Reporter Liu Minjuan This year, the former GEM Baima Shares Cyberspace Technology (300017.SZ) seems to be gradually losing its aura. After experiencing three consecutive quarters of shrinking net profit, the company's stock price has also started to decline, which has performed since October. Especially obvious. Following the fall of the limit on October 16th, ChinaNetCenter was caught in a "dragging and falling" channel. On November 6, it again fell 8.18%. Since October 9 this year, the stock price of the company has fallen more than 30%, making many investors feel helpless. At the same time as the stock price dropped deeper, the announcement of the release of executives' holdings by network speed technology successively triggered many small shareholder dissatisfaction. Some investors even questioned that it was a "rogue company" and there was a malicious manipulation of the stock price. It also called for a joint report. 1. Increase in revenue for three consecutive quarters does not increase profits, and net profit declines 2017 can be described as the year of ChinaNetCenter's “performance Waterlooâ€. In the first quarter of 2017, the business income of ChinaNetCenter was 1.175 billion yuan, an increase of 20.60% over the same period of last year; the net profit attributable to shareholders of listed companies was 196 million yuan, a year-on-year decrease of 18.73%. In the first half of 2017, ChinaNetCenter achieved operating revenue of 2.442 billion yuan, a year-on-year increase of 18.78%; net profit attributable to shareholders of listed companies was 416 million yuan, a year-on-year decrease of 29%. In the second quarter alone, ChinaNetCenter received revenue of 1.267 billion yuan and net profit of 220 million yuan. In the third quarter of 2017, ChinaNetCenter's operating income was 1.355 billion yuan, a year-on-year increase of 16.19%. The net profit attributable to shareholders of listed companies was 156 million yuan, down 52.66% year-on-year. In the first three quarters of this year, the company's revenue increased 17.84% year-on-year to 3.797 billion yuan, while net profit fell 37.53% year-on-year to 572 million yuan. Taken together, ChinaNetCenter is plunged into a vicious circle of “increasing revenue without increasing profits†in the three quarters of this year, and the revenue growth rate is gradually slowing down. The overall performance is far from satisfactory. Looking at the net profit of ChinaNetCenter for a single quarter, the decline in net profit of the company rose quarter by quarter. ChinaNetCenter explained that "This year's domestic CDN market competition continues to intensify and market prices continue to decline, resulting in a drop in the company's gross profit margin, which directly affects net profit." The research report released by GF Securities pointed out that the gross profit margin of ChinaNetCenter was stabilized in the short term, but factors such as the fluctuation of tax rebate affected the growth rate of apparent profits; at the same time, the company’s sales expenses and management expenses growth exceeded the revenue growth rate and also weighed on profits. The short-term and medium-term expenses rate will still exert pressure on the performance of the company. 2. The stock price fell by more than 30% in a single month, and the market value evaporated by about 9 billion yuan. In the era of performance as King, Netease technology to the market to hand over such an unsatisfactory report card, will inevitably encounter the continued downward trend in stock prices. After the limit stop on October 16th, ChinaNetCenter once again plunged 8.18% on November 6 to close at 8.64 yuan per share. Compared with the closing price of RMB 12.75 per share on October 9, the company's stock price has fallen by a cumulative 32.24%. This means that in less than a month, the drop in the share price of ChinaNetCenter will exceed 30%. Correspondingly, the market value of ChinaNetCenter fell from about RMB 30 billion to the current RMB 21 billion, and the market value evaporated by about RMB 9 billion within a month. It is worth mentioning that Blue Whale TMT found out through the open information of the Shanghai-Shenzhen Stock Exchange that ChinaNetCenter was jointly sold by four institutions on October 16 and the total amount sold was as high as 107 million yuan. On November 6th, ChinaNetCenter once again became the top five securities with a daily declining value of 7%. According to the data of Dragon and Tiger, Netbook Technology bought the first 5 seats and bought 64,443,300 yuan in total on the same day. The total amount sold in the first five seats was as high as 143.6 million yuan, 2.2 times the purchase amount. 3, the actual controller and shareholder intensively reduce their doubts On November 6th, ChinaNetCenter announced that the company’s vice president Chu Minjian, Huang Shalin, vice president Xiao Wei and the secretary of the board of directors Zhou Liping proposed to collectively reduce the company’s stock by no more than 1069 in the way of collective bidding within the next 3 months. Million shares account for approximately 0.44% of the company's total share capital. The reasons for the above-mentioned reductions of senior executives include personal capital requirements and tax payment for the exercise of options. The current reduction price is determined based on the market price at the time of reduction. Although the above-mentioned executives reduced their shareholdings in the total share capital of the company's total share of only 0.44%, it seems that it is not worth mentioning. However, it should be noted that the above-mentioned executives hold a total of approximately 1.77% of shares of ChinaNetCenter, and the shares they plan to reduce represent about 25% of their shareholdings, equivalent to a quarter of their holdings. This ratio is not too high. Just five days ago, ChinaNetCenter just issued an announcement that the company’s actual controller, Chen Baozhen, plans to reduce his holdings. ChinaNetCenter stated that Chen Baozhen’s reduction of shares in the company’s shares did not exceed 36,166,200 shares within 3 months after the 15th trading day from the date of the announcement due to the private fund demand plan. According to the announcement, this part of the shares does not exceed 1.5% of the company's total share capital, and Chen Baozhen currently holds 437 million shares of ChinaNetCenter, accounting for 18.11% of the company's total share capital. In other words, Chen Baozhen’s plan to reduce the holdings of the shares accounted for 8.3% of his personal holdings. Wind statistics show that in the third quarter of this year alone, the three senior executives including the actual controllers of ChinaNetCenter Technology have reduced more than 17,700 shares in total. Blue Whale TMT, as an investor, sent a question to the senior manager on the reduction of holdings of the senior executives. The office staff stated that the reduction plans of the company's actual controllers and senior executives are in compliance with the regulations stipulated in the Securities Law and other regulations. It will not affect corporate governance and operations. At present, the company operates normally. However, some of the small shareholders of network technology science and technology are very dissatisfied with this, and some people questioned the cyber-science and technology as "rogue company", that the company's malicious manipulation of the stock price may be possible, and in the stock bar put forward the call for joint reporting. Guangzhou Yunge Tianhong Electronic Technology Co., Ltd , https://www.e-cigaretteyfactory.com
