Reporter: Zheng Yu and Zhang Rongwang report from Beijing
Source: China Business News
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Zhongjia Bochuang (000889.SZ), which has changed its main business several times since its listing, has recently included the blockchain in its development plan, and responded to the blockchain business issues raised by multiple investors on the Shenzhen Stock Exchange's interactive platform. .
In the beginning of 2020, its announcement of performance forecast stated that it is expected to lose between 800 million and 1.15 billion yuan in 2019. After the huge loss is predicted, China Jiabochuang hit a new low of 7.49 yuan / share since 2014 on February 4th, and the stock price has recently returned to 10 yuan / share. It is worth noting that from October to the end of December 2019, some shareholders successively reduced their holdings and planned to reduce their holdings.
"China Business Daily" reporter combed the financial report and found that in recent years, China Jiabochuang's subsidiaries that have maintained three major businesses have all been acquired through mergers and acquisitions, and there have been problems such as decline in net profit, low profit quality, and goodwill overhang. In this context, China Jiabochuang began to lay out its blockchain business. On February 5th and 13th, China Jiabochuang repeatedly answered investors' questions about its layout in the blockchain and digital currency fields. And in the above-mentioned response to investors, this business was linked to the bitcoin market with sharp fluctuations in value.
For the reasons and specific layout of the blockchain-related business, the reporter sent an interview letter to Zhongjia Bochuang. As of press time, no reply has been received.
Goodwill hangs, pressure on profitability
China Jiabochuang's report for the third quarter of 2019 shows that the company's goodwill at the end of the reporting period was 2.97 billion yuan, and goodwill of non-current assets accounted for 82.48% of the audited assets in the most recent year. In the 2019 performance forecast, China Jiabochuang estimates that the company's goodwill collective assets impairment provision is about 900 million to 1.1 billion yuan.
According to public information, the main business of China Jiabochuang is information intelligent transmission and communication network maintenance. The main business is operated by three subsidiaries. In 2014, China Jiabochuang reorganized and acquired Beijing Chuangshimandao Technology Co., Ltd. (hereinafter referred to as "Chuangshimandao"). In 2015, major assets purchased and acquired Guangdong Changshi Communication Technology Co., Ltd. (hereinafter referred to as "Changshi Communication"). Reorganized the acquisition of Beijing Zhongtian Jiahua Information Technology Co., Ltd. (hereinafter referred to as "Jiahua Information") to form goodwill.
In the third quarterly report for 2019, China Jiabochuang explicitly mentioned that if the operating conditions of the subsidiaries did not meet expectations, there was a risk of accruing goodwill impairment provisions for the subsidiaries.
Under the ceiling of goodwill, there is also considerable pressure on the profitability of China Jiabochuang.
In the first half of 2019, China Jiabochuang's operating income increased by 18.14% year-on-year, and the net profit attributable to shareholders of listed companies fell by 23.92%. The report for the third quarter of 2019 shows that at the end of the reporting period, the company's operating income decreased by 15.52% year-on-year, and the net profit attributable to shareholders of listed companies fell even more, reaching 46.96%.
According to the performance forecast, the operating performance of some subsidiaries of China Jiabochuang declined. On the one hand, it is affected by factors such as macroeconomics and operator policy adjustments, leading to a decline in the overall business gross profit margin of the information intelligent transmission industry. On the other hand, due to the overall acceleration and reduction of fees in the communications industry in 2019, the gross profit margin of the communications construction and maintenance industry has dropped significantly.
In the semi-annual report for 2019, the net profit of Creation World and Changshi Communication decreased by 46.36% and 53.05%, respectively. Ka Wah Information only completed one third of its promised net profit in 2019.
After Chuangshi Mandao and Changshi Communication completed their performance commitments, they both increased revenue but did not increase profits. Specifically, Genesis Mandao's operating income in 2017 and 2018 was 703 million yuan and 863 million yuan, a year-on-year increase of 22.76%; net profit was 121 million yuan and 85 million yuan, respectively, and fell without increasing. In 2017 and 2018, Changshi Telecom's operating income was 1.404 billion yuan and 1.80 billion yuan, and net profit was 120 million yuan and 104 million yuan, respectively. The increase in net profit was lower than the increase in operating income.
In 2018, Zhongjia Bochuang acquired 1.48 billion yuan in 100% equity of Jiahua Information, which helped the listed company's net profit a lot. According to the 2018 annual report, Zhongjia Bochuang's net profit attributable to the owner of the parent company was 253 million yuan, and since Jiahua Information was incorporated into the scope of consolidation on June 1, 2018, it has brought net profit of 100 million yuan to listed companies. At that time, Zhongjia Bochuang stated that "(consolidation) has significantly enhanced the company's profitability."
