Yihua health debt over 4.6 billion into delisting crisis
Yihua health debt over 4.6 billion into delisting crisis, as of 2021, Yihua health has been a huge loss for three consecutive years. From 2014 to 2018, Yihua Health **** made dozens of mergers and acquisitions, Yihua Health liabilities over 4.6 billion into the delisting crisis.
Yihua Health's debt of over 4.6 billion is in a delisting crisis.1
As early as March 23, 2022, Yihua Health had disclosed a delisting risk warning.
The announcement said that Yihua Health disclosed the "2021 Annual Results Forecast" on January 29, 2022, and expected that the company's 2021 net profit attributable to shareholders of the listed company, net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses would be a loss, and the equity attributable to owners of the parent company would be negative.
Among them, the net profit loss attributable to shareholders of listed companies is 360 million yuan to 540 million yuan, an increase of 13.57%-42.38% over the same period of the previous year.
According to Article 9.3.1 of the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange (2022), if the audited net assets at the end of the most recent fiscal year are negative, the trading of its shares will be subject to a delisting risk warning.
According to the data, Yihua Health was listed in August 2000, and its main business is investment and operation of medical institutions, investment and operation of senior living communities, integrated services of medical logistics, and medical professional engineering.
The data show that in 2019-2020, Yihua Health realized revenue of about 1.792 billion yuan and 1.562 billion yuan, respectively; and net profit attributable to shares of about -1.572 billion yuan and -625 million yuan, respectively.
According to the previously disclosed 2021 performance forecast, Yihua Health will continue to lose money this time. This also contributed to its third consecutive year of unprofitability and increased losses.
Referring to the reasons for the change in performance, Yihua Health said:
Some of the subordinate acquisitions are still in the performance commitment period, according to preliminary estimates, the performance compensation is expected to affect the current year amount of about 100 million yuan - 140 million yuan, which is non-recurring gain or loss;
Influenced by the new crown epidemic and the macroeconomic environment, liquidity funds of Yihua Health is more Tension, in 2020 successively appeared part of the interest-bearing liabilities overdue, resulting in the company's financial expenses in the current period than the same period last year increased;
Subsidiary in the current period of debt restructuring with Oriental Assets, affecting the company's investment income amounted to 42.7834 million yuan, the part of non-recurring gains and losses.
It is worth mentioning that Yihua Health "woe" is not alone, previously received repeated regulatory letters, involving a number of lawsuits.
February 26, March 31, Yihua Health received a regulatory letter from the Shenzhen Stock Exchange. The pre-disclosure time of its reduction through the centralized bidding transactions on the stock exchange and the time interval between the respective reductions is less than 15 trading days, in violation of the provisions of the SZSE;
On February 19, Yihua Health disclosed that the company's controlling shareholder, Yihua Group, received the CSRC's "Notice of Filing". Yihua Group is suspected of information disclosure violations, according to relevant laws and regulations, the China Securities Regulatory Commission decided to file an investigation.
In addition, the disclosure of Yihua Health's Annual Report 2021 has been postponed, with the disclosure date postponed from April 7, 2022 to April 26, 2022.
Yihua Health debt of more than 4.6 billion into the delisting crisis2
"Yihua system" to the edge of the cliff.
On the evening of April 6, Yihua Health Medical Co., Ltd. (hereinafter referred to as Yihua Health) issued a delisting risk warning, if it touches the red line, that is, "the audited net assets at the end of the most recent fiscal year is negative, or after the retrospective restatement of the most recent fiscal year-end net assets is negative", it will be Shenzhen The stock exchange will implement the risk warning of delisting.
At the same time, Yihua Health announced the postponement of its 2021 annual financial report, which was scheduled to be disclosed on April 7th. However, according to the earnings forecast disclosed earlier this year, the net profit loss attributable to shareholders of listed companies was 360 million yuan to 540 million yuan, an increase of 13.57%-42.38% over the same period last year.
Yihua Health is a medical and senior care service company held by Yihua Group.After 2015, Yihua Health metamorphosed from a real estate company into a medical and healthcare enterprise, establishing two business cores, namely, the operation and service of medical institutions and the operation and service of senior care communities.
However, the business transformation has not brought Yihua Health a takeoff in performance. As of 2021, Yihua Health has suffered losses for three consecutive years, totaling more than 3 billion yuan.
It's worth mentioning that Yihua Health is the only one left under Yihua Group, which claimed assets of 85 billion yuan that year. A listed company. Behind it, the former "godfather of Chaoshan capital" Liu Shaoxi single-handedly built the Yihua system has been shaky.
Three years of huge losses, gearing ratio of 98%
As of 2021, Yihua Health has been suffering from huge losses for three consecutive years. 2019-2020, Yihua Health's operating revenues will be about 1.792 billion yuan and 1.562 billion yuan respectively; the corresponding net profits will be - 1.572 billion yuan and -6.6 billion yuan respectively. 1.572 billion yuan, -625 million yuan.
