"Cattle stock" oriental garden financial fog big single Gao hard to eat

"Big single" such as Gao, inventory 5 years increased 35 times times, rely on the capital market transfusion "Oriental model" fear unsustainable. In addition, Oriental Gardens are also alleged to be involved in competition and to transfer benefits to major shareholders. There are many myths about capital markets, such as the former Yin-Guang Xia, DeLong and so on, their performance in the stock market has been as shocking as a miracle, but the excessive reliance on capital manipulation and expansion of too radical is still inevitable to the death of them. When we look to the so-called "garden first" Oriental garden, reading its capital market rise path, we also found similar to the yin-guang Xia and DeLong "Phantom." Oriental Garden was founded in 1992, the main garden construction, the company positioning "urban landscape system Operators", is the first of the two cities listed companies in the garden industry. "Oriental gardens like to disclose big orders," said a longtime investor who followed the Oriental gardens, "often disclosing big orders, and stock prices tend to limit trading, and no one has considered how long these big single finishes, whether they can be completed, how far they are completed, and whether money can be recovered." According to the "Value Line" reporter statistics, as of December 2012, the Oriental Garden announced similar "big single" 20, and each "big single" announced the rise in share prices, 2013 Oriental Garden Stock (after the right to reinstatement) up to about 585 yuan, the market value increased nearly 6 times times. But when we re-examine these "big orders", but found that these "big single" actual performance amount and the original contract signed amount generally shrink, and originally known as 1.6 billion Anshan project and 1.2 billion of benxi projects have been shut down, and 1.2 billion of Datong Wen Yinghu and Jinzhou World Park and many other projects due to the local debt crisis was difficult to return. Gorgeous "Big single" Behind is actually a feather. Although the performance of Oriental garden has been increasing for many years, it is accompanied by high accounts receivable and inventory. From 2008 to the end of 2012, the main business of Oriental Garden grew nearly 10 times times in 4 years, from 416 million yuan in fiscal year 2008 to 3.938 billion yuan. However, accounts receivable increased at a higher rate, from the end of 2008 to 85 million yuan, to 1.727 billion yuan at the end of 2012, increased by 20 times times. And inventory is more than 3 times times the main business income growth rate accumulated. In 2008, the figure was only 95.88 million yuan, and by the end of 2012 it had reached 3.562 billion yuan, increasing by 35 times times over 5 years. Oriental Garden 2013 years in the publication of the number is shocking, as of the end of the report, Oriental Garden Accounts receivable has reached 2.098 billion, inventory has soared to 4.52 billion. In addition, the Oriental Garden is also exposed to the suspected competition and the transfer of interests to major shareholders. "Big single" Gao difficult to appease the recent, the Audit Commission in the country set off the local debt audit in the continuous fermentation. and Oriental Garden is one of the people who bear the storm. The project generally encountered back difficult, gorgeous "big single" change body feather. Oriental Garden on November 27, 2009 landed a-share market, with the release of the "Big single" positive, since the listing has been rising prices. May 2010 11Day, Oriental Garden announced that with the Datong Garden Greening Center signed the "Datong Wen Yinghu Project Landscape Project Contract", the total contract amount of 1.2 billion yuan. The contract announcement, Oriental Garden that day share price was sealed up to stop the board and eventually Rose 8.86%. Immediately thereafter, May 24, the Oriental Garden issued a very good announcement, said the company and Anshan City construction Company signed the "Anshan Urban Landscape Engineering Cooperation Agreement", the total investment of about 1.6 billion yuan. Announcement, the unit will be sealed to trading board, reported a high price of 174.22 yuan, just about 7 months to become a new generation of the first high price stocks in Shanghai and Shenzhen. But what is the current progress of the so-called "Big Bill" that brought Oriental gardens to the altar? Industry insiders said, landscape engineering generally to two years, then we push two years, to the Oriental Garden August 2011 until November 2009 when the listing of the project for inspection of the subject matter for each audit. Oriental Garden from 2009 to the first half of the 2011 signed more than 200 million yuan in the project has 9, 9 