Chinas peoples investment photovoltaic empire fell: dishonesty shrouded in asset freezing has been settled

category:Finance
 Chinas peoples investment photovoltaic empire fell: dishonesty shrouded in asset freezing has been settled


On October 29, in order to commemorate the fifth anniversary of the founding of China Peoples new energy, the companys team in Beijing went to Fangshan to carry out party building activities, said Xiao Hongjiang, the companys leader who has worked in the energy industry for more than 40 years.

For the young employees of China Peoples new energy, this five-year anniversary is not easy.

The reporter of Beijing News learned from the national courts execution information platform that as the main body of the photovoltaic sector of China Peoples Investment Corporation, China Peoples new energy has been listed in the list of dishonest executors and executors by the court. According to the legal documents seen by the reporter of the Beijing News, the property of 4.7 million yuan invested by the peoples Republic of China has been frozen by the court. Fortunately, however, the relevant parties responded to the Beijing News reporter that the freezing case had been settled.

In the past, Zhongmin investment has made a large-scale layout in the photovoltaic industry, with an investment of hundreds of billion yuan announced to the outside world, and has taken the control right of the listed company Shengyang shares, trying to realize the listing of its photovoltaic assets through the channel of Shengyang shares. However, the plan has been declared a failure, and Shengyang shares are back in the hands of the original actual controller.

Now, in the context of the liquidity crisis of CIC, CIC Xinneng has also adjusted its organizational structure optimization to activate the power plant assets. The senior management of China Peoples investment said that the most difficult days of China Peoples new energy are coming to an end. The reporter of the Beijing News has not yet received a reply from the peoples Republic of China on new energy.

Litigation cloudy

The reporter of Beijing News learned from the execution information platform of the national court that Zhongmin Xinneng Investment Group Co., Ltd. has been listed as the executee by the first intermediate peoples Court of Beijing recently, case No. (2019) jing01 execution No. 920, filed on October 10, 2019, with the execution target of 9727202.

According to the Beijing News, in July this year, Zhongmin Xinneng has been listed as the dishonest executor by the first intermediate peoples Court of Beijing. The execution is based on the document No. 2019 Beijing Arbitration Zi No. 1306. The filing time is July 4, 2019. The specific situation of the dishonest executors behavior is having the ability to perform but refusing to perform the obligation to determine the effective legal document. The dishonest information was released on September 11.

On the afternoon of October 31, the reporter called Zhongmin Xinneng several times, and the voice prompt showed that the call was in progress, but it was not connected.

A reporter from the Beijing News found that in July this year, a large amount of assets of the peoples Republic of China Xinneng had been frozen by the court due to a debt dispute.

According to the civil ruling (2019) jing01 financial insurance No. 141 issued by the first intermediate peoples Court of Beijing on July 23 this year, the applicant Shanghai nenghui Technology Co., Ltd. applied to Beijing Arbitration Commission for property preservation on June 4, 2019, and requested to seal up, detain or freeze the property of the applicant Zhongmin Xinneng Investment Group Co., Ltd. of 4.7 million yuan.

On the afternoon of October 31, the reporter of Beijing News called nenghui technology to inquire about the above freezing matters. The telephone receiver said that he would convey the matter to the leader for the reporter to see if he could reply.

Later, the reporter of Beijing News contacted the entrusted litigation agent of nenghui technology and the lawyer of Beijing Wanyue law firm. The other side said that nenghui technology applied to freeze the assets of China Minxin energy because of the contract debt dispute. About a week after the court made the above judgment, nenghui technology reached a settlement with China Minxin energy to withdraw the application without substantive measures.

As for whether Zhongmin Xinneng has made repayment or has made repayment commitment, the lawyer said that he is not the main operator and does not know very well.

Billion ambition

On August 21, 2014, China Minsheng Investment Co., Ltd. was officially established in Shanghai. At the beginning of its establishment, CIC announced to the outside world that the integration of some surplus Industries was one of the main businesses of CIC.

It can be seen from this that the layout of CIC attaches great importance to new energy, steel and mining.

Among them, Zhongmin new energy takes the integration and operation of photovoltaic power generation projects as the starting point, actively promotes the effective transformation of the energy industry, and creates the worlds largest investment and operation group in the field of new energy.

According to reports, Li huaizhen, then president of CIC, also said at the early stage of the establishment of CIC that CIC would strive to invest 150 billion yuan in five years, achieve the cumulative installed capacity of 20GW photovoltaic, and achieve the leading goal of the whole photovoltaic industry.

