Financial News
Written by: Zhang Weilun
2021-05-17 09:04
Last update date: 2021-05-17 09:11
Next Media (0282) announced the suspension of trading this morning, pending publication, including an announcement by the Security Bureau regarding the freezing of the company’s controlling shareholder Li Zhiying’s assets and company equity statements, and the statement is an announcement on the company’s inside information.
The Director of the Security Bureau announced the freezing of the company’s shares held by Next Media’s major shareholder Li Zhiying and the three companies he owns in accordance with the “Detailed Rules for the Implementation of Article 43 of the National Security Maintenance of the Special Administrative Region of the People’s Republic of China” last Friday (14th). The company’s property in a local bank account.
A review of the Hong Kong Stock Exchange's equity disclosure shows that as of December 29 last year, Li Zhiying holds 71.26% of Next Media.
CEO said the business will not be affected
Zhang Jianhong, Chief Executive Officer of Next Media, said on the same day that the group was aware that 70% of Next Media’s shares held by Mr. Li Zhiying and three accounts under the name of Mr. Li Zhiying’s private company were frozen. The incident has nothing to do with the accounts of Next Media Group. The group and Apple Day The operation and financial finance of the city will never be affected.
In recent years, Next Media’s performance has been poor. As of the end of March last year, it had suffered losses for five consecutive fiscal years.
In the first half of the 2020-2021 fiscal year ending September last year, the loss was 146 million yuan, a year-on-year decrease of 53.4%; revenue increased by 2.3% to 569 million yuan.
As for the balance sheet, as of the end of September, pledged bank deposits were 36.565 million yuan, bank balances and cash were 190 million yuan, an increase of 12.3% and 38.5% respectively from the end of March 2020.
Bank loans were 94.714 million yuan and shareholder loans were 443 million yuan. The former decreased by 16.9% and the latter increased by 27.5%.
Next Media's loan from shareholders is 500 million yuan
As for Li Zhiying, in addition to the company's major shareholder, he also provides loans to the company.
It was pointed out in the interim business report that between 2018 and November 16, 2020, an agreement and supplementary agreement was entered into with Li Zhiying. Li Zhiying provided the company with a mortgage-free loan of 776 million yuan. The loan was interest-free and required. Repayment within 36 months, Li Zhiying has provided a 100 million yuan loan to the company.
As of the end of September last year, Next Media’s total loans from shareholders amounted to 500 million yuan.
Ye Shangzhi, chief strategist at First Shanghai, pointed out that the company is facing increased uncertainties, coupled with the difficulty in positioning the business, it is expected that stock price volatility will increase.
Next Media Li Zhiying Hong Kong Version National Security Law
