An investigation into the soaring of Oriental gardens The mystery of sky-high contracts

May 24, following the last trading day strong trading, Beijing Oriental Garden Co., Ltd. (002310. SZ, hereinafter referred to as "Oriental Garden") once again sealed trading, to 174.22 yuan closing price, suddenly become the new shares king. May 26 More to create a new high of 185.30 yuan since the IPO. Within one months, this city landscaping construction as the main business, before the obscure SME, the recent frequent in various places to obtain large orders, the contract amount has exceeded its 2009 main operating income several times.　　Subsequently, the "political achievements" of the project model is difficult to continue, the performance surge is intended to achieve equity incentives, the company was suspected of internal transactions, and so a series of questions, so that the new shares Wang Oriental garden into a swirl of public opinion. "There is no clear evidence that there is insider trading in Oriental Gardens and fund agencies, but it is possible," he said. Huatai Securities analyst Zhung told The Times weekly reporter, Oriental Garden Vice President, Dong Secret Wu Jianjun refused to answer this, and "accountability" from The Times weekly Reporter: "If continue to hype this problem, I will find you." "Image Engineering" query "This is the mayor of Shanxi Datong Misting project." Wu Jianjun talks about the recent signing of the Oriental Garden of the Shanxi Datong Yinghu project not without complacency.　　It is this high-profile announcement of the contract, so that the Oriental Garden embarked on the road of the king. May 11, Oriental Garden issued a notice, May 7 signed the "Datong Wen Yinghu Project Landscape Project Contract", the total contract amount of 1.2 billion yuan, the project scale of about 4 million square meters, the contract period of two years. "Wen Yinghu has been working for seven or eight years, to engage in gardening?"　　"In the face of the Times weekly reporter consultation, datong southern suburb of Yinghu near the shanty town residents Levin questioned." May 20, 6 kilometers away from the city of Datong, Wen Yinghu embankment, a "Wen Yinghu scenic spot" After the sign, is dried up can smooth driving heavy vehicles of the lake, less than 20 of the construction team is being fragmented doing earthwork. "We are not Oriental gardens, it is the white pagoda." The site builders said with a strong northwest accent. May 25, Wu Jianjun explained, "That is outsourced professional construction team, any project must start from Earth." Even more surprisingly, the government officials in Datong have no knowledge of this "key project". "The project is approved by the Datong Planning Board." However, the project details are not understood. Datong City Planning Bureau Discipline Team leader Su Yaolin to The Times weekly reporter confirmed. Shengwen, deputy director of the Center for Economic Research at Datong Government, Houtongshen, director of the News center, also said he was not aware of the project. "Not clear about this project, even if there is this project, which has so much financial support ah?"　　Si Yufu, chairman of Datong National Travel, knows nothing about the center of the East New zone and the tourist attractions of the future. At the same time, 1.2 billion yuan of capital investment and the source raises more questions. Oriental Garden announced that 1.2 billion funds to build a yinghu about 4 million square meters of landscape engineering. "Datong Current urban real estate pure cost per square meter less than 1000 yuan, Wen Yinghu in the suburbs lower, landscaping every square meters to 300 yuan, the price is obviously on the high side.　　"A professor of the University of Datong's business school told the reporter of the Times. According to the Datong Daily report, the same is the government's focus on landscaping projects, nearly 4 million square meters of area, the Yangtze River Delta Construction Investment Group of the Royal Rivers Park, the ten-Li River Forest Park Greening project, investment of only 500 million yuan. "$ 300 per square metre, just a valuation, ultimately how much money to see the actual number after construction."　　Wu Jianjun said the announcement was just a valuation, not a final real income. According to the Oriental Garden Bulletin, 1.2 billion of the funds were raised by the government. However, for this year's public construction budget 1.1 billion of Datong, 1.2 billion of capital investment, even if divided into two years still overweight. "I'm a little worried about being able to finish in two years. Wang Jianbao, director of the Datong Garden administration.　　A number of Datong government officials in the interview on the Datong government two years 1.2 billion of the capital investment are cautious attitude. "The amount of funds in municipal projects, the slow return, is a typical feature, the 1.2 billion period is not 2 years."　　Wu Jianjun said, the Oriental garden within 2 years of the monthly recovery is only the project progress money. The political achievement pattern deadlock Datong Wen Yinghu project, only is the Oriental garden "the achievement" the project pattern one sample. In half a month, Oriental Garden signed more than 3 billion yuan contract. May 12, Oriental Garden and Hebei province Zhangbei County government signed two framework agreements, the agreement amount is 180 million yuan and 59.7 million yuan respectively. May 24, the Oriental Garden issued a great announcement, said the company and Anshan City construction Company signed the "Anshan Urban Landscape Engineering Cooperation Agreement", the total investment of the project is about 1.6 billion yuan. "This is just the amount of money that will be negotiated and may change when the project is specifically carried out."　　"Wu Jianjun said. According to the Oriental Garden Bulletin Statistics, up to now, Oriental Garden has signed 3.585 billion yuan this year orders, is 2009 584 million yuan operating income of more than 6 times times. No exception, 3.585 billion yuan orders all from the government municipal garden engineering orders. However, the problem of the short-term rate of return, with the sharp increase in orders and the focus of the project will be more prominent. "The municipal orders are larger, the scale efficiency is obvious, the defect is a low rate of progress."　　