Initially, he was not the actual controller of Xunxing shares. In 2016, he borrowed 2.5 billion yuan to transfer 25% of Xunxing shares at a high premium.
Later, when he joined Xunxing, he used high leverage and spent 1 billion yuan to buy the chain of bidding for a new third board company. As a result, he clashed with the original shareholders sentiment and Zhuling of the chain.
Where there are wet shoes, always high leverage, where there is no thunder.
The cumulative pledge of Xunxing shares held by Wang Lijun accounted for 100% of the total pledge. Xunxing shares are still in the total pledge. In the announcement of May 22, Xunxing shares said that all the shares pledged by the controlling shareholder of the company, Hui Zefeng, touched the liquidation line and there is liquidation risk.
In order to transform the chain of purchase price, the former shareholder Gan Qing and Zhu Lings husband and wife have taken their young son overseas.
Now, Wang Lijun himself has also been arrested, and a few days ago, Xunxing shares issued a notice saying that the chairman of the board, Wang Lijun, announced his resignation.
Lets see what happened to the company.
Xunxing Stock: Wang Lijun, former chairman of the company, has been arrested
On August 11, Xunxing shares issued a notice. On August 10, the company received notification from Wang Lijun, the actual controller of the company and the family members of the former chairman. Wang Lijun was arrested by Chongqing Public Security Bureau on suspicion of insider trading. At present, the companys production and operation are normal and orderly. The board of directors of the company is carefully assessing the impact of the incident on all aspects of the company, and taking timely and effective measures to ensure the stability of production and operation.
It is worth noting that Wang Lijun just announced his resignation on August 5 the other day.
At that time, the company issued a notice that on August 5, 2019, it received a written resignation report from Mr. Wang Lijun, the chairman of the board. For personal reasons, Mr. Wang Lijun applied for resignation of the sixth board of directors, chairman of the board, chairman of the strategic committee, member of the nominating committee and other positions, while no longer serving as the legal representative of the company. After resigning, Mr. Wang Lijun will no longer hold any position in the company.
According to public information, Xunxing shares are engaged in developing, manufacturing and selling all kinds of high-quality, fashionable and beautiful zipper products and accessories, mainly including nylon, plastic steel, metal three series of high-quality docking and finished zipper, zipper, zipper, fastener, box and bag accessories, zipper mould, zipper back-loading. Tools and moulds, small precision plastic moulds and hardware moulds products.
Wang Lijun bought Xunxing stock for 2.5 billion yuan
Almost all borrowed money.
First, lets talk about how Wang Lijun became the actual controller of Xunxing Stock.
Wang Lijun is a leveraged buyer in the capital market. In November 2016, Huize Feng Xunxing Group held 89.5 million shares, accounting for 25% of Xunxings shares, with a total transaction value of 2.5 billion yuan.
The price of each share of Xunxing shares transferred by HSBC was as high as 27.93 yuan, 2.2 times that of Xunxing shares at that time, with a premium rate of 120%.
According to the data, the actual controller of HSBC is Wang Lijun, born in July 1972. He worked in Tangshan Branch of China Construction Bank (7.140,? 0.00, 0.00%) and was the executive director of Tianjin Dongtubojin Co., Ltd. and the director of Golden East (Singapore) Pte. Ltd.
This acquisition is still a typical leveraged buyout
According to the announcement, all the funds for the acquisition came from a company called Qiyou Investment. On November 14, 2016, Hui Zefeng signed the General Entrusted Loan Contract with Qiyou Investment and the Agricultural Bank of China (3.460,? 0.00,? 0.00%) Kaiping Branch of Tangshan. Hui Zefeng borrowed 2.5 billion yuan for acquisition with an annual interest rate of 45% and a time limit of 4 years. After the completion of the transaction, HSBC pledged 25% of its Xunxing shares to Qiyou Investment.
According to the data, Qiyou invested in the two sides signed a loan contract just a month ago, with a total investment of 2.501 billion yuan, of which HSBC invested 1 billion yuan with limited partners, holding 39.98% of the shares.
Since Hui Zefeng bought the shell, the stock price of Xunxing stock has experienced six successive fluctuations, reaching a close of 22 yuan per share on Dec. 20, 2016.
Now, more than two years later, the latest share price of Xunxing shares has fallen to 5.3 yuan. As a result, the risk of liquidation is triggered. Xunxing shares said in the May 22 announcement that all the shares pledged by the controlling shareholder, Hui Zefeng, touched the liquidation line and there was liquidation risk.
Based on the original purchase price of 27.93 yuan per share, the book loss of HSBC is as high as 2 billion yuan, with a floating loss of 80%.
At present, the market value of Xunxing shares is only 1.9 billion yuan, that is, the large shareholder Wang Lijun borrowed money with high leverage, the amount of loss is lower than the companys market value.
