*ST Jin Yu (000803): The Reorganization Has Been Qualified To Carry The Flag Of Protection Through The Underlying Assets.

*ST 000803.SZ (000803.SZ), after a long struggle for equity, is now facing the risk of delisting again under the helm of the "North control system". In May 29th, Kim Yu said the reorganization was approved conditionally.

Specifically, the restructured matters mentioned above are the 86.34% stake that the company intends to issue shares and pay cash to purchase the ten party ring, and raise 290 million yuan to the controlling shares of Dongbei control PV and Yuze fund's non-public offering shares. It is worth noting that after several months of modification, the reorganization plan has been adjusted from the purchase of the target to the subscribed object and the scale of the fund-raising.

By the end of 2019, the company's net assets were negative, -1.11 billion yuan, facing the risk of delisting. At the same time, the company lost a net profit of nearly 200 million yuan in 2019. In the first quarter of 2020, the company's revenue was 0. A market person bluntly said: "for today's Jinyu, restructuring seems to be the last straw."

Does the reorganization mean that *ST Jinyu is expected to be successful? In response to an interview with financial union reporters in May 29th, the company responded, "before the listed companies have many problems left over from history, after the North control is in charge, they actively deal with the problems left over by history, while promoting the transformation and development of listed companies." It is reported that until now, Jinyu group, the former controlling shareholder of *ST Jinyu, has completely withdrawn from debt because of the debt problem. The company has been fully steered by the "North control system".

According to the pro forma examination report, under the assumption that the ten party annex can be combined, the sum of shareholders' rights and interests attributable to the parent company in 2019 totaled 429 million yuan, which was negative. The responsible person told reporters that the restructuring of the controlling shareholder North control to support the development of listed companies to fully subscribe to raise matching funds 290 million yuan, after the completion of supporting financing, the actual control of listed companies will further consolidate the control of the right, but also will make the listed companies completely out of financial distress, and lay the foundation for sustainable development in the future.

"After the reorganization, the company will enter the environmental protection industry. The main business of the ten party ring includes kitchen waste disposal. Under the background of actively promoting garbage classification in major cities, we believe that this area is very promising." The person in charge told reporters. Statistics show that the main business of the ten party ring includes food waste harmless treatment, resource utilization, comprehensive utilization of landfill gas and biomass energy utilization. In 2017, 2018 and the first three quarters of 2019, the net profit of the ten party ring was 17 million 853 thousand and 500 yuan, 28 million 700 thousand yuan and 20 million 223 thousand and 600 yuan respectively.

Referring to the future development plan, Kim Yu, the relevant responsible person, said: "strive to achieve high quality and scale development in three to five years, making the company one of the leading enterprises in the environmental protection and energy industry." It is worth noting that in the performance commitments, the relevant parties only promise that the net profit should be greater than 0 yuan in the 2020-2022 years. In addition, some of the business qualification, including the ten party sewage permit in Ji'nan, the ten party in Qingdao and the Taiyuan mobile filling permit, will expire in the next 3 years and will not be extended after the expiration.