"In Wu Jianjun's view, this is the operating advantage of Oriental garden," We are listed companies, more abundant funds. According to the Oriental Garden earnings, the company's operating cash net flow last year for-114 million yuan, the first quarter of this year-184 million yuan: the unit time in the East garden back to the capacity of the problem, and cash flow negative is becoming larger. "It's not a problem to look at our earnings money."　　Wu Jianjun replied. The outside world is clearly more cautious than an understatement. "In the near future, the problem is not big, because the Oriental garden is not very competitive, if it has a few more competitors will be a bit difficult."　　Huatai Securities analyst Zhung to the Times weekly reporter analysis said. "We do project to avoid leading individual behavior, the project is decided by the Government meeting, is decided by the government collectively, will notBecause the change of a certain leader poses a risk. "This is also a way for oriental gardens to evade risk," Wu Jianjun said. However, the Oriental garden, which has always claimed to be a project to avoid leading individual behavior, was reported by the Economic Observer in March this year, when He Chao, chairman of the company, took part in CITIC Securities activities and said, "the company's projects are basically what I want directly from the mayor." More subtly, Fangyi, vice President of Oriental Gardens, former chief executive and treasurer of Finance, has served as Citic Securities (600030). SH) Senior vice president of the capital Markets department, who now owns 1% per cent of Oriental gardens.　　The underwriters of the Oriental Gardens, Citic Securities, are the 60%.　　Irrelevant equity incentives? April 13, Oriental Garden released a message that the company proposed to 75 middle managers to give a total of 2 million stock options, the right price of 129.98 yuan/share, the right to the condition of 5 years net profit cumulative increase of 5 times times.　　The stock has climbed high. January after the Oriental Garden announced that the signing of the Yinghu landscape renovation project, the day the stock to limit the opening, followed by a series of positive stimulation of the stock rising.　　According to the Oriental Garden Equity Incentive Plan, the 2 million stock option incentive target, only includes the Headquarters management personnel and the Business Department management personnel and the core technical business personnel. The plan shows that the company's 2009 net profit as the base, the first line of power period, the company 2010 net profit growth rate of 80%, the second line of power in 2011 to 140%; The third line of power period 2012 reached 225%, the fourth line of power period 2013 reached 340%,　　The fifth line of power in 2014 reached 500%, that is, from 2010 to 2014 net profit growth rate of about 80%, 33%, 35%, 35%, 36%, 5 year net profit need to increase the cumulative 5 times times. Equity incentive plan announced one months later, the Oriental Garden orders, stock prices continue to climb, is considered to be conducive to the realization of equity incentive plans to achieve oriental garden backbone personnel "build rich." "The company's huge orders are growing, the performance data will certainly be quite beautiful, conducive to the implementation of the equity incentive plan."　　Founder Securities analyst Chen Guangyao said. However, Wu Jianjun denied that there was a direct link between the company's good news release and the promotion of equity incentive schemes. "Corporate performance growth and equity incentives are two issues." The release of good news is in accordance with the requirements of laws and regulations, is our obligation is also the responsibility of listed companies.　　"At the same time, Wu Jianjun stressed that the equity incentive scheme, involving people are mid-level, does not involve an equity incentive to the executive, the aim is to unite the backbone of the company, rather than" build wealth. " Denying insider trading May 24, Oriental Garden issued a notice, May 21 and Anshan Urban Construction Investment company on the Anshan City landscape project construction matters reached agreement, the landscape area of 5.35 million square meters, the total investment of about 1.6 billion yuan. It is noteworthy that, May 21, the announcement of the previous trading day, Oriental garden all the way low open high, noon has been trading。　　At this point, the Shanghai Composite Index is still struggling to the point of rise and fall, Oriental garden on the day is far stronger than the market, the transaction amount is nearly one times more than the previous session. "The day the market rebounded, our share price rise is normal." "Wu Jianjun does not agree with the above statement. However, May 24, "Daily economic news" report questioned that the Oriental garden significant positive release before the volume limit, suspected insider trading reappear.　　In the "manipulation of securities markets and insider trading standards for prosecution" just clear, the two institutions in the grand share of the wind after the crime, Oriental Garden was again questioned. "This question is too sensitive, I refuse to answer."　　Wu Jianjun to The Times weekly reporter said because the work is busy have no time to read related reports. "The company contracts with the government, such information is easily leaked, there is no evidence that there is insider trading." An analyst at Aviation Securities said. Huatai Securities analyst Zhung also said, "There may be some insider trading, but there is no clear evidence and public information displayed."　　May 11, Hengtai Securities analyst Li Xianyong analysis of the day public trading information pointed out that the seller's top five for the exclusively of the organization seat, the total selling amount of up to 113 million yuan, accounting for the total turnover of 23%, the organization every high drop bag for Ann signs obvious. China Times reported that as of the end of the first quarter, the floating shareholders in the Oriental Gardens had poured into 13 funds, with a 180% increase in holdings over the previous quarter, and a 19.93 per cent share of the total capital stock in the fund. The report questioned the agency, the fund has pushed the Oriental garden price suspicion. "You look at our annual report, the organization has come in from before the listing, are now retail investors in speculation."　　"Wu Jianjun said. Zhung, an analyst at Huatai Securities, said, "some regulatory departments are not very strict, the company sometimes play a ball." If the stock is good, no problem. But once there is a problem, someone will be in charge. ”