suspension time is expected to be no more than 5 trading days.
The Shenzhen Stock Exchange questioned that CYAP was unbearable
It is worth noting that in May of the early “market capitalization” article, the Shenzhen Stock Exchange issued a letter of inquiry to CYAP because of the negative opinions of the annual auditors on the effectiveness of CYAP2017 internal control.
Obviously, the internal management control of CYAP has serious problems, otherwise the accountant will not issue a "negative opinion."
On September 6, the Shenzhen Stock Exchange issued an inquiry letter to CYAP again. This time, it is aimed at the substantial decline in its net profit in the 2018 semi-annual report, the excessive amount of major equity investment, related transactions, debt and many other issues.
In the face of the Shenzhen Stock Exchange's "Lianzhugun"-like doubts, CYAP was temporarily unable to respond, and had to issue an announcement to apply for an extension of the exchange's inquiry.
A listed company, which was so embarrassed by the exchange, was no one.
Throughout the article on market capitalization and the letter of inquiry from the Shenzhen Stock Exchange, CYAP's financial fraud has been a matter of fact, which is not only a heavy blow to the company's reputation, but also shame on the analyst's face.
Zhou Sha, a female analyst at Pacific Securities, released her status in a circle of friends. She was deeply guilty of recommending CYAP, saying that this was the biggest failure since she became a seller. She did not see Jiang Dong’s father and apologized to investors.
Stock price plummeted, shareholder burst
After being exposed to financial fraud, CYAP’s equity pledge problem also surfaced.
In July, the company's chairman and the first largest shareholder Hou Jianfang's CYAP shares were judicially frozen. The number of frozen shares was 1.26 billion shares, accounting for 100% of the total number of shares held, accounting for 40.2% of the company's total share capital.
Previously, CYAP had loaned 99.36 million yuan to Far East Hongxin (Tianjin) Financial Leasing Co., Ltd., and Hou Jianfang provided joint liability insurance for the loan. In June 2018, CYAP did not pay the current principal and interest of 11.05 million yuan on time. Far East Hongxin applied to the Shanghai Pudong New Area People's Court for pre-trial property preservation and frozen Hou Jianfang's shares.
On September 13, it was originally expected to suspend trading for five trading days, but the young eagle farming and animal husbandry, which actually suspended for three months, finally resumed trading, followed by four consecutive bottoms.
Previously, CYAP had loaned 99.36 million yuan to Far East Hongxin (Tianjin) Financial Leasing Co., Ltd., and Hou Jianfang provided joint liability insurance for the loan. In June 2018, CYAP did not pay the current principal and interest of 11.05 million yuan on time. Far East Hongxin applied to the Shanghai Pudong New Area People's Court for pre-trial property preservation and frozen Hou Jianfang's shares.
On September 13, it was originally expected to suspend trading for five trading days, but the young eagle farming and animal husbandry, which actually suspended for three months, finally resumed trading, followed by four consecutive bottoms
On the evening of September 20, CYAP issued a notice saying that due to the recent decline in the company's share price, the company's real controller Hou Jianfang and some of the directors and other core management personnel, the company's shares held through the trust plan suffered a liquidation, passive reduction The amount is 1.5% of the company's total share capital.
The executives headed by Hou Jianfang not only did not receive any income, but also lost all the capital contributions and the amount of the replenishment, totaling 125 million yuan.
"Financial fraud has been revealed - stock prices have fallen - shares have been closed." CYAP's current situation is undoubtedly self-defeating; and it is surprising that real controllers have made themselves out of positions because of financial fraud.
CYAP, actually you are lying to yourself
At the beginning, the company predicted that the net profit for 2017 was 900 million yuan to 1.12 billion yuan, but it eventually turned into a face of 45 million yuan;
At the beginning, the company predicted that the net profit for the first half of 2018 would be 300 million to 400 million yuan, and later it turned into a loss of 500 million.
CYAP's bond rating has been lowered several times since July, due to repeated losses of trust in the market, loss of trust in investors, loss of trust in the regulatory authorities, and deteriorating cash flow and solvency, since "AA" has been reduced to "AA-" Then, it fell to "A" and then to "BBB", and the rating outlook was also lowered from stable to negative.
A few years ago, Tencent Finance revealed that CYAP “eco-pig” was suspected of fraud, and now the market value has strongly questioned its financial fraud. It can be said that CYAP is already "easy to change, and its nature is difficult to move."
CYAP, who has repeatedly changed his face, do you think you are playing other people? In fact, you are playing yourself.
The most important thing in this world is trust. If a listed company loses its integrity, what else does it take in the capital market?
Source: Financial Sharp Eye
