Siyuan electric cut flat high electric sleeve now expand equity executives wealthy

Siyuan Electric (002028.　　SZ) executives are demonstrating a new arbitrage model for the market-goers. Although the listing is only a few 6 years, but through 4 times to increase equity and 1 directional additional, the source of total equity has been listed at the beginning of the 53 million shares soared to 439.68 million shares.　　Over the past 6 years, the total share capital of Siyuan has expanded by 829%.　　Despite the fierce competition in the high-voltage electrical industry, but the rapid expansion of equity capital, the source of the earnings per share does not appear to be affected, and its share price has been perfect to fill the right.　　However, behind the seemingly beautiful statements, there are many hidden stories. Performance Illusion Source Electric 2010 Quarterly bulletin shows that the company to achieve business income of 362.639 million yuan, an increase of 20.94% per cent, achieve net profit of 146.594 million yuan, an increase of 58.37%.　　Earnings per share of 0.33 yuan.　　Reporter careful analysis of the above report found that the source of electricity in the first quarter of 147 million yuan net profit, 97.12 million yuan from the subsidiary of Shanghai Siyuan such as High-tech Development Co., Ltd. (hereinafter referred to as high) sales of flat-high electric (600312.SH) stock proceeds.　　Data show that the first quarter of this year, Siyuan electric sales of 7.91 million shares, only the non-recurrent profit and loss of the listed companies accounted for the first three months of total net profit of 66%.　　Moreover, this method was not the first time that the source electric was used. Last year's annual report showed that investment income was also the absolute mainstay of the company's net profit in 2009.　　The company achieved a net profit of 950 million yuan a year, but the net profit after the Non-recurrent profit and loss is only 317 million yuan. More similar to the 2010 Quarterly bulletin, the 2009 Non-recurrent profit and loss was also dominated by the return on investment in the two-tier market.　　This part of the income of up to 697 million yuan, accounted for the source of electricity in the year net profit of more than 73%. "In the past few years, the domestic power grid investment has grown too fast, and now it has come down, so it does not rule out the future concerns of the industry."　　"An industry researcher at a large local brokerage in Shanghai told our correspondent. May 20, Ping Gao Electric Securities representative Chang did not respond directly, "shareholders have the right to reduce, we have no way." Company stock price Two market trend is not good, we are very pressure. "" The industry inflection point has appeared, the product market is not as good as expected in previous years. In recent years, the expansion of the industry has brought a lot of competition, resulting in a sharp decline in product prices, everyone's operating pressure is not small.　　"An insider in a high-voltage electrical industry admits. As a result, it is considered a reasonable choice to reduce the level of high electricity.　　However, Lin Ling, financial director of the source of the 20th interview with reporters do not agree with this view. "is not not optimistic about the industry, we are mainly based on the reduction of two considerations, the first is flat high electric and the company's existing assets are competing with each other, the other part of the highest equity value, the proportion of the company's net assets reached about 40%, resulting in a very large net assets volatility."Lin Ling told reporters. "The cost of getting a flat-top stake is very low, about five yuan per share," he said.　　"A high level of reduction is also a reasonable choice," said a senior executive at a beijing-based investment bank, which has studied the acquisition of the flat-high electrical process by Siyuan Electric.　　Despite the impressive performance of the source electric, but faded to sell flat-high electric stakes in the coat, its performance will be much inferior.　　2007 Annual report shows that the source of electricity in the year to achieve net profit of 272 million yuan, deduction of non-recurrent profit after the net profit of 181 million Yuan, 2008, respectively, 346 million yuan and 264 million yuan, 2009, respectively, 950 million yuan and 317 million yuan.　　The Chairman's wealth was so sharp that, in the view of the investment bankers, it was clearly not as simple as it appeared to be in the company's stock holdings.　　The reporter found that a "about the chairman of the 2007 pay bill," the document shows that Dong chairman of the annual salary of 500,000 yuan, of which 70% per month, the rest of the year at the end of the assessment issued.　　The appraisal standard is, when the company net profit is less than 155 million yuan, the Chairman's remaining annual salary does not issue, and does not have the annual bonus, exceeds or equals 155 million yuan, the chairman year-end bonus according to minus 155 million yuan after the net profit 6% issue.　　If according to the above standards, to Siyuan Electric 2009 years of net profit calculation, Dong's year-end bonuses amounted to 47.71 million yuan. "This has nothing to do with executive incentives, and non-recurrent gains and losses are not included in the Executive Incentive section."　　