Yihua Health has suffered losses for consecutive years and faces the risk of delisting

Yihua Health has suffered losses for consecutive years and faces the risk of delisting

Yihua Health has suffered losses for consecutive years and faces the risk of delisting. According to the previously disclosed performance forecast for 2021, Yihua Health will continue to lose money this time . This has also prompted it to make no profit for three consecutive years and its losses have increased. Yihua Health has suffered losses for consecutive years and faces the risk of delisting. Yihua Health has suffered consecutive losses and faces the risk of delisting1

On April 7, Yihua Health once again issued an announcement that it may be subject to a delisting risk warning. After experiencing crazy mergers and acquisitions, Yihua Health has established two core businesses: medical institution operations and services and senior care community operations and services. However, this did not bring rapid growth to the company's performance. Instead, the huge amount of goodwill that followed was become a hidden danger. Yihua Health also transferred shares in its hospitals several times to ensure performance, but in the end, the company was on the verge of delisting.

The release of the annual report is postponed and the stock faces the risk of delisting

Since the performance forecast was announced at the end of January 2022, Yihua Health’s 2021 annual report has not been released. In the latest announcement, Yihua Health has postponed the scheduled disclosure date of the 2021 annual report to April 26. Looking back, Yihua Health suffered losses of 1.572 billion yuan and 625 million yuan respectively in 2019 and 2020. In addition, in the 2021 performance forecast, Yihua Health had a predicted loss of 360 million yuan to 540 million yuan, and its delisting risk announcement Not surprising.

Yihua Health was formerly McCote, which was mainly engaged in the research and development and sales of optoelectronic products. It was listed on the backdoor in 2007 and was renamed Yihua Real Estate. The company began its transformation into the big health field in 2014, and subsequently began a number of large-scale acquisitions.

Incomplete statistics from Beijing News reporters show that from 2014 to 2018, Yihua Health’s acquisition amount exceeded 3 billion yuan, including the acquisition of medical logistics service provider Zhongankang for 720 million yuan; Acquired the medical investment management company Dazi Xelecom; acquired the blood sugar and blood pressure monitoring equipment manufacturer Aiole for 300 million yuan; and acquired the elderly care service provider Qinheyuan Group for 700 million yuan. After that, there was no shortage of other projects through these companies. acquisition.

In order to achieve a complete strategic transformation of the medical and health industry, Yihua Health also purchased all real estate businesses from 2015 to 2016, and entered the elderly care industry through the acquisition of Qinheyuan Group Co., Ltd., and also indirectly Participate in and expand the Internet medical business through shareholding. From 2014 to 2018, it directly or indirectly controlled (including trusteeship) 23 hospitals, gradually establishing its two core business cores of medical institution operations and services and senior care community operations and services.

In terms of performance, with the scale expansion brought about by large-scale acquisitions, the company's performance reached its peak in 2016, with revenue of 1.296 billion yuan and net profit of 744 million yuan, year-on-year. An increase of 1342.25, of which the medical sector accounted for more than 98% of the revenue that year. In 2017 and 2018, Yihua Health also maintained a net profit of nearly 200 million yuan. At the same time, the hidden dangers laid by the crazy acquisitions have also begun to emerge.

Several transfers of the equity of its hospitals have made it difficult to restore performance

Starting from 2019, due to the losses of many mergers and acquisitions companies, huge goodwill impairments and long-term asset impairments have been made. Hua Health began to lose money, and its losses that year reached 1.572 billion yuan. During the reporting period, 6 of Yihua Health's 7 major holding and joint-stock companies suffered losses. Only Dazi Xelekan achieved a profit of 60.71 million yuan that year, and Zhongankang, which is mainly engaged in medical logistics services and medical engineering businesses, lost 121 million yuan. Yuan.

An announcement issued by Yihua Health in April 2020 on the provision of asset impairment provisions for 2019 shows that the company plans to make provisions for asset impairment of 1.595 billion yuan in 2019, of which 1.456 billion yuan. It is the impairment loss of goodwill. The goodwill is generated due to the equity of the corresponding asset group in the merger of the company and its subsidiaries under non-common control, specifically including the acquisition of Zhongankang, Dazi Xelekan and Qinheyuan.

In 2020, Yihua Health’s losses continued, with a loss of 625 million yuan that year. Along with goodwill, there is also Yihua Health's debt situation. As of the first three quarters of 2021, Yihua Health's total liabilities reached 4.620 billion yuan, and the asset-liability ratio reached 99.06.

While its performance continues to suffer losses, Yihua Health has also sold its hospitals several times. In October 2020, Yihua Health issued multiple announcements in succession, involving matters such as the termination and transfer of equity interests in Hotan Xinsheng Hospital Co., Ltd. and Yugan County Chudong Hospital Co., Ltd.

Yihua Health stated that this move is aimed at withdrawing funds to support the development of core enterprises. On November 23, 2021, Yihua Health announced that its wholly-owned subsidiary Dazi Sailekang Medical Investment Management Co., Ltd. planned to transfer 99% of the investment share of Hefei Renji Cancer Hospital, with a transaction price of 1.7 million yuan.