projects, the smooth completion or ongoing projects have 6, the shutdown or planning of the project there are 3, shutdown rate of 33.3%. And the original so-called 1.6 billion Anshan project and 1.2 billion of benxi projects have been shut down, 1.2 billion of the Datong project and 1.133 billion of the Jinzhou World Park project have encountered difficulties. According to the 5-3-2 Model of Oriental garden (after the completion of the mat capital should be 50%, after the completion of a year 30%, the remaining tail section 20% to be completed two years after the collection, 1.2 billion of the Datong Yinghu project so far earlier than the three-year settlement period, should receive the project paragraph 80%, but the Datong side of the current only pay 423 million yuan, if deducted from the early Oriental Garden 30 % of the Cushion fund and the interest cost, the item can be said to be a profit-making yell. The first phase of the Jinzhou World Park project was signed in June 2011, completed in April this year, the contract amount is 799 million yuan, according to 532 mode, the completion of Oriental garden should be 50%, that is, about 400 million yuan. But so far, the actual collection is only 245 million yuan. At this point, the Oriental Garden signed more than 1 billion of the big single, almost all encounter the "Waterloo", gorgeous "big single" unexpectedly degenerate into a feather. In addition, the Anshan project has been questioned by the public opinion is the Oriental garden manipulation of stock price chips, because Anshan project from the beginning is called impossible to complete the project. "Anshan Finance Bureau 2010 Budget (draft) Report" shows that 2010, Anshan Urban and rural community affairs (including Urban Infrastructure investment) Spending arrangement of 2.02 billion yuan, and the Anshan government and Oriental Garden signed projects, the total investment on the project is about 1.6 billion yuan, it is clear that Anshan can not come up with nearly 80% of the budget, only to operate the urban landscape project. With a flower company in Beijing, the senior revealed that the Oriental garden in the market before the low price and low profit is known, and after the listing of this model played to the extreme. A broker in the garden industry analysts told the value Line reporter, "Oriental Garden is the first advance payment after the operation mode, this model is also the operation of Garden Enterprises municipalThe main mode of the project, make the Garden enterprise formed a large amount of accounts receivable. However, unfortunately, the Oriental Garden encountered a local debt problem, accounts receivable is difficult to recover, and the BT model (first cushion after the collection of funds) and decided to continue to cushion the money to go out, become a vicious circle. "From the information announced in the Oriental Garden in recent years, the company's major single clients are mostly local governments." August 1 This year, the Audit Commission began to the central, provincial, city, county, township 5 levels of government debt for thorough mapping and evaluation. Main landscaping project business of the Oriental Garden in the national inventory of local debt under the background of significant pressure. A manager of the Shanghai Garden and Greening Industry association said, "landscape engineering generally to 2 years, in accordance with the Oriental Garden 5-3-2 mode, that is, the most ideal state from the fund to return to the funds required 4-5 years, the cost of capital by 7% per year, Oriental Garden even 35% of the gross margin is still in the loss to make a yell ... ... "Cushion financing Project-disclosure big single-push high stock price-equity pledge-make up the fund gap, if it is not the local debt crisis that broke out in recent years, whether Oriental garden can follow this kind of cycle to go down is unknown, but this kind of big single" Gao "Blow big bubble is doomed to be difficult to long, This model brings unprecedented capital return to the Oriental garden, but it also brings unprecedented risk, so that the debt rate of Oriental garden is far more than that of the same industry company, accounts Receivable is high all the year round. The 2013-year report shows that the short-term interest-bearing liabilities of the Oriental Gardens soared to 1.8 billion and the cash flow was 336 million yuan. Meanwhile, in the first half of this year, Oriental Garden Accounts receivable for 200 million of the bad debt, and before that, Oriental garden has been a bad account has been 0. A senior accountant pointed out that for the construction enterprise accounting statement, the bad debt has two main hiding places: one is Accounts receivable, the other is inventory. and Oriental garden revenue and share price growth is also eye-catching, has