Chairman Kang Dexin: tensions have eased and debt restructuring plan is under study

category:Finance
 Chairman Kang Dexin: tensions have eased and debt restructuring plan is under study


Four days after Xiao Peng resigned (July 5), the CSRC issued the notice of administrative punishment in advance, which showed that kangdexin had a number of illegal facts, such as a total of 11.9 billion yuan of falsely increased profits, failure to disclose the connected transactions of non operating funds occupied by controlling shareholders in the annual report, etc.

Among them, Kangde group, the controlling shareholder of Kangde new, used the cash management service agreement signed with Xidan Branch of Bank of Beijing to occupy 6.523 billion yuan, 5.837 billion yuan, 7.672 billion yuan, 17.150 billion yuan and 15.931 billion yuan of Kangde news capital from 2014 to 2018, respectively. However, the notice of administrative penalty does not explain the balance and whereabouts of funds occupied by Kangde group.

Subsequently, the new management, which was established by the debt Committee and the local government through consultation, took office. Wu Xingjun, who has the background of Minsheng Bank, was elected as the new chairman of Kangde on July 23.

According to the data, Wu Xingjun, 47, was once the company business customer manager of Agricultural Bank of China Limited Ningbo Branch, the company business department manager of China Everbright Bank Co., Ltd Ningbo Branch, the general manager of Ningbo and Tianjin regional real estate finance department of China Minsheng Bank Co., Ltd. and the vice president of Bairong Investment Holding Group Co., Ltd. in 2016 So far, he has served as the president of Jilin north international financial asset trading market Co., Ltd. under Hezhong life insurance group.

After receiving the notice of administrative punishment in advance, kangdexin applied to the CSRC for holding a hearing. After two extensions, the hearing was held in the CSRC on November 19 this year. The main controversy of the hearing focused on the judgment of regulators and kangdexin on the issue of false increase of 11.9 billion profit and false business, and the final result of the hearing will affect whether kangdexin directly delisted or not. As of the press release, the hearing had no public results.

In the critical period of waiting for the results of the hearing, Wu Xingjun accepted an interview with a reporter from Beijing News, talking about his views on the CSRCs notice of administrative penalty in advance and his personal feelings about Kang Dexin since taking office.

The following are the interview contents:

Beijing News: what do you think of the CSRCs notice of administrative penalty in advance?

Wu Xingjun: first of all, we would like to thank the audit work, so that all investors, creditors, including the existing management can have a more in-depth understanding of many problems existing in the historical operation process of Kangde new company. The existing management of Kangde new company also takes this investigation seriously, actively cooperates with the investigation work, and will summarize the experience and lessons to ensure the compliance operation of Kangde new company in the future.

Based on the attitude of seeking truth from facts, kangdexin also self examined the problems found in the process, such as the way of capital circulation to increase profits falsely, and reported to the CSRC through the hearing, and also recognized the fact that kangdexin did have financial fraud. However, kangdexin did not fully recognize the amount of the false increase in profits determined in the notice of administrative penalty in advance.

The main reason is that in the process of self-examination, some suppliers and customers provided us with evidence of logistics and capital flow to prove that the transaction is true, and some employees who have left their jobs have indicated to us that some types of transactions are commercially reasonable. In this case, we are unable to recognize the amount of false increase in profits identified in the notice of administrative penalty in advance. In the process of self-examination, we clarified the information we learned and our understanding of business model to the CSRC.

For example, there is a kind of pure trade business, which is identified as false business in the notice of administrative penalty in advance, mainly because in such business, goods logistics does not go through kangdexin. However, according to the general business practice and the supervision examples of the exchange, the essence of this kind of business should be recognized as an agent, and bookkeeping should be based on the net amount method rather than the total amount method, but the relevant profits can be recognized; for example, another kind of entrusted processing business, the same goods logistics is not through kangdexin, kangdexin purchases from the supplier, so that the supplier can directly send the spare parts to the entrusted processing The factory, after the completion of processing, will directly deliver the goods to the end customer, so the logistics will not affect the authenticity of such trade without kangdexin, and the relevant profits should also be confirmed.

