In semi-annual report, listed companies disclosed not only their operating performance but also other financial indicators.
The Securities Daily reporter learnt from the financial data service provider Wind Info that since the beginning of July 1, 438 listed companies hold a total of 1,130 wealth management products (WMPs) worth 99.342 billion yuan.
An insider noted that listed companies’ purchasing WMPs does not necessarily mean that they have sufficient fund. It depends on the source and the relative scale of fund used to buy WMPs as well as the comprehensive indicator of enterprises. If risks are controllable, some WMPs can improve the usage efficiency of idle fund.
16 companies buy over 1 billion yuan WMPs
Among these 438 companies, 16 companies hold more than one billion yuan WMPs since July 1. And Xinhu Zhongbao Co., Ltd. (600208.SH) holds 16 WMPs worth 5.143 billion yuan.
In fact, Xinhu Zhongbao has always favored WMPs. Data shows that the company held 13.996 billion WMPs last year, the highest among all A-share listed companies. In addition, statistics shows that the company spent 12.69 billion yuan to buy WMPs in the first half of this year, ranking first place again among all A-share listed companies.
An insider analyzed that Xinhu Zhongbao is a company engaged in real estate, commercial trade and hotel services. As destocking in the whole real estate market saw smooth progress in 2016, the company obtained large amount of sales revenue. In the end of 2016, the company’s net cash flow from business activities reached 4.628 billion yuan, an increase of 559 percent year on year. The momentum remains in the first quarter of this year. Its net cash flow from business activities recorded 1.727 billion yuan in the first quarter, an increase of 88.33 percent, which directly led its cash and cash equivalents as of the first quarter of this year to rise from 15.863 billion yuan in the end of last year to 21.149 billion yuan. As real estate policy tightened and there are fierce competitions on purchasing land this year, it is not difficult to understand why the company may use12.7 billion yuan to buy WMPs.
In addition, Genimous Technology Co., Ltd. (000676.SZ) ranked second in terms of the amount of money used to buy WMPs with 2.178 billion yuan since July 1. On July 5 this year, the company said in a notice that the company agreed the use of no more than 1.4 billion yuan to purchase capital preservation WMPs.
JiangSu Bicon Pharmaceutical Listed Company (002411.SZ) came at the third place after Xinhu Zhongbao and Genimous Technology, with 1.7 billion yuan WMPs.
Jack Sewing Machine buys WMPs most frequently
According to statistics from Wind Info, in addition to the amount of fund, there are 6 listed companies holding more than 10 WMPs since July 1. Jack Sewing Machine Co., Ltd. (603337.SH) ranked first with 25 WMPs.
The Securities Daily learnt that Jack Sewing Machine made 6 announcements about using idle funds to buy WMPs since July 1. Public information shows that the company went listed on January 19 this year. Afterwards, the company has continuously made announcements on using idle funds to buy WMPs.
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Jack Sewing Machine announced on August 8 that the company’s 2017 first extraordinary general meeting on held on January 7, 2017 passed a bill on using idle funds to buy WMPs. It said that in order to improve the usage efficiency of fund, rationally use its own fund to maximize the role of its short-term idle fund, on the premise of normal operation and controllable risk, the company plans to use idle funds to buy low-risk WMPs with no more than 700 million yuan. WMPs will be bought in the company’s name. Its board of directors will authorizes the Chief Financial Officer to exercise power to make decisions on matters including (but not limited to) selecting qualified professional financial institutions as entrusted party, determining the amount of money invested in WMPs, terms and categories of WMPs and signing contracts and agreements.
Jack Sewing Machines said in its latest announcement on WMPs that according to the daily operating capital needs, the company will use its own idle funds to buy some 271 million yuan low-risk WMPs from August 4 to August 7, 2017.
"Taking 3-month WMPs as an example, its expected annual yields have been rising for 8 consecutive months from October 2016 to June 2017. Compared to the one-year bank deposit with an interest rate of 1.5 percent, WMPs with 3-5 percent yields are more much attractive to listed companies. As the industry is in downturn, there are often cases that listed companies see their rate of return from business activities lower than bank deposit rates. Many listed companies saw yields from WMPs higher than net profit, which can save them from red,” an insider said.
