Dongzhao Changtai and the chairman of the board of directors have been issued a restraining order to sharply reduce their holdings of Fuling mustard

category:Finance
 Dongzhao Changtai and the chairman of the board of directors have been issued a restraining order to sharply reduce their holdings of Fuling mustard


The reporter noted that Dongzhao Changtai had intended to introduce state-owned assets. Dong Zhao Changtai WeChat public number shows that in February 26, 2019, East trillion Changtai held the new spring work conference in 2019. Guo Xiang Dong and others signed the cooperation agreement of Changtai, China, which marks the official landing of the mixed transformation and reorganization of the official account of Changtai, the state owned information center. According to reports, China Guoxin Corporation is the largest company under the National Information Center.

Journalists have not yet been informed of the detailed progress of this cooperation.

The chairman of the board of directors was issued a consumption restriction order

Beijing News reporter learned from China executive information disclosure network that Dongzhao Changtai group was listed as the executor for many times during the period from August 27, 2019 to May 27, 2020, the latest of which is May 27 this year, case No. (2020) Yu 05 Zhi 694.

The reporter noted that the first intermediate peoples Court of Chongqing issued (2019) Y01 enforcement No. 1433 consumption restriction order on May 11 this year, which showed that the court filed a case on August 27, 2019 to implement the dispute over the application of Chongqing rungang Real Estate Development Co., Ltd. for the execution of the loan contract of Dongzhao Changtai group, because Dongzhao Changtai group failed to perform the effective legal documents within the period specified in the execution notice For the defined obligation of payment, the court shall take measures to restrict consumption of Dongzhao Changtai group and guoxiangdong of Dongzhao Changtai group shall not carry out high consumption and non life and work necessary consumption behaviors.

Guo Xiangdong is a famous construction tycoon in China.

Guo Xiangdong was born in 1961 and once served as secretary of Dongyang sub district office, director of development zone and Deputy Secretary of Town Committee, according to Dongzhao Changtai official website. Since July 1998, Guo Xiangdong has served as the chairman of Chongqing No.1 Construction Group, Dongzhao Changtai investment group and other enterprises. He has been elected as the representative of the 10th, 11th and 12th National Peoples Congress successively, and has won the honors of national labor model, National May 1st Labor Medal and so on.

In 2016, Guo Xiangdong ranked 1088 in China with 3.8 billion yuan of property, 1066 in China with 4 billion yuan of property in 2017, 789 in China with 5 billion yuan of property in 2018 and 1025 in China with 4 billion yuan of property in 2019.

Dongzhao Changtai said on the official website that the group has three class a construction general contracting qualification enterprises with deep brand details, namely Beijing first construction, Beijing Second Construction and Chongqing first construction.

In May 2006, Guo Xiangdong, then chairman of Dongzhao Changtai, replaced Guangxia Construction Group Co., Ltd. and became a major shareholder of Chongqing First Construction Group Co., Ltd., China Business News reported. At that time, Dongzhao Changtai invested 67 million yuan and held 67% of the shares of Chongqing First Construction Co., Ltd.

After restructuring several companies, it is reported that in 2012, the total revenue of Dongzhao Changtai group, which has been established for less than six years, has exceeded 19 billion yuan. Guo Xiangdong said in an interview: in the next five years, cultivate 10 listed companies that participate in or hold shares, and form a listed company cluster that includes a variety of businesses.

According to Dongzhao Changtais official website, based on the existing industry, the group has successively become the major shareholder of Chongqing Fuling pickle (002507. SZ) and Longtu South Korea (060240. KQ) through equity investment, and set up China South Korea merger and acquisition fund; established a fund company, and successfully issued the Dongzhao Yuhao series of funds, striding forward on the road of capital operation.

According to the civil judgment (2019) Jing 02 min Chu 407 issued by the second intermediate peoples Court of Beijing on December 27, 2019, the construction engineering group, as the plaintiff, sued the defendants Dongzhao Changtai group and Beijing Erjian.

The court found that Beijing Erjian (the borrower) and Construction Engineering Group (the lender) signed an internal loan contract. The purpose of the loan is to repay the loan of Bank of Beijing Beisanhuan sub branch, with the loan amount of 95 million yuan. The loan date is from November 2, 2018 to February 1, 2019. On the same day, Dongzhao Changtai group issued a letter of commitment to construction engineering group, and voluntarily assumed joint and several guarantee liability for the above loan principal and interest.

However, Beijing Erjian failed to repay the loan. On April 19, 2019, the construction engineering group sent the notice to Beijing Erjian, which stated that please plan the fund as soon as possible, report the repayment plan within one week, and settle the above debts. On April 26, Beijing Erjian issued a letter of reply, stating that our company has received the notice on collection, our company will plan the fund as soon as possible, report the repayment plan within one week, and settle the above debts.

