*St OP: the controlling shareholder declared bankruptcy
On the evening of November 20, * ST OPP announced that the company received the civil ruling issued by the peoples Court of Shunde District, Foshan, Guangdong Province, transmitted by the manager of Foshan Zhongji Investment Co., Ltd., the controlling shareholder.
According to the civil ruling, Foshan Zhongji Investment Co., Ltd. is unable to pay off its due debts, and its assets are not enough to pay off all the debts, there is no possibility of reorganization or reconciliation, and it meets the conditions for declaring bankruptcy. According to the provisions of Article 2 and article 107, paragraph 1 of the enterprise bankruptcy law of the peoples Republic of China, the ruling is as follows: Foshan Zhongji Investment Co., Ltd Investment Limited went bankrupt.
As early as September 11 last year, * ST OP announced that it received a notice from Foshan Zhongji Investment Co., Ltd. (hereinafter referred to as Zhongji investment) that Zhongji investment could not pay off its due debts and its assets were not enough to pay off all debts on September 9, and applied to Shunde District peoples Court of Foshan City for bankruptcy liquidation.
Due to the violation of the property reporting system, * ST OP, China base investment and their actual controller, Chen Lihao, have been included in the list of persons who have been executed for breach of faith.
According to public information, CIIC is a comprehensive investment company engaged in real estate and large-scale logistics. *St OP is a comprehensive service provider integrating intelligent logistics, integrated e-commerce platform and supply chain finance, with business scope covering steel, home furnishing, finance and other industries.
*The largest shareholder of St OP is Foshan Zhongji Investment Co., Ltd., with a shareholding ratio of 47.43%. The actual controller is Chen Lihao family, with a shareholding ratio of 21.18%.
According to tianyancha data, Chen Lihao is the legal representative of CICI, with a shareholding ratio of 43.16%, which is the largest shareholder and actual controller; Chen Qianying, Chen Lihaos daughter, holds 37.76% of the shares, which is the second largest shareholder and the person acting in concert with Chen Lihao.
It is reported that Lecong Town, Shunde District, Foshan City, where CIIC and * ST Oupu are located, is the main steel distribution center in Guangdong and even in South China, according to the securities times.com. In 2002, Chen Lihao and two other private enterprises engaged in steel trade established Shunde Aopu iron and Steel Co., Ltd., which focuses on deep processing of steel. In 2003, an investment of 400 million yuan was invested in the construction of South China International steel logistics center.
However, in the same year, China base investment and Chen Lihao were listed in the list of persons who were executed for breach of trust. The announcement said that China base investment has basically lost its normal financing function, and its capital turnover is difficult and its liquidity is tight. In November 2018, CICI, which had pledged all the equity of * ST opal, once planned to transfer control to a third party to ease the debt pressure. However, due to the opposition of the board of directors and the shareholders meeting of CICI, the transfer plan was aborted.
On November 16 this year, * ST ORP announced that all the shares of the companys controlling shareholders would be auctioned, saying that the number of shares to be auctioned this time was 500855934, accounting for 100% of its shares. Investors should pay attention to relevant risks.
At the same time, in view of the openness of the judicial auction, there is uncertainty in the transferee of this auction. After the completion of the auction procedure, the controlling shareholder and actual controller of the company are planned to change, and the ownership of the companys actual control right will be determined by the auction result.
Fund raising of China Capital Investment Corporation is misappropriated to repay debts
More than a year ago, Guangdong Securities Regulatory Bureau issued a warning letter to Foshan Zhongji investment company, which was suspected of misappropriating the bond raised funds to repay another equity pledge loan and concealing the progress of the companys actual controllers shares freezing.
According to the announcement, the prospectus of Foshan Zhongji Investment Co., Ltd. in 2016 non-public issuance of exchangeable corporate bonds (phase II) stipulates that part of the raised funds will be used to repay the equity pledge loan of CAITONG securities by RMB 400 million. However, in actual use, this part of the fund is used to repay the equity pledge loan of Huarong securities.
In addition, 38.84% of the companys shares held by Chen Lihao, the actual controller of Foshan Zhongji investment company, was subject to judicial freeze on December 30, 2016, and was ordered to lift the freeze on February 24, 2017. However, the company did not disclose the above major issues and subsequent progress in a timely manner.
According to the relevant provisions of the measures for the administration of issuance and trading of corporate bonds, Guangdong securities regulatory bureau decided to issue a warning letter to Foshan Zhongji Investment Co., Ltd., and required it to learn from the lessons and strengthen the study of relevant securities laws and regulations.
*St OP may be delisting
Since October 2018, * ST opals business has basically stagnated, and its warehousing and processing business has also decreased. In the first half of this year, * ST OPs main work focused on resuming production, handling debts and responding to lawsuits, comprehensively checking large sums of money of the company, and improving internal control management.
On the evening of May 5 this year, * ST OP announced that on April 29, China Securities Regulatory Commission (CSRC) issued an investigation notice to Chen Lihao, one of the family members of the companys actual controller. As he was suspected of violating securities laws and regulations, the CSRC decided to file a case against him.
As of the first quarter of this year, there were 36000 shareholders with a total share capital of 1.056 billion shares. The top ten shareholders held 572 million shares, accounting for 54.2% of the total share capital.
*St OP was listed in 2014 with an issue price of 18.29 yuan per share, with a market value of nearly 4 billion yuan on the first day of listing. In 2015, the stock price once reached 125.55 yuan, with a market value of 17.821 billion yuan. The stock price fell below 2 yuan in May 2019, and has been hovering around 1 yuan since then.
Since the beginning of this year, the stock price has fluctuated downward. As of April 30, the stock price has been less than 1 yuan for 10 consecutive trading days, and the market value is only 813 million yuan. Compared with the highest market value in history, the market value plummeted by more than 95%.
Source: Guo Chenqi, editor in charge of China fund daily_ NBJ9931