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It fell from more than 24 yuan on the day of listing on January 18 to more than 13 yuan on August 21. In just 7 months, the fundamentals seemed to have not changed much, but the market value lost more than 45%. What happened to this listed state-owned enterprise?

AsGuangzhou Municipal Government、The sole investor and operator of Guangzhou’s waste incineration power generation project，Listed companies on the Shanghai Stock Exchange Main BoardBeneath the calm surface of Yongxing Co., Ltd., there are actually hidden dangers.

In July, Yongxing Shares Chairman Li Shuijiang was reported by his real name because his subsidiary was involved in a "bidding scandal". The incident quickly attracted the attention of the capital market.

Tendering pitfalls

The cause of the incident is not complicated. It originated from an ordinary bidding event. The top two competitors with the highest bids were disqualified, which triggered controversy among the bidding units that the bidding process was "fraudulent".

On August 9, 2022, in the bidding for the slag disposal project of Shaodong Power Plant in Hunan Province, the performance information submitted by Guangxi Gongzhou Environmental Protection Group was rejected, and it was disqualified from bidding and failed to enter the bid evaluation stage.

Gongzhou Environmental Protection stated that the performance review information submitted by the company was in compliance with the regulations, but it was treated unreasonably. The reviewer's behavior was contrary to the provisions of the "Bidding Industry Specifications" that qualification review and performance should be based on objective, fair and clear standards and should not be arbitrarily distorted or denied. The performance contracts and tax invoices provided by the company are authentic and valid, and meet the requirements of "qualified bidders."

Gongzhou Environmental Protection also emphasized that the bidding documents adopt a comprehensive scoring method with a total score of 100 points.The business technology part accounts for 30 points. Even if the performance is missing or omitted, only points will be deducted.DisqualificationThe truth.

This business and technical scoring table shows that the performance needs to provide the key pages of the contract and the corresponding amount of the invoice for the supply receipt and stamped with the bidder's official seal as proof materials. If the evaluation information (total contract amount, etc.) is reflected in the key pages of the contract, the certificate issued by the corresponding customer of the contract (stamped with the official seals of both parties) can be provided at the same time. If the contract or the customer's certificate amount is inconsistent with the total invoice amount, the total invoice amount will be used as the basis for scoring. The performance is based on the contract signing time. If the proof materials are not provided, or the proof materials provided are incomplete, or the proof materials provided cannot reflect the evaluation information, the corresponding performance will be deemed invalid and will not be calculated. 0 points will be given if not provided.

But in actual operation, Gongzhou Environmental Protection, which originally ranked second with 95.16 points, was disqualified due to the lack of a performance certificate.

The final bidding results show thatChangchun Defang Environmental Protection, which had the highest bid, and Guangxi Gongzhou Environmental Protection, which had the second highest bid, were both kicked out for the same reason.

Guangxi Gongzhou stated that after subsequent negotiations, it was promised to participate in other cooperation projects and provide three companies with backup reserves, but two years later, the promise has not been fulfilled, so "the owner unit has deceived our company."

However, the opinion on handling the petition issued by Guangzhou Environmental Protection Investment Group stated that "Guangxi Gongzhou did not win the bid, so the bidder Huantou Building Materials Company and our subsidiary Shaodong Company have never signed any contract with Guangxi Gongzhou. There is no deception, and they are not liable for contractual negligence."

It is understood that Guangxi Gongzhou, considering the holding relationship between Guangzhou State-owned Assets Supervision and Administration Commission and Guangzhou Environmental Investment, has submitted an application to the Guangzhou Municipal People's Congress Letters and Calls Bureau to transfer the matter to the Shaodong Municipal Government, the construction entity and the directly responsible unit, for review and verification.

“Taking the blame” is not accidental

During the construction of Shaodong Power Plant, such a controversial bidding incident occurred. Why did Li Shuijiang, chairman of Guangzhou listed company Yongxing Shares, be reported?

