Guofeng Plastic Industry's net profit increased by nearly 70% year-on-year last year, with non net profit deducted as negative for seven consecutive years

Beijing News (Reporter Xiao Wei) - Starting from February 12th, the second trading day after the holiday, the listed company Anhui Guofeng Plastic Industry Co., Ltd. (securities abbreviation: Guofeng Plastic Industry 000859) has gained 10 consecutive limit up boards. The stock price has risen from 3.09 yuan per share to 8.01 yuan per share at the close of February 25th, a cumulative increase of 159%, and the total market value has increased from 2.285 billion yuan to 5.923 billion yuan.

However, on February 26th, Guofeng Plastics walked out of the "sky floor" during the trading session. Despite hitting the limit up price of 8.81 yuan/share in the morning, it quickly jumped and turned green in the late trading session, hitting the limit down price of 7.21 yuan/share at one point, and finally closed at 7.23 yuan/share, a decrease of 9.74%. The transaction amount was 2.342 billion yuan, exceeding 1 billion yuan for three consecutive trading days.

A senior Secondary market private investor said: I have also made money in Guofeng Plastics Industry, and its situation is caused by market forces, not individual market makers. When the market's sentiment arrives, regardless of the company's performance or concept, as long as the market feels that this ticket can make money, or the moneymaking effect of this ticket comes into play, various sizes of funds will gather together to push the stock price up to the limit. In short, everyone thinks that buying today will still raise the limit tomorrow, and they will rush in . Similarly, when the moneymaking effect or market sentiment subsides, the tide will also recede, and the stock price will return to its rightful value, just the speed

Risk reminder: No planning or development of foldable OLED screen related products

On the evening of February 24th, Huawei released its first 5G foldable screen phone MateX in Barcelona, priced at 2299 euros (approximately 17500 yuan). It features a flip out design that combines both phone and tablet forms. When closed, it has a 6.6-inch large screen phone, and when unfolded, it has an 8-inch tablet with a thickness of only 5.4 millimeters.

After the festival, Guofeng Plastics, which was hyped up in the market due to the concept of "foldable OLED screens", continued to raise its limit on February 25th, the second day after Huawei's new machine release, ending in a "crazy" trend of ten consecutive boards. However, on February 26th of the following day, it did not continue to be "crazy" and walked out of the "sky floor" during the session. After hitting the limit up price of 8.81 yuan/share in the early session, it quickly jumped and turned green in the late session, hitting the limit down price of 7.21 yuan/share at one point, and finally closing at 7.23 yuan/share, The decrease was 9.74%, with a transaction amount of 2.342 billion yuan, exceeding 1 billion yuan for three consecutive trading days.

On February 24th, Guofeng Plastics Industry disclosed a special risk warning announcement, stating that the company's ongoing high-performance microelectronic grade PI membrane material project with an annual production capacity of 180 tons has entered the equipment installation and commissioning stage, and is expected to undergo trial production in the second quarter of 2019. The initial planning of this project's products is mainly applied in the field of flexible circuit board (FPC) substrate manufacturing. There is no plan for products that can be applied to foldable OLED screens, nor has there been any research and development of products that can be applied to foldable OLED screens. The relevant technology for producing products that can be applied to foldable OLED screens has not been mastered yet.

Negative net profit after deduction for seven consecutive years

The net profit attributable to shareholders of the listed company after deducting non profits was last positive, dating back to 2011. In that year, the revenue of Guofeng Plastics and the net profit attributable to shareholders of the listed company after deducting non profits were 1.765 billion yuan and 15.22 million yuan, respectively.

In the following 7 years, the net profit attributable to shareholders of the listed company after deducting non profits of Guofeng Plastic Industry was negative,

From 2012 to 2017 and from January to September 2018, the operating revenue of Guofeng Plastic Industry was 1.429 billion yuan, 1.361 billion yuan, 1.312 billion yuan, 1.090 billion yuan, 1.145 billion yuan, 1.173 billion yuan, and 875 million yuan, respectively; The net profit attributable to the shareholders of the listed company is 4.74 million yuan, -39.19 million yuan, 6.25 million yuan, 9.53 million yuan, 18.36 million yuan, 60.23 million yuan, and 74.62 million yuan.

The net profits attributable to the shareholders of the listed company after deducting non profits are all negative, respectively -21.49 million yuan, -56.81 million yuan, -43.08 million yuan, -67.82 million yuan, -43.48 million yuan, -56.82 million yuan, and -27.29 million yuan.

In addition, Guofeng Plastic Industry stated in a special risk warning that in recent years, the domestic and international economic growth rate has slowed down, the industry where the company's main products are located continues to have overcapacity, market competition is exceptionally fierce, exports are hindered, and upstream raw material prices fluctuate violently. The company's operating situation is severe, and the operating pressure is high. Although the net profits attributable to shareholders of the listed company in the past three years are profits, the net profits attributable to shareholders of the listed company after deducting non recurring gains and losses are losses.

Guofeng Plastics Industry stated that it is expected that the net profit attributable to shareholders of the listed company in 2018 will be approximately 95 million yuan, an increase of approximately 58% compared to the same period last year. After deducting the approximately 120 million yuan of non current asset disposal gains and losses related to land acquisition and storage carried forward by the company according to the progress of land acquisition and storage in 2018, it is expected that the net profit attributable to shareholders of the listed company after deducting non recurring gains and losses will be a loss.

Among the non recurring profit and loss items from 2015 to 2017, the non current asset disposal profit and loss of Guofeng Plastics were 27.16 million yuan, 37.49 million yuan and 103 million yuan respectively; The government subsidies included in the current profit and loss are 26.73 million yuan, 18.68 million yuan, and 10.81 million yuan, respectively.

Guofeng Plastic Industry officially launched A-share trading on November 19, 1998. The company mainly engages in packaging film materials and electronic information film materials, wood plastic new materials, engineering plastics, and sapphire chips. Among them, biaxially stretched polypropylene film and biaxially stretched polyester film are mainly used in various packaging such as food and daily necessities, as well as heat transfer carbon tape, adhesive tape, film capacitors, etc.

Guofeng Plastics once said in the 2018 semi annual report that the company has a functional polymer film research and development center jointly established with the University of Science and Technology of China. The company is the main supplier of packaging materials and electronic information substrates for domestic and international well-known companies such as Mount Huangshan Yongxin Co., Ltd., Ting Hsin International Group, Amko Soft Packaging China, Zhongshan Almo Industry Co., Ltd., and its products are exported to Japan and South Korea, Southeast Asia, Europe North America and other countries and regions.

According to the 2018 semi annual report, Guofeng Plastics achieved operating revenue of 480 million yuan and 74.1 million yuan domestically and internationally, accounting for 86.6% and 13.4% of the operating revenue, respectively. Plastic film, engineering plastics, and new wood plastic building materials achieved revenue of 453 million yuan, 54.88 million yuan, and 44.07 million yuan, respectively.

As of the third quarter report of 2018, Hefei Industrial Investment Holding (Group) Co., Ltd. holds 27.09% of the shares of Guofeng Plastic Industry, and is the controlling shareholder of Guofeng Plastic Industry. The former is 100% controlled by Hefei SASAC, so Hefei SASAC is the actual controller of Guofeng Plastic Industry.

New Beijing News reporter Xiao Wei, editor Liu Xiaoyang, proofreading Lu Qian