It reports the huge loss of 1 billion 500 million yuan profit will withdraw from the market before the end of the year

Author: Liu Qi

Debt syndicate agreed to postpone repayment before the end of the year will not withdraw from the market

April 30th before the release of the earnings report in 2004, a push and push, and then push for half a month will be ordered to withdraw from the market. There is no way to retreat, Kejian, finally yesterday announced its 2004 annual report and 2005 first quarter earnings. Notice that, in 2004 it had huge losses of about 1 billion 519 million yuan. President Wang Dong said: "it has submitted to the Shenzhen Stock Exchange, for the revocation of the delisting risk warning on it out."

In the face of the crisis, it has reached an agreement with the supplier, claims of debt syndicate, deferred repayment, and try to achieve before the end of the year through a variety of ways to profit, to avoid delisting fate.

A variety of adverse caused huge loss

In the 2004 earnings be long in coming, it will all one-time debt in the history of the publicity, to completely clear the debt structure, and plans through debt restructuring, debt recovery gradually realize.

The report shows that in 2004, it main income 1 billion 727 million yuan, but net profit loss 1 billion 519 million yuan. As of December 31st last year, it combined total assets of 477 million yuan, 1 billion 731 million yuan of total liabilities, assets and liabilities was 362.46%, insolvent.

The reason for it is generally considered a huge loss, because of its huge debt owed to banks, resulting in part of the assets and capital account by the bank to freeze, so the main business profitability significantly reduced. At the same time, due to a number of related companies and its Kejian are already insolvent, does not have the ability to repay, it was in its annual report a huge amount of bad debts, and the provision for bad debts, then make it to further increase the losses. It is reported that by the end of 2004, it reached 600 million yuan of overdue loans, guarantee 1 billion 759 million, of which 1 billion 472 million has expired. To this end, it had to earnings accrued a total of up to 1 billion 166 million yuan of bad debt reserve.

And it the most high-quality assets -- with Samsung's mobile phone company Samsung Kejian the dividend rights, but the bank froze.

Debt restructuring to get respite

Yesterday reporters Kejian President Wang Dongshi was informed that it has reached a framework agreement and debt syndicate, the key step of debt restructuring. The bank has agreed to waive the Kejian affiliated enterprises joint responsibility for repayment, to help it survive." Wang Dong said.

It also released yesterday on bank debt restructuring announcement, said it has signed an agreement with 21 domestic creditor banks, made it clear that science master is no longer affiliated enterprises to bank loans, guarantees and assume joint responsibility for repayment.

It basic idea of debt restructuring, and the 22 Kejian affiliated enterprise split, Kejian bear only its original bank debt, while taking the original of affiliated enterprises outside the guarantee liabilities; set up new Shenzhen richwise group 22 affiliated enterprises, unified disposal of assets, and repaying the 22 association the enterprise of bank debt.

As a result, it will greatly reduce the bank debt. The report shows that, in the 1 billion 759 million yuan Kejian external guarantee, related party guarantee nearly 1 billion 300 million yuan. After the reorganization, the 1 billion 300 million yuan will be made by the new richwise group has only about 459 million yuan, it's guaranteed to assume the remaining, together with its about 600 million yuan of bank debt, the total debt of about 1 billion 59 million yuan, compared to before the reorganization of about 2 billion 300 million yuan of debt, the burden of more than 50%.

A former employee said it, earlier this year, it has already begun and creditor bank negotiation, the preliminary agreement reached in early May, about nearly 3 months. "It is very simple, the bank does not want to ruin it." The source said that the current assets 400 million yuan in it, even if the auction is full, banks can only get 20%.

"Bet" outlook remains uncertain

The securities analysts said, as has been the delisting warning, according to the provisions of the Commission, it must achieve profitability in the semi annual report this year, otherwise they will have suspended the listing of punishment. When not in next year's 2005 annual report released in the annual profit, it will still be forced delisting.

But yesterday it issued third bulletins, completely denied it in the first half of 2005 earnings may be. According to the announcement, is expected in June 30th this year, it will continue operating losses.

Shenzhen nanfang-minhe certified public accountants responsible for financial audit of the audit report, also issued a comment "on the 2004 annual report to it. The audit report said that in view of the status quo of Kejian reorganization and, despite the disclosure of a number of measures, but due to the implementation of measures need time, great uncertainty. Therefore, accounting firms can't confirm whether these measures can make it business get substantial improvements, at the same time it a high proportion of related party transactions, accounting firms can not determine the disclosure content and whether the amount of justice.

In August 9th, the industry came news about the restructuring of the business and the sun it has made progress, but then the Sun Group Executive Director Lin Yingcheng denied regarding the restructuring. And Wang Dong said, at present it and Sun Group on the restructuring of the business contact is still in progress, there is no consensus is reached.

But compared to that of others, Wang Dong pay more attention on bank dividends in Kejian Samsung Kejian rights thaw. He said: "the bank has agreed to gradually thaw after the restructuring of the debt