*Behind St Star Financial Big Bath: Local Economic And Technological Development Zone'S Astonishment And Self-Help?

Star Technology (300256. SZ) suddenly changed into * ST star, which once again refreshed investors' understanding of A-share listed companies.

According to the announcement, the "self Palace" game called by * ST star as accounting error correction will reduce its business contraction by 3.167 billion yuan in 2020, adjust the consolidated net profit from 52.03 million yuan to a loss of 2.493 billion yuan, and change the equity attributable to the parent shareholder from 1.956 billion yuan to - 2.222 billion yuan.

*St star incredible from the cloud suddenly fell into the abyss, the market was stunned.

"* ST star has been suspected of major financial fraud, saying that it is the correction of accounting errors, because the conclusion of fraud needs to be confirmed by the regulatory authorities, and it is believed that * ST star will be put on file for investigation soon." A broker said in an interview with the 21st century economic reporter on August 27.

The reason of the above-mentioned securities dealers is that * ST star directors, supervisors and senior executives guarantee that the contents of the annual report are true, accurate and complete in 2020, and there are no false records, misleading statements or major omissions, and bear individual and joint legal liabilities. At the same time, audit institutions also issued standard unqualified opinions.

"The data of the two versions of the annual report are very different, and there must be hidden secrets behind it." Said the securities dealers.

St star incredible from the cloud suddenly fell into the abyss, the market was stunned. Visual China

The grass-roots line of personnel change

The controlling shareholder of * ST star is Pingxiang fantike Network Technology Co., Ltd., and the actual controller is Pingxiang economic and Technological Development Zone Management Committee.

According to the announcement, * ST star corrected the accounting errors in 2020, and made its debut on August 21, 2021.

On that day, * ST star, in addition to announcing the so-called correction of accounting errors from profit to huge loss, also disclosed its largest semi annual loss in its history in 2021. The current loss was as high as 1.339 billion yuan, and its net profit dropped 310.14% year on year.

But tracing back to the source, there is always an indistinct line.

The 21st century economic reporter noticed that before the dramatic reversal of the star, the controller also had important personnel changes in early August this year.

According to the official website of Pingxiang economic and Technological Development Zone, on the morning of August 5, Pingxiang economic and Technological Development Zone held a meeting of leading cadres, and announced that the Jiangxi provincial Party committee decided to appoint Yang Bo as member of the Standing Committee of Pingxiang Municipal Committee and Secretary of the Party Working Committee of Pingxiang economic and Technological Development Zone.

Li Jinlin, former Secretary of the Party Working Committee of Pingxiang economic and Technological Development Zone, did not attend the meeting of leading cadres of the whole district, including important activities and meetings such as Chen Min, Secretary of Pingxiang municipal Party committee, who visited Pingxiang economic and Technological Development Zone on July 14.

However, the great changes in the financial data of * ST star appeared after the Secretary of the Party Working Committee changed before and after Pingxiang economic development zone.

Prior to the replacement of the Secretary of the Party Working Committee of Pingxiang economic and Technological Development Zone, there was an abnormal personnel change in * ST star.

On January 30 this year and August 27, 2019, Liu Jianxun, chairman of the board of directors of * ST star, resigned, and Liu Langwen, deputy general manager and chief financial officer of * ST star, took over the post of chairman.

But only three months later, Liu submitted his resignation report on May 10.

Unlike Liu Jianxun's resignation as senior consultant of * ST star, Liu Langwen will no longer hold any other post of * ST star after his resignation.

Later, LAN Zijian, chairman and general manager of Pingxiang state owned capital investment group, took the post of chairman of * ST star.

However, Zhu Lin and Zhao Liang, directors of * ST star, resigned on June 18 and August 13, respectively, while Zhang Shaohuai, chairman of the board of supervisors, and Lai Chunlian, employee representative supervisor, resigned on August 3 and August 16, respectively.

These four people will no longer hold any post of * ST star after resignation.

It can be seen from the analysis that the above three directors of * ST star have experienced the important time points of 2020 annual report of listed companies respectively during their term of office.

When Liu Jianxun resigned, he was preparing the annual report audit; During Liu Langwen's tenure, * ST star disclosed the annual report of 2020 and the first quarter report of 2021; Since LAN Zijian took over the post, * ST star updated the annual report of 2020, and then corrected and disclosed the accounting errors in the semi annual report of 2021.

