What is this sign of?Zhengbang Technology lost 5.3 billion yuan in market value in two trading days

2022-04-27 0 By

February 8, Zhengbang Technology (002157.SZ) after the first trading day after the Spring Festival, the opening continued to fall by the limit, at 7.17 yuan, down 10.04%, market value of 22.56 billion yuan.On January 28, the last trading day before the Spring Festival, Zhengbang’s market value stood at 27.846 billion yuan, with 5.3 billion yuan wiped off in just two trading days.Zhengbang is expected to lose nearly 20 billion yuan last year, according to its 2021 annual earnings forecast released recently.Zhengbang technology shares continue to slump, with the release of the results of the announcement.On the evening of January 28, before the Spring Festival, Zhengbang Technology released its 2021 annual performance forecast, saying that it is expected to have a net profit loss of 18.2 billion yuan to 19.7 billion yuan attributable to shareholders of listed companies in 2021, making it the largest listed pig enterprise in terms of losses in this performance forecast.Zhengbang Technology expects a net profit loss of 17.3 billion yuan to 18.8 billion yuan in 2021 after deducting non-recurring gains and losses, down 388.57 percent to 413.59 percent compared with the same period last year.Why the loss of nearly $20 billion?Zhengbang technology said in the performance forecast, during the reporting period, the company’s average sales price per head was 16.60 yuan/kg, down 16.10 yuan/kg year on year, single head income decreased 1653 yuan, the rise of sales superimposed on the decline of sales price impact profit 8.873 billion yuan;Due to the impact of the pig cycle, the price of live pigs will continue to be depressed in 2021, and the net realizable value will be lower than the cost. The company will make a total provision of about 1.2 billion yuan for inventory price decline.From 2019 to 2020, due to the impact of the epidemic, the population was further optimized in order to improve sow efficiency, optimize resources, reduce costs and ensure financial security. A total of 2.2 million sows and gilts were killed and bred, resulting in a loss of 6.2-6.8 billion yuan.At the end of the report period, the company has 380,000 sows, 220,000 gilts and 100,000 GGP+GP in total.Second, the overall industry from 2019 to 2020 were in a state of rapid expansion, self-built, reconstruction and leasing company by sharp increase pig production quickly, but pigs during the reporting period the domestic market prices continue to fall, and the influence of the outbreak, the overall capacity utilization rate is low, thereby causing loss to the empty column s depreciation and so on, at the same time to repel and inefficient and wasteful leasing field,As a result, the prepayment of rent, liquidation compensation, materials and other losses of the leasing site are about 1.5 billion yuan in total.During the reporting period, the amortization of equity expenses totaled about 280 million yuan.In addition, during the reporting period, due to the serious epidemic situation in the north of the Yangtze River, the overall breeding performance was poor and the death of pigs was serious. Subsequently, considering the large management radius and the overall layout of the company, the scale of the northern market will be further reduced.In the preview, Zhengbang technology emphasized that the company’s overall capital situation is good. The breeding business adopts the cash sales mode, and the pig sales return is fast, and the biological assets have strong liquidity ability. The feed business has stable foreign sales, which can provide continuous cash inflow.The company’s overall cash flow is stable, there is no risk of capital chain fracture.The company will reasonably arrange the business plan and development pace under the premise of ensuring its own cash flow security.Source: Thepaper.cn