The skyrocketing meme stock has encountered trouble again! Reported a loss of 480 million, and two directors say they cannot confirm the authenticity of the quarterly report!

LendingP2P Eye News. Recently, A-share ChiNext “demon stock” Yujin Diamond (300064, stock forum) has been at the center of intense controversy, with incidents occurring one after another.

On the evening of October 28, Yujin Diamond disclosed its Q3 report. The financial report shows that in the first three quarters of 2020, Yujin Diamond achieved operating revenue of RMB 306 million, a year-on-year decline of 58.05%; net profit attributable to shareholders recorded a loss of RMB 481 million; and net profit attributable to shareholders after deducting non-recurring items recorded a loss of RMB 239 million. As of September 30, the net assets attributable to shareholders were RMB 1.24 billion, down 27.96% from the end of the prior year.

Earlier, in its annual report, Yujin Diamond saw large losses in 2019 and in the first half of 2020. In 2019, net profit attributable to shareholders was a loss of RMB 5.2B; in the first half of 2020, net profit attributable to shareholders was a loss of RMB 357 million.

It is worth noting that the board meeting documents show that, just before the Q3 report was disclosed, on October 27 the company convened a board meeting with nine directors. Among them, directors Wang Daping and Liu Miao voted against the Q3 report. As for the reasons for their opposition, both sides said they could not express an opinion regarding non-recurring fund occupation.

The two directors, in their explanations this time, stated that the company’s claim that there is no ambiguity in the statement that there was no non-operating fund occupation by controlling shareholders and related parties during the reporting period. In the reply to the Shenzhen Stock Exchange on October 27, this could not be explained.

This means that the members of the company’s board are at odds, with opinions not aligned. However, regarding the fund-occupation situation raised by the two directors, Yujin Diamond’s three independent directors did not issue any statement on this matter, and it seems that the company’s senior management is rather chaotic.

In fact, for a company that is losing RMB 480 million, with board in-fighting, it nonetheless received enthusiastic attention in the secondary market and became a target of funds’ speculation.

Over the past nearly 2 months, Yujin Diamond’s stock price has accumulated a rise of 171.55%. On September 8, Yujin Diamond was required by the Shenzhen Stock Exchange to suspend trading. However, not long after resuming trading, Yujin Diamond’s stock price was once again intensively hyped. On the evening of October 27, Yujin Diamond received a letter of inquiry from the Shenzhen Stock Exchange. Because it failed to reply in a timely manner to issues repeatedly mentioned in letters sent to the Shenzhen Stock Exchange, the Shenzhen Stock Exchange issued a “final notice” to Yujin Diamond: if it still had not replied by November 27, the Shenzhen Stock Exchange would apply other risk warnings and related trading suspension/resumption treatment to Yujin Diamond’s shares.

(Editor: Ji Liya HN003)

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