BLUE WHALE NEWS, June 14 (Reporter Wang Xiaonan) The loss of 2,000 tons of copper products has brought products to the forefront of public opinion.
Before the market on June 14, Bussan Zhongda announced that recently, some media were concerned about the company's copper products trading business, and the company is further verifying the situation with the holding subsidiary Bussan Zhongda International Trade Group Co., Ltd. (hereinafter referred to as “Bussan Zhongda International”). The above matters involved the company's amount of about 110 million yuan, which accounts for a small amount of the company's net profit to its mother, and will not have a big impact on the company's subsequent operations.
CUHK also clarified that the company has a perfect internal control system, which can effectively manage and control risks related to trade operations and ensure that the company operates legally and in compliance with international trade.
On June 13, it was reported that Bussan Zhongda purchased 2,000 tons of refined copper from a Russian copper factory. It was supposed to be delivered in May, but this shipment did not arrive at the port. According to the records of the shipping company that handled this shipment, these metals are classified as less expensive granites. They may have been shipped to Turkey, and staff have gone to Russia to investigate the truth of the matter.
Regarding the above related content, the Blue Whale News reporter called Bussan Zhongda, and the company said it was not convenient to inform them.
The operator of this trade is Bussan Zhongda International. Bussan Zhongda holds 78.18% of its shares. In 2023, Bussan Zhongda International's net profit was 834 million yuan. The Blue Whale News reporter looked at Bussan CUHK's 2023 annual report and found that Bussan CUHK International had also experienced missing or scarce goods before, and there were many lawsuits in previous years.
As a result of being commissioned by Tianjin Situo to import iron ore, Bussan Zhongda International signed an import freight forwarding agreement with Beijing China Storage in November 2014, agreeing to entrust the customs, inspection and storage of iron ore powder under the ship name Ganet. However, in April 2015, Bussan Zhongda International discovered that there was a clear shortage of goods, and the other party made an explanation of the situation and a promise. In May of the same year, when Bussan Zhongda International requested delivery of the goods, Beijing Zhongwu Storage used various excuses not to go through the delivery procedure and sued the court to claim compensation for financial losses. Later, Bussan Zhongda International won the lawsuit.
In 2016, Beijing Zhongwu Storage has already entered bankruptcy proceedings. Bussan Zhongda International has declared a claim and received a confirmation of the claim from the manager. As of the end of 2023, Beijing Zhongwu Storage was still in bankruptcy proceedings, while Bussan Zhongda International's accounts receivable amounted to 10.3.51 million yuan and had already fully calculated bad debt provisions.
In addition, Bussan Zhongda International also had separate debt disputes with several companies. By the end of 2023, the balance of the company's other receivables arising from this dispute reached 339 million yuan, which is expected to be unrecoverable, and bad debt provisions have been fully calculated.
According to data, Bussan Zhongda was founded in 1992, formerly known as Zhejiang Provincial Bureau of Materials, and restructured as a group company in 1996. Bussan Zhongda is a very large state-owned listed company in Zhejiang Province. It completed mixed ownership reform and achieved overall listing in 2015. In December 2021, Bussan Zhongda Spun's subsidiary Bussan Capacity Ring was listed on the Shanghai Stock Exchange. In May 2022, the holding subsidiary of Bussan Zhongda plans to take 22% of Jinlun shares for about 751 million yuan, become the controlling shareholder of the listed company, and later change its name to “Bussan Golden Wheel”.
Currently, the medium and large business of products covers smart supply chain integration services, financial services, high-end manufacturing, etc. Among them, in the high-end manufacturing business segment, the company is also engaged in wire and cable production.
In 2022 and 2023, Bussan's revenue continued to rise, reaching 576.549 billion yuan and 580.161 billion yuan respectively, and net profit to mother was 3,911 billion yuan and 3.617 billion yuan respectively. Among them, in 2023, Bussan Zhongda achieved a total main business revenue of 8.387 billion yuan in the cable sector, an increase of 10.05% over the previous year; total profit of 652 million yuan, an increase of 14.19% over the previous year.
In the first quarter of this year, Bussan's revenue increased 3.78% year on year to 132,938 billion yuan, and net profit to mother fell 14.5% year on year to 828 million yuan, showing an increase in revenue without giving away profits.
It should be pointed out that copper is the main raw material for wire and cable production. Since this year, international copper prices have continued to rise, reaching an all-time high of 11,000 US dollars per ton in May. Although copper prices have been adjusted recently, the increase was 16% during the year. The latest price of Shanghai copper futures was about 80,000 yuan/ton. Just last month, some investors asked Bussan about the impact of the rise in copper prices on the company. They said that the price increase would increase the production costs of cable companies, and that the price increase of cable terminal products was delayed to a certain extent, which would reduce some profit margins. The company has already adopted a business model with a backup inventory.
Recently, there has been a lot of activity in the capital market. In July 2023, Bussan China University plans to acquire a controlling interest in Qixin Company for no more than 2.27 billion yuan to lay out the magnesium industry. In September of the same year, Bussan China University plans to increase the capital of Xintai Life by no more than 6.065 billion yuan. The capital will be the company's own capital. After the capital increase, it will hold 33% of the shares, making it the largest shareholder of Xintai Life.
However, as of the end of the first quarter of this year, Bussan's medium and large monetary capital was 26.117 billion yuan, short-term loans were 36.899 billion yuan, non-current liabilities due in one year were 2.252 billion yuan, while long-term loans were 3,989 billion yuan. The company's debt repayment pressure was not low.