"Stock speculation" loss of 1.378 billion yuan Shanghai Lais "Blood King" status is difficult to protect

On the evening of August 7, Shanghai Laix announced that the company's investment business suffered a large loss due to market fluctuations, with first-half losses of 1,378 million yuan, down 1,769 million yuan from a year earlier, resulting in a net profit loss of 855 million yuan in the first half of 2018, a decrease of 220.64 percent year-on-year.
the reason for the huge loss is that Shanghai Lais heavy warehouse Wanfeng Owei and Xingyuan Environment two stocks, not only in bulk trading, secondary market direct trading, and even borrow trust to pry hundreds of millions of leverage. But since the close of trading on August 6th, Wanfeng Ove has fallen 54.53 per cent so far this year, while Xingyuan Environment has fallen 86.19 per cent.
fact, the secondary market is only one of the venues where Shanghai Leith Capital operates, and the first-tier market, Helas, is also playing feng shui.Player capital: the first market, the secondary market can not be less
since 2013, Shanghai Lais has acquired Zhengzhou Lais, Bang and Bio, Road Creatures, BPL and Zhejiang Haikang and other companies. These acquisitions directly allowed Shanghai Raith to leap from the industry's third-largest to become a leader in Chinese blood products companies.
buy-outs have spurred a surge in Shanghai's share price and doubled its market capitalisation. From 6.7 billion yuan in December 2012, the surge to 120 billion yuan at its peak in May 2015 has increased more than 15 times, and goodwill has passed the 5 billion yuan mark over the same period. By the end of 2017, The book value of Hailes' goodwill had reached $5,705 million, or 42.49% of total assets.
's market capitalisation has remained unchanged for many years, and even if the stock market crash did not fall in 2015, it is still trading at around 100 billion yuan. On February 22 this year, Shanghai Laix suspended trading on the grounds of restructuring, with a market capitalisation of 97.1 billion yuan, still ranking fourth in the A-share pharmaceutical industry.
same time, the two major shareholders, Corey Tiancheng and RAAS CHINA LIMITED, have chosen huge pledges at high share prices to finance capital expansion. Over the past five years, this model has allowed Shanghai's Market Capitalisation to soar from less than $10 billion to $120 billion at its peak in 2015. Even before the restructuring was suspended on February 22 this year, Shanghai-listed Laix, which has annual revenues of less than $2 billion, still had a market capitalisation of 96.1 billion yuan.
tho now, we can analyze the shanghai Laix capital operation in the tier one market: first through mergers and acquisitions to push up the share price, then the majority of shareholders at the share price high pledge financing, and finally the money raised to be used for mergers and acquisitions, cycle back and forth.so in the secondary market, Shanghai Leith performance?
, Shanghai Laishi was known as a stock speculation master, securities investment "business" can be said to do a feng shui. In April 2013, he participated in the Hyeon Trust Hengyang Phase 1 Securities Investment Pooled Fund Trust Scheme, which was initiated by Henyep International Trust Co., Ltd., and in October 2014 Shanghai Laix terminated the trust program and realized a profit of approximately 24.71 million yuan, with a return on investment of 17.65%.
According to Shanghai Lais Financial Report, investment income in 2015 was 875 million yuan, net profit was 1.442 billion yuan, accounting for 61%; It can be seen that the investment income is the "money bag" of Shanghai Laix.
by mid-2018, the "money bag" of the past has become the "blood knife" of today. According to the 2018 semi-annual report, Shanghai Laix' investment income was RMB1.37 billion and net profit was RMB855 million.
when a listed company proposes to carry out securities investment business, it usually indicates that "under the premise of not affecting normal operation and effective risk control, the use of their own idle funds for securities investment, in order to improve the efficiency of the use of the company's funds, increase the return on funds." However, from the investment income as a proportion of net profit, Shanghai Laix's securities investment business is likely to affect the company's normal operations.so how does Shanghai Leith's main business run?The leading position of the industry is not guaranteed: the main business shrinking, the rise of competitors
Shanghai Lais' main business for the production and sale of blood products, the main products for human haemoglobin, static injection of human immunoglobulin, special exemption, coagulation factor products, etc. , is the leading domestic blood products enterprises.
A-share blood products listed companies are Shanghai Lais, Hualan Biological, Temple of Heaven Biology, Weiguang Biological, Boya Biological, ST Biochemical 6 enterprises. From the net profit point of view, Shanghai Lais well-deserved is the leader of blood products enterprises.
the annual report of Shanghai Laix in recent years, its net profit for 2015-2017 was RMB1,442 million, RMB1.65 billion and RMB850 million, respectively.
2015 and 2016 annual reporting data show that its financial assets investment income of 875 million yuan, 829 million yuan, accounting for 60.68 percent of net profit, 51.39 percent, respectively. From this point of view, the company's net profit has surged, mostly by "stock speculation." In the first half of this year, the company's "stock speculation" losses also exceeded the net profit for the whole of 2015 and 2016.
In terms of revenue from its main business, Shanghai Laix' main business revenue was 2.33 billion yuan in 2016, Shanghai Laix' main business revenue was 1.93 billion yuan in 2017 and Shanghai Les' main business was 961 million yuan in the first half of this year. It can be seen that Shanghai Lais's main business is shrinking.
huge losses of chinese stocks and the contraction of its main business, Shanghai Laix's own development path is not smooth. So, compare the competitors of Shanghai Raith? At present, the industry has competitive pressure on Shanghai Lais only Hualan biology, Tiantan biology two. As a leading blood products company, Shanghai Laix's business situation is the worst.
Of the three companies mentioned above, only Shanghai Raith recorded negative net profit growth in two consecutive reporting periods (2017 and first quarter 2018) and a significant increase in accounts receivable on the basis of negative operating income growth of 162.91%; (Health)