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Listed Manufacturing Companies related party transactions analysis

Author: LiuZuo JiaYing From: www.yourpaper.net Posted: 2010-03-31 00:18:03 Read:
[Abstract] Fair formation of a more complex, more subtle way of profit manipulation related parties. The article listed companies to the manufacturing sector as the research object, a different scale of related party transactions on the performance of the company, and were compared to that related party transactions of listed companies should be concerned about matters.
Earnings per share of listed companies [words]; related party transactions;

In order to reveal the impact of related party transactions on the performance of listed companies, the author of the 2008 Shenzhen and Shanghai (A shares) Equity in manufacturing listed companies in 25 different sizes of 5-10 billion related party transactions statistics from transaction type and transaction currency amount, compare different scale related party transactions of the performance of the company. The share capital of 5-10 billion manufacturing listed companies, these manufacturing listed companies related party transactions occurred in a relatively large impact on the performance of the company significantly, select the companies of the same industry in order to exclude as much as possible due to industry factors and the impact of the share capital of the size of the study results.

Manufacturing listed companies in 2008 the development of the related party transactions

25 listed companies were divided into three groups in accordance with the size of the related party transactions has occurred, the relationship between a better comparison and analysis of related party transactions and listing of results. Group related party transactions large and transactions totaling 10 billion company; group is a relatively small amount of related party transactions, the transaction amounted to 10 million yuan to 200 million yuan; another group in total transactions between the two groups of companies, the transaction amounted to from 200 million to 1 billion yuan.
10 total transactions of listed companies in the sample of 10 billion yuan, the company's 2008 results and related party transactions as shown in Table 1.
As can be seen from Table 1, in the related party transactions amounted to more than 1 billion yuan of listed companies, the high profitability of the company (EPS 0.3) accounted for two, three low-profit company (0 EPS 0.09), loss making companies (EPS 0) 2, and the remaining three to the normal level of profitability of the company. The weighted average of these 10 of the company's earnings per share and the total related party transactions, its weighted average earnings per share of 0.38. The main business of the 10 companies related party transactions for the purchase of goods, sales of goods, payment services, related to the guarantee business related finance business. The amount of related party transaction of the business of buying and selling; followed by the related guarantee business.
Another sample nine listed companies, related party transactions total 200 million yuan to 10 billion, the company's 2008 results and related party transactions as shown in Table 2.
As can be seen from Table 2, the related party transactions amounted to 200 million yuan to 10 billion yuan of listed companies, the high profitability of the company (EPS 0.3) accounted for a meager profit company (0 EPS 0.09) 3, loss companies (EPS 0) 1, the remaining four of the normal level of profitability of the company. Equally weighted average of these nine of the company's earnings per share and the total related party transactions, the weighted average earnings per share of 0.16. In nine companies, the main form of related party transactions for the purchase of goods, sales of goods to recover rent associated guarantee business related financing activities. The purchase and sale of related party transaction amount; followed by the related guarantee business.


In addition, the sample there are six listed companies, related party transactions total less than 200 million yuan, the performance of these companies in 2008 as well as the related party transactions as shown in Table 3.
As can be seen from Table 3, the related party transactions amounted to less than 200 million yuan of listed companies, high earnings (EPS 0.3) 1, low-profit company (0 EPS
3 0.09), a loss company (EPS 0), a normal level of profitability of the company. The weighted average of these six the company's earnings per share and the total related party transactions, its weighted average earnings per share of 0.11. In the six companies, the main form of related party transactions for the purchase of goods, sales of goods and associated financing business. The purchase and sale of related party transaction amount; followed by the associated financing business. In addition, also see these six companies did not receive services, provide guarantees and acceptance guarantees related party transactions. Second, the related party transactions of a different scale analysis

The above data reflects the related party transactions in 2008 and results of the three groups listed company, where you can see the characteristics of the three groups listed companies related party transactions.
First, the data show that the related party transactions of the complexity of the manufacturing companies deeper level, such as 2006, 2007, 2008 associated with the purchase and sale of associated guarantees, related financing, labor and provide services, changes in asset leasing and other types of related party transactions , but the associated guarantees related financing, asset leasing transaction amount substantially. Multiple transaction types, these businesses grew violations point. There are 33 listed companies in 2006-2009, 40 related party transactions due to non-disclosure and failure to fulfill the approval process by both the Shanghai and Shenzhen Stock Exchange Bulletin, including funds used transactions of 22 and 13, secured transactions. In addition, listed companies in the study, the total amount of the related party transactions increasingly, Foton Corporation as an example, its related party transactions total more than 3.9 billion yuan in 2006 to RMB 58 billion in 2007 multi-yuan, compared with the more than 8.4 billion yuan RMB in 2008. Visible related party transactions has become an important part of the operating activities of listed companies, and even some of the iron and steel industry, manufacturing companies in their day-to-day business transactions almost related party transactions. So pay attention to a listed company must be full and correct understanding of the related party transactions.
Second, regardless of the size of the related party transactions listed companies, their main related party transactions business is the business of buying and selling associated with the day-to-day business activities and associated financing business, and is frequently used in these business agreement price, sample companies, for example, In 2006, nine companies associated with the transaction price of the agreement, the 10 companies in the related party transactions in 2007 using non-market price of 7 2008 application the non price of related party transactions. Foton Co., Ltd. 2006 All associated purchase transactions are negotiated rate, related sales in 2008, two-thirds of the price agreement. While the trading price of the agreement is a listed company to be allowed to pursue their own interests in the process carried out, but the listed companies through this price to manipulate profits. The business of buying and selling of goods, related parties, often at below-market prices for listed companies to provide raw materials and labor, and higher than the market price procurement even buy out the products of the listed companies. So, the related parties commodity purchase and sale transactions for listed companies, to pay attention to whether it is the market price, as well as the use of pricing and its impact profits.
Finally, although the three groups listed companies have taken place in the business of buying and selling of goods to related parties, different types of business of the three sets of related party transactions. For example, in the group of 10 billion yuan of the total related party transactions of the company, the business types of related party transactions occurred diversified, if related party purchase and sale of goods, receive services, related to leasing operations and associated guarantees, associated financing business; while the associated the party transaction total between 200 million yuan to 10 billion yuan, the company group, mainly related party purchase and sale of goods, the associated rental business, related guarantees and financing business more; Total related party transactions in the group of companies with less than 200 million yuan In addition to the business of buying and selling of goods to related parties, almost no other types of transactions. The more complex type of related party transactions, the more frequent the transactions, the greater the possibility of profit manipulation and risk. For example, in the related party transactions total group of 10 billion company, its assets rental business there is the possibility of operating profit. The listed company is a profit-driven, may be lowering the price of the related party asset leasing, or a nominal fee. In addition, listed companies may lease assets at high prices to other related parties, such transactions did not increase in any of the social wealth, while filling the listed companies to create false profits. For related party transactions amounted to 200 million yuan to 10 billion yuan of listed companies, its guarantee business will have a certain impact the financial condition of the listed company, this transaction increases the listed company or liabilities will increase the listing of the company's financial risk, and its essence is a related party encroachment on the interests of listed companies. For example, as of June 30, 2007, Beihai City, Beihai Port Co., Ltd. is the largest shareholder and related parties listed company funds to reach 12,781 million. The same time, for large shareholders to provide loan guarantees for 7100 million; seriously encroached on the interests of medium and small investors, a direct threat to the security of the assets of the listed companies. Therefore, it is especially concerned about the large amount of related party transactions of the enterprise, and analysis of its related party transactions, whether the existence of the situation to manipulate profits as well as misappropriation of the interests of listed companies.
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