On January 18, the Shenzhen Stock Exchange issued a letter of concern to Jiecheng shares, demanding to explain the specific profit model of Shiyou Technology, a subsidiary.
On January 17, the company announced that the company's stock trading price closed with a cumulative deviation of more than 30% for two consecutive trading days, which belongs to the case of abnormal fluctuations in stock trading.
On January 12, the company disclosed the investor relations record table, saying that the company participated in the subsidiary Shiyou Technology in 2016, with a stake of 24.38%. Shiyou Technology's virtual digital human, virtual studio and other related businesses are widely used in radio, television and new media industries.
It is reported that Jiecheng shares is the second largest shareholder of Shiyou Technology. Shiyou Technology has a full range of digital human product systems, as well as matching patented technologies and solutions in virtual scenes, film and television animation virtual content production, VR/AR and metasmology content production, in addition, it extends to virtual IP operation services.
According to the "Investor Relations record sheet" recently disclosed by the company, Shiyou Technology has not only reached deep cooperation with CCTV, Phoenix Satellite TV, Oriental Satellite TV, Hunan Satellite TV, Zhejiang Satellite TV and other radio and television customers, but also become a technology provider for many brands and platforms, including Tencent, Tmall, JD.com, NetEase, Inc, Huawei, XIAOMI, TCL, Haier, L'Or é al and other head brands.
According to the company's semi-annual report for 2021, the investment of Jebsen shares in the associated company Shiyou Technology is calculated on the basis of long-term equity investment, with an opening balance (book value) of 27.2718 million yuan, and the investment profit and loss recognized under the equity method is only 466600 yuan.
Although the return on the investment is less than 500000 yuan, with the help of the concept of virtual human business, Jiecheng shares have gained nearly 40 per cent in the secondary market in the past week, with a market capitalization increase of 5.8 billion yuan.
In the two working days of January 14 and January 17, Jebsen shares rose 20.03% and 19.97%, respectively. On January 18, the Shenzhen Stock Exchange issued a letter of concern to Jiecheng shares. As of that day, the company's share price closed at 8.07 yuan per share, down 4.04 percent on the day.
The Shenzhen Stock Exchange requires that investors be fully reminded of the risks combined with the main financial data of Shiyou Technology in the first three quarters of 2021, the impact on the financial data of the company's consolidated statements and the recent fluctuations of the company's share price; and explain in detail the specific profit model of Shiyou Technology, the feasibility and sustainability of the relevant profit model, as well as the basis and rationality of your company's judgment, and fully remind you of the relevant risks.
According to the contents of the Investor Relations record sheet, the Shenzhen Stock Exchange requires the company to explain the time and content of Shiyou Technology's services to CCTV, Tencent and other customers, as well as the sales revenue in the first three quarters of 2021; explain whether the company's relevant statements in the Investor Relations record form and the "Interactive easy" platform are cautious, reasonable and objective, and whether there are cases of exaggeration and misleading investors.