Changjiang Commercial Daily reporter Shen Yourong
At the critical juncture of the IPO, in the face of widespread media and public attention, fellow Chairman Shu Congxuan made a hot search on the eve of the Dragon Boat Festival due to the company's apology for "not paying full social security to employees".
The incident of Shu Congxuan's apology stemmed from an exclusive report by the Changjiang Commercial Daily.On May 30, Changjiang Commercial Daily used platforms such as media matrix and news client Pentium News to comprehensively report on the social security payment problem of employees in Laoxiangji. In the past three years, a total of 16,000 employees have not paid social security. All walks of life are highly concerned.
On May 31, in response to the report of the Changjiang Commercial Daily, Shu Congxuan, chairman of Laoxiangji, said in a public response that he felt ashamed and blamed himself for failing to buy social security for all employees, and expressed his deep apology to the public. .He also took the opportunity to thank the media for their attention and coverage.
However, the market has different opinions on Shu Congxuan's apology, with mixed praise and criticism. Some directly point to "showing off" and believe that the apology is only for customs clearance (IPO review), as the Shu Congxuan family and Shu Congxuan himself, who are absolutely controlling the hometown chicken company, It is difficult to really make up the five insurances and one housing fund for these employees.
A reporter from Changjiang Commercial Daily and Bestune News found that the social security issue is indeed a problem for fellow chicken company and Shu Congxuan.According to the prospectus of Laoxiangji, in the past three years, a total of 16,000 times of Laoxiangji have not paid social security, and 24,500 times have not paid housing provident fund.If the above-mentioned social insurance is paid, the non-net profit deduction corresponding to three years (2019, 2020, 2021) will be adjusted to 38 million yuan, 000 million yuan, and 104 million yuan, which will affect the deduction of non-net profit by about 250 million yuan in total, and even in 2020. loss.In a word, if Shu Congxuan pays "five insurances and one housing fund" for employees according to law, the non-net profit of fellow chicken will fluctuate greatly, and the profitability performance will be extremely unstable, which will inevitably affect the listing on the main board of the Shenzhen Stock Exchange. Chickens may not qualify for an IPO.
A market source pointed out that the large-scale non-payment of social security by Laoxiangji will become a stumbling block for this IPO. This incident will test whether Shu Congxuan, chairman of Laoxiangji, can admit to the problem of profit distribution in the face of the rapid development of the company.
Public apology was accused of taking the opportunity to hype
"Deeply apologize to all my employees and the general public." Mr. Shu Congxuan, chairman of fellow chicken, made a few heartfelt apologies for media reports on May 31, 2022, making him an "Internet celebrity" again. Chairman.
The above "apology" is the afternoon of May 31, when Shu Congxuan made a public apology on Weibo specifically for the report of the Changjiang Commercial Daily.
The main content of Shu Congxuan's apology is that as of the end of 2021, there are a total of 14,503 employees of Hometown Chicken (1,033 are re-employed after retirement), the actual number of employees who purchased social insurance is 12,629, and the actual participation rate of employees of Hometown Chicken has reached 93.75%.Although there are factors such as the high turnover rate of catering practitioners and the lack of willingness of some employees to participate in insurance, as the chairman of Laoxiangji, Shu Congxuan felt very ashamed and failed to buy social insurance for all Laoxiangji staff. Blame yourself.He expressed his deep apologies to all employees and the general public, and thanked the media for their attention and coverage.
With sincere words and sincerity, Shu Congxuan's apology quickly attracted widespread attention.Some netizens expressed their understanding that it is very good to be able to buy social security for 94% of employees.But some netizens questioned, just talking about the insurance participation rate, but isn't it necessary to pay social insurance for employees?Shouldn't it be worth paying social security?How does this make it seem like it is a conscientious enterprise after paying social security?
Some netizens also said that the apology from the chairman of the fellow chicken is more like a clarification hype.As a Chinese-style restaurant chain, Laoxiangji has more than 1,000 stores across the country.As the chairman of the company, Shu Congxuan used media reports to hype, which can greatly increase the popularity of fellow chickens, which is much better than an ordinary advertisement.
Some netizens are even more "you're welcome", saying that the apology is like "crocodile tears"."Private enterprises have high operating efficiency and act resolutely. If you really blame yourself and feel ashamed, you can quickly make up the social security for the employees." Search is more powerful than "the chairman apologizes".
Some netizens directly said, "I only saw the sincerity of the language, but no action was taken." In response to the problem of unpaid social security for 16,000 employees in three years, Shu Congxuan defended in his apology that the calculation of the media report was biased. In 2021At the end of the year, the employee participation rate of Laoxiangji reached 93.75%.