been criticized by investors is its high accounts receivable and inventory growth. If the previous problems were overshadowed by the soaring stock prices of oriental gardens and the expectations of high returns, now, as the local debt crisis continues to ferment and the "big single" has repeatedly shut down or shrink, the problem of bad loans in Oriental Gardens began to appear. From 2008 to the end of 2012, the main business of Oriental Garden achieved nearly 10 times times growth in 4 years, from the last fiscal year before the listing of 416 million yuan to 3.938 billion yuan. With the main business income growth is accompanied by the increase in accounts receivable at a higher rate, from the end of 2008 to increase by 85 million yuan to 1.727 billion yuan at the end of 2012, increased by 20 times times. In these accounts receivable, although most of the age within 3 years, but there are more than 6% of the proportion in 3-5 years. This makes Oriental gardens have to be rare in the first half of this year to mention 200 million yuan in bad debt preparation. Before that, the eastern garden of the bad debt count has been 0. The government is the absolute big head of the big debt. As of the end of June this year, Datong City Garden Authority arrears of 340 million yuan, ranked first, accountAge is 3 years. Second, Shenyang Valiant new City Investment Management Co., Ltd., Jinzhou World Park Construction Management Co., Ltd., Yingkou Coastal Development and Construction Co., Ltd. and Binzhou Economic Development Zone Management Committee, the amount is about 200 million yuan. The above five customers all have the national capital background, either directly is the municipal unit, either is the wholly state-owned or wholly funded subsidiary. One side is to seek the project by the local government cushion, on the other hand, the local government debt crisis is faced with the difficulty of breaking back, resulting in the high receivable and inventory, which eventually leads to the exhaustion of cash flow. According to the 2013-year report, the short-term interest-bearing liabilities of the Oriental Gardens soared to 1.8 billion and the cash flow was 336 million yuan. One accountant who has worked for many years said, "according to the current capital situation of the Oriental garden, it is impossible to support it to complete the 33.5 billion yuan in the August 7 announcement of the outstanding orders, must be completed in high price refinancing, otherwise even normal operation will be unsustainable." In addition, Oriental Garden inventory in 3 times times the main business income growth rate accumulated. In 2008, the figure was only 95.88 million yuan, and by the end of 2012 it had reached 3.562 billion yuan, increasing by 35 times times over 5 years. This means that the completed project, which accounts for nearly 90% of the total income, has not been settled with the customer. Zhang Jingyu, an Asia-Pacific accounting firm, analyzes the financial statements of the Oriental gardens, and thinks that as much as 4.52 billion yuan of inventory is the real gathering place for the risk of Oriental gardens. On the one hand, a large number of engineering construction inventory can be smooth change is unknown; on the other hand, the false disclosure of Accounting subjects-inventory sub-subjects, is also a major mishap in its information disclosure. Taking the 2012 annual report of Oriental Garden as an example, its inventory contains raw materials (338,900 yuan), expendable biological assets (265.6 million yuan), engineering construction (3.296 billion yuan), of which engineering construction accounted for the vast majority of the proportion. Zhang Jingyu pointed out that, according to the "Enterprise Accounting standards 15th-construction contract Code" and the Ministry of Finance 2003 "Construction Enterprise accounting system" requirements, supplementary statements in the inventory should be disclosed under the sub-subject-"Completed outstanding accounts", rather than "construction". In fact, "construction" and "project settlement" are intermediate subjects and should not be reflected in the financial statements. In the preparation of financial statements should be the two to offset, the formation of "completed outstanding funds." From this point of view, the Oriental Garden in the annual report accounting notes of the disclosure, there is a major error, that is, the sub-subjects in inventory-"construction" did not subtract "project settlement", resulting in data distortion. In the construction enterprise, the "completed outstanding" is the most easily hidden cost, adjust the profit of an account. Under the crisis of transition, market fundamentals have changed quietly. In the first half of this year, the new framework agreement and construction contract for Oriental