ST Tiancheng (600112)According to the 2019 annual report released on the evening of June 28, the company realized operating income of 266 million yuan last year, a decrease of 47.74% over the same period last year, and a net profit of-846 million yuan, a decrease of 7146.26% over the same period last year. It is worth noting that after the 2018 annual report encountered "non-standard", the auditor once again issued a qualified audit report for the company in the 2019 annual report.
ST Tiancheng said bluntly in the annual report that due to the occupation of funds by controlling shareholders, illegal guarantee, litigation arbitration, asset seizure and other negative factors, the development of the company is difficult, various financing channels are restricted, and operating cash flow continues to be tight, which has a great negative impact on the company's daily production and operation.
As of the date of disclosure of the announcement, the total amount of funds occupied by the company's controlling shareholder Yinhe Tiancheng Group (hereinafter referred to as "Yinhe Group") was 513 million yuan, and the balance of capital occupation was 312 million yuan; the total amount of illegal guarantee of the company was 451 million yuan, and the balance of illegal guarantee was 112 million yuan.
Audit institution Zhongshenhua Accounting firm (Special General Partnership) pointed out that as of December 31, 2019, the company's controlling shareholders and related parties had occupied 312 million yuan of ST Tiancheng funds, and ST Tiancheng had made full provisions for bad debts. However, auditors are unable to determine whether the full provision for bad debts of listed companies is reasonable, nor can they judge whether there are other undisclosed external guarantees in ST Tiancheng.
Auditors also warned that part of the company's maturing debt could not be repaid in full and in time, and that it failed to take measures to reach an agreement with creditors, and that there was significant uncertainty that could lead to doubts about the company's ability to continue to operate.
Prior to this, on December 30, 2019, the Shanghai Stock Exchange decided to publicly condemn Galaxy Group, Tiancheng Holdings, Pan Qi, Wang Guosheng, Zhu Hongbin, Zhou Lianjun, Huang Jufang, Ma Binlan, and Chen Lei, the then independent directors Li Tiejun, Mao Jiaren, and Zhang Ren.
ST Tiancheng said in the announcement that as Galaxy Group is currently extremely tight in funds, it is difficult to repay the occupied funds, "controlling shareholders are actively planning to take effective measures to solve the problems of occupying funds and illegal guarantees." ST Tiancheng also suggested risks in the annual report: from 2019 to the date of release of the annual report, the company and its holding subsidiaries were involved in a total of 60 litigation and arbitration cases, involving a total amount of 1.117 billion yuan, of which 41 cases were not closed, involving a total amount of 979 million yuan.
In addition, ST Tiancheng involved a total of 520 securities misrepresentation liability disputes, with a total litigation amount of 86.177 million yuan, accounting for 23.46% of the company's latest audited net assets.
ST Tiancheng's first quarter report is unaudited. Revenue in the first quarter was 16.2644 million yuan, down 60.29% from the same period last year; the net profit belonging to shareholders of listed companies was 26.2859 million yuan, down 187.26% from the same period last year.