Why was the “Whale” mining machine sold at a low price of 12 million?

Only those who lie in the pit and never look up to the sky,

So that you won’t fall into the pit again.

Hegel

| A listed company is actually a mining machine giant? |

| How did the subsidiary "cheat" the parent company |

The crazy price of cryptocurrencies and the demand for mining have led to the emergence of many mining machine companies in the market.

In addition to traditional mining machine companies that independently develop mining machines and chips, there are also cloud computing mining machine companies that rent mining machines.

However, the common problem of these companies is that their business revenue is single and is strongly affected by the price of cryptocurrencies.

Recently, the news that a listed company named Huatie Technology sold its subsidiary Huatie Hengan at a low price also attracted attention.

It is understood that although Huatie Hengan is engaged in cloud computing leasing business, it is very likely a hidden cryptocurrency mining machine giant in the A-share market.

1

At the annual shareholders' meeting held by Huatie Technology on April 16, a proposal that had been voted through, "On the equity transfer and provision for impairment of fixed assets of the subsidiary Xinjiang Huatie Heng'an Construction Safety Technology Co., Ltd.", attracted much attention.

According to the announcement of Huatie Technology, in order to optimize the asset structure and improve the efficiency of the company's asset utilization, Huatie Technology transferred 100% of the equity of Huatie Heng'an to natural person Chen Wanlong. The transfer price was 12.28 million yuan.

The transfer was already evident in the annual performance forecast released by Huatie Technology at the beginning of the year.

Huatie Technology expects to incur a loss of 30-40 million yuan in 2018, and the main reason for the loss is the large losses incurred by its subsidiary Huatie Heng'an.

It is understood that Huatie Heng'an signed a contract to purchase 80,000 cloud computing servers with Zhejiang Yibang Communication Technology Co., Ltd., involving an amount of up to 403.2 million yuan.

Zhejiang Yibang Communication Technology Co., Ltd. is actually the operating entity of the mining machine giant Yibang International.

Ebang International began developing and producing cryptocurrency mining machines as early as early 2014 and has never been involved in the field of cloud computing.

The so-called 80,000 cloud computing servers are most likely cryptocurrency mining machines.

However, Huatie Heng'an actually received only 24,000 cloud computing servers, and the two parties had a dispute over the ownership of the remaining 56,000 servers.

Huatie Heng'an has set aside asset impairment provisions of 97.5046 million yuan for fixed assets and accounts receivable, of which 95.0306 million yuan is set aside for asset impairment provisions for fixed assets and 2.4740 million yuan is set aside for bad debt provisions for accounts receivable.

In addition, according to financial data, Huatie Heng'an lost 596,400 yuan in the first half of 2018, and the annual loss was as high as 110 million yuan.

The huge losses of Huatie Hengan have become a heavy burden dragging down the performance of Huatie Technology.

2

Huatie Technology disclosed an announcement in October 2016 regarding its planning for a private placement and suspension of trading.

After several revisions to the planned share issuance and responses to the CSRC's feedback, Huatie Technology's planned share issuance was approved by the CSRC in 2017.

Subsequently, Huatie Technology successfully raised 372 million yuan in funds through a private placement of 49.2063 million new shares in March last year.

According to the plan for the private placement, Huatie Technology intends to use the raised funds excluding the issuance expenses for the project of upgrading and expanding the leasing service capabilities of construction safety support equipment.

As one of the implementing entities of this private placement and investment project, Huatie Technology established a subsidiary, Huatie Heng'an, with a capital of 170 million yuan.

However, less than a year after Huatie Heng'an was established, Huatie Technology had already thought of "selling off".

According to the announcement on January 15, Huatie Technology plans to transfer 100% of the equity of Huatie Heng'an to natural person Ye Gongle at an assessed price of 59.75 million yuan.

The transfer price this time is less than half of the established capital.

What is even more puzzling is that Huatie Heng'an was mainly engaged in cloud computing server leasing business in 2018, which had no intersection with the fundraising and investment projects.

Such hasty sales behavior not only made the market question whether the company's decision to increase its share price was prudent, but also made the Shanghai Stock Exchange pay attention to the company.

In the inquiry letter sent to Huatie Technology, the Shanghai Stock Exchange questioned the prudence of the company's decision to issue an additional share, and required Huatie Technology to carefully evaluate the expected return period and profitability of the fundraising projects in light of the current market environment and industry changes.

In addition, the Shanghai Stock Exchange also pays close attention to the source of funds of Huatie Hengan and whether the raised funds are used in violation of regulations.

According to industry insiders, it is unlikely that the funds used by Huatie Hengan for its cloud computing server leasing business come from its own funds.

Wang Zhibin of Shanghai Minglun Law Firm said in an interview:

"The company's change of the purpose of raised investment funds without the approval of the shareholders' meeting is suspected of violating regulations.

If there is further evidence that the company never had the true intention to engage in fundraising projects, the company may be deemed by the CSRC to have made misleading statements among false statements. "

This may also be one of the important reasons why Huatie Technology is eager to get rid of Huatie Heng'an.

3

In fact, it is not uncommon for listed companies to be "cheated" by their subsidiaries.

The performance forecast released by ST Jiuyou on January 29 showed that the company's net profit in 2018 is expected to be a loss of 255 million yuan. After deducting non-recurring gains and losses, the net profit loss is about 195 million yuan.

However, this figure was a profit of 8.5544 million yuan in the same period of 2017.

In August last year, affected by industry pressure and the news of the arrest of Jiuyou Shares' chairman, Runtai Supply Chain, which ST Jiuyou acquired at a three-fold premium, was hit by a run by lending banks, suppliers and related customers, resulting in some loans being overdue and operating conditions deteriorating.

As the guarantor of a 341 million yuan loan to Runtai Supply Chain, listed company Jiuyou Shares was also sued by several banks, and multiple accounts were frozen, resulting in restricted operations.

Jiuyou shares were also listed as a listed company with abnormal financial or other conditions, becoming ST Jiuyou.

Affected by this, ST Jiuyou encountered the limit down for 11 consecutive trading days, and its market value also suffered a severe blow.

In addition, Shanghai Mingjiang Intelligent Systems Co., Ltd. became the loser in the bet because it failed to achieve the promised performance for three consecutive years. Its parent company Huanghe Cyclone also faced the dilemma of a year-on-year decline in net profit for two consecutive years.

Of course, retail investors entering the stock market may be speculators hoping to get rich quickly, but the carelessness of listed companies in their investment projects has also become an important reason for investors to lose money.

This is not a fair game.