Garden were 11 billion yuan and 2.4 billion yuan respectively, reducing 2.1 billion yuan and 570 million yuan respectively, and the contract for construction project was about 4.5 billion yuan, which rose about 500 million yuan from the end of 2012. Oriental Gardens also seem to notice the risk of being clustered. In the 2013.5 Annual report, the publicDivision said that the first half of the company will be how to reduce the risk of return as the business of the most important. According to the Oriental Garden Dong Wu Jianjun introduced, 2012 is the new and old collection mode handover year, due to the Oriental garden industry Status and visibility, the second half of 2012, the company and local government negotiation capacity has been strengthened, the payment model all to 622, 631, 721 or 073 of the way. But a private equity manager who has just researched Oriental Gardens has pointed out that in the context of the local debt crisis continues to ferment, the change of payment method is not the root cause, if the local government has no money, even if the completion of the request to pay 80%, what is the significance of it? According to people familiar with the matter, the overall view of Oriental Garden started last year 3.9 billion, the collection of 1.6 billion, the proportion of receivables still not more than 50%. At the same time, Oriental Garden emphasized to continue to promote the land security model, and strengthen the internal assessment, greatly improve the proportion of the internal evaluation index. Oriental Garden Securities Department representative Tang Jianjun introduced, the logic of the land guarantee mode is that after the enterprise has done the project to the government, the government needs to pay the funds in time, the government can not pay the funds to sell the land, "the government must make the construction must sell the soil, now the real estate in the regulation, but does not represent the land market not As long as the government lowers the price a little, it can sell, so it is guaranteed. "But a brokerage researcher expressed concern," the actual effect of land security is not very small, such as those who are not north of the relatively backward three or four-line cities, in the current real estate control economic environment, the land is not good shot, the money is not so simple. At the same time, the researcher said that even if there is land security, the financial fund is in place mainly, "what is the situation in place who can say clearly?" "In addition, Oriental Gardens put forward a strategy to return to the big cities, the top 50 of GDP will become its target city, select strategic City quality projects." The selected projects will focus on the main urban park landscape, road greening and the Mother River on both sides of the greening and water ecological governance, in order to reduce the overall risk level of return. From the company's current disclosure of orders, the current large list of Oriental garden almost all concentrated in the two or three-line city, or even county-wide, its customers are few of the top 50 GDP cities. Suspected trade competition and the transfer of interests to major shareholders Oriental garden and the listed company Oriental Gardens are not just affiliated companies. In the establishment ceremony of the Oriental City, He Chao to Orient City location is: Oriental City is the brother of Oriental Garden. As of September 6, Oriental Garden Total Market value 202.60, net assets 2.992 billion, the city net rate is 6.77. Every time a big single sign makes the Oriental garden price soar. Along with large single, there are large shareholder He Chao of multiple equity pledge, the market once questioned the capital chain of Oriental Garden is facing tension. In response to investor inquiries this year, Oriental Gardens mentioned that only 28 million of the more than 95 million equity stakes in the women's pledge from last November to this March were pledged to the Beijing Bank Yanjing Branch, which was used to guarantee the credit for the company and otherThe pledge of about 70 million shares is not related to the listed companies. So where does all this money go? According to one person familiar with the situation, most of the funds for the women's pledge flowed into the property company, located in the eastern city. Oriental Garden Chairman, the actual controller He Chao 2011 The end of the establishment of the eastern city of the Land Company Limited, the shareholding structure: Zhang Cheng Direct ownership of the Oriental City 10.53%, He Chao directly holding the eastern city of 42.1% of the equity, through the Oriental Garden Industry Co., Ltd. to hold the Oriental City 47.37% of the stake, Total shareholding 89.47%, for the Oriental city's controlling shareholder. He Chao and Tancai were