New Branch Line Of Shanghai Electric'S "Thunder Explosion" Incident

On the official website of Shanghai Electric, there is also a speech by Zheng Jianhua, chairman of the board of directors, "Shanghai Electric is China's and also the world's"

But now, this century old brand industrial equipment manufacturing enterprise is experiencing the biggest crisis in recent years. On July 27, Shanghai Municipal Commission for Discipline Inspection and Shanghai Municipal Supervision Commission announced that Zheng Jianhua, chairman, chief executive officer and legal representative of Shanghai Electric Co., Ltd., was suspected of serious violation of discipline and law, and was currently subject to disciplinary review and supervision and investigation by Shanghai Municipal Commission for Discipline Inspection. This is the second senior executive of Shanghai Electric after LV Yachen, the former vice president of the company, was investigated in April this year.

It is worth mentioning that on July 26, Shanghai Electric also held a cadre meeting and a division of Labor Conference in the form of video. Zheng Jianhua attended and delivered a speech on the theme of "improving quality and efficiency, preventing risks, and promoting high-quality development with new development concept".

Although the matter of the chairman of Shanghai Electric has yet to be further investigated and disclosed by the official, an industry person who did not want to be named told the 21st century economic reporter that "it may involve the loss of state-owned assets. In light of the recent collective "Thunderbolt" situation of many listed companies, the dispute is still expanding. "

Recently, a "earthquake" continues to ferment in the field of private network communication. In addition to the earlier "self explosion" of Shanghai Electric, Kaile technology, Zhongtian Technology, Huihong group, Guorui technology and other A-share listed companies involved in communication business have issued risk loss tips, involving an accounting scale of more than 10 billion yuan.

Behind the "earthquake", a mysterious figure named Sui Tianli linked up the company network and pulled a number of listed companies into the water. In addition, China Li group, aerospace development, riscon and other listed companies responded that they were also carrying out self inspection.

Back to Shanghai Electric, its factor company, Shanghai Electric Communication Technology Co., Ltd. (hereinafter referred to as electrical communication) has caused a financial black hole of 8.3 billion yuan, which still needs to be solved. The reporter of 21st century economic report found that the electric communication had a contact with Zhongli group in terms of business contacts.

One supplier of electric communication or Zhongli group

In the event of "thunder explosion" of Shanghai Electric, if the electric communication is the center, its downstream customers include Beijing Capital Venture Group Co., Ltd., Beijing Capital Venture Group Co., Ltd., Harbin Industrial Investment Group Co., Ltd., Fushen Industrial Co., Ltd. and Nanjing Changjiang Electronic Information Industry Group Co., Ltd.

In the announcement, Shanghai Electric said that the above-mentioned companies had defaulted on the payment of 4.463 billion yuan for electric communication. And in extreme cases, the accumulated accounts receivable of 8.672 billion yuan of electrical communication have significant risk of loss. As a result, Shanghai Electric could not recover the shareholders' equity of 526 million yuan and the shareholders' loan of 7.766 billion yuan, resulting in a loss of 8.3 billion yuan of net profit attributable to the parent company.

In fact, when the attention of the outside world is focused on how much loss Shanghai Electric can recover, some more essential problems need to be paid attention to again: how can the business trade of electric communication be established? Five defaulting purchasers become downstream customers of communication companies, so who are the upstream companies?

According to the public information, electric communication, established in 2015, mainly produces and sells private network communication products.

The so-called private network communication refers to the emergency communication, command and dispatch, daily work communication and other services provided for the government and public security, public utilities, industry and commerce. According to the data of prospective industry research institute, the market scale of China's private network communication industry will be about 39.7 billion yuan in 2019, and it is expected that the market scale will reach 62.1 billion yuan by 2025.

The upstream of private network communication industry is very complex, mainly including electronic component manufacturing industry (such as integrated chip, resistor, capacitor, crystal oscillator, LCD screen, printed circuit board), plastic and hardware structure parts manufacturing industry (such as plastic, aluminum alloy, hardware plug-in, cabinet and other structural parts) and communication equipment manufacturing industry (such as transceiver, switch, antenna, splitter, combiner).

Obviously, under normal trade logic, electrical communication should purchase raw materials of communication products from upstream companies, so as to produce communication products and sell them to downstream customers such as capital venture and Harbin Industrial investment. According to the disclosure of Shanghai Electric, the sales mode of electric communication is that the customer pays 10% of the advance payment in advance, and the rest is paid in installments according to the agreement after the order is completed and delivered.

Therefore, when the electrical communication cannot timely recover the payment from the downstream customers, can the company still pay the upstream purchase money in time?

According to the financial data, as of December 31, 2020, the total assets of electric communication were 10.104 billion yuan, the net assets were 1.315 billion yuan, the notes payable and accounts payable were 381 million yuan and 799 million yuan respectively. Among these suppliers of accounts payable, Zhongli group has emerged.

Although Zhongli group has not disclosed that it is the supplier of electrical communication, all kinds of signs have confirmed this relationship.

In May this year, Zhongli group received an annual report inquiry from the Shenzhen Stock Exchange, asking it to explain the occupation of non operating funds, accounts receivable, provision of bad debts, deposit of monetary funds, etc.

The 21st century economic reporter noted that in 2020, Zhongli group realized 9.033 billion yuan of operating revenue, a year-on-year decrease of 23.61%; The loss was 2.920 billion yuan. The company, well-known for its production of flame-retardant and fire-resistant flexible cables, has expanded its business scope to communication cables, photovoltaic cells and modules, investment and construction of photovoltaic power stations, etc.