Yihua Health has also been involved in several lawsuits, many of which were caused by acquisitions. Yihua Health took the two original shareholders of Qinheyuan to court, requiring them to pay performance compensation *** totaling approximately 175 million yuan in cash. The reason is that after Yihua Health's 700 million yuan acquisition, Qinheyuan suffered a loss of 96.1117 million yuan in 2019, with a performance completion rate of -120.8; in 2020, it suffered a loss of 195 million yuan, with a completion rate of -586.51. Yihua Health has suffered consecutive losses and faces the risk of delisting 2

As early as March 23, 2022, Yihua Health had disclosed a delisting risk warning.

According to the announcement, Yihua Health disclosed the "2021 Annual Performance Forecast" on January 29, 2022. It is estimated that the company's net profit attributable to shareholders of listed companies in 2021, deducting After non-recurring gains and losses, the net profits attributable to shareholders of the listed company are all losses, and the equity attributable to the owners of the parent company is negative.

Among them, the net profit loss attributable to shareholders of listed companies ranged from 360 million yuan to 540 million yuan, an increase of 13.57-42.38 yuan over the same period last year.

According to Article 9.3.1 of the "Shenzhen Stock Exchange Stock Listing Rules (2022)", if the audited net assets at the end of the most recent fiscal year are negative, its stock trading will be delisted. Risk warning.

Information shows that Yihua Health was listed in August 2000. Its main business includes investment and operation of medical institutions, investment and operation of retirement communities, comprehensive medical logistics services, and professional medical engineering.

Data shows that from 2019 to 2020, Yihua Health achieved revenue of approximately 1.792 billion yuan and 1.562 billion yuan respectively; net profits from equity ownership were approximately -1.572 billion yuan and -625 million yuan respectively. .

According to the previously disclosed 2021 performance forecast, Yihua Health will continue to suffer losses this time. This also prompted it to become unprofitable for three consecutive years and its losses increased.

Mentioning the reasons for the change in performance, Yihua Health said:

Some of its acquired companies are still in the performance commitment period. According to preliminary calculations, performance compensation payments are expected The amount affected this year is approximately 100 million yuan to 140 million yuan, which is a non-recurring profit and loss;

Affected by the new crown epidemic and the macroeconomic environment, Yihua Health’s liquidity funds are relatively tight, and it will continue to operate in 2020. Some interest-bearing liabilities are overdue, resulting in an increase in the company's financial expenses for this period compared with the same period last year;

The subsidiary's debt restructuring with Oriental Asset Company this period affected the company's investment income of 42.7834 million yuan, which belongs to Non-recurring gains and losses.

It is worth mentioning that Yihua Health's "disasters" do not come alone. It has repeatedly received regulatory letters and been involved in many lawsuits.

On February 26 and March 31, Yihua Health received regulatory letters from the Shenzhen Stock Exchange respectively. The pre-disclosure time of its reduction of holdings through centralized bidding transactions on the stock exchange and the time interval between its respective reductions were less than 15 trading days, which violated the regulations of the Shenzhen Stock Exchange;

On February 19, Yihua Health disclosed It said that the company’s controlling shareholder Yihua Group received the “Notification of Case Filing” from the China Securities Regulatory Commission. Yihua Group was suspected of violating laws and regulations in information disclosure. According to relevant laws and regulations, the China Securities Regulatory Commission decided to open an investigation against it.

In addition, the disclosure of Yihua Health's "2021 Annual Report" has been postponed, and the disclosure date has been postponed from April 7, 2022 to April 26, 2022. Yihua Health has suffered consecutive losses and faces the risk of delisting 3

The "Yihua Group" has reached 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 closing net assets of the most recent fiscal year is negative, or the net assets at the end of the most recent fiscal year after retrospective restatement are negative," it will be issued a delisting risk warning by the Shenzhen Stock Exchange.

At the same time, Yihua Health announced that it will postpone the 2021 financial report originally scheduled to be disclosed on April 7. However, according to the performance forecast disclosed at the beginning of this year, the net profit loss attributable to shareholders of listed companies ranged from 360 million yuan to 540 million yuan, an increase of 13.57-42.38 yuan over the same period last year.

Yihua Health is a medical and elderly care service company controlled by Yihua Group. After 2015, Yihua Health transformed from a real estate company into a comprehensive medical health enterprise, establishing two core business cores: medical institution operations and services and senior care community operations and services.

However, the business transformation did not bring Yihua Health’s performance to take off. As of 2021, Yihua Health has suffered losses for three consecutive years, with total losses exceeding 3 billion yuan.

It is worth mentioning that Yihua Health is the only remaining listed company under the Yihua Group, which claimed to have assets of 85 billion yuan. Behind the scenes, the Yihua system created by Liu Shaoxi, the former "godfather of Chaoshan Capital", has been in turmoil.