the actual controllers of Oriental City. Oriental City Land is a affiliated company of Oriental Garden, nominally is a real estate development company, and Oriental Garden does not exist in the competition (Oriental garden positioning for the urban landscape system integrated operators, the main business for the municipal Garden planning, design and construction), but in fact, many Oriental city land projects and Oriental garden exist in the competition, Even have the use of Oriental Garden listed company identity Resources for the east of the city to take orders of the suspicion. In the exact sense, Oriental City land and the listed company Oriental Garden is not only affiliated companies. In the establishment ceremony of the Oriental City, He Chao to Orient City location is: Oriental City is the brother of Oriental Garden. Oriental Garden said, the company is a comprehensive urban landscape system operators, the main business for the municipal Garden planning, design and construction. Oriental City Land is a real estate development company, and Oriental Garden does not exist in the competition. However, in the place where the Oriental city is placed, there is a shadow of Oriental gardens everywhere. The integrated operation of urban landscape of Oriental gardens and the so-called Park complex development of Oriental City land are more and more tangled. One out of the eastern city of the listed companies under the banner of a single section of the bridge frequently staged. August 2012, Zhangqiu Government portal released news: Zhangqiu Mayor Liu Tiandong representative Zhangqiu and Beijing Oriental Garden Project signed the Jinan embroidery Source River Scenic City Complex Project cooperation agreement, investment up to tens of billions of yuan. In fact, the end of the agreement with Zhangqiu is the Oriental City Land Company. March 2013, Wuxi official website of China's Wuxi Network released a message that the Oriental Garden is the national first-class professional engaged in landscape planning, design, construction of listed companies, Oriental Garden will invest 5 billion yuan to build Wuxi Yangshan Oriental Pastoral Project, planning a total area of 6246 acres, A large rural complex with ecological agriculture as the main body will be built in Huishan District Yangshan. And the Wuxi municipal government propaganda Draft declared the listed company Oriental Garden is also He Chao "youngest son" Oriental City place. If these are the so-called real estate projects, then, in 2012, the eastern city of Wenzhou Yellow Stone Park to undertake the project should be regarded as a comprehensive urban landscape operation category. And the Oriental Garden has already belonged to the naked competition. With the help of the halo of Oriental Gardens, the clarion Call of Oriental City home charge rang, in May 2012, at the 15th annual China (Chongqing) international Investment and Global Sourcing conference, Oriental city landand Zhongqing Jiulongpo District Xicheng Administrative Committee signed an investment agreement, investment 6.5 billion in the west side to build urban complex. For Oriental City land, Xicheng project is Chongqing's first single, but for Oriental Gardens, Chongqing is not unfamiliar. As early as 2001, Oriental Garden in Chongqing has set up branch offices, then the first chairman of the Board of Supervisors Guo Yulin as a legal representative of Chongqing Branch, however, the company quickly due to arrears of staff wages, arrears of suppliers and the human evaporation, soon Chongqing Branch business license was revoked by the business sector. The same license was also revoked by the Chengdu branch. But these are supposed to be disclosed in the Oriental Garden IPO when the disgraceful past has been dust-laden company. A few years later, He Chao by virtue of the Oriental city in Chongqing Glorious return, and in Chengdu, the license revoked in Chengdu Branch was resurrected this March, reopened. (Zhao Pillars) extended reading: He Chao Family Wealth Password/age: 47 years old/Hometown: Zhejiang Jinhua/job: Chairman/Company Headquarter: Beijing/Industry: building Materials/shareholding ratio: holding 65.02% equity Shareholder status: The actual Control person Oriental Garden Chairman He Chao and his husband Tancai hold the listed company Oriental Garden 65.02% shareholding. As of July 5, He Chao family wealth reached 14.706 billion yuan, ranked 30th in China's family wealth list. In fact, He Chao never so eye-catching, family wealth over Guanqiu, Zhang Jindong, quite unexpected. From the stall selling bonsai, flowers to the Beijing Olympic venues Greening, Beijing Oriental Plaza and other projects, and then to start this year, the seedlings of the electric quotient, from Wuyi County, Zhejiang Province, He Chao is constantly creating a miracle. Interestingly enough, He Chao in Beijing in recent years to have their own property, just before the listing, she also lived in rented house, open the staff are The small old car. But the rapid accumulation of wealth has driven the aspirant to pursue more profits in the industry, and if she succeeds, garden + real estate will continue to inflate the family's fortunes. If you put wealth in the family, the most important wealth of the woman first came from her father. 