Jingchen shares became the first stock to be "cut in half" on the Science and Technology Innovation Board. What are the reasons?

Jingchen shares, which holds the "001" approval document for the Science and Technology Innovation Board, has attracted much attention from the market since it entered the capital market. However, from the 29th trading day after listing, Jingchen shares fell from a high of 166 yuan per share to 82.27 yuan per share, becoming the first stock on the Science and Technology Innovation Board to be cut in half.

On August 8 this year, Jingchen Co., Ltd. was officially listed and traded on the Science and Technology Innovation Board. In the market performance on the first day of listing, Jingchen Co., Ltd. saw an all-day increase of 272.36% on the first day, and the maximum increase once exceeded 300%. 166 yuan also became the new high price of Jingchen Co., Ltd. on that day, and it was also the highest price since its listing.

However, after about a month and a half, the price of Jingchen shares has been cut in half. As of September 19, the lowest price of Jingchen shares was only 82.27 yuan, which was half of the highest price of 166 yuan on the first day of listing. In this regard, Jingchen shares also became the first stock on the Science and Technology Innovation Board to have its price cut in half.

In this regard, Gui Haoming, chief market expert at Shenwan Securities Research Institute, believes that the case of the decline in Jingchen shares' stock price also illustrates a phenomenon. Some stocks that opened high at the beginning have risen sharply, but because there is still a large gap between the stock price and the performance, the stock price was able to be at a high level at the time. It was more relying on factors such as excessive liquidity and imbalance between supply and demand to support the high price. However, this high price will gradually fall as the market operation gradually stabilizes and the number of new stocks increases.

The fact is just as Gui Haoming said, this is indeed related to Jingchen's own performance. According to Jingchen's previous disclosure, the operating income in the first half of 2019 was between 107.6 million yuan and 114.4 million yuan, an increase of 5.67% to 12.34% compared with the same period last year; it is expected that the net profit attributable to the parent company's shareholders after deducting non-recurring gains and losses from January to June 2019 will be between 82 million yuan and 106 million yuan, a decrease of 6.77% to 27.88% compared with the same period last year.

Among them, in the first quarter of 2019, Jingchen Co., Ltd. achieved operating income of 561.6102 million yuan, a year-on-year increase of 1.50%; the net profit attributable to the parent company's shareholders after deducting non-recurring gains and losses was 46.0815 million yuan, a decrease of 17.1870 million yuan compared with the same period last year, a year-on-year decrease of 27.17%.

Jingchen shares stated that the company's performance fluctuations were mainly due to factors such as a decline in gross profit and a year-on-year increase in period expenses. As of the signing date of this prospectus, the above factors that led to the issuer's performance decline still exist. Although the operating income has increased year-on-year, the period expenses continue to grow, resulting in a decline in net profit. The situation has not improved significantly, and the company's full-year performance in 2019 is at risk of a year-on-year decline.

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