Sichuan Changhong Has Many Hidden Troubles In Cash Flow

April 8, Sichuan Changhong The 2010 annual report was issued according to annual report It shows that during the reporting period, the company achieved operating revenue of about 41.7 billion yuan, up 32.6% over the same period last year, and total profits of about 670 million yuan, down 2.38% over the same period last year profit It was about 290 million yuan, an increase of 146.21% over the same period last year. The basic earnings per share is 0.103 yuan/share, and the company plans to give 1 share to all shareholders for every 10 shares.

During the reporting period, the LCD sales of Sichuan Changhong increased by 40.8% year on year, and the PDP sales increased by 71.21% year on year. The market share of PDP and 3D TV products ranked first in the market, achieving a new breakthrough in the core industry. The sales of air conditioners and refrigerators increased by 39.93% and 25.41% year on year respectively; The sales volume of refrigerator compressor ranks second in the world.

　　 Increased expenses, tight cash flow

The annual report also disclosed that during the reporting period, the company's net cash flow from operating activities was negative 739 million yuan, while this figure was negative 2.4 billion yuan in the previous year; The net cash flow from investing activities was about negative 800 million yuan, compared with about negative 700 million yuan in the same period last year.

In view of this situation, some analysts believe that Sichuan Changhong's cash flow situation is worrying.

In addition, the operating cost of the main business also increased significantly compared with that of the previous year: the operating revenue of TV in 2010 was about 14.83 billion yuan, the operating profit margin was 18%, an increase of 0.29% over the same period of the previous year, and the operating cost increased by 17.95% over the same period of the previous year; The operating revenue of air conditioners and refrigerators was about 7.69 billion yuan, the operating profit margin was 26.14%, a decrease of 4.62% over the same period last year, and the operating cost increased by 37.2% over the same period last year; The operating revenue of IT products was about 6.95 billion yuan, the operating profit rate was 5.35%, a decrease of 1.05% over the same period of the previous year, and the operating cost increased by 53.59% over the same period of the previous year.

The column of the company's administrative expenses shows that the administrative expenses at the end of the reporting period were about 1.619 billion yuan, much higher than the 1.295 billion yuan at the beginning of the reporting period. In addition, sales expenses and financial expenses also rose to varying degrees. Among them, the sales expenses increased from about 3.618 billion yuan at the beginning of the reporting period to 4.324 billion yuan at the end of the reporting period; Financial expenses increased from 91.26 million yuan at the beginning of the reporting period to 130 million yuan at the end of the reporting period.

In addition, due to the "labor shortage", the expenses of Sichuan Changhong for paying employee compensation also increased from 1.9 billion yuan at the beginning of the reporting period to 2.57 billion yuan at the end of the reporting period.

　　 Over guarantee 3.6 billion

No progress with Apes

In addition to the above factors, during the reporting period, the company's huge amount of guarantee for other companies also made the already tense capital chain more precarious.

The annual report disclosed that Sichuan Changhong guaranteed a total of 43.38 million yuan for seven companies including Xinhu Zhongbao Investment Co., Ltd. At the same time, the guarantee for subsidiaries was about 3.57 billion yuan, with a total guarantee amount of 3.6 billion yuan. The total guarantee amount accounts for 36.55% of the company's net assets. Among them, the amount of debt guarantee directly or indirectly provided to the guaranteed object whose assets and liabilities exceed 70% is 530 million yuan.

Since the trade dispute with Apex in 2004, there has been no new progress. The annual report said that the company has been trying to continue to recover arrears from Apex, because there are many influencing factors and the progress is slow.

In 2004, Sichuan Changhong suffered a huge loss of 3.7 billion yuan after being defrauded of 3 billion yuan by Apex. Affected by this, the company's share price plummeted. From the highest price of 66.18 yuan, the share price fell all the way down to April 6, 2011, the share price opened at 4.25 yuan and closed at 4.27 yuan.

Although the stock price performance was poor, it still attracted the attention of Niusangeng Zhiguang. In the list of top ten shareholders with no restrictions on sales, Geng Zhiguangbei stood out and ranked fifth with a total of 10.52 million shares borrowed, accounting for 0.37% of the total share capital. Although the company's third quarter report previously showed that Geng Zhiguang had reduced his holdings during the financial reporting period, his shares remained at the top by the end of the reporting period.