Under the multiple negative news, Ningde times' share price fell by more than 7% during the session. On June 8, the share price of Ningde times opened low and went low. At one time, it fell by more than 7% during the session. The lowest price came to 425.99 yuan / share, and the total market value also fell below trillion yuan during the session. In the afternoon, Ningde times' share price continued to rise, and finally successfully closed at 460 yuan / share, with a total market value of 1.07 trillion yuan.
The first financial reporter learned from several sources that since yesterday, there has been a bad news from Ningde times in the investment circle, that is, Ningde times' semi annual report this year may confirm the futures investment loss of more than one billion yuan in the first quarter. In this regard, an insider of Ningde Times said: "it must be a rumor. Now the second quarter has not finished."
But the news is not groundless. In the "epic" lunni's "war" in early March, there were rumors in the market that Ningde era was also involved. Although Ningde times did not clearly respond whether it held a large number of lunni short positions, it did not deny its participation in nickel futures hedging trading.
In the investor activities in early May, Ningde Times said in response to the question about "how big is the hedging risk exposure of futures", based on the need to ensure the stable supply of raw materials and reduce the cost, the company has laid out part of the nickel resource industry chain. In order to prevent the risk of substantial fluctuations in raw material prices, the company has carried out hedging business for nickel and other related products in combination with its own business conditions and business needs. The company conducts accounting treatment and relevant financial information disclosure for hedging business in strict accordance with the accounting standards for business enterprises and relevant regulations, which has little impact on the company's performance as a whole.
In the first quarter financial report of Ningde times, derivative financial liabilities increased by 1.787 billion yuan. The corresponding other comprehensive income of Ningde times in the first quarter was -1.563 billion yuan, which exceeded the net profit attributable to the parent company of 1.493 billion yuan in the first quarter of Ningde times. However, other comprehensive income is not reflected in the current profit and loss.
The annual report of Ningde times explains the derivative financial liabilities in this way. The derivative financial instruments with positive fair value are recognized as an asset, while those with negative fair value are recognized as a liability. Any gains or losses arising from changes in fair value that do not conform to the provisions of hedge accounting are directly included in the current profits and losses.
In fact, Ningde times is not a "novice" in hedging. However, from the financial reports over the years, Ningde times has made all profits in hedging before, and the company's derivative financial assets from 2018 to 2021 are positive. By the end of 2020, the derivative financial assets of Ningde times reached 1.33 billion yuan, and by the end of 2021, the value decreased to 240million yuan, while the corresponding column of derivative financial liabilities has been blank.
For the huge hedging losses in the first quarter of this year, Ningde times clearly believes that the losses that do not comply with the provisions of hedge accounting are not directly included in the current profits and losses. However, a financial person told reporters that when the asset disposal is completed, other comprehensive income may be transferred to the current profit and loss. This loss of more than 1.5 billion yuan included in other comprehensive income is like an indefinite bomb, which makes investors "like a thorn in the throat".
Ningde times has responded to investors that the company does not aim at speculation, and the opening of relevant futures is guaranteed by spot. The Research Report of Founder Securities also believes that "on the issue of futures hedging, we believe that Ningde times is doing hedging rather than speculation. Although there are losses in the futures market, the cash market is taking positive returns, so there is no need to pay too much attention to and interpret."
In addition to the news that futures losses may be included in the semi annual report, some institutional people also said that Ningde times could not quickly repair the decline in gross profit margin caused by the rise in raw materials in the second quarter, so it is expected that the performance of Ningde times in the second quarter may be slightly lower than expected (it was estimated that it was about 3.5 billion previously).
In addition, on June 8, lianyubo, executive vice president of BYD and President of Automotive Engineering Research Institute, said in an interview video that BYD would soon supply batteries to Tesla. Tesla has always been the largest customer of Ningde times. Last year, the sales of Ningde times to Tesla was 13.04 billion yuan, accounting for 10% of the total annual sales.