Ningxia is the key location of China Peoples investment photovoltaic strategy.

Just a few days after the establishment of CIC, on August 28, 2014, CIC signed a strategic cooperation agreement with Ningxia. In three to five years, CIC will use direct investment, equity investment, industrial funds and other means to invest 100 billion yuan in five industries in Ningxia, including new energy, modern agriculture, tourism and air logistics.

In terms of new energy, CIC plans to invest and build 3gw-5gw photovoltaic power generation project in Ningxia, with a total investment of 30-50 billion yuan.

In September 2016, Zhongmin Guangfu (Ningxia) Investment Co., Ltd., which is responsible for the construction of the worlds largest single photovoltaic power station, officially set sail. The company plans to invest 15.6 billion yuan to build the worlds largest single photovoltaic power station with a total planning of 2000 MW in Yanchi County.

At that time, the person in charge of the company introduced that although it was registered and established this year, Ningxia Tongxin 200MW photovoltaic power generation project and Ningxia Yanchi 2000MW new energy comprehensive demonstration area have been successively started since December 2014. At present, the company has invested about 11.5 billion yuan in Ningxia. Tongxin 200MW photovoltaic power generation project was connected to the grid in October last year, and the first 380mW of Yanchi project phase I was connected to the grid on June 28 this year, laying a foundation for the company to build the largest single photovoltaic power station in the world.

Enterprise investigation shows that the shareholder behind Zhongmin Guangfu (Ningxia) Investment Co., Ltd. is Zhongmin Energy Control Co., Ltd., and the latter is Zhongmin Xinneng Investment Group Co., Ltd., which is a professional investment platform of Zhongmin investment in new energy field. Since its establishment, China Minxin energy has invested and operated 29 photovoltaic power stations with a grid connection capacity of 1.26gw.

According to the financial data disclosed in the report on issuing shares to purchase assets and related party transactions issued by Shengyang Co., Ltd. in December last year, in 2016 and 2017, China Minxin energy achieved an operating revenue of 433 million yuan and 1.767 billion yuan respectively, with a significant increase in revenue, but the net profit in the same period only increased from 267 million yuan to 274 million yuan.

According to the new century rating, the return on investment of surface power station projects has declined rapidly due to factors such as rapid drop in benchmark price of new projects and fierce market competition. In the future, the companys surface power station project mainly comes from the second phase construction of the original project, or the new poverty alleviation project in the original project location. In addition, it is no longer planned to invest in large-scale new surface power station.

By the end of 2017, the total assets, liabilities and net assets of Zhongmin Xinneng were RMB 17.223 billion, 8.775 billion and 8.448 billion respectively.

Zhongmin investment said in the issuance document that due to the long payback period of general investment in photovoltaic projects and the large investment plan in the early stage, if there is a major change in Chinas macro-economic situation or government policies in the future, it will have a negative impact on the issuers photovoltaic business, thus affecting the profitability of the issuer.

Advance and retreat of Shengyang Co., Ltd

At this time, CIC tries to push photovoltaic assets to the capital market.

In December 2017, Shengyang Co., Ltd. announced the change of ownership. Song bin, the actual controller of the company, signed an agreement with Zhongmin Xinneng Power Investment Co., Ltd. that Xinneng power directly holds 5.01% of the shares of the listed company and has the voting rights corresponding to 16.30% of the shares of the listed company. The total proportion of the voting rights of the listed company is 21.31%, becoming the controlling shareholder.

Xinneng power said at the time that the purpose of the above equity changes is to obtain the control right of Shengyang shares, improve the governance structure of listed companies with the help of transformation and Reform in business, human resources, finance and other aspects, at the same time, use the platform of listed companies to effectively integrate high-quality resources, improve the business situation of listed companies, and enhance shareholder value.

However, in April 2018, Shengyang Co., Ltd. announced the termination of the reorganization, because the assets of the target company involved in the major assets reorganization plan are relatively complex, and the listed company believes that the conditions for the acquisition of the target company are not mature, so it is difficult to form a specific and feasible plan to continue to promote in a short time.

Since then, the capital operation of Shengyang Co., Ltd. has been promoted rapidly, and the restructuring plan has been disclosed in November 2018. The initial price of the underlying assets is 1.233 billion yuan.

