Eastern Ocean responds to sea cucumber impairment: we are not like Zhangzi Island, sea cucumbers are still there
ST East Ocean’s accrual of large amounts of sea cucumbers has caused continuous controversy.On February 28, ST East Ocean released a performance announcement “announcement”, the company’s net profit is expected to increase.53 trillion US dollars, the budget is expected to profit 20 million-40 million.According to the announcement, it was determined in advance that, according to the different breeding years, the company made a large amount of impairment for sea cucumbers over 3 or 5 years, and the total impairment amount was 2.5.7 billion yuan.”There is a scallop running in the front, and there is an oriental ocean sea cucumber growing old.” On the stock bar, some investors likened ST East Ocean to another “Zhangzi Island”.On March 13th, the staff of ST East Ocean’s Secretary Office denied this statement.She said that it ‘s not that sea cucumbers ca n’t be eaten or their nutrition is low, nor that they died after 5 years with Shanghai ginseng.The sea cucumber is still there.”Sea cucumber” old “leads to performance face change On February 28, ST East Ocean Show 2019 performance report: report and its realized operating income6.06 trillion, an average of 16 years.42%; realized net profit attributable to shareholders of listed companies -5.53 trillion US dollars, an annual increase of 29.86%.Compared with the expected profit of 20 million to 50 million in the Air Force ‘s third quarterly report, ST East Ocean ‘s performance can be described as a “big face change”.Announced in China, ST East Ocean will first be transformed into a “shuffling” provision for impairment of seafood.ST East Ocean separately accumulates the price drop for sea cucumbers2.57ppm, impaired value of 75.17 million for salmon and 15.39 million yuan for collagen, totaling 3.4.7 billion yuan.Not surprisingly, the Shenzhen Stock Exchange sent a letter of concern to ST East Ocean.On March 12, ST East Ocean responded to the letter of concern.The reason for ST East Ocean’s claim for the impairment of sea cucumbers is that “the breeding time exceeds a certain period of time”.According to ST East Ocean, the company previously made calculations based on a 5-year breeding cycle, and made provision for inventory price declines for farming inventories over 5 years old.This year, the company found that the degree of impairment of different breeding modes affected by temperature, bottom transformation, breeding environment and other factors is different, which is not enough to support the cultivation of sea cucumber stocks in accordance with the 5-year investment value.Therefore, ST East Ocean also refined the sea cucumbers it belongs to. For open-bottom sea-bottom aquaculture, the stock price depreciation reserve is still calculated based on the 5-year period of 4,457.680,000 yuan, for the bottom-culture in the cofferdam-type sea area, according to the 4-year period, the provision for inventory price declines is 12,333.470,000, for the intensive pond aquaculture, according to the three-year period, the provision for inventory price decline is 8,888.920,000 yuan, totaling 258,800,000 yuan.In addition to the above-mentioned impairment on sea cucumbers, it is also one of the reasons for the impairment of salmon and collagen. ST East Ocean stated that due to the fierce competition between international salmon farming and the abnormal growth of salmon farming, it cannot meet the commercial fish sales standard.Collagen is the expansion of the stock age of collagen products, which is expected to be difficult to digest and use in the short term.In 2019, the company also broke out a large amount of customer arrears, and therefore the total amount of impairment of the receivables is about 1.3.7 billion yuan.The company’s 14 major customers owe a total of company funds1.03 trillion, this time totaled 78.12 million yuan.According to the announcement, the fact that customers do not have money is mainly due to economic growth leading to a slump in the service industry and the poor management of some customers, leading to a break in the capital chain.The announcement did not announce the names and other specific information of the 14 client companies.”We are not the same as Zhangzidao scallops, our sea cucumbers are still there.” There are Zhangzidao scallops “running the road” in front of them, and later ST East Ocean sea cucumbers grow old.Some investors linked the two listed aquaculture companies.On the interactive exchange platform of the China Securities Regulatory Commission, some investors also questioned: “How many billions of inventories are there in five years and how many are in less than five years? Why don’t you harvest sea cucumbers in five years!”