The above examples are just incomplete and brief. There are still many disputes between the two parties over the amount of false increase in profits identified in the notice of administrative penalty in advance. In retrospect, the current management of the company has always been very positive about the case and is willing to bear the responsibility according to law, but the company has always stressed and insisted that the conclusion of administrative penalty involved in the case will have a significant impact on the rights and interests of the company and all investors. At the same time, the company is in violation of the rules in the case of loss of independence, not actively faking and supervising When making punishment, institutions should carefully consider these factors and strictly apply the standard of proof excluding reasonable doubt. The current management of the company is also willing to cooperate with the CSRC in further sorting and verification as always, so as to ensure that the final determination can achieve clear facts and sufficient evidence, and safeguard the vital interests of the company, the majority of small and medium shareholders and all creditors to the maximum extent.

Beijing News: how to look at the future of kangdexin? Is there a need for the next hearing?

Wu Xingjun: the company will try its best to keep its listing status, but as far as the current situation is concerned, as the final punishment decision of the CSRC has not yet been made, everything is still unknown. After all, the CSRCs final determination of the total amount of the companys inflated profits will play an important role in whether the company meets the conditions of compulsory delisting. But at the same time, the company is also comprehensively resuming production and operation, trying to find various ways of capital operation, and trying to avoid the consequences of compulsory delisting of losses for four consecutive years in the process of retroactive adjustment after the decision of administrative penalty of CSRC is made.

Whether to hold the next hearing will be decided by the punishment committee of CSRC. We will report the follow-up self inspection progress to CSRC for reference.

Beijing News: what are the main aspects of major shareholders infringement on kangdexin?

Wu Xingjun: the illegal manipulation of the listed company by the major shareholders does have a great impact on the company. According to the preliminary self inspection of the company and the notice of pre punishment issued by the regulatory authorities, it is mainly reflected in the fact that the major shareholders or some senior executives are suspected of manipulating the listed company to increase profits, encroaching on the assets of the listed company, and manipulating the listed company to guarantee the major shareholders illegal behavior. Finally, it depends on the regulatory authorities And the investigation results of the public security department.

It should be noted that according to the companys preliminary self-examination, the company completely lost its independence during this period. In a sense, the company is also one of the victims of this incident.

Beijing News: what is Kang Dexin lacking now?

Wu Xingjun: Generally speaking, what Kang Dexin wants most at present is the confidence of all walks of life to the company, including the confidence of the companys creditors; the confidence of the companys shareholders and employees; the confidence of the companys customers and suppliers; and the trust of the regulatory authorities to the company, etc. Once all forces have confidence in the follow-up development of the company, everything will develop well. After the companys crisis, many forces including local governments, bank creditors and current management are working together and taking various measures to save the company. The company is now gradually stable and developing in a good direction, and the confidence of all forces in the company is gradually restored.

However, it should be noted that the current liquidity shortage, litigation enforcement and other issues still threaten the companys follow-up development. The company also hopes that all creditors believe in the company, actively negotiate with the company on the follow-up repayment plan, and avoid the real damage to the company and all creditors caused by the enforcement.

To restore kangdexin to normal, we need the support of regulators, local governments, creditors, shareholders and employees. At present, with the support of local governments and the bank debt Committee, the company has actively studied and promoted the scheme and path to get rid of difficulties. Once it is clear, the company will report in time.

Beijing News: since I joined the company at the end of July, is there much pressure?

Wu Xingjun: I entered the company on July 19, 2019, after the approval of the general meeting of shareholders. In the past four months, I have two main feelings. One is that I have faced many challenges. The other is that I have a clearer understanding of the value of the company.

