On July 8, Chengxing International Holdings lowered, with the biggest drop of 90%. By the end of the day, it was down 79.96% to HK$0.9620 per share.
Boxin shares closed down that day. However, Boxin shares did not disclose Luo Jings case.
On July 8, a source told a Pengchao journalist that Luo Jing was detained by the police after issuing trust products for financing and breaking the capital chain. He was reported to be guilty of economic fraud by a financial institution in Shanghai.
Noahs wealth has been implicated and its listed companiesshares and related bank accounts have been closed down
At present, the police have not disclosed the reasons for Luo Jings detention, but the impact has begun to show.
In addition to the stock price of Luo Jings listed companies, their partners have also been hit.
After the opening of U.S. stocks on the evening of July 8, the share price of Noah Wealth (NYSE: NOAH), a well-known wealth management company, plunged by more than 20% and lost about $500 million in market value. Noah Wealth shares fell 20.43% to close at $35.6.
Luo Jings detention also cast a shadow on the prospects of this financing.
According to Wang Jingbos internal letter, from the discovery of risks to today, the company has done the following six things: increased the pledge of shares of listed companies and sealed up the shares of listed companies; sealed up the relevant bank accounts; issued a reminder letter requiring the payer to fulfil its repayment obligations in accordance with the debt-to-debt agreement; and initiated compliance with the investors of the fund. Information disclosure announcements; funds that have already expired have initiated criminal and judicial proceedings against relevant parties; and have filed with trade associations and regulatory units for the record.
On the evening of July 8, Boxin shares also disclosed that the controlling shareholder of the company, Suzhou Shengjun, had a dispute over the entrusted loan contract with the Suzhou Famous City Cultural Development Partnership (Limited Partnership). The Suzhou Famous City Cultural Development Partnership (Limited Partnership) filed a pre-suit preservation application with the Suzhou Intermediate Peoples Court of Jiangsu Province, requesting freezing. The property under the name of Shengjun in Suzhou. The 65,300,094 shares (unrestricted circulating shares) held by Suzhou Shengjun were granted by the Intermediate Peoples Court of Suzhou, Jiangsu Province.
Luo Jing, 48, the protagonist of the explosion, was once known as Mulanhui in the business circle for joining the Women Entrepreneur club.
According to the public information, Luo Jing founded Chengxing International Group in 1996. At present, the Group is a comprehensive group integrating pan-entertainment, intelligent hardware and big health industries. According to the official website data, in 2018, Chengxing International ranked 105th among the top 500 enterprises in Guangdong and 14th among the top 100 circulation industries in Guangdong.
According to the data, as of July 4, Luo Jing, the actual controller of Boxin Stock Company, directly held 1.25 million shares of Boxin Stock, with a holding ratio of 0.54%; through the controlling shareholder, Suzhou Shengjun, indirectly held 65.3 million shares, with a holding ratio of 28.39%. That is to say, Luo Jing held 66.55 million shares of Boxin Stock, accounting for 28.93% of the total share capital. However, at present, all the shares held by Suzhou Shengjun have been frozen by the judiciary and by waiting.
At the same time, Luo Jing also holds 700 million shares of Chengxing International Holdings, accounting for 64.87% of the total equity, while under his control is a Singapore motherboard listed company, Camsing Health Care (BAC).
At the same time, Luo Jing herself has the image of a strong woman. It holds two masters degrees in Business Administration from Hong Kong University of Science and Technology and HEC School of Management in Paris. In 2017 and 2018, she was selected as the top 30 Mulan elite in the business circle of Chinese Entrepreneurs. She is also the vice president of Guangdong Women Entrepreneurs Association.
Capital Player Luo Jing
It can be seen that Luo Jing, with Chengxing in Guangzhou as the main financing body, uses receivables of e-commerce such as China Mobile and Suning to issue collective fund trust schemes to raise funds publicly. The individual fund raised ranges from tens of millions to hundreds of millions of yuan, and the annual yield is concentrated between 7% and 10%.