Translated by Coral Zhong
The Securities Daily reporter learnt from the financial data service provider Wind Info that since the beginning of July 1, 438 listed companies hold a total of 1,130 wealth management products (WMPs) worth 99.342 billion yuan.
An insider noted that listed companies’ purchasing WMPs does not necessarily mean that they have sufficient fund. It depends on the source and the relative scale of fund used to buy WMPs as well as the comprehensive indicator of enterprises. If risks are controllable, some WMPs can improve the usage efficiency of idle fund.
16 companies buy over 1 billion yuan WMPs
Among these 438 companies, 16 companies hold more than one billion yuan WMPs since July 1. And Xinhu Zhongbao Co., Ltd. (600208.SH) holds 16 WMPs worth 5.143 billion yuan.
In fact, Xinhu Zhongbao has always favored WMPs. Data shows that the company held 13.996 billion WMPs last year, the highest among all A-share listed companies. In addition, statistics shows that the company spent 12.69 billion yuan to buy WMPs in the first half of this year, ranking first place again among all A-share listed companies.
An insider analyzed that Xinhu Zhongbao is a company engaged in real estate, commercial trade and hotel services. As destocking in the whole real estate market saw smooth progress in 2016, the company obtained large amount of sales revenue. In the end of 2016, the company’s net cash flow from business activities reached 4.628 billion yuan, an increase of 559 percent year on year. The momentum remains in the first quarter of this year. Its net cash flow from business activities recorded 1.727 billion yuan in the first quarter, an increase of 88.33 percent, which directly led its cash and cash equivalents as of the first quarter of this year to rise from 15.863 billion yuan in the end of last year to 21.149 billion yuan. As real estate policy tightened and there are fierce competitions on purchasing land this year, it is not difficult to understand why the company may use12.7 billion yuan to buy WMPs.
In addition, Genimous Technology Co., Ltd. (000676.SZ) ranked second in terms of the amount of money used to buy WMPs with 2.178 billion yuan since July 1. On July 5 this year, the company said in a notice that the company agreed the use of no more than 1.4 billion yuan to purchase capital preservation WMPs.
JiangSu Bicon Pharmaceutical Listed Company (002411.SZ) came at the third place after Xinhu Zhongbao and Genimous Technology, with 1.7 billion yuan WMPs.
Jack Sewing Machine buys WMPs most frequently
According to statistics from Wind Info, in addition to the amount of fund, there are 6 listed companies holding more than 10 WMPs since July 1. Jack Sewing Machine Co., Ltd. (603337.SH) ranked first with 25 WMPs.
The Securities Daily learnt that Jack Sewing Machine made 6 announcements about using idle funds to buy WMPs since July 1. Public information shows that the company went listed on January 19 this year. Afterwards, the company has continuously made announcements on using idle funds to buy WMPs.
。
Jack Sewing Machine announced on August 8 that the company’s 2017 first extraordinary general meeting on held on January 7, 2017 passed a bill on using idle funds to buy WMPs. It said that in order to improve the usage efficiency of fund, rationally use its own fund to maximize the role of its short-term idle fund, on the premise of normal operation and controllable risk, the company plans to use idle funds to buy low-risk WMPs with no more than 700 million yuan. WMPs will be bought in the company’s name. Its board of directors will authorizes the Chief Financial Officer to exercise power to make decisions on matters including (but not limited to) selecting qualified professional financial institutions as entrusted party, determining the amount of money invested in WMPs, terms and categories of WMPs and signing contracts and agreements.
Jack Sewing Machines said in its latest announcement on WMPs that according to the daily operating capital needs, the company will use its own idle funds to buy some 271 million yuan low-risk WMPs from August 4 to August 7, 2017.
"Taking 3-month WMPs as an example, its expected annual yields have been rising for 8 consecutive months from October 2016 to June 2017. Compared to the one-year bank deposit with an interest rate of 1.5 percent, WMPs with 3-5 percent yields are more much attractive to listed companies. As the industry is in downturn, there are often cases that listed companies see their rate of return from business activities lower than bank deposit rates. Many listed companies saw yields from WMPs higher than net profit, which can save them from red,” an insider said.
Translated by Coral Zhong
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