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!

Wangdai Tianyan News, recently, the A-share ChiNext stock Yujin Diamond (300064, Stock Bar) is in the spotlight, with frequent incidents.

On the evening of October 28, Yujin Diamond disclosed its third-quarter report, which showed that the company’s revenue for the first three quarters of 2020 was 306 million yuan, a year-on-year decline of 58.05%; the net profit attributable to shareholders was a loss of 481 million yuan; the net profit attributable to shareholders after deducting non-recurring items was a loss of 239 million yuan. As of September 30, the net assets attributable to shareholders were 1.24 billion yuan, a decrease of 27.96% compared to the end of the previous year.

In the previous annual report, Yujin Diamond reported significant losses in 2019 and the first half of 2020, with a net profit attributable to shareholders loss of 5.197 billion yuan in 2019, and a net profit attributable to shareholders loss of 357 million yuan in the first half of 2020.

Notably, the board meeting documents showed that on the eve of disclosing the third-quarter report, on October 27, the company convened a board meeting with 9 directors, among whom directors Wang Daping and Liu Miao voted against the third-quarter report. Regarding the reasons for their opposition, both stated that they could not express opinions on the non-recurring capital occupation.

The two directors stated in their explanation that the company’s claim that there was no occupation of non-operating funds by controlling shareholders and related parties during the reporting period is ambiguous. In the reply to the Shenzhen Stock Exchange on October 27, this was not explained.

This indicates that there is internal conflict among the board members, showing disagreement. However, regarding the capital occupation situation raised by the two directors, the three independent directors of Yujin Diamond did not provide any explanation, and the company’s senior management seems rather confused.

In fact, such a company with a loss of 480 million and internal board conflict has received enthusiastic support in the secondary market, attracting speculative investment.

In the past two months, Yujin Diamond’s stock price has increased by a total of 171.55%, and on September 8, Yujin Diamond was required by the Shenzhen Stock Exchange to suspend trading. However, shortly after resuming trading, Yujin Diamond’s stock price was once again subject to speculation. On the evening of October 27, Yujin Diamond received a letter of concern from the Shenzhen Stock Exchange, stating that due to multiple issues raised in letters to the exchange that were not answered in a timely manner, the exchange issued a “final ultimatum” to Yujin Diamond, stating that if the company still does not respond by November 27, it will implement other risk warnings and related suspension/resumption of trading measures for Yujin Diamond’s stock.

(Reviewer: Ji Liya HN003)

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