.”A sea cucumber farming farmer in Weifang City, Shandong, told reporters how long the sea cucumber can live depends on how old the sea cucumber seedlings are, but unless it is sick, it will not die for 5 years.On the contrary, more than 5 years of nutritional value is higher and better to sell.In 2008, ST East Ocean quoted the timetable for sea cucumber breeding in an investment announcement for the “Recruitment of Investment Funds for the Construction of a 20000 Mu Underwater Ranch Project on Kongtong Island”.It mentioned that the growth rate of sea cucumbers is affected by the change of seawater depth. Generally, the shallower the seawater depth, the richer the bait and the faster the growth rate.However, the natural cycle of sea cucumber cultivation is relatively long. It enters the harvest period in the third year and reaches 50% of the degradation, and only enters the normal harvest period in the fifth year, reaching 100% of the degradation.According to the announcement, the fifth year should be the time for sea cucumbers to formally mature for fishing.According to the above announcement combined with the farmer’s argument, it takes 5 years of breeding to approximate the “peak period” with Shanghai ginseng. Why should the impairment be calculated?On the morning of March 13, Sauna and Yewang contacted the secretary-general of the listed company as an investor.The staff told reporters that it was not that Shanghai ginseng died within 5 years or became less valuable.It is also mentioned that the company’s sea cucumber fishing is divided into two fishing (not yet started, until May) and autumn fishing, other time sea cucumber will be on the reef to catch fish, but due to changes in the environment of Yantai last year, the sea cucumber fishingReduced.But the more important thing is because of the requirements of accounting standards, and denies the statement that the sea cucumber died 3-5 years later.”It’s not that it will be absent or dead after five years or three years, four years later (sea cucumbers), but only after a few years, we will adopt an accounting standard to specify them within the Zhezhe range.Impairment, we think it may continue to be harvested after five years, or it may be that the quantity of our fishing after five years is not as good as before, or that sea cucumbers will be sold at a lower cost price than before after five years.”The staff is not clear yet, the company’s sea cucumber impairment is different from the” running road “of Zhangzidao scallops.”Our sea cucumber is indeed due to different accrual methods, but it is on the bottom of the sea.Our sea cucumbers are not saying they are gone, nor are they fraudulent, they are still on the bottom of the sea, and there are only errors caused by the way of accrual.”she says.The chairman has been repeatedly fined by the supervisory authorities. In addition to the performance of the existing lawyers’ organization, ST East Ocean recently also got into trouble because of the violation of the rules of the chairman Che Shi.On March 12, the reporter learned from the website of the Shenzhen Stock Exchange that the Shenzhen Stock Exchange had issued a notice due to the violation of regulations and the reduction of the holdings of Che Shi, chairman and general manager of ST East Ocean.On September 25, 2019, 4,022,600 ST East Ocean shares held by Che Shi were legally enforced through auction transactions, and the total amount of the reduction was 1,545.08 million yuan.Che Shi ‘s shareholding reduction did not comply with the provisions of Article 11 of the “Implementation Rules for Shareholders, Directors, Supervisors, and Senior Management of Listed Companies”.Abiding by the above-mentioned violations and facts, the Shenzhen Stock Exchange decided to give Che Shi a punishment for notification and criticism in accordance with relevant regulations.In addition to being criticized this time, the Shenzhen Stock Exchange website showed that ST East Ocean was also investigated and marked by the CSRC.On May 5, 2019, ST East Ocean received the “Investigation Notice” issued by the Shandong Securities Regulatory Bureau. ST East Ocean was investigated for suspected information disclosure violations.On September 19, 2019, ST East Ocean received the “Prior Notice from the Administration”, and Shandong Securities Regulatory Bureau planned to give a warning to Che Shi and impose a fine of 900,000 yuan.According to previous announcements, Che Shijun also misappropriated company funds8.US $ 2.4 billion was used to strike the “holes” of democratic pledges.The money was used for more than 3 months, and it was not until March 2019 that ST East Ocean announced its controlling shareholder8.The 2.4 billion capital occupancy settlement has been completed.Because of the violation of the above letter, lawyers have started to organize investors to protect ST East Ocean’s rights. Lawyer Wang Zhibin of Shanghai Minglun Law Firm told reporters that he began accepting entrustment on October 10 last year.A full range of investors joined the ranks of rights defenders. “We are currently preparing for investor loss accounting, and there is no new progress in courts.”Reporter Peng Shuo Li Yunqi Intern Zhao Fangyuan Editor Xu Chao proofread He Yan