At the end of 2020, Yihua Health's net assets plummeted 82.88% year-on-year to around 100 million yuan. Its 2020 financial report is clearly labeled that there is uncertainty about the company's ability to continue as a going concern.
Yihua Health's main business is the operation and service of medical institutions and senior living communities, both of which are asset-heavy operations, with medical industry services and senior living industry services being its two business pillars. After the transformation from real estate enterprises, no medical industry foundation of Yihua Health, the use of Liu Shaoxi as a capital big brother consistent style - high premium mergers and acquisitions, opened the "buy buy" mode.
From 2014 to 2018, Yihua health **** dozens of mergers and acquisitions, one after another will be the zhongAnKang, Dazi SaiLeKang, pro and source of the project under its umbrella, through mergers and acquisitions, equity participation and other ways to control the number of hospitals more than 20. Among them, there is no lack of high premium mergers and acquisitions. According to media reports, Yihua Health in the acquisition of Dazi Sailokang Medical Investment Management Co., Ltd, Aiole Medical Devices (Shenzhen) Co., Ltd, Hangzhou Yanghe Hospital Co., Ltd. and Hangzhou Ci Pension Hospital Co., Ltd, the value-added rate of as high as 30 times, 25 times, 19 times, and 11 times, respectively.
Along with the capital operation, Yihua Health's performance has been improved. from 2014 to 2017, the company's total operating income increased from 158 million yuan to 2.116 billion yuan, and its net profit increased from 29.82 million yuan to 184.3 million yuan. However, the company's earnings are extremely unstable, and the company's net attributable profit had dropped significantly by 76.58% in 2017; in 2018, the net attributable profit was 177 million yuan, which was only one-fourth of that in 2016.
But every acquisition of a company means that Yihua Health needs to invest a large amount of operating capital, and even more so, need to bear the risk of its business failure. The goodwill impairment brought about by the high premium acquisition has also become a "black hole" that eats into the company's profits.
In fact, Yihua Health also understands its own risk. in late March 2019, Yihua Health said in response to the Shenzhen Stock Exchange inquiry letter, since the transition into the health care industry in 2014, the company has more cash acquisition of assets for industrial expansion, coupled with the health care, nursing care and other segments of the operation of the larger, more daily operating funds are needed, so the account does not appear to be too much surplus funds. Excessive surplus funds.
The chain reaction is that Yihua Health's debt ratio is high, and funds are becoming increasingly tight. from 2015 to the first half of 2021, Yihua Health's gearing rose from 48.47% to 98.01%. in 2019, Yihua Health's money funds were only 169 million yuan, a decline of 51.04% compared to the beginning of the year. in 2020, its money funds fell to 151 million yuan; in the third quarter of 2021, its money funds were only 88 million yuan.
Yihua Health's financial report shows that 2019 was a major turning point in its performance. In that year, it suffered a huge loss of 1.572 billion yuan. It was mainly due to the impairment of goodwill and long-term assets of its invested companies, and the asset impairment for the period was as high as 1.483 billion yuan, accounting for 100.47% of the total profit.
Yihua Health's investment in the performance of the target have also "face". 2014, Yihua real estate to 720 million yuan to acquire all the shares of Guangdong ZhongAnKang Logistics Group Co. But in 2018, the first year after the completion of the performance commitment, its revenue fell 15.2% year-on-year to 1.263 billion yuan; net profit of 7.3229 million yuan, a sharp decline of 95.25% year-on-year.
In 2016, Yihua Health spent 700 million yuan to acquire the senior care service company Pro-Harmony Source, at that time, Pro-Harmony Source had promised that the company in 2016-2018, the amount of loss does not exceed 30 million yuan, 20 million yuan, and 10 million yuan, and in 2019 to turn around the loss to profit. However, in 2019, Pro-Harmony Source is still deep in the loss quagmire, with a loss of 96.1117 million yuan; in 2020, the loss reached 195 million yuan, and the performance fulfillment rate was -586.51%.
Yihua Health began to sell assets to make ends meet. in October 2020, Yihua Health transferred 25.6% of the company's entire interest in Xinjiang Hetian Xinsheng Hospital, and 16% of the company's entire interest in Yuge County Chudong Hospital, offsetting 115 million yuan of debt.
Yihua Group has also moved to find a new "gold master" for Yihua Health. 2021, Yihua Health said it intends to raise no more than 664 million yuan from a non-public offering of shares by Beijing New Mileage Health Industry Group, which will become the company's first major shareholder, and Yihua Group's stake is 25.42% to the second largest. 25.42% change to the second largest shareholder. However, the deal ultimately fell through.
"Looking back at Yihua's transformation into healthcare, it under-assessed the industry or was overconfident." Internet trend observer and well-known financial writer Yuan Guobao said, "It is important to know that the medical industry has a high rate of return, but the relative investment is also very large, especially in the case of insufficient familiarity with the medical and health industry, (Liu Shaoxi) staked all of his life, which should not be a qualified investor to do, 'betting on one time ' The implication is perhaps even greater."
