Radar Finance Produced by Mo Enmeng Editor | Deep Sea
html On April 18, China Tianrui Cement issued an announcement. Yukuo Co., Ltd., owned by the company’s controlling shareholders Li Liufa and Li Fengjuan, stated that due to the company’s stock price on April 9, 2024 The stock price fell unusually on the same day, and 133 million shares held by Yukuo's margin financing securities account were forced to be sold in the open market.Radar Finance noticed that on April 9, China Tianrui Cement plummeted in the last 15 minutes, with a final decline of 99.04%. Its market value evaporated by more than HK$14.5 billion that day, leaving only HK$141 million in closing market value.
China Tianrui Cement suffered a heavy blow in the capital market, and the boss behind it, Li Liufa, also suffered heavy losses. The market value of Yukuo shares held by Li Liufa and his wife evaporated by more than 10 billion Hong Kong dollars in one day. Before the stock price of
suffered a flash crash, the financial report card that China Tianrui Cement had just handed over not long ago was also lackluster. The financial report shows that in 2023, China Tianrui Cement's revenue fell by nearly 30%; its profit for the year attributable to the company's owners turned from profit to loss based on previous years of decline, recording 634 million yuan last year of losses.
As the helmsman of Tianrui Group, a subsidiary of China Tianrui Cement, Li Liufa’s entrepreneurial history is quite exciting. Li Liufa, who was born in a poor family since childhood, once obtained an iron rice bowl with his diligence and hard work. However, Li Liufa, who was quite courageous and discerning, was not satisfied with a short-term decent job. After
resolutely resigned and went to work, Li Liufa followed the wave of reform and successfully wrote his own wealth story. Under the leadership of Li Liufa and a series of capital operations, the Tianrui Group built by Li Liufa now owns Tianrui Cement, Tianrui Tourism, Tianrui Casting, Tianrui Technology, Tianrui Coking and many other industries.
With the business empire he built with one song, Li Liufa once ascended to the throne of the richest man in Henan. However, as China Tianrui Cement received a "cold look" in the capital market this time, the huge wealth accumulated by Li Liufa also suffered a violent blow.
China Tianrui Cement encountered a shocking moment, and its stock price plummeted by more than 99% in a single day.
html As the Hong Kong Stock Exchange was approaching the close of trading on April 9, the stock price of China Tianrui Cement, a Hong Kong-listed company, suddenly crashed. In less than 15 minutes, , its stock price plummeted by more than 99%.As of the close of the day, China Tianrui Cement closed at HK$0.048 per share, and its market value evaporated by more than HK$14.5 billion in one day. Currently, the latest market value of China Tianrui Cement is only HK$141 million. Although Hong Kong stocks do not impose limits on the rise and fall of listed companies' stocks like A-shares, it is unusual for stock prices to plummet 99% in such a short period of time.
In fact, the trading volume of China Tianrui Cement has been small recently, basically staying within one million shares. In comparison, China Tianrui Cement's sudden increase in volume at the end of April 9 seemed a bit abrupt.
As for the reason behind China Tianrui Cement’s stock price crash, some insiders believe that it may be due to the failure of shareholders to pay the deposit in full when pledging, leading to securities firms cutting their positions.
Regarding the plummeting stock price of China Tianrui Cement, Tianrui Group office staff responded to the media that they were unclear about the cause of the plummeting stock price and that the company's production and operations were normal.
It is worth noting that on the second day after the company's stock price suffered a heavy fall, China Tianrui Cement issued an announcement on the Hong Kong Stock Exchange stating that trading of the company's shares would be temporarily suspended at 9 a.m. on April 10, pending the issuance of relevant information about the company. Announcement of Insider Information.
On April 18, China Tianrui Cement issued an announcement. The company’s board of directors announced that Yukuo Co., Ltd., which is wholly owned by the controlling shareholders Li Liufa and Li Fengguan, stated that on April 9, 2024, due to an unusual stock price drop, Yukuo Co., Ltd. 133 million shares (equivalent to approximately 4.53% of the company's total issued shares) held by Kuo's margin financing securities account were forced to be sold in the open market. The board of directors of
has also been informed by Yukuo that it is still in the process of clarifying whether the forced sale of up to an additional 10 million shares held by Yukuo has been properly executed as of the date of this announcement. Yukuo is seeking legal advice on whether the forced sale complies with all applicable laws and the terms of the relevant contracts. Yukuo will take further action when appropriate and necessary.
China Tianrui Cement stated that as of the date of this announcement, the group’s business operations are normal. However, given that there is still certain inside information that the Board intends to clarify and confirm, trading in the Shares will remain temporarily suspended on the Stock Exchange pending the release of further inside information.
