Dabbling with the quantum concept, the main character of the private network communication scam, is going to be delisted!
On Dec. 1, listed company Hubei Kailuo Technology Co., Ltd (*ST Kailuo) issued an announcement for the second consecutive week that it faced the risk of delisting. This also starts from before 2016.
In May 2016, Kale Technology released a fixed increase proposal, the company intends to raise not more than 1.75 billion yuan from no more than ten specific objects, of which 618 million yuan is intended to be invested in quantum communication technology data chain products industrialization project, to enter the field of high-end communications equipment manufacturing. This is also the year, the world's first quantum science experiment satellite "Mozi" successfully launched.
Since then, Kale Technology, which mainly sells plastic pipes and communication software, has become a private network communication company with the concept of quantum communication. Kale Technology's revenue also began to grow significantly, from $3.2 billion in 2015 to $8.4 billion, including $5.1 billion in revenue from private network communications. Then from 2017 to 2020, the company's private network communication business revenue was 11.120 billion yuan, 14.733 billion yuan, 13.696 billion yuan and 7.778 billion yuan, and the revenue share increased year by year.
Kale Technology did not explain the relationship between its quantum communications and private network communications, but the company has revealed that through the downstream enterprises of private network communications products to the company and Hubei Kale Quantum Communications Optoelectronics Technology Co., Ltd. and Shanghai Fanzhuo and other technical team, research and development capabilities, production capacity, product planning and other aspects of the investigation, after September 2015 to the company one after another proposed a private network communications product purchase orders.
Ltd. can be traced back to 2004, when quantum communication almost completely in the laboratory, but don't get me wrong, at that time they were also called Hubei Jingzhou Kaile New Material Technology Co. Ltd. and then changed its name to Hubei Kale Photoelectric Co., Ltd. before changing to its current name in 2016.
Things took a turn for the worse in 2021, when on August 8, Kale Technology announced that its 1.533 billion assets were filed for freezing, and the private network communication burst into flames.
But this is still just the tip of the iceberg of the dedicated network communication scam, in which more than a dozen listed companies are involved. Securities Times through nearly 2 months of tracking and investigation found that a hidden financing trade network in the guise of "private network communications business" surfaced, the scale of funds of more than 90 billion yuan, as many as 13 listed companies are known to be involved, known as the "A-share history of the largest money scam ".
In this huge network, the listed company's funds flow to the supplier by way of prepayment, and after some time, the supplier or its hidden related party, the funds flow back to the listed company by way of sales return through one or more layers of downstream customers, and in the short term, it seems that the listed company's performance has been improved. However, when the closed loop of funds of the manipulator is broken, the risk of the listed company is completely exposed.
According to the definition, the private network communication is the necessary equipment for the public security department of each country to achieve effective command and dispatch, and generally requires the ability to temporarily deploy the network, self-organized network, to provide users with flexible and convenient wireless links, which can better adapt to various application scenarios and business needs. It is mainly used in government, military, armed police, railroad, rail transit, petroleum, public security and other special industries. But the scam eventually pointed to a man named Sui Tianli.
Around Sui Tianli's "private network communications business" capital scale of more than 90 billion yuan, which is a concept? According to data from the Foresight Industry Institute, the market size of China's private network communications industry is about 38.7 billion yuan in 2021. The water in it can be imagined.
Back to the photon box familiar quantum communication to, Kale Technology has never announced the income of quantum communication, but the subsidiary Hubei Kale Quantum Communication Optoelectronics Technology Co.
It can be seen that the net profit of Hubei Kale Quantum Communication Optoelectronics Technology Co., Ltd. for the three years 2018-2020 is more than the revenue of Guodun Quantum. According to Guodun Quantum, as of the end of 2018, the total length of China's completed practical fiber optic quantum confidential communication network has reached more than 7,000 kilometers, of which more than 6,000 kilometers use the products provided by the company and are in online operation. Obviously the current quantum communication market size is still relatively small, therefore, it is almost impossible for Hubei Kale Quantum Communication Photoelectric Technology Co. to achieve such high profits through quantum communication. And from the 2021 loss of 2 billion, the so-called quantum communication company is likely to also step on the mine of private network communications, indicating that they are likely to be under the banner of quantum communication is actually carrying out the business of private network communications, and a lot of water.
Once crowned as the "leading quantum communications" Kale Technology, with the explosion of private network communications, quantum communications this beautiful package was ripped off, the company faces delisting, which may be its proper ending. But hundreds of millions of dollars of additional financing for quantum communications, can not just end without a hitch, investors need an explanation.