Yihua health liabilities over 4.6 billion into the delisting crisis3April 7, Yihua health again released may be implemented delisting risk warning and other announcements. After a frenzy of mergers and acquisitions, Yihua Health has established two major business cores of medical institution operations and services and senior living community operations and services, but this has not brought the company a rapid rise in performance, and the huge amount of goodwill that comes with it has become a hidden danger. The company has also transferred its stake in the hospital several times to protect its performance, but ultimately, the company is still on the verge of delisting.
Delayed release of the annual report, the stock is at risk of delisting
Since the end of January 2022 after the release of the earnings forecast, Yihua Health 2021 annual report has not been released. In the latest announcement, Yihua Health postponed the scheduled disclosure date of its 2021 annual report to April 26th. Going backward, Yihua Health lost 1.572 billion yuan and 625 million yuan in 2019 and 2020, respectively, and coupled with the 2021 earnings forecast, Yihua Health predicted a loss of 360 million yuan to 540 million yuan, its delisting risk announcement will not be surprising.
Yihua Health's predecessor, McCourt, which focuses on the development and sale of photovoltaic products, was listed on a shell in 2007 and renamed Yihua Real Estate. The company began its transition to the field of health began in 2014, and then began a number of large acquisitions.
Incomplete statistics from the New Beijing News show that from 2014 to 2018, Yihua Health acquired more than 3 billion yuan, including the acquisition of medical logistics service provider Zong Ankang for 720 million yuan; the acquisition of medical investment management company Dazi Sailokang for 1.625 billion yuan; the acquisition of blood glucose and blood pressure monitoring devices for 300 million yuan, Aiole; and the senior living service provider Pro-Harmony Source Group for 700 million yuan. After that, there is no lack of other acquisitions through these companies.
In order to realize a complete and thorough strategic transformation of the healthcare industry, Yihua Health also disposed of all its real estate business in 2015-2016 and entered the senior care industry through the acquisition of the Pro-Harmony Group Ltd. while participating in and expanding the Internet healthcare business through indirect shareholding.Between 2014 and 2018, the number of hospitals that it directly or indirectly Between 2014 and 2018, the number of hospitals under its direct or indirect control (including trusteeship) amounted to 23, and it gradually established two major business cores, namely, operation and services of medical institutions and operation and services of senior living communities.
At the performance level, along with the scale expansion brought about by large acquisitions, the company's performance peaked in 2016, when it realized revenue of 1.296 billion yuan and net profit of 744 million yuan, a year-on-year increase of 1,342.25%, of which the medical segment accounted for more than 98% of the year's revenue. Among them, in 2017 and 2018, Yihua Health also maintained a net profit scale of nearly 200 million yuan. At the same time, the hidden dangers buried in the crazy acquisition, also began to show.
Several transfers of its hospital stakes can hardly save the performance
Starting from 2019, due to the loss of several mergers and acquisitions of companies to provide a huge amount of goodwill impairment and long-term asset impairment, Yihua Health began to lose money, and that year's loss amounted to 1.572 billion yuan. During the reporting period, six of the seven major controlling participant companies of Yihua Health lost money, only Dazi Sailecon realized a profit of 60.71 million yuan that year, and Zhong Ankang, which is mainly engaged in the business of medical logistic services and medical engineering, had a loss of 121 million yuan.
Yihua Health 2020 April 2020 released a provision for asset impairment in 2019 announcement shows that the company in 2019 to make a provision for impairment of various assets of 1.595 billion yuan, of which 1.456 billion yuan for goodwill impairment loss, goodwill are due to the company and subsidiaries of non-identical control of the corporate merger corresponding to the formation of the equity of the asset group, including the acquisition of ZongAnKang specifically, Dazi Sailor Kang and affinity source, etc. and generated.
By 2020, Yihua Health's losses continued, with a loss of $625 million that year. Along with the high level of goodwill is Yihua Health's debt. As of the first three quarters of 2021, Yihua Health's total liabilities reached 4.620 billion yuan, with a gearing ratio of 99.06%.
At the same time as the performance continues to lose money, Yihua Health is also repeatedly selling its hospitals. 2020 October, Yihua Health has issued a number of consecutive announcements involving the termination and transfer of the equity interests of Hetian Xinsheng Hospital Limited Liability Company and Yugean County Chudong Hospital Limited, among other things.
Yihua Health said the move was aimed at returning capital to support the development of core businesses. By November 23, 2021, Yihua Health announced to the public, wholly-owned subsidiary Dazi Sailokang Medical Investment Management Co. Ltd. intends to transfer 99% of the share of capital contribution to the Hefei Renji Cancer Hospital, the transaction price of 1.7 million yuan.
Yihua Health is also y involved in several lawsuits, many of which arise from acquisitions. Yihua Health will be pro and source of the two original shareholders to the court, requiring them to pay performance compensation in cash *** totaling about 175 million yuan. The reason for this is that under the merger and acquisition of Yihua Health at a cost of 700 million yuan, Pro-Harmony Source will have a loss of 96.1117 million yuan in 2019, with a performance completion rate of -120.8%; and a loss of 195 million yuan in 2020, with a completion rate of -586.51%.