According to the courts judgment, Beijing Erjian paid 95 million yuan of principal, 1874900 yuan of loan interest, overdue interest and penalty interest, and Dongzhao Changtai group was jointly and severally liable for the payment obligation of Beijing Erjian.

Recently, Beijing Erjian, a subsidiary of Dongzhao Changtai group, was listed as the dishonest executor for many times during the period from May 20, 2019 to January 14, 2020, according to the China implementation information disclosure website. The most recent one is January 14 of this year, case number is (2020) jing0114, execution 1717, and the obligations determined by the effective legal documents are Beijing Erjians payment to Beijing Sanbei Tengfei industry and Trade Co., Ltd Project payment of limited liability company is 489439 yuan.

On June 18, a reporter from Beijing News called Beijing Sanbei Tengfei industry and Trade Co., Ltd. and the call couldnt be connected.

In addition, Dongzhao Changtais important point of capital market layout - Fuling mustard tuber - appears to reduce its holdings.

According to the prospectus issued by Fuling pickle on October 11, 2010, in November 2007, Dongzhao Changtai held 12% equity of Fuling pickle at the price of no less than 5.45 yuan / registered capital, corresponding to 6.686 million yuan of capital contribution.

On December 11, 2007, the state owned assets supervision and Administration Commission of Fuling District of Chongqing transferred 23.8806% of its shares (16.00% of the shares of Zhacai group after the completion of capital increase), and Dongzhao Changtai also obtained the shares at the price of no less than 5.45 yuan / registered capital, corresponding to a capital contribution of 15.601 million yuan. Counting the 12% stake held a month ago, Dongzhao Changtai has since held 28% of Fuling pickle.

According to the reporters calculation, the cost of Fuling pickle increased by Dongzhao Changtai is about 85.0254 million yuan.

On November 8, 2010, Fuling pickled mustard confirmed that the issuing price of the companys shares was 13.99 yuan / share, corresponding to a price earnings ratio of 53.81 times. On November 23, 2010, Fuling pickled mustard was listed. According to this calculation, Dongzhao Changtais investment in Fuling pickled mustard yielded 429%.

On October 25, 2015, the CSRCs official website disclosed the decision on administrative punishment on Dongzhao Changtai, which showed that as a shareholder holding more than 5% of shares in Fuling pickle, Dongzhao Changtai, as of April 14, 2015, ended the market on the afternoon of May 28, 2015, accumulatively reducing 14.2548 million shares in Fuling pickle, accounting for 7.07% of the issued shares in Fuling pickle.

According to the CSRC, when Dongzhao Changtais shares were reduced by 5% in total, it did not stop selling Fuling pickle shares before fulfilling its reporting and disclosure obligations. The number of shares reduced in violation of laws was 4.1798 million, and the amount of shares reduced in violation of laws was 151 million yuan. The person in charge who is directly responsible for the above behaviors is Guo Xiangying, and the other person in charge is Zhou Yaping.

Finally, the CSRC fined Dongzhao Changtai 9.5 million yuan. Guo Xiangying, the person in charge who is directly responsible for Dongzhao Changtais above violations, shall be fined 400000 yuan.

The decision shows that the parties argued at that time that the reduction of Dongzhao Changtais holding was to ease the financial tension and was not a malicious reduction.

After being punished, Dongzhao Changtai did not stop reducing its holdings.

Fuling pickle announced on May 14, 2019 that during February 24-may 13, Dongzhao Changtai reduced 6.36 million shares of the company, accounting for 0.8057% of the total share capital of the company. After the expiration of the share reduction plan, Tongzhao Changtai, Beijing No.1 Construction Co., Ltd. and Beijing Construction Engineering No.1 Construction Co., Ltd. (hereinafter referred to as Beijing Construction Engineering No.1 Construction) jointly hold 5.0226% of shares in Fuling pickle, of which, Tongzhao Changtai holds 0.5104%, Beijing No.1 construction holds 0.7145% and Beijing No.1 construction holds 3.7977%. By the end of the first quarter of 2020, Dongzhao Changtai, Beijing No.1 Construction Co., Ltd. and Beijing No.1 Construction Co., Ltd. had not appeared in the top ten shareholders of Fuling pickle. Source: Zhang Mei, editor in charge of Beijing News_ NF2100

Fuling pickle announced on May 14, 2019 that during February 24-may 13, Dongzhao Changtai reduced 6.36 million shares of the company, accounting for 0.8057% of the total share capital of the company.

After the expiration of the share reduction plan, Tongzhao Changtai, Beijing No.1 Construction Co., Ltd. and Beijing Construction Engineering No.1 Construction Co., Ltd. (hereinafter referred to as Beijing Construction Engineering No.1 Construction) jointly hold 5.0226% of shares in Fuling pickle, of which, Tongzhao Changtai holds 0.5104%, Beijing No.1 construction holds 0.7145% and Beijing No.1 construction holds 3.7977%.