The 21st century economic report reporter also found that after Pingxiang economic development zone became the actual controller of * ST star in 2019, LAN Zijian was the only chairman with official background of * ST star.

6 billion investment projects are suspended

The intersection of * ST star, which was listed in August 2011, and Pingxiang Economic Development Zone started in 2018.

According to the announcement in November 2018, * ST star signed an investment agreement with Pingxiang economic and Technological Development Zone to build an intelligent terminal electronic products science and Technology Park project in Pingxiang economic and Technological Development Zone, with a total investment of 6 billion yuan. The construction period for the overall construction of the project and reaching the full production capacity is expected to be 3 years.

*St star said that the above-mentioned projects are expected to have an annual sales revenue of 10 billion yuan and an estimated annual net profit of 480 million yuan after the completion of the project.

Pingxiang Economic Development Zone attaches great importance to the project of intelligent terminal electronic products science and Technology Park of * ST star, claiming that the project is the electronic information industry project with the largest investment and the strongest influence introduced by Pingxiang. Before signing the contract, Li Jinlin, then Secretary of the Party Working Committee of Pingxiang economic and Technological Development Zone, had many in-depth discussions with Wang Xianyu, the then chairman of * ST star.

Pingxiang economic and Technological Development Zone has offered attractive preferential policies to * ST star. It not only provides 1000 mu of land for the project, construction support for factory buildings and rent exemption within five years, but also promises to provide industrial capital support totaling 1.5 billion yuan, and special care such as "two exemptions and three half reductions" in enterprise income tax.

In addition, in March 2019, HSBC Investment controlled by Pingxiang Economic Development Zone Management Committee increased the capital of Jiangxi Xingxing, which implemented the intelligent terminal electronic products science and Technology Park project, from 10 million yuan to 2051.484 million yuan, of which HSBC invested 1 billion yuan, holding 48.75% of the shares, and * st star and its subordinate holding companies contributed 1051.484 million yuan in total, holding 51.25% of the shares.

However, three years are expected to come, and the project of * ST star's intelligent terminal electronic products science and technology park is in a stagnant state.

*According to the annual report of St star in 2020, the project of intelligent terminal electronic products science and Technology Park invested 100 million yuan that year, with an accumulated investment of 2.2 billion yuan, and the project progress was 36.67%.

*St star's 2021 semi annual report shows that the current investment amount of the project is zero, and the project progress is still 36.67%.

"The project has invested 2.2 billion yuan, there is no reason to stop halfway." An investment bank personage told the 21st century economic reporter, "it has not been moved since this year, which is a window for the complex situation of * ST star."

However, the 21st century economic reporter's call to the relevant parties was fruitless, and the staff of * ST star only answered "subject to the announcement".

*St star announced before that Jiangxi star has built and put into operation the production line of white glass for window protection. Jiangxi star's net profit in 2020 will be 24.0611 million yuan, but in the first half of 2021, the company will have a huge loss of 1.576 billion yuan.

After Pingxiang economic and Technological Development Zone became the master of * ST star, the two times of fixed increase refinancing that had been planned were also on the way back.

In March 2020, * ST star announced plans to issue shares and pay cash to purchase assets and raise matching funds and related party transactions plan. It plans to purchase 48.75% equity of Jiangxi Xingxing with an estimated price of 1.6 billion yuan, and raise supporting funds of 1.3 billion yuan for the construction of supporting projects of Jiangxi star.

By the end of August 2020, * ST star will suddenly terminate.

In November 2020, * ST star will restart the refinancing, and it is planned to increase no more than 287 million shares and raise 1.5 billion yuan for the construction of two 3D curved glass cover production lines and supplement the working capital. The projects are all implemented in Pingxiang economic development zone. This time, the application was withdrawn in June 2021.

As for the premature death of refinancing, * ST star announced in June this year that audit fees due to non-public offering in 2020 will reach 1.2 million yuan.

The actual controller enters the Internet "savior"

Two months after signing the investment project of intelligent terminal electronic products science and Technology Park, * ST star changed ownership of Pingxiang economic development zone.

In January 2019, the actual controller was Pingxiang fan tike of Pingxiang Economic Development Zone Management Committee, transferred 144 million shares of 14.9% of * ST star held by Ye Xianyu, Xingxing group and Wang Xianyu with 3.39 yuan / share, with a total transaction amount of 488 million yuan, and entrusted with the remaining 12.78% shareholder rights of Ye Xianyu and Xingxing group to become the controlling shareholder with 27.68% voting rights.