It turns out that this tender was issued by Guangzhou Huantou Building Materials Co., Ltd. and commissioned by Guangdong Mechanical and Electrical Equipment Tendering Co., Ltd., and Guangzhou Huantou Building Materials Co., Ltd. was acquired by Yongxing Co., Ltd. from its controlling shareholder Guangzhou Huantou Group in September 2020, and is currently a wholly-owned subsidiary of Yongxing Co., Ltd.

After equity penetration, Yongxing Co., Ltd. is an environmental protection energy company actually controlled by the Guangzhou Municipal People's Government. Its main product is electricity, and its main services include waste incineration services and biomass treatment services.

On January 18, 2024, Yongxing Co., Ltd. successfully completed its issuance and was officially listed for trading. The final fundraising of this IPO was 2.43 billion yuan.

According to the prospectus disclosed by Yongxing Co., Ltd., it originally planned to raise as much as 4.5 billion yuan through IPO.

In order to complete the issuance as soon as possible, Yongxing shares chose to significantly reduce the scale of fundraising., only 54% of the original planned fundraising amount was obtained, and finally obtained the listing registration approval on October 26, 2023.

Guangzhou Environmental Protection Investment Group Co., Ltd., as the controlling shareholder, holds 72.34% of Yongxing shares.

Gongzhou Environmental Protection pointed out that after complaining to Guangzhou Environmental Investment Group and Yongxing Co., Ltd. about Guangdong Mechanical and Electrical's violations, Guangzhou Environmental Investment Group did not organize a re-inspection. In subsequent letters and visits complaints, Guangzhou Environmental Investment Group again pushed the relevant issues in the bidding process to Guangdong Mechanical and Electrical.

Li Shuijiang is not only the chairman of the listed company Yongxing Shares, but also the party secretary and chairman of Guangzhou Environmental Protection Investment Group Co., Ltd. When the bidding agency violates the rules, the owner unit that issues the bid is of course responsible for supervision and review.

If you want to wear the crown, you must bear its weight. Therefore, as the dual leader of the controlling shareholder and the listed company, Li Shuijiang is not an innocent victim of the complaints. He does have reasons to take the blame, and shirking responsibility is definitely not a solution to the problem.

The precedent is not too long ago

A few years ago, Yongxing shares had not yet been listed, butSimilar biddingevent,It also happenedPass。

On September 13, 2017, the building materials company announced the winning bidders. The first winning bidder was Guangzhou Hengyin Environmental Protection Technology Co., Ltd. (formerly known as Guangzhou Hengneng Environmental Protection Technology Co., Ltd., hereinafter referred to as "Guangzhou Hengneng"), and the second winning bidder was Guangzhou Lvyin Environmental Protection Technology Co., Ltd. (hereinafter referred to as "Guangzhou Lvyin"). During the announcement period, bidders Guangxi Qinyuan Environmental Protection Co., Ltd., Dongguan Hongchang Environmental Protection Youxia Nong Company, and Zhongshan Xijiang Environmental Protection Technology Co., Ltd. (hereinafter referred to as "Xijiang Environmental Protection") all submitted letters of inquiry to the building materials company.

According to the judgment document (2019) Yue 01 Min Zhong No. 3881,Guangzhou Hengneng, the first bidder for the bidding project, was disqualified due to reasons such as a conflict of interest with another bidder.

In addition to the "pitfalls" in bidding and tendering, Yongxing Co., Ltd. also has quite a few loopholes in the governance of its subsidiaries.

In 2021, Guangzhou Hongfeng Environmental Sanitation Equipment Co., Ltd. was the first candidate for the bid for the garbage truck procurement project of a subsidiary of Yongxing Co., Ltd. worth more than 50 million yuan. The company may be an outsourced processor of Guangzhou Environmental Sanitation Machinery Equipment Factory Co., Ltd., an affiliate of Yongxing Co., Ltd. Its registered capital is only 500,000 yuan, and the number of social security contributors in the past three years has not exceeded 13. On May 25, 2021, due to major changes in the bidding project requirements and procurement plans, the project terminated the bidding work, and the bidding will be reorganized after the requirements and procurement plans are adjusted. In 2023, Guangzhou Hongfeng won the bid for the related party's sanitation vehicle procurement project again, with a bid amount of more than 20 million yuan.