So what are the facts?A reporter from Changjiang Business Daily found that Shu Congxuan simply responded to the insurance participation in 2021, while directly ignoring the phenomenon of 978 employees who were transferred to labor dispatch companies and then returned to hometown chickens to work. At that time, there were 1,350 labor dispatch personnel.In 2019 and 2020, there were 8,035 and 6,135 people who did not pay social security, respectively. Shu Congxuan did not mention this and directly ignored it.Changjiang Commercial Daily couldn’t help but ask—why did such a large number of employees fail to pay social security in the past two years?
According to the relevant provisions of the "Social Insurance Law", paying social insurance to employees is a compulsory obligation of the employer, and the employer needs to apply for social insurance registration for the employee within 30 days of employment.
A company's IPO, from share reform, listing counseling, to submitting a listing application, takes more than a day or two, so why hasn't the employee social security problem been resolved in time?Of course, the fellow chickens may not have the ability to solve them at the time, but it does not mean that these problems do not exist or can be fooled.
Supplementary payment of social security deduction will reduce 250 million IPO or hopeless
. Although the apology is sincere and sincere, Shu Congxuan may only choose to apologize for solving the problem of employee social security that has not been paid before, but cannot really make up for the employees.Because, he is facing a dilemma.
If the social security issue that has not been paid before is solved, it may be difficult for Laoxiangji to meet the conditions for IPO listing on the main board.
According to the prospectus, at the end of 2019, the end of 2020, and the end of 2021, the total number of Laoxiangji employees was 12,844, 15,400, and 14,503, respectively. 8,035, 6,135, and 1,874 people, and the unpaid proportions are 62.55%, 39.84%, and 12.92%, respectively; the number of unpaid housing provident funds is 12,844, 9,731, and 2,012, and the unpaid proportions are 100% and 63.18%, respectively. and 13.87%.
The above data shows that in the past three years, a total of 16,000 people in fellow chickens have not paid social security, and 24,500 people have not paid housing provident funds.
There is no doubt that based on three years of social security and provident funds, Laoxiangji violated social security laws and regulations.
In the prospectus, Laoxiangji disclosed relatively simple information about employees’ social security, and did not disclose the amount of social security that should be paid.Based on the average salary of employees, it may be roughly estimated.
From 2019 to 2021, the average salary of fellow employees is 52,400 yuan, 53,400 yuan, and 64,800 yuan respectively.
According to the social security payment ratio in Hefei, Anhui, the basic pension insurance, basic medical insurance, and unemployment insurance units pay 16%, 6.4%, and 0.5%, respectively, work injury insurance units pay 0.2%-1.9%, and maternity insurance units pay percentages. 1%.In addition, the contribution rate of Hefei housing provident fund units is 5%-12%.
If all are calculated according to the minimum payment ratio, the total payment ratio of "five insurances and one housing fund" units is 29.10%.Laoxiangji has not disclosed the base number of employees' payment of "five social insurances and one housing fund". If the average salary of employees is calculated, from 2019 to 2021, the "five social insurances and one housing fund" amount that Laoxiangji should pay for employees is 15,200 yuan and 15,500 yuan respectively. yuan, 18,900 yuan.Then, the amount to be paid is about 123 million yuan, 95 million yuan, and 35 million yuan respectively.
From 2019 to 2021, the net profit attributable to shareholders of the parent company after deducting non-recurring gains and losses (referred to as "deducted non-net profit") achieved by Laoxiangji was 161 million yuan, 95 million yuan, and 139 million yuan, respectively.If the above-mentioned social security is paid, the corresponding deducted non-net profit will be adjusted to 38 million yuan, 000 million yuan, and 104 million yuan, which will affect the deduction of non-net profit of about 250 million yuan in total, and there will even be losses in 2020.
If the "five insurances and one housing fund" are paid up, the non-net profit of Laoxiangji will fluctuate greatly, and the profitability will be extremely unstable.
In this IPO, Laoxiangji intends to be listed on the main board of the Shenzhen Stock Exchange. If the "five insurances and one housing fund" are paid, the company may not meet the IPO listing conditions, causing a new round of doubts.
On June 5, an investment banker told a reporter from the Changjiang Commercial Daily that the social security issue may become a stumbling block for the IPO of fellow chickens. If the company does not face up to the problem, employees who have not paid the "five insurances and one housing fund" before may complain to the company. Labor departments, courts, etc. sue for claims, which will also affect this IPO.The person suggested that the Shu Congxuan family, the actual controller of Laoxiangji, should bear the "five insurances and one housing fund" that should be paid, and Laoxiangji could relieve the actual controller's financial pressure through cash dividends in the future.
Changjiang Commercial Daily noted that Laoxiangji is a very typical family business, and a family of two generations and five people holds a total of 91.32% of Laoxiangji’s shares.There is no doubt that most of the cash in the company's listing dividends in the future will flow directly to the Shu Congxuan family.
