On the evening of October 27, Zhongshun Jierou, long known as "paper grass", disclosed its third-quarter earnings report for 2021.

According to the announcement, the company's operating income in the third quarter was about 2.027 billion yuan, an increase of 4.54 percent over the same period last year. The net profit attributed to shareholders of listed companies was about 77.26 million yuan, down 64.72% from the same period last year. In the first three quarters, the company achieved operating income of about 6.274 billion yuan, an increase of 12.95% over the same period last year. The net profit attributed to shareholders of listed companies was about 484 million yuan, down 27.88% from the same period last year.

This performance is really not good-looking, increase income but not increase profit, but net profit dropped sharply.

The reasons behind this are also shown in the announcement. According to its third quarterly report, from the beginning of the year to the end of the reporting period, it increased by 928513100.53 yuan, an increase of 31.32% over the same period in 2020, mainly due to the increase in business income, the increase in material prices, the change in category structure, the increase in freight and other factors.

In fact, for the same reason, Zhongshun Jierou did not perform well. On the evening of Aug. 30, Zhongshun Jierou released its semi-annual report, achieving operating income of 4.248 billion yuan, an increase of 17.46% over the same period last year. The net profit belonging to shareholders of listed companies was 407 million yuan, down 10.06% from the same period last year.

On the next trading day, Zhongshun Jierou directly ate the limit.

We should know that the main raw material of household paper, pulp, is an international bulk raw material, and its price is obviously affected by the world economic cycle.

Since November last year, the price of pulp on the market has been rising continuously, approaching a high of 7400 yuan / ton in March this year. Although there has been a correction on the way, the pulp price has remained at about 6300 yuan / ton since July, which is at a recent high.

The pulp cost of Zhongshun Jierou production accounts for 40% of the company's production cost, about 60% of the company's production cost. This is the main reason that affects the performance of Zhongshun net profit.

However, what is interesting is that unlike the sharp fall in the stock price after the previous performance, Zhongshun Jierou fell 7.41% to 16.63 yuan per share as of today's close, with a market capitalization of 21.78 billion yuan, losing nearly a month's increase in one day.

As a result, some netizens questioned, "who disclosed the news?"

It is difficult to say whether there is really news leakage, but the market has expectations for its poor performance, so we do not rule out the possibility that funds are fleeing to avoid performance.

According to statistics, Zhongshun Jierou's share price has been continuously adjusted since the beginning of June, falling by more than 50% as of today, and the share price has halved.

Interestingly, in May this year, when the stock price was soaring, the company's chairman, Deng Yingzhong, advised employees to increase their stock holdings and make "bottom-up" promises.

On May 10, Zhongshun Jierou announced that Deng Yingzhong, the controller of the company, suggested that employees who net bought shares of the company (not less than 1000 shares) from May 10 to May 31 and held them until May 30 next year would be compensated by Deng Yingzhong if losses were incurred, and the income would be owned by the employees.

In addition to the results, there is another data worth watching, and that is the number of shareholders.

According to public information, as of September 30, the number of shareholders in Zhongshun Jierou was 160800, an increase of 85370 compared with the end of the second quarter, an increase of 113.17%.

In general, the substantial increase in the number of shareholders indicates that the chips are scattered, "retail investors" are entering the market, and the probability of a rising market in the short term is low.

In addition, Ping An Insurance appeared in Zhongshun Jie Rou's top ten circulating shareholders, ranking seventh.

The social security fund and the rich Tianhui selected growth fund managed by Zhu Shaoxing, a well-known fund manager, disappeared among the top ten circulating shareholders.