According to media reports, Guangzhou Environmental Protection Investment Group Co., Ltd. had a "collapse of corruption" case. This case involved corruption issues in multiple waste incineration projects. In this case, Wang Xiaoling, then secretary of the Guangzhou Municipal Commission for Discipline Inspection, mentioned that the Guangzhou Municipal Government stopped the original winning bid of Guangzhou Environmental Investment, lowered the bid price by 15% and re-issued the bid for bidding. This alone saved the city's fiscal losses of several hundred million yuan.

In addition, the trial information shows that in this case, the prosecution accused that Li Xiaoxiong, then director of the Enterprise Development Department of Guangzhou Environmental Investment, alone or in collusion with the company's general manager Bai Wen, chairman and legal representative Pan Shengshen, illegally accepted property from others totaling 8.485 million yuan. Wang Qing, chairman of Guangdong Chenyu Construction Engineering Company, one of the bribers, paid "benefits" to the above-mentioned personnel and, under the condition of setting biased bidding conditions, enabled his affiliated units to successfully obtain four projects in Huadu, Zengcheng, Xingfeng, and Nansha. The total cost of the four projects won by Wang Qing was about 1.5 billion yuan, and he bribed the above three people a total of 19.3 million yuan.

This incident undoubtedly also shows that company executives are in a high-risk area during the bidding process.

Corporate governance is urgent

The helmsman's thinking determines the direction of the ship.

"By 2026, we will create another environmental investment!" This resounding oath came from the second meeting of the Strategic Planning Executive Committee of Guangzhou Environmental Investment Group in 2024. As the Party Secretary and Chairman of the Group, Li Shuijiang attended the meeting and delivered a speech. The meeting emphasized the need to further strengthen the implementation of the "14th Five-Year Plan" strategic plan, ensure the successful completion of the Group's various strategic indicators from 2024 to 2026, and fully promote the implementation of the goal of "rebuilding another environmental investment".

Among Chairman Li Shuijiang's three instructions, the first one emphasized that we should focus on how to "marketize" and "implement".

In fact, as the main force of Huantou Group, Yongxing shares' asset quality is not very good. Before listing, its debt-to-asset ratio continued to remain above 60%, which was about 10 percentage points higher than that of comparable companies in the same industry, and its current ratio and quick ratio were also lower than the average level of comparable companies in the same industry.

How to leverage the power of the market to improve the asset quality of Yongxing Shares and even Huantou Group is indeed a daunting task.

In a market economy, integrity is the basis and corporate governance is the key to development.

Especially at the moment when we are advocating "vigorously developing new quality productivity", the breakthrough point for China's future economy has been pointed out, and listed companies should be the role models.

However, before Yongxing’s IPO, its integrity was controversial in the market.

A typical example is: the initial prospectus showed that Yongxing shares planned to use the raised funds of 1.35 billion yuan to supplement working capital and repay bank loans to better meet the company's business development and operating capital needs. But what is shocking is that in the three years before applying for listing, Yongxing shares implemented cash dividends totaling 1.3125 billion yuan, which accounted for 88.58% of the total profit in the three years, but then took 2.43 billion yuan from the stock market. How sincere is it to the capital market?

Putting aside major events like listing, let's take a step back and say that if the integrity of a company is questionable and even an ordinary tender can trigger many complaints about "scams" and "violations", then not only can it not be considered innovative, but the company itself will probably only attract numerous doubts.

For listed companies, it is necessary to improve corporate governanceThis lesson has become a top priority in the market.Yongxing SharesMaybe we can set an example.As the dual helmsman of the two giant ships, Huantou Group and Yongxing Shares, Chairman Li Shuijiang's statement at this critical juncture is worthy of the attention of more than 70,000 investors.