On January 22, Jinyu Dongfang, led by the richest father and son in Yunnan, plunged 5.10%, closing at 3.91 yuan per share, a new low in nearly six years, with a market value of only 5.28 billion yuan.
At the same time, Dongfang Jinyu issued several announcements to terminate major asset restructuring matters, and the controlling shareholders exempted the company from 680 million yuan of debt. Earlier, on January 18, Dongfang Jinyu was investigated by the Securities Regulatory Commission for suspected violations of the law.
Jadeite business makes the richest man
Zhao Xinglong and Zhao Nings father and son have become the richest man in Yunnan by virtue of their jadeite business and are well known to the outside world. According to the data of China Jewelry and Jade Jewelry Industry Association, the price of jadeite increased by about 18% annually from 2000 to 2009, and even more than 30% in the years after 2010. Such as glass, ice and egg white are known as the Oriental Diamond of fine jadeite, with an increase of 100% to 200%.
In the background of this fanaticism, the Zhao Xinglong family has become the beneficiaries. In 2007, the Zhao Xinglong family ranked the richest man in Yunnan with a family of 2.7 billion. It is the blowout development of the whole industry that helps it reach the peak of wealth. In particular, Zhao Xinglongs astonishing eye, it is said that he handled the accuracy of gambling stone reached more than 80%.
Termination of Major Asset Restructuring
However, at the beginning of the new year, the debt crisis, stock price plunge, market value shrinkage, filed investigation, restructuring failure... Jadeite First Unit Oriental Jinyu, has fallen into a crisis of all sides.
On the evening of January 22, Dongfang Jinyu announced that its board of directors had decided to terminate major asset restructuring. The termination of major asset reorganization matters is mainly based on two reasons. On the one hand, the reason is the receipt of the Notice of Investigation of the SFC. According to the facts confirmed by the investigation results of the SFC filing case, the companys stock trading will be warned of delisting risk if it touches on the situation of major illegal forced delisting. At present, the company does not have the conditions to continue to plan major assets restructuring.
On the other hand, the company is facing a large amount of debt maturity in the near future, and the underlying assets are in the state of mortgage or freezing. According to the company, due to the pressure of paying off debts recently, several debts have defaulted and the delivery of underlying assets can not be completed at this stage.
On January 22, Dongfang Jinyu closed at 3.91 yuan per share, a new low in nearly six years, with a market value of only 5.28 billion yuan.
The market noticed that on January 18, 2018, Dongfang Jinyu suffered a flash crash and stop. After nearly 10 months of suspension, it resumed trading on November 2, 2018, and then directly encountered seven one-word stop. Today, its stock price has fallen by nearly 65%, and its market value has evaporated by nearly 10 billion yuan.
May face nearly 5 billion yuan of debt
Beijing Youth Daily reporter noted that on January 15 this year, the companys latest debt amounted to 1.67 billion. On July 25 last year, the debt was 916 million yuan. On October 29 last year, the debt doubled to 2.19 billion yuan, accounting for 67.76% of the companys audited net assets in 2017. According to previous media statistics, in addition to the 1.67 billion debt, nearly 5 billion debt will be due in the next two years.
In December 2018, an executive ruling issued by the Third Intermediate Court of Beijing showed that, after investigation, the Executees of Yunnan Xinglong Industrial Co., Ltd. (controlling shareholder), Zhao Xinglong, Wang Yingyuan and Zhao Ning had no deposit and registration information of inorganic motor vehicles in their bank accounts, and no property was available for execution. The case was filed and executed by the Third Intermediate Court of Beijing on July 31 last year. Shanghai International Trust Co., Ltd. applied to the Beijing Higher Peoples Court for enforcement, with a target value of 671 million yuan.
Later, Zhao Ning, the real accuser of Dongfang Jinyu, was listed as the executed 14 times and the dishonest executed one time by the court. In January this year, the Shenzhen Intermediate Court also made a decision to restrict Zhao Nings consumption. Not only that, the jade deposited in the bank safe of Xinglong Industry in Yunnan was sealed up, and all shares of the company were frozen.
On January 4 this year, the long-term credit rating of Dongfang Jinyus main body and the bond credit rating of its 17 Jinyu Bond company were downgraded from A to BBB+, and the main body of the company was listed in the credit rating observation list.
Inventory amounted to nearly ten billion dollars
Zhao Xinglong and Zhaonings father and son have become the richest man in Yunnan by virtue of their jadeite business. Behind the fact that Yunnans richest father and son have no property to carry out, is nearly 10 billion yuan in inventory.
According to the three-quarter report of 2018, the total assets of Dongfang Jinyu are 12.233 billion yuan and its net assets are 3.137 billion yuan, including 9.639 billion yuan worth of inventory, accounting for 91% of current assets, and most of the inventory is jadeite. As far as the current overdue debt of Dongfang Jinyu is concerned, although it has not yet reached the point of insolvency, under the condition of uncertain value of jade, the stock of Dongfang Jinyu is 9.6 billion yuan, and its value may be unknown.
And how did 9.6 billion inventory come from? Luxury experts said that 9.6 billion yuan of inventory compared with the same industry, it is indeed a bit high, do not rule out the need for financial accounting.
It is reported that Oriental Jinyus large-scale purchase of funds, mainly from bank loans, pledges and other financing, which means that the company has always been through debt hoarding. Investors in the stock bars proposed to auction 9.6 billion stocks in order to pay off the accounts, but Oriental Jinyu did not respond.
Source: Beijing Youth Daily Author: Liu Shenliang Responsible Editor: Han Jiapeng_NN9841