*St soling: the progress of debt restructuring is smooth and the main business is confident

category:Finance
 *St soling: the progress of debt restructuring is smooth and the main business is confident


The origin of shengjiafang and * ST soling began one year ago. In August 2018, Xiao Xing, then chairman of * ST soling, also signed an agreement with Zhongshan lexing Enterprise Management Consulting Co., Ltd. (hereinafter referred to as Zhongshan lexing) to transfer 106 million shares of * ST soling held by him to Zhongshan lexing at a price of RMB 950 million. Prior to the signing of the agreement, Xiao bank also held 191 million shares in * ST soling, accounting for 45.31% of the total share capital of * ST soling, which is the controlling shareholder of * ST soling.

According to the public information, Xu Peifeng is the actual controller of Zhongshan lexing, who indirectly holds 100% of the equity of Zhongshan lexing. In addition to Zhongshan lexing, Xu Peifeng holds 50% of the shares of Jianhua building materials (China) Co., Ltd. (hereinafter referred to as Jianhua building materials). According to Tianyan, the paid in capital of Jianhua building materials is US $56.64 million. In 2018, Jianhua building materials was selected as one of the top 10 private building materials enterprises in China by relevant organizations, ranking 340 out of the top 500 private enterprises in China.

Since then, Xiaoxing and * ST soling have exposed debt crisis. On December 25, 2019, Zhongshan lexing again signed a framework agreement with Xiaoxing. Xiaoxing and Xiao Xingjie, the person acting in concert with Xiaoxing, announced that they would give up their voting rights corresponding to the 146 million shares of * ST soling. After the completion of the equity change, Zhongshan lexing became the controlling shareholder of * ST soling and the actual controller of * ST soling became Xu Peifeng. After the board of directors on December 25, shengjiafang also succeeded Xiaoxing as the chairman of the company. Previously, shengjiafang was appointed CFO of Jianhua building materials.

After the new management team takes office, it first tries to solve the companys debt problem. Sheng Jiafang told the Securities Daily that after many exchanges with the companys debtors, the debt problems of listed companies have made better progress. At present, we mainly use Jianhuas brand and influence to hope to make a settlement with the debtor. After all, everyone hopes that the listed company will get better. At present, some large institutions are still following the process, but overall, it is relatively smooth. Sheng said.

In addition to coordinating debts, Zhongshan lexing also promised to provide a loan of 50 million yuan to the listed company or its subsidiaries within 10 days from the date of actual acquisition of the control right of the listed company. After the delisting risk of the listed company is removed, another loan of 150 million yuan will be provided to ease the financial difficulties of the listed company.

At the same time, the new management team also made targeted deployment in strengthening the management of * ST soling. On January 9, * ST soling passed the proposal to adjust the companys organizational structure. Shengjiafang said that the new organizational structure will be more detailed, in which strengthening internal control is the main purpose of the structural adjustment.

Focus on revitalizing the main business in the future

According to the public information, * ST soling is an enterprise specializing in the research, development, production and sales of CID (carinformatic device) system, and on this basis, it provides professional Internet of vehicles hardware and software services and automatic driving development business. At present, * ST solings main products include Internet of vehicles products, auxiliary driving products, automatic driving products and related background services.

After 20 years of operation, * ST soling has become one of the largest and most powerful CID system manufacturers in the Pearl River Delta Economic Zone, and has become a strategic partner of many automobile manufacturers, Tencent, China Telecom, China Mobile, China Unicom and Huawei. *St soling now has an industrial base covering an area of more than 50000 square meters, with an annual production and sales capacity of more than 1 million units. *St soling said that in 2018, the company ranked 15th among the national Internet of vehicles enterprises and 463rd among the top 500 enterprises in Guangdong Province.

Shengjiafang said that the main reason for Zhongshan lexings acquisition of shares of * ST soling in 2018 is that the group hopes to strengthen diversified operation and is optimistic about the prospect of the automotive electronics industry, which is one of the representative enterprises in the industry, with a relatively complete industrial layout. When I came to Shenzhen, I went to see the factory building in Huizhou, Guangdong Province. After seeing the management and operation of the factory building in Huizhou, we are confident in reinvigorating the main business of the company. Said Sheng Jiafang.

In addition, * ST solings industry has also ushered in a better development opportunity. According to the data of CCID consultants, the industry market scale will exceed 100 billion yuan in 2021. Due to the promotion and application of 5g technology, the development of v2x technology, the increase of user value-added payment and other factors in 2020, the market will usher in explosive growth, with the growth rate expected to exceed 60%. Shengjiafang particularly stressed that Zhongshan lexings investment in * ST soling is a medium and long-term behavior, and the task of the new management in the future is to focus on the main business in an all-round way. Its often asked if you could manage a listed company that is engaged in automotive electronics, since you used to be a building material company. In fact, the concept of management is interlinked. The achievements of Jianhua over the past years have proved the advanced nature of our management. With the foundation of Suo Ling, Jianhua also has certain resources in the electronics industry. I have confidence in the main industry of Suo Ling. Said Sheng Jiafang. Source: responsible editor of Securities Daily: Yang qian_nf4425

In addition, * ST solings industry has also ushered in a better development opportunity. According to the data of CCID consultants, the industry market scale will exceed 100 billion yuan in 2021. Due to the promotion and application of 5g technology, the development of v2x technology, the increase of user value-added payment and other factors in 2020, the market will usher in explosive growth, with the growth rate expected to exceed 60%.

Shengjiafang particularly stressed that Zhongshan lexings investment in * ST soling is a medium and long-term behavior, and the task of the new management in the future is to focus on the main business in an all-round way. Its often asked if you could manage a listed company that is engaged in automotive electronics, since you used to be a building material company. In fact, the concept of management is interlinked. The achievements of Jianhua over the past years have proved the advanced nature of our management. With the foundation of Suo Ling, Jianhua also has certain resources in the electronics industry. I have confidence in the main industry of Suo Ling. Said Sheng Jiafang.