In response to the inquiry of the exchange, Zhongli group announced the top ten debtors of accounts receivable in 2020, but they were named "customer one" and "customer two". Among them, when introducing "customer one", the company said, "customer one is controlled by large state-owned enterprises. The enterprise is mainly engaged in the R & D, production and operation of high-tech communication equipment such as special communication systems. It is a perennial cooperative customer of our company. After reading the audited annual report of its parent company in 2020, the consolidated statements reflect its net assets of 66400.834 million yuan The net profit is 3758.175 million yuan and the net cash flow from operating activities is 4696.198 million yuan, which indicates that the company has strong performance ability. At the time of disclosure of the annual report, the company believes that its financial situation is normal and its reputation is good. Therefore, the bad debt reserves are withdrawn according to the aging combination. "

According to the financial report data released by Shanghai Electric, in 2020, the company's net assets will be 66.401 billion yuan, the net profit will be about 3.758 billion yuan, and the net cash flow from operating activities will be 4.696 billion yuan, which is consistent with the financial data of "parent company × *" described by Zhongli group.

In this regard, when the 21st century economic report contacted the Securities Department of China Lilly group to confirm whether "customer one" is electrical communication, its staff responded, "this still depends on the leadership arrangement, which is not convenient to disclose."

More than 1 billion special communication equipment business of China and Italy

In 2020, Zhongli group suffered the biggest loss since its listing. Faced with a loss of more than 2.9 billion yuan, the company explained that it was mainly affected by the provision for impairment of various assets totaling about 1.348 billion yuan.

However, when the net profit declines seriously, Zhongli group's revenue scale has shrunk for three consecutive years. Last year, its revenue fell below 10 billion yuan, only 9.033 billion yuan.

The 21st century economic reporter noticed that in 2020, an important business segment of Zhongli group had disappeared - special communication equipment business was stripped of financial statements. In the annual report, the company said, "the sales volume and production volume of special communication equipment decreased by 100% respectively compared with the same period last year. The main reason is that the company sold the equity of Zhongli electronics in 2019, making it no longer included in the contract. The company mainly produces and sells special communication equipment."

In 2019, the business achieved an operating income of 1.958 billion yuan, accounting for 16.56% of the total revenue.

One interesting detail is that the attitude of Zhongli group towards Zhongli electronics in 2019 is puzzling.

In 2018, the company had planned to purchase 49.14% shares of Zhongli electronics through non-public offering of shares to realize a wholly-owned holding. According to the fixed increase plan, Zhongli group plans to raise no more than 1.68 billion yuan, of which 1.18 billion yuan is used to purchase the remaining equity of Zhongli electronics.

However, after several amendments and reports to the CSRC, the scheme of non-public offering of shares was rejected in July 2019. In December of the same year, Zhongli group "changed its face" and issued a notice of equity transfer. It planned to transfer 31.86% of the equity of Zhongli electronics to Shajiabang tourism and Jiangnan commerce and commerce, with a transaction price of 631 million yuan. After the completion of the transaction, the remaining 19% of the company's equity in Zhongli electronics. As a result, Zhongli electronics is no longer incorporated into the financial statements of Zhongli group, a listed company.

It is worth noting that the total equity value of Zhongli electronics as of September 30, 2019 assessed by Zhongli group using the income method is RMB 2.204 billion. However, under the calculation of transaction pricing, the transaction valuation of Zhongli Electronics was 1.981 billion yuan, showing a certain discount.

However, this "loss" is not worth mentioning. In 2016, Zhongli Group acquired 17.36% equity of Zhongli electronics from Ningbo Yuhua Communication Technology Co., Ltd. and Shanghai Junyi Communication Technology Co., Ltd. with only 60 million yuan, thus becoming the controlling shareholder of the target company. In this transaction, Zhongli electronic's valuation is only 346 million yuan.

At the same time, with the incorporation of Zhongli electronics into the financial statements, from 2016 to 2019, Zhongli group added special communication equipment business, with a total revenue of 6.462 billion yuan in four years.

The reporter of 21st century economic report found that during the company's development of this business, Ningbo Hongzi Communication Technology Co., Ltd. has become the main supplier of Zhongli electronics. In addition, Zhongli Electronics was a big customer of haigao communications of suitianli's new third board company.

Equity penetration shows that Ningbo Hongzi is 100% owned by Shanghai Hongzi enterprise development company, and the actual controller behind it is Yang Xin, who is currently the actual controller and chairman of Hongda new materials.

According to the information disclosed by Hongda new materials, Yang Xin served as the general manager of Shanghai Junyi communication, the transferor of Zhongli electronic shares, and the executive director and general manager of Ningbo Hongzi Communication Technology Co., Ltd.

It should be noted that the business registration contact information of Ningbo Hongzi and Ningbo Xingditong Communication Technology Co., Ltd. controlled by Sui Tianli are the same number.

In view of whether China Lilly group is involved in the "earthquake" in the field of private network communication set off by the current capital market, a relevant person from the Securities Department of the company told the reporter of the 21st century economic report that the internal verification is still in progress.

However, it is certain that Zhongli group should update the bad debt provision of accounts receivable of "customer 1" in 2020 annual report in time.

As of 2020, the amount of accounts receivable of Zhongli group in "customer 1" is 507 million yuan, and the bad debt provision is about 63 million yuan only based on aging combination.