Cedar’s 20 billion wealth management storm and thunder puzzle. Qi Xiang Tengda and cedar development clarify this

After cedar International Trust denied that the 20 billion project was overdue, its two listed companies also hurried to get rid of their relationship.

On the evening of February 23, Qi Xiang Tengda (002408. SZ) and cedar development (002485. SZ) successively replied to the letter of concern of the Shenzhen Stock Exchange, denying the “idling” of the supply chain business, saying that they did not participate in the supply chain business related to accounts receivable as the underlying asset of the trust products of cedar Holdings Group Co., Ltd. (hereinafter referred to as cedar Holdings).

Previously, some media reported that the payment of some trust products of cedar holdings was overdue, involving an amount of about 20 billion yuan, and the supply chain business related to its underlying assets was suspected of “idling” trade.

In February 17th, cedar International Trust responded by official account that the current organizational structure is stable, and its operation is normal and orderly. There is no overdue project with 20 billion misrepresentation.

Source: official account of cedar International Trust

However, in the reply of the two listed companies to the Shenzhen Stock Exchange, it was revealed that Qi Xiang Tengda had a large number of transactions that did not leave the warehouse but changed the ownership. At present, the inventory market value of cedar development is only 8.79 million yuan.

Qi Xiang Tengda responded: there are transactions that do not issue goods but change ownership

Qixiang Tengda’s supply chain business has been established for many years and accounts for half of its revenue.

In February 2017, Qixiang Tengda set up a wholly-owned subsidiary Zibo Qixiang Tengda supply chain Co., Ltd. (hereinafter referred to as Tengda supply chain) and engaged in supply chain management business. In the first half of 2021, the company’s supply chain management business realized a revenue of 10.354 billion yuan, accounting for 58.33% of the company’s operating revenue.

In this regard, the Shenzhen Stock Exchange asked Qi Xiang Tengda to explain the goods and services mainly sold by Tengda since the establishment of its supply chain, sales revenue, whether relevant transactions have commercial essence, etc.

Qixiang Tengda’s supply chain business mainly sells industrial products, including ethylene glycol, purified terephthalic acid, industrial methanol, styrene, etc.

Qixiang Tengda’s domestic supply chain business is divided into matching mode and centralized purchase and distribution mode; Foreign supply chain business has only matching mode. The matching mode is to integrate the upstream and downstream supply chain, arrange logistics and earn the price difference; Centralized purchase distribution mode refers to providing distribution business for upstream suppliers.

It is worth noting that Qi Xiang Tengda’s domestic supply chain is actually transferred to logistics, and it is possible not to leave the warehouse. In the reply, the company said that if the customer who has a transaction with the domestic supply chain company is a trader, the goods are mainly traded in the form of transfer in the warehouse during the whole transaction process. Although the goods have not been delivered out of the warehouse, the ownership of the goods has been transferred.

As for the scale of Qixiang Tengda’s supply chain business, the company said in its reply that in 2020, the revenue of domestic supply chain business was 10.001 billion yuan and that of foreign supply chain business was 5.829 billion yuan.

In 2020, Qixiang Tengda’s domestic supply chain business is mainly traded through intra warehouse transfer. Among them, the transaction amount transferred in the warehouse at one end is 19 million yuan; The rest are businesses transferred from both ends of the transaction to the warehouse. In other words, about 99% of the sales of the company’s domestic supply chain business in 2020 are traded in the form of intra library transfer.

In terms of foreign supply chain business, Qi Xiang Tengda mainly transports goods through third-party logistics, tracks the flow of goods according to the contract, and completes the delivery of physical goods with suppliers and customers.

It is worth mentioning that for the 30 companies reported by the media involving cedar holding trust products, the Shenzhen stock exchange requires Qi Xiang Tengda to verify whether they are suppliers or customers of Tengda’s supply chain.

Qixiang Tengda replied that the wholly-owned subsidiaries Zibo Qixiang Tengda supply chain Co., Ltd. and Guangzhou Qixiang Tengda supply chain Co., Ltd. had transactions with Shanghai Rongyi metal materials Co., Ltd. (hereinafter referred to as “Shanghai Rongyi”), and the funds involved in the transaction had been settled in accordance with the contract.

Shanghai Rongyi is the supplier of Qixiang Tengda. When the company deals with Shanghai Rongyi and downstream customers, all goods are mainly traded in the form of transfer in the warehouse. Although the goods have not been delivered out of the warehouse, the ownership of the goods has been transferred.

Qi xiangtengda believes that this kind of trading method is a common trading method of bulk trade, and the transaction has commercial nature and authenticity.

In terms of performance, Qi Xiang Tengda expects to achieve a net profit attributable to shareholders of listed companies of RMB 2.391 billion to RMB 2.556 billion in 2021, with a year-on-year maximum increase of 162%.

At present, the inventory market value of cedar development’s supply chain business is about 8.79 million yuan

Cedar’s supply chain business has expanded rapidly. In the first half of 2020, the company’s supply chain business revenue was 207 million yuan. By the first half of 2021, this business revenue increased to 785 million yuan, accounting for 81.82% of the company’s total revenue in the current period.

The supply chain management business of cedar development is mainly to provide customers with the purchase and sales services of steel, coal coke, oil products and other products. Among them, steel adopts the form of centralized mining and distribution, and coking coal and oil adopt the form of sales and fixed mining.

Shenzhen stock exchange requires cedar development to verify whether the relevant business, inventory and logistics are true and whether the relevant transactions have commercial essence. The company also disclosed the information of the main storage warehouses of bulk commodities involved in the supply chain in its reply.

Figure: cedar development supply chain involves the information of main storage warehouses for bulk commodities.

It is worth noting that at present, the market value of coke and rebar inventory disclosed by cedar development is about 8.7946 million yuan, but it has supported the supply chain business income of 785 million yuan in the first half of 2021.

According to icoice data, as of February 23, the market price of thread steel in Shenyang was 4900 yuan / ton. Based on this calculation, the market value of the company’s thread steel inventory was about 6.9139 million yuan. According to the data of coal network, as of February 21, the coke price was 3050 yuan / ton. Based on this calculation, the market value of coke inventory in the two warehouses of the company was about 1.8807 million yuan. The total inventory of the above warehouses is about 8.7946 million yuan.

Although cedar development pointed out that the company purchases from upstream suppliers according to the procurement needs of downstream customers, and the upstream suppliers or through third-party logistics companies deliver the goods to the designated downstream location within the agreed time.

In addition, cedar development denied that the 30 companies reported by the media were suppliers or customers of the company’s supply chain business,