Huachang chemical industry relies on subsidies to avoid "hats" year after year loss risk accumulation

Relying on government subsidies, Huachang Chemical industry (002274. SZ) turned a profit in 2013, but it did not obscure the "dismal" performance of its main business. 2013 Annual report shows that the company's reporting period to achieve operating income of 4.243 billion yuan, compared with 2012 the same period of 3.981 billion yuan growth of 6.58%; The net profit attributable to the shareholders of the listed company is 13.1926 million yuan, the increase of 116.61% in the same period in 2012, but in the "deduction of non-recurrent Profit and loss" (hereinafter referred to as "deduction"), its net profit is 60.2349 million yuan. It is noteworthy that in the 6 years of Hua Chang Chemical listing, "buckle" after the net profit loss of the year reached 4 times, which means that if there is no "non-recurrent profit and Loss" of "help", Huachang chemical rely solely on the main industry or early "Beatles hat." More strange is, in the sales costs (mainly freight) year-on-year decline in the case, Huachang chemical industry to achieve a year-on-year growth in business income. Depending on the subsidy "swung" according to the Huachang Chemical 2013 year Report, its "non-recurrent profit and Loss project" reached 73.4275 million yuan, this number is 12.4297 million yuan in 2012 490.74%, in fact, in the past three years, Huachang chemical "non-recurrent profit and loss project" Show the trend of increasing year by day, 2011 This figure is only 6.0215 million yuan, three years time to increase 10 times. The main reason for the surge of "non-recurrent profit and loss project" in 2013 was that the "government subsidy on the day's profit and loss" reached 96.5652 million yuan, while in 2012 the figure was only 7.1038 million yuan. Huachang Chemical 2013-Year quarterly display, its net profit is-15.4728 million yuan, obviously, if not up to nearly billion of the government subsidy, Huachang chemical industry is to be in 2013 to appear huge losses. 21st century economic reporter to review the 6 annual report of Hua Chang Chemical market, after the discovery of the 2008 listing and 2011 years, Huachang Chemical remaining 4 years after the "buckle not" after the net profit of all negative. Huachang Chemical Annual report data show that its 2009 net profit is-99.4172 million yuan, "buckle not" after 113.7642 million yuan, 2010 net profit of 10.3789 million yuan, "buckle not" after 15.4438 million yuan; 2012 net profit is-79.4161 million yuan, " 91.8458 million yuan after the deduction. A fund manager who went to the Hua Chang Chemical Survey told the 21st century economic reporter that if it wasn't for the land transfer gains and government subsidies in 2010, "Huachang should have lost more than 10 million, rather than more than 10 million, in that year." "Hua Chang Chemical 2010 Annual report shows that its" non-recurrent profit and loss project in the year to obtain a 22.9068 million yuan "non-mobile assets disposal profit and loss", mainly transfer of land use rights gains, but also received 11.6845 million yuan "into the current profit and loss of government subsidies." Because Huachang chemical in 2009 wasLosses, if the 2010 continued to lose money, the company will be Shenzhen Stock Exchange to implement the "Exit Risk warning" (that is, St.) treatment, so the above "non-recurrent profit and loss" to make the Hua Chang chemical "swung". Now, "Triando", Huachang Chemical industry in 2012 after the huge losses, in 2013 again using the government subsidy "turn" to make it once again escaped the "ST" risk. Short-term solvency risk "looming" in the business income growth of 6.58% per cent in the background, the 21st century Economic report reporter found that Huachang chemical sales costs have been reduced year-on-year. Huachang Chemical 2013 Annual report shows that its 2013 sales cost of 91.8911 million yuan, compared with the 2012 period of 93.1136 million yuan reduced 1.2225 million yuan, down 1.31% year-on-year. A CPA in Jiangsu told the 21st century economic reporting reporter, theoretically, in the operating income growth, sales costs should also increase, "also do not rule out special industry special circumstances, perhaps Huachang chemical prophase marketing is good, later sales costs on the corresponding reduction also can not be said." "In the 2013 annual report of Huachang Chemical industry, the cost of sales includes" freight, salary, advertising, insurance, hospitality, travel and other ", and the biggest decrease is freight. Its 2013-year freight is 55.6109 million yuan, compared to 2012 63.1468 million yuan reduced by 7.5359 million yuan, the decline reached 11.93%. "For the manufacturing enterprise Huachang Chemical Industry, can reduce the freight costs more than 10%, still can do business income growth 6%, it is really incredible ah!" "The CPA said that the Huachang chemical industry can do so to reduce costs and increase revenue, the performance should be very good," theoretically does not need to rely on government subsidies to turn around. Another issue that has emerged in the 2013 annual report is the looming short-term debt-servicing risk. Huachang 2013 Annual report shows that its total assets of 5.145 billion yuan, the total liability of 3.269 billion yuan, the ratio of assets and liabilities of 157.39%. However, its short-term solvency indicators are not optimistic, its current assets at the end of 2013, 1.71 billion yuan, the current liabilities of 3.101 billion yuan, the flow ratio of 0.55, and in the minus 429 million yuan prepaid and 431 million yuan inventory, the rapid rate of only 0.27, short-term debt risk is self-evident. In addition, the Huachang chemical industry at the end of 2013 monetary funds for 358 million yuan, the cash ratio of about 0.12. "Quick ratio generally indicates that every 1 of the enterprise's current liabilities have 1 yuan liquidity to be readily realizable to compensate, short-term solvency has a reliable guarantee." "In the view of the fund managers, the quick rate is too low, the short-term solvency of enterprises is greater," Hua Chang chemical such a low speed ratio is indeed worrying, and the cash ratio can accurately reflect the direct solvency of enterprises, too low means that the risk is very large. "On the other hand, Huachang chemical in July 2013 just refinancing 439 millionYuan has been spent, its short-term borrowings at the end of 2013 as high as 1.949 billion yuan, this figure than the end of 2012 more than 242 million yuan.