Xunxing shares released its annual performance report on the evening of April 29, 2008, with a net loss of 650 million yuan, a profit of 119 million yuan in the same period last year; business income of 2.272 billion yuan, an increase of 22.18% over the same period last year; basic loss of 181 yuan per share, a profit of 0.33 yuan in the same period last year.
According to the first quarter performance report, during the reporting period, the net loss was 62.206 million yuan, and the profit was 32.956 million yuan in the same period last year; the operating income was 357 million yuan, which was 33.10% lower than the same period last year; the basic per share loss was 0.0174 yuan, and the profit was 0.01 yuan in the same period last year.
Transition also tramples on thunder
Price Chain is a new third board company, founded in 2008, mainly engaged in cross-border e-commerce services.
At that time, the exchange questioned why not issue shares directly. Listed companies responded that cash consideration payment is conducive to speeding up the implementation of this transaction, improving the efficiency and effectiveness of restructuring.
But one billion cash is not a small amount. As of June 31, 2017, Xunxing shares had only 86.3489 million yuan in money.
So where does the money come from? At that time, the listed company announced that the source of funds for the listed company to pay for the transaction was its own funds, bank loans and other external financing.
It is this merger and acquisition that has brought Xunxing shares into a situation of huge loss in performance.
At the time of acquisition, the price chain promised net profit of not less than 100 million yuan, 160 million yuan and 250 million yuan from 2017 to 2019, respectively. When the acquisition is completed, the performance commitment of the price chain will not be realized.
Xunxing shares pointed out in the announcement on October 9 last year that the net profit of the price chain in 2017 was 96.8696 million yuan, which did not fulfill the performance commitment; in the first half of 2018, there was a significant loss, with a net profit of 19.9758 million yuan, and the business situation continued to deteriorate, so the performance promised could not be realized.
According to the betting agreement, the performance promises of the chain of consideration such as Gan Qing and Zhu Ling can not be fulfilled at all. According to the agreement at that time, Xunxing shares predicted that the compensation amount of chain performance of Gan Qingqing and Zhu Ling should be no less than 900 million yuan.
But the amount of compensation has basically not come back. According to the announcement, Gan Qing and Zhu Ling have gone to the United States with their children, and their chances of getting compensation are slim.
Private placement once urged Wang Lijun to enter Xunxing Stock Company
300,000 fined and confiscated
In the process of participating in the transfer of Xunxings controlling right, Cai Kaifu, the chairman of the current capital, bought 70,000 shares of Xunxings stock with his mobile phone and sold them all on the day of resumption of Xunxings stock market on November 14, 2016, with a profit of more than 75,000 yuan. The trial decided to confiscate Cai Kaifus illegal income of more than 75,000 yuan and impose a fine of more than 225,000 yuan.
According to an investigation by Xiamen Securities Regulatory Bureau, on June 22, 2016, Shi Mou, president of Xunxing Stock Company, Zhang Mou, chief financial officer, and Cai Kaifu met in Xiamen City, Fujian Province to discuss and plan the transfer of Xunxing Stock Holding Right. Since then, Shi Mou has won the agreement of Xunxing Group, the actual controller of Xunxing Stock, to transfer the controlling right.
On October 17, 2016, Cai Kaifu informed Shi that the proposed buyer was Wang Lijun. On October 24, 2016, under Cai Kaifus arrangement, Shi Mou, Wang Lijun and others held talks in Shanghai on Wang Lijuns transfer of Xunxing Share Holdings and reached further contact intention.
According to Xiamen Time Capital website, Cai Kaifu is the chairman and founder of Time Capital. Over 20 years of experience in capital market investment and financing, lawyers, financial management and investment banking.
In an article, Cai Kaifu has been engaged in capital market operation for many years and is good at mergers, acquisitions and restructuring of enterprises and the first and a half stock markets.
The company is still under investigation by the SFC.
Open information shows that Xunxing Co., Ltd. specializes in research and development, production and sales of zippers, precision moulds, metal and plastic stamping castings, and mainly deals in all kinds of package and finished zippers of three series of metal, nylon and plastic steel, zippers of various specifications and models, zipper fittings and other products.
According to the previous announcement, Xunxing shares received the CSRC Notice of Investigation on October 25, 2018. China Securities Regulatory Commission (CSRC) decided to file a case for investigation because of the companys suspected information disclosure violations. Up to now, the investigation work of CSRC is still in progress.
Up to now, Xunxing shares still have nearly 40,000 shareholders.
A-share Prison Break Out
According to the statistics before the fund emperor, in just four months, more than a dozen chairmen or actual controllers of A-share market have been arrested, and the chairman of A-share has staged a big film prison storms.
Source: Liable Editor of China Foundation News: Li Zhaoyuan_B7890