BOE's 10 billion fund-raising 30 billion yuan loss 8 billion shares fell 60%

As A shares fell unilaterally independent of the global stock market, the market’s 1 share reappeared. Among them, BOE A (000725) was listed for nearly 10 years and raised nearly 30 billion yuan of funds, with a total loss of nearly 8 billion yuan. At the same time, in the face of the weak market demand in the downstream, the company is still expanding, and has obtained the government’s “support payments” of several billion yuan. The company's performance is poor, why can it continue to circulate money?

One question:

Ten-year stock price fell by 60%

How to explain to shareholders?

On November 2nd, BOE A released its corrected full-year performance forecast, stating that the net profit attributable to the shareholders of the listed company for the whole year may have a loss of 3.2 billion yuan and a negative growth rate of 0.24 yuan per share.

Since the A-share listing in January 2001, BOE A has maintained its high-speed growth for four years by relying on its capital-raising advantage. It suddenly began to suffer a huge loss in 2005. If we count the largest loss of 3.2 billion yuan in 2011, the company has lost a total of 10 years. 7.818 billion yuan.

At the same time, the stock price of BOE A and the performance together, "open pit". On January 12, 2001, BOE A listed on the first day of trading closed at 22.77 yuan. At present, the stock price has fallen below 2 yuan. Even if it is calculated based on the resumption price, it is only around 9 yuan, which is a drop of 60% from the closing price on the first day of the listing.

However, the company can unimpeded large-scale financing. According to the 2010 annual report, since 2008, the company has been refinancing every year. If the IPO and the additional issuance in 2006 have been added, the company has accumulated 26.136 billion yuan from the market for 10 years.

Second question:

Chairman's annual salary reaches millions

Why are senior managers responsible for flood and drought?

The company’s annual report shows that executive compensation remains high in 2010, including Wang Dongsheng, chairman of the board of directors and executive director, with pre-tax remuneration of 1 million yuan, auditor Su Zhiwen of 95.60 million yuan, and executive director Chen Yanchen of 921,900 yuan. The total remuneration of 21 senior executives in the year reached 10.49114 million yuan.

Three questions:

Terminal demand is faltering

Why frequent expansion awards?

BOE Announced on August 30 that it will invest in the construction of the first 5.5th generation AM-OLED production line in Erdos, Inner Mongolia, through an affiliated project company, with an investment of 22 billion yuan. Before this, BOE has built four LCD production lines and has accumulated more than RMB 50 billion in investment.

In explaining the significant loss of performance this year, BOE said that the global terminal electronic consumer market has continued to slump, and the company’s main LCD panel prices continue to decline, causing the company to generate greater operating losses.

At the same time, BOE has repeatedly won government awards. Statistics show that since 2006, the company has received a total of 1.189 billion yuan in government subsidies. The recently announced announcement also showed that BOE is expected to apply for a refund of RMB 2.4 billion. Therefore, some people expect that based on the regularity of large government grants every two years, BOE may very likely receive a high subsidy again at the end of this year, once again avoiding the possibility of ST.