1984, was engaged in the flower seedling business Father influence, He Chao to high score into Beijing Forestry University. This is why the clever woman opened the road of future wealth. This simple business model has become the primary capital accumulation means of China's largest garden company. 1994, when the north of the four ring, Airport road or everyone in the eyes of the remote city outside. But a building that specializes in selling to foreign people is springing up here, He Chao See is also unlimited business opportunities. She took the construction team to work in these real estate greening works. At the moment she has completely abandoned the role of bonsai sellers. Outside the city, supervision is lax, but the profit is not thin, her original capital is in the most original real estate gardening projects gradually accumulated. Also in this year, she met her future husband Tancai. He is currently vice-chairman of the Oriental Garden and is the most important member of the company's board of directors. 2000, Oriental Garden Group was established. With a strongLarge financial backing, Oriental Garden began to enter the stage of industrial development. At present, the company has a number of Beijing, east China, South China and other parts of the engineering department and the real Estate landscape Engineering Department, as well as garden Plant Research Institute, garden products companies and many other institutions. Completed a number of well-known projects in Beijing, which, in the Export Villa area landscape design, has accounted for 70% of the market share. In the 2006, the girl had a son. This year, she has been married for 10 years. This year, she has been 40 years of age. 2007, He Chao's Oriental garden income of more than 270 million yuan, net profit close to 40 million yuan. "If the first venture is the primitive accumulation stage, the second venture is the standardized management process, now the Oriental Garden has entered the Take-off stage." He Chao said, is now the whole industry to the transition period of industrialization. 3 years later, the listing of Oriental Gardens is finally on schedule, which will be the most important catalyst for her wealth. He Chao to attend the training organized by the regulatory department. She found that the original now gem, the majority of enterprises listed in the SME, and her, as early as 10 years ago for the gem excited. In the hundreds of companies lined up in the gem, they persisted for ten years and finally tasted the fruit of the capital market. On the eve of listing, Oriental Garden meets in the SFC. The person in charge looked at the data and asked a question: "The Chairman of the Board of Supervisors is your husband, couple file, how do you supervise each other?" "Before the IPO, the former chairman of the Eastern Garden's Board of Supervisors had just died, and Tancai was once again" caught by his wife "in order to replace the vacancy. In an interview with reporters, Oriental Garden said Tancai as the chairman of the Board of Supervisors is only a temporary transition, the next session of the Board and the Board of Supervisors re-election, he will no longer hold this easily criticized position. August 14, 2009, Beijing Oriental Garden IPO approved by the SFC, become the first domestic landscape listing. Listing Thank you, He Chao standing behind the Tancai, standing Zhao Dong, Li Jianwei, Deng Jianguo, Fangyi, Wu Jianjun and other people. Among them, Wu Jianjun was born in investment bank, Fangyi from Citic Securities. Of the 10 executives who got their shares in 2007, and the 5 in 2001, only one of Fu's names overlapped, and she taught at Beijing Forestry University. After the high level of exchange, He Chao not without Lonely said: "Only she left." "One of the trade announcements in Oriental Gardens is to buy a tea garden." The garden belonged to He Chao's father, and the more than 70-year-old man still worked every day in the garden, taking care of his vegetation, and persuaded him not to rest. The old man had to stop working until the garden was bought by the Oriental Garden. Her staff privately said: "The original can-do is hereditary." "This can-do is the most valuable asset He Chao inherited from his father and the most important gene for the success of the He Chao family." (The Pillars of Zhao) (Source: Value line of listed company)