According to the official website of Tianrui Cement, Tianrui Cement was listed on the Hong Kong main board on December 23, 2011. In 2021, it ranked seventh in the comprehensive strength ranking of China's listed cement companies.
As the stock price crashed, Li Liufa, the boss behind China Tianrui Cement, was also pushed into the spotlight.
As the helmsman of China Tianrui Cement, Li Liufa and his family became the richest man in Henan on the "New Fortune 500 Rich List" selected by "New Fortune" magazine for two consecutive years in 2011 and 2012.
In the "2023 Hurun Rich List" released by Hurun Research Institute in October last year, Li Liufa and Li Fengjuan ranked 188th on the list with a wealth of 27 billion yuan. In the "2024 Hurun Global Rich List" released at the end of last month, although the wealth of Li Liufa and Li Fengjuan increased by 500 million yuan, their ranking dropped 128 places to 900th.
According to the financial report previously released by China Tianrui Cement, its direct holding company is Yukuo Co., Ltd., and its ultimate parent company is Tianrui Group Co., Ltd. Tianrui Group is composed of the company's non-executive director Li Liufa and his spouse executive director Li Feng respectively. Rape control.
According to the announcement issued by China Tianrui Cement on December 8 last year, after the corporate reorganization, Li Liufa and his wife will continue to hold 69.58% of the equity of China Tianrui Cement through Yukuo. Calculated based on the shareholding ratio of Li Liufa and his wife, the market value of the shares held by China Tianrui Cement collapsed by more than 10 billion Hong Kong dollars.
's revenue fell by nearly 30% last year, and it suffered its first loss since its listing.
Behind the sudden blow to the capital market, China Tianrui Cement's results last year were not impressive. The financial report shows that in 2023, China Tianrui Cement recorded a total revenue of 7.889 billion yuan. In the same period last year, China Tianrui Cement’s revenue reached 11.055 billion yuan. Compared with China Tianrui Cement’s revenue last year, A decrease of 28.64%.
In terms of profit, China Tianrui Cement's profit for the year attributable to the company's owners was 449 million yuan in 2022. However, by 2023, China Tianrui Cement's profit indicators took a sharp turn, and the loss for the year attributable to the company's owners was as high as 634 million yuan. , turning from profit to loss year-on-year. This is also the first time that China Tianrui Cement has suffered a full-year loss since its listing in 2011.
And further stretching the timeline shows that China Tianrui Cement's profit indicators have actually shown signs of weakness before. From 2017 to 2021, China Tianrui Cement's profit for the year attributable to the company's owners was more than 1.2 billion yuan, and even reached a level of 1.861 billion yuan in 2020.
However, in 2021 and 2022, China Tianrui Cement’s profits attributable to the company’s owners during the year fell by 35.47% and 62.63% successively.
In fact, China Tianrui Cement's production capacity last year was basically unchanged compared with the same period last year. As of the end of 2023, China Tianrui Cement has a total clinker production capacity of 28.4 million tons, cement production capacity of 56.4 million tons, and limestone aggregate production capacity of 30.2 million tons.
However, China Tianrui Cement’s sales have seen significant changes. The financial report shows that in 2023, China Tianrui Cement’s cement sales volume will be approximately 25.2 million tons, a decrease of approximately 2.5 million tons or 9.0% compared with the same period in 2022. While cement sales have declined, its unit price has also declined: the average price per ton has dropped by 67.2 yuan compared with the same period in 2022, a decrease of 21.8%.
In 2023, China Tianrui Cement's limestone aggregate sales volume will be approximately 43.6 million tons, an increase of 4.1% compared with the same period in 2022. However, the average price of the former will decrease by 5 yuan per ton compared with the same period in 2022, a decrease of 12.6%.
In 2023, China Tianrui Cement sold approximately 1.3 million tons of clinker, a decrease of approximately 1.4 million tons compared with the same period in 2022. According to China Tianrui Cement, the clinker it produces is mainly used to meet the needs of the group's internal cement production.
Based on the above situation, China Tianrui Cement's revenue from the sale of cement last year decreased by 28.8% year-on-year, its revenue from the sale of limestone aggregate decreased by 9.1% year-on-year, and its revenue from the sale of clinker decreased by 64.9% year-on-year.Because the decline in cement prices last year was greater than the decline in cement ton costs, the company's gross profit margin dropped from approximately 24.5% in 2022 to approximately 20.7% in 2023.
