Whether To Compensate Or Not Is A Big Problem

- Dec 10, 2018-

It is a love card that many listed companies like to play when the stock price falls for a long time. Sometimes, it can also play an immediate effect. For example, in mid-October this year, Lyadh and Li Jun shouted out the next day's price increase and stop.——LED Christmas light


But the card itself hides a very high risk. Employees have limited ability to absorb money, so it is difficult to really solve the enterprise's financial problems. Calling on employees to go to the bottom is a kind of self-exploding capital problem. Once the commitment can not be fulfilled, it may directly lead to the brain drain of the company, and it will also cause great negative effects on the company. When a company that aims to make money starts talking about feelings, it's suspected of hooliganism.——LED Christmas light


The lock-in period of increase ownership will lead to the loss of the principal of increase employee


On the evening of Dec. 10, 2017, Lianjian Optoelectronics announced that on Dec. 8, 2017, the company received the "Initiative to Encourage All Employees to Increase Joint Optoelectronics Stocks" submitted by controlling shareholders, actual controllers, chairman and general manager Liu Hujun and former shareholders of some subsidiaries (hereinafter referred to as "the initiator"). The above-mentioned co-construction optoelectronic advocates advocate that all employees of the company actively buy the company's stock. All employees who buy the joint construction optoelectronic stock from Dec. 11, 2017 to Dec. 22, 2017 and hold the joint construction optoelectronic stock for more than 12 consecutive months (including) and then hold the joint construction optoelectronic stock will be advocated if the loss occurs due to the increase of the joint construction optoelectronic stock during the specified Persons are compensated with their own funds; if they generate stock value-added gains, they are owned by the employees themselves. In addition, the announcement also shows that the sponsor will complete the compensation for the loss of employees due to this increase within one month after the closing of the market on December 21, 2018. If the suspension of a company's major business affects the calculation of transaction losses, the relevant date will be postponed.——LED Christmas light


On December 25, 2017, in the announcement of the progress of the above-mentioned increase, Joint Construction Photoelectric disclosed that the employee's increase plan had been completed. The final increase was 90 people, with an average stock price of 13.13 yuan per share and a total transaction value of 12,955,797.54 yuan. At the closing price of 6.10 yuan per share on Dec. 7, the book loss was about 53.54%, and the increase of employee principal was severely cut.——LED Christmas light


Nowadays, the lock-in period of employee ownership for the shortest 12 months is approaching, and many market participants are concerned about how the advocates of Joint Optoelectronics Employee Employment Increase Plan can fulfill their "bottom" commitments.——LED Christmas light


Tightening of Funds and Rising Costs of Financing


According to the third quarter financial report of Lianjian Optoelectronics Company, the financial expenses in January-September were 68,359,365.08, up 233.57% from the same period last year; the net cash flow generated by business activities was -44,086,387.80 yuan, down 133.45% from the same period last year; and the monetary funds were 215,792,934.80 yuan, down 73.18% from 804,578,574.57 yuan at the beginning of the year. The rising interest rate of short-term borrowing leads to the rising financial cost of joint-venture optoelectronics, while the increase of payables leads to the further tightening of cash flow and the rise of short-term liquidity risk of the company.——LED Christmas light


On November 15, Joint Construction Photoelectric announced that the three-month borrowing period of RMB 50 million from individuals or non-bank financial institutions had expired. In order to meet the company's daily business development needs and provide funds for the company's business development, the company held the fourth meeting of the Fifth Board of directors on November 14, 2018, and deliberated and approved it. In the Bill on Foreign Loans, it was agreed that the company should borrow no more than 50 million yuan from individuals or non-bank financial institutions for a period of not more than one year.——LED Christmas light


This announcement is worth pondering. The suspected act of borrowing from the East Wall to compensate for the West Wall confirms the problem of rising short-term borrowing interest rates mentioned in the financial reports, and borrowing from individuals or non-bank financial institutions, indicating that the bank's lending channels are blocked. The interest rate of bank loans is certainly lower than that of non-bank finance or individuals. As for reluctance to lend, it indicates that banks have doubts about the repayment ability of enterprises.——LED Christmas light


Performance decline and transformation are also hindered


Lianjian Optoelectronics Third Quarter Report shows that the third quarter operating income of 2.918 billion yuan, an increase of 3.59% year on year, has slowed down, and has now reached the edge of stabilization. As for net profit, the third quarter net profit of 192 million yuan, a decrease of 44.51% year on year, has been in a declining position for four consecutive quarters. From the performance level, the company's operating situation is not the same. Optimistic.——LED Christmas light


Prior to this, Joint Optoelectronics has proposed the direction of development of digital marketing transformation. Through the observation of its past financial reports, we can also find that the proportion of digital marketing business in revenue contribution is increasing. However, the mode of transformation is still a simple and crude mode commonly used by domestic enterprises, mergers and acquisitions. Over the past five years, Lianjian Optoelectronics has acquired and participated in more than 10 companies in the field of marketing services, forming the layout of marketing industry chain from marketing planning, brand PR to online and offline media delivery, marketing activities and Internet self-Media marketing.——LED Christmas light


On the one hand, under the background of national de-leverage policy, enterprises are prone to capital problems because of the inadequate ability of policy prediction and leveraged mergers and acquisitions, which is also a major reason for the current financial difficulties of enterprises.——LED Christmas light


On the other hand, frequent and numerous mergers and acquisitions lead to the lack of time and energy for deep resource integration of the target of mergers and acquisitions, thus adopting the performance-to-bet agreement. Once the performance of this model can not meet the standard, it is easy to impact the profitability of enterprises. At present, He Jilun, the time-sharing advertising media controller in Sichuan, has been jointly filed with the court for failing to meet the performance standards of gambling, which is not a good omen. He Jilun is the second largest shareholder of the company, holding 12.55%. The company's shares have been pledged and judicially frozen.——LED Christmas light


Doubts about the ability of controlling shareholders to fulfill their warehouse-clearing pledge commitments


According to the latest data, Liu Hujun, the largest shareholder and actual controller of the company, holds 117,152,120 shares of the company directly, accounting for 19.1010% of the total shares of the company; 116,550,000 shares of the company are pledged accumulatively, accounting for 99.4860% of the total shares of the company directly, accounting for 19.0029% of the total shares of the company. Xiong Jinyu, his wife, holds 29,704,777 shares of the company directly, accounting for 4.8432% of the total shares of the company; the cumulative pledge of 29,700,000 shares of the company, accounting for 99.9839% of the total shares of the company directly, accounting for 4.8424% of the total shares of the company. Both husband and wife were pledged in clearance.——LED Christmas light


Generally speaking, the common equity pledge financing is mainly used to fill the company's operating capital gap, personal capital needs, etc. Clearance pledge shows that its financial situation seems not optimistic.——LED Christmas light


epilogue


From the corporate level, the lack of bright data to support the stock price upward, nor does it stimulate the stock price significantly. A-share market is also in a bottom-building shock. The success of the bottom-building depends on the trend of international political and economic development. In today's closing price, if you want to increase employee capital protection, the company's share price will need to double in the next 10 trading days. Visually, more than half of the trading days will need to be on the rise and stop board without falling. The possibility is basically zero, depending on whether the compensation is compensated or not, how to accompany.——LED Christmas light



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