Before entering the company, I learned the general situation of the company indirectly from external channels. After entering the company, I found that the actual situation at that time was much more complicated than the previous external understanding. At that time, the company had a serious shortage of working capital, a sharp decline in production and sales, and a serious loss of key employees; the company was faced with a large number of lawsuits from financial institutions, suppliers, engineering service providers and resigned employees; at the same time, as the company received the notice of pre punishment from the CSRC on July 5, shareholders and employees were extremely excited. These are the problems I need to solve when I enter the company. For me, I feel a lot of pressure.

But at the same time, after more than four months of work, I have a clearer understanding of the value of the company.

The company is a leading enterprise in advanced polymer membrane material industry in China, which has strategic significance for national industrial security. The company has a good customer base and an industrial base to get out of the predicament. As of the beginning of 2019, the company has applied for 1575 patents in total, including 1074 invention patents, accounting for 68% of the total number of applied patents. It has established cooperative relations with first-line manufacturers such as apple, Huawei, Samsung, and is an important strategic R & D partner of apple, Huawei, Samsung, and a major supplier of original films such as BMW and Audi.

Up to now, major customers have not removed the company from its supplier list. Apple and other important customers are still stationed in the company to carry out follow-up R & D cooperation with the company. In addition, the top 20 customers of the company are well-known domestic and international enterprises such as apple, Huawei, BOE, TCL, Amazon, Hisense, Xiaomi, BMW, Skyworth, Hisense, etc., which provide important support for the companys follow-up operation. The companys existing business and assets have the reorganization value of continuous operation and continuous profit, and the company is the industrial foundation to get out of the predicament .

It is precisely based on the full recognition of the companys value that the local government and the CBRC have been supporting the companys management in their efforts to resume normal production and operation. The local government has taken direct measures to provide part of the rescue funds, through the economic investigation department to increase the recovery efforts and other means, to help the company alleviate the pressure of liquidity shortage and help the company through the crisis; the companys management has successively taken a series of self rescue measures, such as reducing the scale of production line, reducing cost and efficiency, reducing invalid capital expenditure, boosting employee confidence, adjusting product market structure, etc., and achieved good results Results.

At present, the companys early tense situation has been relieved. With the support of the local government and the banks debt Committee, the company has actively studied and promoted the scheme and path to get rid of difficulties completely, including the introduction of strategic investors, debt restructuring or reconciliation, etc. in a timely manner, to strive for the company to completely resolve the crisis.

Beijing News: what is the deepest feeling in this period?

Wu Xingjun: This is the most difficult period of kangdexin. In such a difficult period, I am most moved by a group of backbone employees who stick to their posts and work day and night to maintain the normal operation of the company. In order to help kangdexin resume production and operation, the relevant departments fully assist the company to recover all kinds of receivables and effectively alleviate the company At the same time, the local government actively coordinates the relevant work and supports the company to study and promote the complete solution; it can be said that kangdexin can recover gradually in such a crisis, and the strong support of the local government and the companys employees are the most important two factors. It also indirectly proves that the company is indeed a high-quality asset that can stand the test of the market. This is the most profound experience I have felt in this period of time.

The management of the company firmly believes that kangdexins technology and products in polymer membrane materials are first-class, giving the company a chance of rebirth, the company will certainly come out of the crisis and return to a normal high-quality company.

Beijing News: what do you want to say to investors and employees?

Wu Xingjun: in this crisis, the majority of investors and some employees have been damaged to varying degrees. At present, the current management of the company has actively carried out the recovery and rescue work of the company with the strong support of the local government. The recovery of the company cannot be separated from the support of the majority of investors and employees. I hope that the investors and employees will continue to support the development of the company and the company will actively protect the investment At the same time, it is hoped that the majority of small and medium-sized shareholders and employees should be treated rationally, safeguard their rights legally and avoid excessive behaviors.

Xiao Wei, Li yunqi, reporter of Beijing News

Source: responsible editor of Beijing News: Yang Zeyu, nf6036