The hottest Dongjia listing application was reject

2022-07-31
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Dongjia's listing application was rejected sun Jiacai and his son lost 668million yuan

Dongjia's listing application was rejected sun Jiacai and his son lost 668million yuan

July 28, 2010

[China paint information] on March 22 this year, Shandong Dongjia Group Co., Ltd. (hereinafter referred to as "Dongjia group"), a domestic titanium dioxide "big service for every layer of the public and small manufacturer brand", was a painful day. On that day, the CSRC rejected the listing application of Dongjia group

this enterprise, which has the face of an old state-owned enterprise many years ago, has occupied the top position of the "leader" in the domestic titanium dioxide industry for many years. Dongjia group is mainly engaged in titanium dioxide and supporting production of sulfuric acid; Nippon Paint, Dulux, Laiwei, Guangdong Jiabaoli chemical, Dalian Shide and many other well-known enterprises are the customers of the company. What makes the enterprise proud is that the net profit attributable to the parent company of Dongjia group in 2009 was 2.2 times that of 2008, and this remarkable achievement was based on the sharp decrease of 15.2% in operating revenue in 2009. However, in 2009, the gross profit of Dongjia group's main products was 194.9 million yuan, only 16.589 million yuan higher than that in 2008, far from the 2.2 times net profit

where did the doubled net profit of Dongjia group come from in 2009? During the 2007-2009 financial reporting period when Dongjia group was listed, the financial support of government departments to Dongjia Group continued to rise, reaching a total of more than 40 million, mainly in 2008 and 2009. During this period, the cost reduction has also become a growth point of Dongjia group's profits. Through the management expenses and financial expenses, Dongjia group reduced its expenses to 35.57 million yuan

another source of profit growth of Dongjia group is the closing of a debt swap transaction entrusted to Zibo Branch of China Construction Bank. By reversing the loss of RMB 12.97 million recognized in 2008, it directly turned into the income of 2009

on March 10, 2008, Dongjia group and China Construction Bank Zibo signed the general agreement on agency debt swap transaction and the confirmation of swap transaction, and carried out the debt swap transaction business with the nominal principal of RMB 200million from December 10, 2007 to June 29, 2011. The profit and loss will be determined by judging the changes of US dollar 6mlibor interest rate and US dollar cms30 interest rate in the future. At the end of 2009, Dongjia group closed the debt swap transaction agreement, thereby reversing the loss from changes in fair value of RMB 12.97 million recognized in the previous year and included it in the change income in 2009. With this, Dongjia group's profit in 2009 increased by 12.97 million yuan, 25.94 million yuan more than that in 2008

as a productive enterprise, it is not appropriate to invest in high-risk financial derivatives business. In the application draft of Dongjia group's prospectus, Dongjia group reflected on the IEA's predictive investment, which used to be conservative in the prediction of renewable energy development scope. The main reason for this investment was the lack of sufficient understanding of the risks of financial derivatives; In the future, relevant internal control systems will be strictly implemented. If necessary, professional institutions will be hired to assist in risk analysis, tray devices and alarm devices, and similar risks will be resolutely controlled. "We are not going to engage in financial derivatives investment business in the future."

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