The skyrocketing meme stock has encountered trouble again! Reported a loss of 480 million, and two directors say they cannot confirm the authenticity of the quarterly report!

NetLoan Eye News, recently, the A-share ChiNext board’s flamboyant stock, Yu JIngang Diamond (300064, Stock Forum), has been caught in the spotlight, as the situation has escalated rapidly.

On the evening of October 28, Yu JIngang Diamond released its Q3 report. The financial report shows that in the first three quarters of 2020, Yu JIngang Diamond achieved operating revenue of 306 million yuan, down 58.05% year over year; net profit attributable to shareholders was a loss of 481 million yuan; after deducting non-recurring items, net profit attributable to shareholders was a loss of 239 million yuan. As of September 30, net assets attributable to shareholders were 1.24 billion yuan, down 27.96% compared with the end of the prior year.

Earlier annual reports show that Yu JIngang Diamond recorded large losses in 2019 and the first half of 2020: in 2019, net profit attributable to shareholders was a loss of 5.2B yuan; in the first half of 2020, net profit attributable to shareholders was a loss of 357 million yuan.

Worth noting is that documents from board meetings indicate that, shortly before the disclosure of the Q3 report, on October 27, the company convened a board meeting with nine directors. Among them, directors Wang Daping and Liu Miao cast dissenting votes on the Q3 report. Regarding the reasons for their dissent, both sides stated that they had no opinion on the company’s non-recurring funding occupation.

In their statement, the two directors said that the company’s claim—stating that during the reporting period there was no occupation of non-operating funds by the controlling shareholder and related parties—contains ambiguity. In the reply to the Shenzhen Stock Exchange on October 27, they failed to explain.

This means that the members of the company’s board are at odds, with opinions not aligned. However, regarding the issue of fund occupation raised by the two directors, Yu JIngang Diamond’s three independent directors have not issued any explanation on this matter either, and the company’s senior management seems to be quite chaotic.

In fact, with a company losing 480 million yuan and embroiled in infighting within the board, it still received enthusiastic attention in the secondary market and was being炒作 by capital.

Over the past nearly 2 months, Yu JIngang Diamond’s share price has seen a cumulative increase of 171.55%. On September 8, Yu JIngang Diamond was ordered to suspend trading by the Shenzhen Stock Exchange for the same reason. However, not long after resuming trading, Yu JIngang Diamond’s share price was once again heavily speculated. On the evening of October 27, Yu JIngang Diamond received a Letter of Concern from the Shenzhen Stock Exchange. Because it failed to respond in a timely manner to issues mentioned in letters sent to the Shenzhen Stock Exchange multiple times, the Shenzhen Stock Exchange issued a “final notice.” If Yu JIngang Diamond still has not replied by November 27, the Shenzhen Stock Exchange will implement other risk warnings and related suspension/resumption of trading measures for Yu JIngang Diamond’s stock.

(Editor: Jì Lìyà HN003)

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