Sheng Resource Acquisition Case gross profit margin abnormal high interest expense background unknown

Sheng Resources (600392) February 27 issued a foreign asset acquisition announcement, planned to 236.8 million yuan to evaluate the value of the purchase and the new Materials Investment Co., Ltd. 40% Equity; Subsequently, the company issued a targeted additional plan on March 8, the plan to 17.37 Yuan/unit price directed issue 35 million shares, This financing of 607.95 million yuan is all used to replenish liquidity. According to the latest issue of the company's balance sheet, the balance of capital and resources is as high as 355 million yuan, all liabilities are only 243 million yuan, while the ratio of assets and liabilities to less than 20%, The liquidity ratio is as high as 5.61, which is already a super high level in traditional industrial enterprises, and there is no problem with the solvency and liquidity of the company, so what is the "supplementary liquidity"? It is inferred that the sole purpose of the full and resource-carrying refinancing may be to raise funds for acquisitions and a 40% per cent stake in the trust. The key is why the company is not directly designated for the direct issuance of shares to acquire assets of the scheme, but to take the first additional, cash acquisition of this "bypass" plan? Of course, this may be because and a letter of the original shareholders, for the Sheng and the resources of the shares do not "cold", the Sheng resources of the prospects of the stock price is not optimistic, willing to accept the currency to the price more down-to-earth. But there is also the possibility that Shing and the resources will avoid a more rigorous vetting process by preventing regulators from submitting and believing in more detailed information. If this is the second possibility, then the actual operation of the company is worrying, whether it is as optimistic as information disclosure? Although the holdings and resources have yet to disclose details of acquisitions and trusted asset evaluations, there are a lot of doubts about the disclosure and the letter of the audit reports. The purchase of the marked gross margin abnormally high main rare earth oxides products and a letter of the main business for processing, which is the main business with Sheng and resources are basically the same. Generally, the gross profit margin of such business is greatly influenced by the overall level of the industry, the performance of other companies in the industry should be broadly the same, but the 2013 gross margin of the opposite and trusted companies jumped to 41.37%, compared with 9.95% in 2012, and from the perspective of targeted and trusted assessments, It is expected that the future annual gross margin will be further increased to more than 50%, is the Rare-earth industry profitability is so sustained to be bullish? In stark contrast, whether it is rare earth industry leading companies in Baotou Steel Rare earths, Guang Sheng, such as non-ferrous metals, or the acquisition side, the main business model and the letter is basically the same as the Sheng and resources, 2013 of the main business margin has been a very large decline, it is evident that 2013 years of rare earth industry to make money In such a market environment, and the letter of the profit level is uncharacteristically by leaps and bounds, completely deviated from the overall performance of the industry, how can this not let people doubt? You know, that year was a financial fraud of the Lantian case, the company's outstanding performance that is gross margin compared with the same industry and reasonable level unusually high, but ultimately proved to be false. An unspecified interest expense is based onDisclosure of audit reports, Sheng and resources in the reporting period does not have long short-term borrowings, then the company should have no interest in debt, then there should be no expense. In fact, however, and with the letter in 2013 years, there has been 16637.42 yuan in interest payments. Isn't that strange? Without borrowing, what is the interest expense? This also constitutes a major doubt in the letter's financial data, pointing to the poor credibility of the company's financial information disclosure. Reviewing the history of Sheng and resources, it can also be found that the company's own operating data have a lot of doubt. Sheng Resources, formerly known as St Tiancheng, in the early 2013 by placing into the Sheng and 99.9999% of the rare Earth to the Phoenix Nirvana, and renamed as Sheng and resources, the main business from the original IT business gorgeous change as a hot rare earth industry. In fact, Sheng rare earths themselves do not own rare earth minerals, the company's main business for the Rare-earth smelting and sales of rare earth oxides, the required rare earth concentrate raw materials need to be procured, after processing of rare earth oxides, as the company's main products. Then it can be inferred that if the price of rare earth minerals is lower relative to the prices of Rare-earth oxides, the profitability of the bloom and the resources will be increased accordingly, and vice versa, if the price of Rare-earth minerals and rare earth oxides fall, then the profit will be reduced. From the trend of price change in the past two years, the price fluctuation of rare earth oxides, such as praseodymium-rubidium alloy and rubidium oxide, has basically maintained a high degree of synchronization (see attached figure), which means that the profitability of rare earth finishing and resource main business should be basically stable. However, the fact is far from the case, according to Sheng and resources released performance letters, 2013 in the operating income significantly increased over 80% on the basis of the operating profit also showed a small decline, which corresponds to the main business profitability of the sharp decline. If the main rare earth industry, such as Baotou steel rare earth, Guang Sheng nonferrous Metals and other major Rare-earth industries, is due to the decline in the price of rare earth mining business, then the production of intermediate processing business and the decline in the profitability of resources is why? And it's just finished the backdoor listing, and then there has been a sharp decline in profitability, and how is this not doubtful? Many of the mysteries may have to wait until the full and resources issued a formal 2013-year report, combined with the original asset reorganization reports of the disclosure of information can be clear, this newspaper will be further attention.