As soon as the news of Pingxiang economic and Technological Development Zone agreement was announced, * ST star disclosed that it would lose 845 million yuan to 850 million yuan in 2018.

However, the "financial bath" predicted at that time was not thorough. More than two months later, * ST star revised the loss in 2018 to 1.748 billion yuan, and then determined it as a loss of 1.699 billion yuan in the annual report, including the impairment loss of 1.297 billion yuan.

At this time, Pingxiang economic development zone is taking on the role of "savior" of * ST stars.

According to the announcement in response to the inquiry letter on the annual report of Shenzhen Stock Exchange in May 2019, * ST Xingxing said that in order to ensure the company's sustainable operation ability, Pingxiang Economic Development Zone Management Committee was introduced as the controlling shareholder, and the accumulated support fund was 1.5 billion yuan, which greatly relieved the financial pressure and debt repayment pressure of the company.

*St star also said that the Management Committee of Pingxiang Economic Development Zone will provide industrial policies such as agent park construction, tax preference and financial support, and will build a one-stop intelligent terminal electronic industry manufacturing base of star technology.

The 21st century economic reporter noted that even if Pingxiang Economic Development Zone Management Committee gave strong support to "blood transfusion" and other means, * ST star will be full of water to turn losses into profits in 2019.

According to the annual report, * ST star achieved a net profit of 174 million yuan in 2019, but the total amount of its non recurring profit and loss items in the same period was 180 million yuan, mainly including 76.0367 million yuan of non current assets disposal gains and losses, 87.1136 million yuan of government subsidies included in the current profits and losses, and other non operating income and expenses, and 16.6711 million yuan of profit and loss items conforming to the definition of non recurring profit and loss.

Among them, * ST star's assets disposal recognized disposal income of 77.6095 million yuan in the current year, which was the equipment with impairment of 50.458 million yuan previously; In 2019, * ST Xingxing received an interest subsidy of 30 million yuan from Pingxiang Economic Development Zone Management Committee.

In 2020, after the correction of accounting errors, the government subsidies included in the current profits and losses of * ST star still reached 76.1918 million yuan, and in the first half of this year, it reached 60.4026 million yuan.

However, the actual controller's financial support for * ST star is still continuous. After the announcement in June this year that the loan from Huisheng industry, an indirect controlling shareholder of Pingxiang City, was no more than 600 million yuan, another 300 million yuan was borrowed from Huisheng industry in August, making the accumulated loan amount from Huisheng industry and its related parties reach 1.206 billion yuan this year.

Related party loan has become the life-saving straw of * ST star.

"HSBC Investment, which applied to Pingxiang intermediate court for reorganization of * ST star, is also a related party." A certified public accountant told the reporter of the 21st century economic report, "from the comparative analysis of the financial data after the accession, Pingxiang economic and Technological Development Zone is obviously entering the pit. It is helpless to use financial reports to squeeze water and related parties to apply for restructuring."

According to the announcement, * ST star borrowed 50 million yuan from HSBC on December 6, 2019, with a term of two months, but * ST star has not yet paid off the loan and its interest. On August 26, * ST Xingxing received a notice from Pingxiang intermediate people's court, and decided to start the pre reorganization procedure for * ST star from August 23, with a pre reorganization period of 6 months.

"The pre reorganization process has been started, but there are many contradictions between * ST star's financial report and that may need retrospective adjustment." Said the certified public accountant.

For example, * ST star now claims that the wholly-owned subsidiary star touch and Shenzhen precision business have deteriorated seriously, and added 876 million yuan of goodwill impairment reserves in 2020.

However, in 2019, * ST star not only did not make provision for goodwill impairment, but also predicted that the income of star touch and Shenzhen precision stable period would continue to grow in the goodwill impairment test, which was different from the growth rate and discount rate in the stable period predicted in the previous goodwill impairment test.

In addition, * ST star reduced the inventory of 2020 by 433 million yuan this time, while its inventory at the end of 2019 decreased by 15.77% compared with that at the beginning of the period, and the inventory falling price reserve at the end of the period decreased by 72.43% compared with the beginning of the period, which was caused by the reversal or write off of 598 million yuan in the current period.

"There are so many doubts that the regulatory authorities need to solve the mystery." In the opinion of the above certified public accountant.

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