ST Bright: Armored "gold mine" is really beautiful?

The "brilliant" concept of gold mining stocks has become a hot topic in the securities market. "S*ST", a "share reform-hard worker," is one of them brightly. However, it has attracted attention because of the tightness of its assets.

On June 27th, S*ST Guangming suspended trading on June 22 for the first prompt announcement of this year's extraordinary general meeting and related shareholder restructuring meeting.

In an interview with reporters, Ms. Li of the S*ST Guangming Office of Directors said: “The share reform program has been announced and is ready to convene a shareholders’ meeting to vote. The share reform can be injected into Jinye Jewelry, and its future will play a supporting role in the company’s performance.”

Minerals have not yet been injected, "rumors" have been around in front of the S * ST bright laps. In August last year, the bankruptcy reorganization and share reform promised to be disclosed “will inject high quality assets into the mining industry chain of no less than RMB 2 billion”. As a result of market speculation, S*ST has become a member of the “mining stocks” in the market.

Due to poor management, S*ST has entered the reorganization process for one and a half days. On June 4th this year, S*ST announced its share reform plan today. According to the plan, S*ST Guangming’s potential controlling shareholder investment in the Ninth Five-Year Plan gifted S*ST with a cash of RMB 380 million in cash and a 100% stake in its wholly-owned Gold Leaf Jewelry.

Is the value of gold leaf jewelry as valuable as "gold"? The above-mentioned Ms. Li told reporters: “Jinye Jewelry will generate 200 million yuan in profits next year. After injecting, it will contribute a lot to the company’s performance. Of course, it is a good asset. After S*ST Guangming Furniture was a loss, the business of Gold Leaf Jewelry will change to the company’s Main."

Although the actual gold leaf jewelry processing gold jewelry industry, its high debt is worrying, and even face the risk of capital chain fracture. Even the media pointed to the fact that its stock reform book had excessive packaging and misrepresentation of Jinye Jewelry.

As of the end of 2010, the asset-liability ratio of Jinye Jewelry was as high as 92.69%, and the short-term borrowing balance in 2010 was as high as 35,825,000 yuan. In view of the high debt ratio, Ms. Lee frankly stated: “The asset structure has not been studied in detail, and it is not very clear, but the profit rate of Jinye Jewelry is higher.”

Industry accounting analysts pointed out: "In the short term, obtaining high debt may be to obtain a good 'image', the actual corporate capital chain breaks out at any time, and its financial status is rarely seen in ordinary jewelry companies."

Whether or not promises can be honoured and controversial Not only is S*ST bright enough to be questioned, but the profitability of the Ninth Five-Year Investment has also been questioned. Its report shows that the balance of book funds in 2010 was only 3,309,200 yuan. If the gold leaf jewellery fails to meet the profit commitment amount, whether the Shenzhen Ninth Five-Year Investment has the ability to complete the previous profit-recovery commitment also requires a big question mark. The reporter interviewed relevant person in charge of the investment in the Ninth Five-Year Plan. He spoke in unison with the above-mentioned personnel of S*ST: "Since we have promised, we can certainly do it."

In response to the multiple objections raised after the stock reform was launched, Ms. Li said: “Various programs always have different voices and they can't be avoided.”

In order to inject investors with “centering agents” and “to appease people’s hearts”, in the S*ST Guangming June 14 latest share reform program (revised draft), the reorganization party again throw out “2 billion yuan in mining assets”.

The investment in the Ninth Five-Year Plan was created by Shenzhen Zhongchuang Department and its predecessor, the ST Four-Dimensional, was once worrisome, and now it is transformed into a bright S*ST reorganization party. People close to the Ninth Five-Year Plan told reporters: "The actual Ninth Five-Year investment does not have much substantive business."

Ms. Lee said: "At present, the main focus of the share reform, after the successful completion, there is no shortage of possible next steps for the gold leaf jewelry." However, all indications, "20 billion yuan mining assets" may also be only for investors in the short term Said "a better vision."