Taking two management plans as an example, the loan management plan of Guangzhou Chengxing Marketing Management Co., Ltd., which was issued in 2014 as Financing Asset-Rongzhi 1, was pledged with accounts receivable of 71.4706 million yuan of Fujian Branch of China Mobile Terminal, and raised 57 million yuan to supplement liquidity.
Luo Jing personally provides joint and several liability guarantee in the above financing.
Then on July 3, Boxin announced that Zhang Ze, the representative of securities affairs of listed companies, had recently resigned in writing. Zhang Ze applied for resignation as representative of securities affairs of Boxin shares for personal reasons. After his resignation, he would not assume any positions of listed companies.
In response, Yan Yiming, a lawyer at Shanghai Yanyiming Law Firm, believes that directors, supervisors and senior managers of a company suspected of violating the law and discipline are investigated or compulsory measures taken by the authorities, that is, they belong to one of the major events of a listed company. It should be disclosed that the accuser of the company was taken away on June 20, which also happened to the secretaries of the company. The company is suspected of violating the rules in the letter of approval for the resignation of the agent.
In this regard, on July 8, the announcement of Boxin said that after inquiring Ms. Chen Yuan, the Secretary of the board of directors who had left the company, and Mr. Zhang Ze, the representative of securities affairs, were informed that both of them had left the company for personal reasons. Before leaving the company, Ms. Luo Jing, the chairman of the board, and Mr. Jiang Shaoyang, the chief financial officer, were criminally detained by Yangpu Branch of Shanghai Public Security Bureau. Leave something to do.
In addition to Chairman Luo Jing, Director and Financial Director Jiang Shaoyang, there are only seven directors of Boxin Stock, namely (1) four active directors, namely, Ms. Liu Hui, Ms. Liu Weifang, Mr. Huang Rixiong, Mr. Chen Haifeng; and (2) three supervisors, respectively, are working generations. Mr. Zhao Jin (Chairman of the Board of Supervisors), Ms. Zhou Shutian, and Ms. Li Shuwen, supervisors; (3) A senior executive, Ms. Liu Hui, General Manager.
Boxin shares said that the seven supervisors were unaware of the criminal detention of Chairman Luo Jing and Finance Director Jiang Shaoyang by Yangpu Branch of Shanghai Public Security Bureau before July 5, 2019, after the companys self-examination. There was no violation of information disclosure in the company. The company will submit the list of insider informers as soon as possible for relevant transaction verification by Shanghai Stock Exchange.
Accounting firms find internal control flaws in companies
It is worth mentioning that Boxin shares have attracted the attention of regulatory authorities before.
In response, Boxin said that although the business scale expanded in 2018, due to the impact of bad debt provision, net profit fell from the same period in 2017.
In addition, the annual auditor has reservations about the provision for bad debts of accounts receivable of Boxin shares. Boxin shares do not shy away from this, the announcement said, The board of directors of the company believes that the audit opinion objectively reflects the actual situation of internal control of the company in 2018. For this reason, the Shanghai Stock Exchange sent a letter on May 12 this year to inquire about Boxin Stock. In the Inquiry Letter, the Shanghai Stock Exchange listed more than 10 questions concerning the non-standard opinions on the annual financial report of Boxin Stock, the confirmation of business income, the reasonableness of the provision for bad debts receivable and so on. The listed companies were required to list more than 10 questions before May 25. Respond. However, on May 25 this year, Boxin shares did not reply as scheduled, and its reply to the Shanghai Stock Exchange said, Because the inquiry letter involves a lot of content, it needs to be further supplemented and improved. Source: Wang Xiaowu_NF, Responsible Editor of Peng Mei News
For this reason, the Shanghai Stock Exchange sent a letter on May 12 this year to inquire about Boxin Stock. In the Inquiry Letter, the Shanghai Stock Exchange listed more than 10 questions concerning the non-standard opinions on the annual financial report of Boxin Stock, the confirmation of business income, the reasonableness of the provision for bad debts receivable and so on. The listed companies were required to list more than 10 questions before May 25. Respond.