Run a mine to test multiple capabilities
Under the slump, in 2018, China Jiabochuang began to deploy the blockchain business.
According to the "Work Report of the Board of Directors of 2018" of Zhongjia Borchuang, the company plans to develop new businesses related to the main business, carry out engineering services related to network maintenance, including the construction of IDC computer centers for artificial intelligence computing centers and blockchain computing centers, and Maintenance of business.
Since the second half of 2019, Zhongjia Bochuang has repeatedly told investors on the interactive platform that its wholly-owned subsidiary, Changshi Communication, has been engaged in the construction and maintenance of professional computer room participation in the blockchain in Sichuan and other places since 2018. When faced with the question of "the recent positive impact of the rising bitcoin market on the company", he said that "the revenue scale of more than 50 million yuan has been achieved in 2018".
A few days ago, China Jiabochuang publicly stated that the rise in the price of bitcoin is conducive to the company's computer room maintenance business, and it is also conducive to the expansion of the company's business scale.
It is worth noting that a number of people who have studied the bitcoin industry told reporters that the machine room business that can benefit from the rise of bitcoin refers to the bitcoin machine room, also commonly known as the mining field. At the same time, the reporter saw on the pulse of the workplace social platform that there are multiple real-name users who work in Guangdong Changshi Communication Technology Co., Ltd., working for the cloud computing center, bitcoin mining machine maintenance, bitcoin mine maintenance.
What computer room maintenance business can benefit from the rise in Bitcoin price? How does the bitcoin market affect the computer room maintenance business? What is the relationship between the Zhongjia Bochuang mine business and the machine room? In response, the reporter made an inquiry to Zhongjia Bochuang. As of press time, no response was received.
Under complicated circumstances, can the mine business be a good profit growth point? Some practitioners believe that the bitcoin mine has passed the trough period, and the first quarter to the third quarter of 2019 may be regarded as the trough of this round. "The key points of competition are electricity prices and reputation."
In these two aspects, does China Jiabochuang have an advantage?
In terms of the external environment, although the NDRC's industrial restructuring guidance catalogue announced in November 2019, the virtual currency mining listed as a phase-out industry in the previous draft was deleted. But locals still have reservations about Bitcoin mining. For example, on December 24 of the same year, the People ’s Government of Ganzi Tibetan Autonomous Prefecture, located in the western part of Sichuan Province, issued the “Work Plan for Ganzi Prefecture to Clean Up and Rectify Bitcoin Mines”.
"We believe that the mine is not a format suitable for investor participation, unless it has relevant power resources." Guosheng Blockchain Research Institute pointed out in a research report that the construction of the mine is highly non-standard, and it is closely related to the local Regulation is inseparable. The regulatory policy faced by virtual currency mining activities is not clear, which has created certain uncertainties for the investment in the mine. At present, in addition to the two documents issued by the Leading Group of the Internet Financial Risk Special Rectification Office in January 2018 and the Development and Reform Commission in April 2019, the state regulator has not issued a document specifically referring to cryptocurrency mining. The attitudes of the aforementioned two documents towards Bitcoin mining tend to be “guided exit” and “no entry”.
The reporter learned from the industry that some mines had previously failed to withdraw due to the dual pressures of local government supervision and the difficulty of capital turnover caused by currency price fluctuations. Some analysts pointed out that in addition to electricity prices, mine maintenance also tests marketing capabilities, such as attracting miners to host mining machines, and mines also need certain miner resources.
In addition, the risks of not clearly and accurately disclosing business cannot be ignored.
The digital currency that China Jiabochuang said is distributed can be divided into legal digital currency issued by the central bank and private cryptocurrency represented by bitcoin according to different issuers. Therefore, the reporter verified the specific direction of its blockchain digital currency with China Jiabochuang, but did not get a reply.
Earlier, a listed company, China Railway Emergency (603300.SH), started a cloud computing server leasing business without fully disclosing and fully explaining the risks. The information disclosure was not timely and accurate and was issued by the Zhejiang Securities Regulatory Bureau. Decision on warning letter measures. In the response to the warning letter of China Railway Emergency Response, it was acknowledged that the disclosure and risk explanation were insufficient. The specific situation is that in the process of information disclosure, "cloud computing" refers to the Bitcoin "mining machine" and the price risk of the bitcoin mining machine is not fully disclosed Risk factors such as large fluctuations.
I wonder how China Jiabochuang is prepared to deal with the above situation? Journalists will continue to follow.