Regarding the company’s performance last year, China Tianrui Cement said that in the past year, China’s real estate market continued to adjust to the bottom, and the total demand in the cement industry still showed a downward trend. Market competition intensified, product prices were under pressure, coupled with high raw material costs, squeeze Pressure on corporate profits. In line with industry trends, the group's performance declined year-on-year. While
's performance is mediocre, China Tianrui Cement's pressure on assets and liabilities is also increasing. The financial report shows that as of the end of 2023, the company's total liabilities reached 24.787 billion yuan, an increase of approximately 9 billion yuan compared with 15.753 billion yuan a year ago. In 2023, the company's balance of loans and bonds (including corporate bonds) increased by 93.1% from 2022 to 18.579 billion yuan.
In addition, due to the decrease in owner's equity and increase in borrowings, China Tianrui Cement's asset-liability ratio also increased from 48.7% in 2022 to 61.1% in 2023, a year-on-year increase of 12.4 percentage points.
The business empire of the former richest man in Henan
As a boss who once topped the list of richest people in Henan, Li Liufa was actually born in a poor family. The experience of growing up in a poor family environment made Li Liufa more diligent and studious. In 1975, after Li Liufa graduated from high school, he came to Linru County No. 2 Fertilizer Factory as a temporary worker.
As the saying goes, "gold shines wherever it is." Because he is smart, capable, down-to-earth and conscientious, Li Liufa was transferred to office work and was made an exception as a regular worker. In September 1980, fate once again favored this young man, and Li Liufa was selected to study in the Chinese Department of Henan University. The experience of studying in university broadened Li Liufa's horizons and at the same time enhanced Li Liufa's courage.
Taking advantage of the east wind of reform, Li Liufa resigned from his stable and decent job in the eyes of others and resolutely plunged into the ocean of entrepreneurship. In order to work hard for a career, Li Liufa spent all his savings and united five families with relatives and friends to establish a farmers' joint-stock cooperative enterprise - Ruzhou Steel Casting Factory in 1985.
Since the country was phasing out steam engines at that time, the keen-sighted Li Liufa made a decisive decision to produce internal combustion engine motor casings after inspection. In order to ensure product quality, Li Liufa led the backbone to learn from various places, learn from advanced production experience and formulate a complete set of systems. Under the leadership of Li Liufa, the scale of the factory continued to grow, and the motor casings produced by the steel casting plant even occupied about 70% of the national market share.
Factory operations are getting better and better. At the same time, Li Liufa's "ambition" is getting bigger and bigger. In 1993, Li Liufa merged with the Henan Province Yuxi Coal Mining Machinery Factory, a state-owned enterprise located in the same place, and staged a "snake swallows the elephant" scene. In 1994, Li stayed in France to establish Ruzhou General Casting Corporation.
After seeing the booming development of China's railways, Li Liufa once again showed his unique vision. With his prompt decision, the company began to get involved in the production of bolster side frames for railway freight cars. In 1997, the Ministry of Railways even designated the Ruzhou Steel Casting Factory as a designated off-road manufacturer nationwide.
Li Liufa’s entry into the cement industry can be traced back to 1994. At that time, Li Liufa took over the Baiyunshan Cement Factory, a rural enterprise. After three years, Li Liufa successfully completed the supporting work for all three production lines of the plant, and made its output exceed the design level, successfully revitalizing the cement plant.
In 1997, Li Liufa took over the Pingdingshan Special Cement Factory, a poverty alleviation project located in Lushan County. Under his management and operation, the cement plant also successfully turned losses into profits. Two years later, Li Liufa took over Ruzhou Leiyu Cement Co., Ltd. At the turn of the millennium, Tianrui Group Cement Co., Ltd. was officially established.
Radar Finance learned from the official website of Tianrui Cement that the company currently has 22 clinker production lines, 62 cement grinding production lines and 12 sand and gravel aggregate production lines, with an annual clinker production capacity of 35.19 million tons, cement production capacity of 57.8 million tons, and aggregate The production capacity is 30.2 million tons, and the production capacity of clinker, cement and aggregate ranks among the top in the country.
In addition to expanding its business territory into the cement industry, Li Liufa also used a series of capital actions to successfully build Tianrui Group into a joint-stock enterprise group integrating green building materials, foundry (intelligent manufacturing), Internet technology, cultural tourism and other industries. , and successfully ranked among the top 500 Chinese enterprises.
It is worth mentioning that in October 2022, Li Liufa handed over the scepter of China Tianrui Cement to his son Li Xuanyu. According to the official website of Tianrui Cement, Li Xuanyu is currently the chairman and executive director of China Tianrui Cement, and Li Liufa’s wife Li Fengjuan is the executive director of China Tianrui Cement.
What kind of development will China Tianrui Cement and its subsidiary Tianrui Group usher in in the future? Radar Finance will continue to pay attention.
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