"Lin Ling told reporters that the company has made a 2008-2009 performance incentive scheme to adjust, to deduct the non-recurrent profit and loss after the net profit and the lower the calculation criteria. However, in a March 7, 2008 document entitled "The revised company 2008 to 2009 Performance Award", it was found that the adjusted Performance incentive scheme merely defined the performance growth indicator as the lower of net profit and net profit after non-recurrent gains and losses,　　But it is not clear whether the base portion of the bonus is calculated according to the above criteria.　　Even without the impact of performance bonuses, however, Dong's personal wealth has been greatly appreciated by the power of the source electric selling flat-top electric shares.　　August 5, 2004, Siyuan Electric opened the first day of the IPO 24 yuan, in order to calculate, Dong held 11.5474 million shares of Siyuan Electric shares of the total market value of only 289 million yuan. However, Dong's shareholding has expanded to 79.681 million shares after a series of additional equity and targeted placements. May 20, Siyuan Electric closed at 28.10 yuan.　　In this calculation, Dong's book Wealth has been as high as 2.239 billion yuan, compared to the beginning of the IPO growth of 674%.　　What is the secret behind the Dong wealth explosion? "One of the many increases in equity is the increase in the total number of shares, and the other is the effect of continuous performance growth, so that the total marketThe value will go up naturally.　　Said the investment bankers frankly. At this point, the real intention of the source electric to keep selling flat-top electric shares appears to have appeared. However, in the view of the investment bankers, "Dong, chairman of the yuan is only 18.12% of the shareholding, and did not grasp the absolute control, therefore, he will not arbitrarily reduce the source of the stock." "Three former executives of the reduction path in this case, the source of electric squeeze toothpaste type of the reduction of flat high electric and what is it?"　　The source electric disclosed a series of shareholder reduction reports that said the secret.　　Starting from March 23, 2007, the source of electricity several top ten shareholder members began to reduce the trip. It is noteworthy that these announcements of reduced holdings of shareholders are Siyuan electric former board members or senior executives.　　And in the wild before the reduction, these shareholders are doing a warm-up exercise-coincidentally resigned from the source of electrical director or management positions. August 3, 2006, Siyuan Electric director Yang Xiaoqiang said he resigned as a director of the company for his health reasons.　　March 23, 2007-April 11, Yang Xiaoqiang Cumulative reduction of Siyuan electric 1.9223 million shares, set is now 89.83 million yuan. December 27, 2006, the company's founder, deputy general manager Li Xia resigned from his position in Siyuan electric.　　January 7, 2009, Li Xia reduce the source of electricity 1.9705 million shares, the average price of 48.97 yuan, set now 96.4953 million yuan. Since then, Li Xia many times by selling the source electric shares of the big cash.　　As of April 12, 2010, Li Xia's holdings of Siyuan shares had been reduced from the initial 16.34% to the latest 9.51% per cent.　　Reporter according to the public data calculation, Li Xia before 5 times to reduce the source of electricity accumulated up to 15.5506 million shares, the cumulative reduction of 465 million yuan.　　Despite many reduction, but the total number of Li Xia Holdings in the source of electricity several times to increase equity still has 41.803 million shares, the total market value of up to 1.175 billion yuan.　　April 17, 2008, the company executive designed refreshed resigned as deputy general manager of the source electric power, and thereafter also out of the same trajectory. Up to now, designed refreshed divided four times a large amount of the source electric stock. November 18, 2008, January 12, 2009, April 19 and April 1, 2010, he reduced the source of electricity 2.2254 million shares, 2.847 million shares, 355,000 shares and 4.167 million shares.　　The above reduction is more than 293 million yuan.　　For the above companies, the former executives of the reduction behavior, the source of electricity does not give a comment. "I can't ask the shareholders why they are underweight, they don't have a seat on the board now, they're equivalent to a financial investor."　　Lin Ling to reporters.　　However, the shareholders ' reduction is accurate, as there seems to be a subtle correlation between the sale of flat-high electricity to the source and the rise in performance. To Li Xia 2009 the largest reduction as an example, last November 18, Siyuan Electric announced the sale of flat high electric 3.25 millionShares, access to investment income of 46.52 million yuan. November 25, the source of electricity released performance forecasts revised announcement, the company is expected to 2009 net profit growth of 150% to 200% Year-on-year.　　November 30, listed companies announced that, as of November 26, Li Xia Cumulative reduction of Siyuan electric 4.4401 million shares.　　Prior to September 23 and November 9, Li Xia in the listed companies to reduce the level of high electric power after the major good, selling the source of electric shares.　　Although Lin Ling insists that the reduction of the founder and former executives of Li Xia and other sources is not related to listed companies, the data show that Li Xia and designed refreshed and Dong are alumni of the Shanghai Jiaotong University, and both Li Xia and Dong are the founder of Siyuan Electric. Behind a string of coincidences, there seems to be more to the story to say.