Three years of huge losses, with an asset-liability ratio of 98

As of 2021, Yihua Health has suffered huge losses for three consecutive years. From 2019 to 2020, Yihua Health's operating income was approximately 1.792 billion yuan and 1.562 billion yuan respectively; the corresponding attributable net profits were -1.572 billion yuan and -625 million yuan respectively.

At the end of 2020, Yihua Health’s net assets fell sharply by 8.288 yuan year-on-year to about 100 million yuan. Its 2020 financial report clearly stated that there is uncertainty about the company's ability to continue operating.

Yihua Health’s main business is the operation and services of medical institutions and senior care communities, both of which are asset-heavy operations. Medical industry services and senior care industry services are its two main business pillars. After transforming from a real estate company, Yihua Health, which had no foundation in the medical industry, still adopted Liu Shaoxi's usual approach as a capital tycoon - high-premium mergers and acquisitions, starting a "buy, buy, buy" model.

From 2014 to 2018, Yihua Health *** has conducted dozens of mergers and acquisitions, and has successively acquired Zhongankang, Dazi Xelekan, Qinheyuan and other projects under its banner, through mergers and acquisitions, equity participation The number of hospitals controlled by other methods exceeds 20. Among them, there are many high-premium mergers and acquisitions. According to media reports, when Yihua Health acquired Dazi Serekang Medical Investment Management Co., Ltd., Aiole Medical Equipment (Shenzhen) Co., Ltd., Hangzhou Sanatorium and Hospital Co., Ltd., and Hangzhou Ciyang Elderly Hospital Co., Ltd., the value-added rates were respectively Up to 30x, 25x, 19x and 11x.

With capital operations, 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 also increased from 29.82 million yuan to 184.3 million yuan.

However, the company's profits are extremely unstable. In 2017, the company's net profit attributable to the parent company dropped significantly by 76.58%; in 2018, the net profit attributable to the parent company was 177 million yuan, only a quarter of that in 2016.

But every time it acquires a company, it means that Yihua Health needs to invest a lot of operating capital, and it also needs to bear the risk of its business failure. The impairment of goodwill caused by high-premium acquisitions has also become a "black hole" that eats up the company's profits.

In fact, Yihua Health also understands its risks. At the end of March 2019, Yihua Health stated in its reply to the Shenzhen Stock Exchange’s inquiry letter that since its transformation into the medical industry in 2014, the company has used cash to acquire assets more to expand its industry, and to operate various sectors such as medical and elderly care. Larger scale requires more daily operating funds, so there is no excessive surplus funds on the account.

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 asset-liability ratio increased from 48.47 to 98.01. In 2019, Yihua Health's monetary funds were only 169 million yuan, a decrease of 51.04 from the beginning of the year. In 2020, its monetary funds dropped to 151 million yuan; in the third quarter of 2021, its monetary funds were only 88 million yuan.

Yihua Health’s financial report shows that 2019 is an important turning point in its performance. That year, it suffered a huge loss of 1.572 billion yuan. Mainly due to the impairment of goodwill and long-term assets of invested companies, the current asset impairment was as high as 1.483 billion yuan, accounting for 100.47% of the total profit.

The performance of Yihua Health’s investment targets has also changed. In 2014, Yihua Real Estate acquired all the shares of Guangdong Zhongankang Logistics Group Co., Ltd. for 720 million yuan. But in 2018, the first year after Zhong Ankang completed its performance commitments, its revenue dropped by 1.52% year-on-year to 1.263 billion yuan; its net profit was 7.3229 million yuan, a sharp decline of 95.25% year-on-year.

In 2016, Yihua Health spent 700 million yuan to acquire the elderly care service company Qinheyuan. At that time, Qinheyuan promised that the company would lose less than 10% from 2016 to 2018. No more than 30 million yuan, 20 million yuan and 10 million yuan, and turn losses into profits in 2019. However, in 2019, Qinheyuan was still mired in losses, with a loss of 96.1117 million yuan; in 2020, the loss reached 195 million yuan, with a performance completion rate of -586.51.

Yihua Health began to sell assets to survive. In October 2020, Yihua Health transferred 25.6% of the company's total equity in Hotan Xinsheng Hospital in Xinjiang and 16.6% of all equity in Chudong Hospital in Yugan County, paying off a debt of 115 million yuan.

Yihua Group has also considered looking for a new "funder" for Yihua Health. In 2021, Yihua Health stated that it plans to raise no more than 664 million yuan from Beijing New Mileage Health Industry Group Co., Ltd. through a non-public offering of shares, and the latter will become the company's largest shareholder. Yihua Group will change its shareholding of 25.42 to the second Major shareholder. However, the deal ultimately fell through.

“Looking back at Yihua’s transformation into medical and health care, it has under-evaluated the industry, or is overconfident.” Yuan Guobao, an Internet trend observer and well-known financial writer, said: “You must know that the rate of return of the medical industry Although it is high, the relative investment is also very large, especially when he is not familiar with the medical and health industry. (Liu Shaoxi) bet all his wealth and life on it. This should not be something a qualified investor does. It means 'taking a gamble' Maybe even bigger."