Huafang Textile Main Business Continuous Loss Of Land Sales Earnings Undetermined

In less than a month,

Once again trapped in the vortex of insider trading.

In the weak market situation, Huafang textile has been a continuous hot spot, becoming a hot "focus stock". The company's important announcement in August 7th is particularly eye-catching.

According to the master plan of Zhangjiagang (2011 - 2030) (hereinafter referred to as "planning"), part of the land of the company may be collected and stored by the government.

Some investors questioned, Huafang textile in August 3rd appeared to limit, just before the announcement of a trading day, is it suspected of insider trading?

In this regard, Hua Fang textile director Zhao Jiangbo asked reporters: "do I want to show the 12th Five-Year plan?" she said, "planning" did not mention Hua Fang textile, mentioned is the town of Tang Bridge, and listed companies have no inevitable relationship.

Zhao Jiangbo pointed out at the same time: "the publicity of the government is to the public, and the personnel came from that day", so the company made a public announcement according to the situation.

According to the information released by the Zhangjiagang planning information network, the plan has been publicized since July 9th until August 8th.

Wan Guohua, a professor of law and corporate governance at Nankai University and executive director of the China Securities Law Society, pointed out that the company name is not established as a reason for not disclosing in the plan. The plan relates to the location of the company and is a major matter for the company, so it can be identified as not timely.

According to the government's open information, the central area of the plan is Yang Shu Town, the administrative area of Tong Qiao town and the southern part of Xingnan Road south of Daxin Town, and the northern part of Xitang Road, Fenghuang Town, with an area of 257.20 square kilometers.

The central urban area has a "one core, two group" urban spatial structure, including the three functional divisions of the junction business cluster, the core business area, the deer productivity promotion base and the Tong Bridge life service area.

Transport is also planning to form a Zhangjiagang hub in the area of Tong Qiao.

The significance of this plan to Tong Qiao is self-evident, and the office address of Huafang textile is located at No. 1 people's South Road, Tangqiao town, Zhangjiagang, and most of the related industries are in Tangqiao town.

Continuous loss of main business

Huafang textile company is mainly engaged in weaving, dyeing, finishing and knitted garment processing and manufacturing of knitted fabrics and dyed fabrics. The company's leading products are cotton yarn and weaving, so cotton price trend is an important factor affecting the company's net profit.

Since the two quarter of 2011, cotton prices have fallen sharply, and Huafang textile has been in a deficit for three consecutive quarters, and there is no sign of improvement.

The latest quarterly report shows that the company achieved operating income of 294 million 928 thousand and 400 yuan, down 22.93% from the same period last year, a net loss of 24 million 579 thousand and 600 yuan, and a loss of 0.078 yuan per share.

If in accordance with the rules of exchange, if the company fails to turn around this year, it will be reduced to ST.

Due to the adverse impact of the above performance, Huafang textile has been on the low side since the beginning of the year, and its lowest position is 4.45 yuan in mid July. The stock price has been cut off.

There is no final conclusion on the issue of land sales income.

There is no hope of losing the main business, but only in other businesses.

According to the announcement of the company's disclosure in August 7th, the economic service center of the people's Government of Zhangjiagang city and the land storage and storage center of Zhangjiagang city have preliminarily communicated with the company on land evaluation matters.

In other words, the expectation of "collection and storage" has been published.

We can see from the annual report of Huafang textile in 2011 that the company has at least two industrial land use rights of 117 thousand square meters and 54 thousand square meters in Zhangjiagang, respectively.

Subsequently, the company quickly opened up in August 7th, and continued to rise in August 8th.

Huafang textile related personnel told the media that the company was also informed about land acquisition in recent days.

urban renewal

There are not many office buildings and small factory buildings involved in office buildings, so the company has intention to join the land acquisition list and submit applications.

The specific amount and method of compensation are not clear now.

According to the preliminary enquiries from reporters on the Internet, the average selling price of buildings in Tong Qiao town in Zhangjiagang is about 8000 yuan, and according to the announcement of the auction on the "China land listing network", a local 6171 residential residential land in January this year has an auction price of 40 million 260 thousand yuan, which is equivalent to 6524 yuan per square meter of land price.

But at the same time, the company also stressed that the feasibility of the policy still needs to be determined according to the evaluation report issued by the evaluation institution. Therefore, there is no definite conclusion on this important matter and there is much uncertainty.

Reporters call Hua Fang textile to understand that the land is mainly related to the company's office buildings and small area of the plant, rather than the entire land.

The plant land involved is only a production plant of the company, and there is no production line. The main production lines of the company have been pferred to Shandong and other places.

Therefore, the purchase and storage action will not have a significant impact on the production status of the company. Nor has the company answered the sale of the land value.

Disclosure is not timely.

Public information display, Zhangjiagang in early 2011 began to compiling the "planning".

In December 15, 2011, the outline of the plan passed the expert demonstration of the Jiangsu provincial housing and construction department.

In July 6th this year, the planning results were approved by experts from the Jiangsu provincial housing and construction department.

In order to extensively solicit opinions from all walks of life and further improve the content of the planning results, the government has publicized the planning contents since July 9th.

If the information disclosure of Huafang textile can be identified as being untimely, when will the disclosure be timely? According to the company's statement, it appears that there should be a staff presence, an intention agreement formation or an official document signing.

The announcement shows: "until now, the company and the Zhangjiagang land purchase and storage center and the people's Government of Tong Qiao town have not signed the relevant agreement, memorandum and other documents on the purchase and storage of the items, and have signed the relevant documents of the government departments."

"Medium and small

In the light of company information asymmetry, the planning is still soliciting opinions, and information pre disclosure should be carried out when the news that may affect the stock price of the company is not fully determined.

Wan Guohua told reporters: "information pre disclosure has narrow sense and broad understanding. Generally speaking, the narrow sense refers to the company's financial report. When it has not yet come to the official legal disclosure time, it can disclose the possible situation in advance. In general, it means that the company has some important matters, which can be internal or external, and should be announced ahead of time. This is what the listed companies should do."

But Wan Guohua also pointed out: "listed companies now understand more in a narrow sense in actual disclosure."

The recognition of "timely" depends on the normal understanding of the public and the flow of information.

In the case of Huafang textile, "publicity is only a month away before it is disclosed, obviously it is not timely."