COFCO Tuen River'S Secretaries Insist On Issuing &Nbsp, And Angry Shareholders Vote With Feet.

In October 24th, COFCO Tun he Limited by Share Ltd announced the revised draft of the issuance plan, and made a comprehensive revision of the May 20th plan.

Released in May 20th

However, in the new scheme, the COFCO Tun river will not exceed 10 yuan, including the COFCO, at a price not less than 7.98 yuan / share.

Adverse market increase

Poor investment projects?

In a short period of 5 months, the issuance price has been reduced from 10.47 yuan / share to 7.98 yuan / share, with a larger adjustment.

However, the staff of Tung Chung Office of Tun he said that this is not to lower the issue price, but to make real-time changes based on market conditions.

However, some investors pointed out that since the announcement of the issuance plan of COFCO Tuen River in May, the stock price of the company has been on the decline as a whole. This shows that the market is not optimistic about the prospect of the issuance. Investors in the two tier market are constantly throwing their holdings, so the company should consider the issue of re issuance.

But the current situation is that the grain raised from the 2 billion 570 million yuan to 4 billion 885 million yuan has nearly doubled.

For this reason, some analysts pointed out that the increase in the amount of capital raised by the grain in tun river was entirely due to the support of its major shareholder, COFCO, and COFCO would not allow the new issuance to fail.

As a matter of fact, the proceeds from the fund raising project in Zhongtan River are hard to be moved.

Among them, COFCO Tun he spent 1 billion 550 million on COFCO's sugar import and export business and related assets, which is still uncertain whether to maximize the effectiveness of COFCO Tun he.

The main operation mode of COFCO's sugar import and export business is to take sugar futures and spot combined operation strategy, that is, buying sugar from Foodstuff Trading Co in futures and spot markets abroad, selling sugar in futures and spot markets in the territory, so as to avoid the risk of sugar spot price volatility and achieve the expected profit.

The COFCO Tuen river is not very skilled in futures trading. Its huge losses in the first quarter of 2011 were a profound lesson.

The 955 million acquisition of Tully sugar industry also lost 3 million 500 thousand Australian dollars in the fiscal year of 2011. The Inner Mongolia COFCO tomato products Co., Ltd., which was purchased at 150 million yuan, is a subsidiary of COFCO, a major shareholder of the company. Its net profit loss in 2011 was also 2 million 840 thousand yuan, and there was a liability of 108 million yuan.

Therefore, some investors believe that the majority shareholder is trying to sell the bad company to the listed company, and let the Zhongliang tuhe River digest and integrate.

Among other acquisitions, Caofeidian refined sugar project, high and new agricultural planting base and supporting facilities and lycopene oil resin projects in Tangshan, Hebei are still under construction, and the investment recovery period is 5-8 years.

Now talking about yield is just a matter of hope.

Heavy debts

Poor profitability of main business

In the newly announced issuance plan, COFCO Tun he proposed that the company's additional capital should not exceed 750 million yuan to supplement its working capital.

For this reason, the explanation given by COFCO Tun he is: first, to meet the needs of the company's strategic development; two, the need for new business expansion; and the three is to improve the company's financial position and reduce its financial costs.

It is worth noting that the third point explains that in 2009 and 2010, the asset liability ratio of COFCO Tuen River reached 56.27% and 66.16% respectively, and showed an upward trend year by year.

The company's 2011 semi annual report announced that the company has 4 billion 500 million yuan in debt.

In the debt situation, the performance of COFCO Tuen river is also unsatisfactory.

The company announced in its 2011 semi annual report that the net profit attributable to shareholders of listed companies was about 54000000 during the reporting period.

Among them, ketchup, one of the main industries, has a serious impact on the company's profitability because of rising costs and less than expected exports.

In the face of the fact that ketchup and sugar industry are sluggish, the huge issuance of COFCO Tuen river has attracted the attention of investors.

Especially after the public offering, large share capital will lead to dilution of the company's performance and investors' earnings will be further eroded.

Secretary "renege"?

Investors do not buy it.

In June 6, 2011, the investor newspaper reported that in May 20th, on the day of the announcement of the non public offering scheme of the COFCO Tun River, its stock price opened at a close to the limit of 11.10 yuan.

Since May 23rd, the stock price of COFCO Tun he has also declined continuously as the market has fallen.

In May 27th, the stock price reached the lowest point this year, 9.81 yuan.

And the share price below the 10.47 yuan increase price, for investors, do not need to participate in the issuance, only need to buy from the two level market, and there is no need for additional issuance.

"In this regard, Jiang Xuegong said:" first, the issue price can be amended; second, the issue price according to the issue price.

From the board of directors to the shareholders' meeting and then to the SFC, at least 11 and December.

If the stock price is still current, there will be no additional issuance. The company has certain expectations for the market. "

Now, everything is past.

Therefore, some investors said that the current stock price volatility far exceeded the expectation of Zhongtan River, while the company still insisted on the additional issuance.

In the two tier market, investors are obviously voting with feet for the new market of COFCO Tuen river.

By the end of October 24th, the closing price of COFCO Tuen river was 8.22 yuan / share, representing a decrease of 7.43% compared with the previous trading day.