A record 3 billion 700 million Hisense Kelon Group pledged will recover

After several delays, yesterday finally released *ST Kelon (000921) 2005 annual report of the industry jumped. Announcements, the company last year's loss of up to 3 billion 693 million yuan, the annual loss of the domestic listed companies the most.

The former chairman Gu Chujun event "is considered to be the main cause of the huge loss of the company, the announcement also disclosed for the first time, *ST Kelon Greencool company and receivable funds through third party occupied for 680 million yuan.

Net assets shrink to minus 1 billion yuan

The report shows that, by Gu Chu events, the main business profit rate drops sharply, resulting in huge losses. In April last year, due to alleged economic crimes, Gu Chujun Kelon, an investigation by the Commission, this led to financial institutions, suppliers and dealers to lose confidence in Kelon, Kelon financing encountered great difficulties, last year 5 ~ September, Kelon almost halted, the main business shrinking.

Another reason is that a large number of bad debts, which exists in the early period of management in a large number of unpaid fees, poor inventory, excessive ineffective investment, idle assets, economic disputes and other potential losses concentrated in the 2005 outbreak "". To this end, the company significantly reduced the total amount of up to 1 billion 420 million yuan of various types of asset impairment.

At the same time also on 2004 inflated profits of major accounting errors adjusted to the end of the net assets of 209 million yuan, net assets of this *ST Kelon will swoop to reduce 3 billion 920 million yuan, from the previous 2 billion 800 million yuan to -10.8 billion yuan; and the total assets of 11 billion 360 million yuan from the end of 2004, has shrunk to 5 billion 412 million yuan.

It is worth noting that, for the "late" financial statements, accounting firms, audit firms, independent non-executive directors Zhang Shengping, Zhang Ruijia, Lu Qing and Ceng Junhong Bai Yunfeng, supervisors have reservations, said the year 2005, the accuracy of statement and statement of cash flow can not guarantee the authenticity and integrity.

In order to avoid losses or delisting

The annual report also disclosed for the first time, according to the survey report of the accounting firm KPMG, Kelon Greencool company and receivable by the third party takes Kelon funds amounting to 680 million yuan, payable 131 million yuan, the difference is 549 million yuan.

It is reported that currently still holds 26.43% stake in Kelon GreenKel Kelon, the relevant equity transfer procedures in handling. The new owner of the Hisense group is committed, once the equity transfer is completed, will immediately start the restructuring of Kelon, Greencool company and the third party of the occupation of company funds to carry out legal punishment.

For Kelon *ST huge losses, analysts said, this is Hisense in the "shuaibaofu", but also to ensure Hisense Kelon *ST profit this year to avoid delisting means. According to the relevant provisions of the domestic listed companies, such as the company's 2005 annual audited net profit is negative, and achieve profitability in the year 2006 the company shares of the company may not, because the company losses for three consecutive years and the termination of the listing. Currently *ST Kelon equity transfer has not been completed, each creditor's Bank of its equity freeze has not been lifted. The huge loss, Hisense makes the outside world to recognize *ST Kelon equity value, but also promote the transfer of ownership, but also in response to the previous requirements of public auction *ST Kelon equity many potential bidders.

Perhaps the market believes that the bad news has been done, coupled with previous Kelon shares have fallen to the bottom, yesterday, *ST Kelon to 2.25 yuan / share opened to close at $2.36, or 4.89%.