According to the restructuring plan, after the completion of the transaction, the listed company will add photovoltaic power generation business, benefiting from the rapid development of the new energy power generation field, good profitability and synergy with the existing business of the listed company. After the completion of the transaction, it will help to further improve the sustainable operation ability of the listed company.

However, shortly after that, at the time of the capital operation of Zhongmin Xinneng around Shengyang shares, the liquidity problem of Zhongmin investment broke out.

In February this year, CIC announced that in order to protect the rights and interests of investors, CIC decided to suspend the trading of the bidding system for the publicly issued corporate bonds (17 Zhongmin G1, 18 Zhongmin G1, 18 Zhongmin G2) listed on the Shanghai Stock Exchange as of February 12, 2019, due to the abnormal trading price fluctuations in the secondary market of related bonds.

In the face of the companys recent liquidity challenges and other questions, LV benxian, President of CIC, publicly responded that the rapid changes in the external environment, the speed of transformation and its own ability to cope with the changes are far from keeping up with the situation, resulting in the current passive situation.

We are confident that we can solve the current liquidity difficulties, Lu stressed

According to some media, the main loser of CICs external investment is the photovoltaic industry in the field of new energy.

Under the background of tight liquidity of CIC, where will Shengyang share restructuring go?

By September this year, Shengyang announced that it would terminate the issue of shares to purchase assets and related transactions. Shengyang said that at present, the photovoltaic industry has a strong dependence on state subsidies. Although the state has increased the subsidies, there is a big uncertainty about the time when the subsidies are in place, which may affect the cash flow of listed companies.

The restructuring failed, and Shengyang shares returned to the hands of the original actual controller.

On September 7, Shengyang stock announced that song bin and his concerted actors had signed the agreement on the termination of voting right entrustment with Xinneng power. After the equity change, nine natural persons, including song bin, directly and indirectly held 57.5404 million shares of the listed company, accounting for 16.48% of the total share capital of the listed company. They are the controlling shareholders and actual controllers of the listed company.

At present, Xinneng power holds 5.09% of Shengyang shares, corresponding to 5.09% of the voting rights. In addition to Shengyang, listed companies with a shareholding ratio of more than 5% include China smart energy (1004. HK), with a shareholding ratio of 6.93%.

The most difficult days are coming to an end

Now, in the context of continuous asset sale of CIC, the reform of new energy level of CIC has also started.

In addition to the group itself, Zhongmin Xinneng has also carried out a series of organizational structure optimization adjustments and system reforms, including core management team competition, streamlined management, reduced cost and efficiency, effectively reduced the companys management cost, and improved the companys economic efficiency and return on investment.

At the personnel level, Xiao Hongjiang, an energy veteran, joined China Peoples new energy in the middle of September and became president and Secretary of the general Party branch. Xiao Hongjiang has worked in the energy industry for more than 40 years. He was the assistant general manager of the Three Gorges group, the chairman and Secretary of the Party committee of Hubei Energy Group Co., Ltd., and the chairman of Hubei Sanhuan Co., Ltd.

According to the official website of Zhongmin investment, on October 15, in order to further activate the stock assets, Zhongmin Xinneng held a special meeting on Guangxi Bobai project promotion in Beijing, which showed that it was necessary to make a thorough statistics on the project quantities and then carry out the construction. Although there is still a certain fund gap at present, it is necessary to persist in doing so to turn the loss into profit.

Xiao Hongjiang, President, pointed out that there are two major problems of liquidity and management in the power stations of China Minxin energy. China Peoples new energy is actively taking various measures to invigorate inefficient and invalid assets. The company will set up a project management department to strengthen the management and supervision of the project, at the same time, focus on the target, consolidate the management responsibility, strengthen the territorial management, develop the standard operation and maintenance system, strengthen the assessment, continue to simplify the organization, reduce the management level, optimize the management process, and improve the work efficiency.

Recently, a reporter from Beijing News found that Zhongmin Xinneng Electric Power Investment Co., Ltd. was listed in the list of business exceptions by Tianjin Binhai New Area market and Quality Supervision Administration in July 2018 because it failed to publish the annual report within the time limit specified in Article 8 of the Interim Regulations on enterprise information publicity.

Although there are still many challenges ahead, I believe that the most difficult days are about to pass. You should work together to make progress. On October 29, Mao Yonghong, chairman of the China Peoples investment Emergency Management Committee, said in a congratulatory letter to the fifth anniversary of the founding of China Peoples new energy.

Source: responsible editor of Beijing News: Wang Xiaowu NF