According to the decision on administrative punishment, * ST galaxy is suspected of four illegal facts: failing to disclose the related party transactions with non operating funds occupied by related parties as required; failing to disclose the situation of providing guarantee for related parties in accordance with the regulations; failing to disclose major litigation information as required; and failing to disclose the judicial freezing of Yinhe biological shares held by Galaxy Group.
How much debt hole do Pan Qi and pan Yong have? *On November 20, a relevant person from St Galaxy Securities Affairs Department told reporters, how much debt does the controlling shareholder have at present? We cant make statistics here, because the financial affairs are all independent accounting. But its equity has been frozen, and there are indeed many debt disputes involved, which may lead to the auction of some assets of the actual controller.
The market value of these two galaxy listed company platforms was more than 50 billion yuan when they were brilliant. However, under the pressure of a series of problems, the total market value of these two platforms is less than 3 billion yuan.
200 million property auctioned
According to the inquiry report, it is a case of dispute over loan contract between Li Yu, Li Hong and Yinhe Group, * ST Yinhe, Pan Qi, pan Yong, Xu Hongjun and Yao Guoping.
According to the official document website, on August 10, 2017, Li Yu and Li Hong signed a loan contract with * ST galaxy. According to the contract, Li Yu and Li Hong provided a loan of 300 million yuan to * ST galaxy. The interest rate of the loan shall be 2.5% per month. The term of the loan is 3 months. The purpose of the loan is to supplement liquidity. Pan Yong volunteered to provide mortgage guarantee for the loan principal and interest of Yinhe company and the cost of Li Yu and Li Hong to realize their creditors rights with 8 sets of real estate at 69 Zizhuyuan Road, Haidian District, Beijing. Pan Yong, as a guarantor of joint and several liability, provided unlimited joint and several liability guarantee for the loan.
The above loan contract is implemented in two steps: 1. After the signing of the loan contract, pan Yong shall go through the mortgage registration procedures for the five sets of real estate at No. 69, Zizhuyuan Road, Haidian District. After Li Yu and Li Hong obtain the house ownership certificate, and obtain the complete guarantee documents of other guarantors, pan Yong shall pay a loan of 150 million yuan to * ST galaxy. 2. * ST Galaxy shall, within 15 days after receiving the above loan, go through the mortgage registration procedures for the remaining three sets of properties at No. 69, Zizhuyuan Road, Haidian District, and pay the remaining loan of 150 million yuan to Galaxy company after Li Yu and Li Hong obtain the other property right certificate of the house. If Galaxy company fails to go through the mortgage registration procedures for the remaining three houses at No. 69 Zizhuyuan Road, Haidian District within 15 days after receiving the first loan of 150 million yuan, it will be deemed as a fundamental breach of contract. Li Yu and Li Hong have the right to immediately claim to * ST Yinhe to repay the previous 150 million yuan loan and bear the corresponding interest, and * ST Galaxy shall also compensate Li Yu and Li Hong for the loss of 150 million yuan.
According to the information from the judicial document website, on August 15, 2017, pan Yong went through the registration procedures for five sets of real estate mortgage at No. 69, Zizhuyuan Road, Haidian District. Li Yu and Li Hong paid a loan of 150 million yuan to galaxy on August 16 and August 22, respectively, after obtaining the other warrants and other guarantees of the above property. However, after receiving the loan, * ST Yinhe failed to go through the mortgage registration procedures for the remaining 3 sets of real estate at No. 69 Zizhuyuan Road, Haidian District within 15 days according to the provisions of the loan contract, and it has not been handled since.
According to previous media reports, the actual payment of 150 million yuan was referred to as fraud by the lender. After we gave the first loan of 150 million yuan, Yinhe Group and pan Yong broke the contract and no longer went through the mortgage procedures for the other three sets of real estate. In fact, all the five properties mortgaged in advance were worthless properties such as patios and underground garages. This is why the contract stipulates article 2 of Article 7. In retrospect, the original goal of Yinhe Group and pan Yong was to borrow 150 million yuan. The purpose of signing a 300 million yuan loan contract was to defraud the first 150 million yuan loan by deception. In fact, he wanted to borrow 150 million yuan with a worthless property mortgage. Said Li Yu, the lender.
The Supreme Peoples Court of Jiangxi Province ruled that Li Yu and Li Hong have the priority of compensation (guaranteed debt of 150 million yuan) for the price obtained from the auction and sale of the above five sets of podium houses with floors - 3, - 1, 4, 5 and 6, No. 69 Zizhuyuan Road, Haidian District, Beijing, according to law (guaranteed debt: 150 million yuan).
Debt ridden equity Auctions
As of the end of the third quarter of this year, Galaxy Group held 40.39% of the shares of * ST galaxy and 18.34% of the shares of St Tiancheng. According to qixinbao, Pan Qi is the largest shareholder of Galaxy Group, with a shareholding ratio of 52.27%, pan Yongs 29.09% and Yao Guoping (Pan Qis brother-in-law) holding 18.64%.
On August 14, 2020, * ST Galaxy announced that the companys controlling shareholder, Galaxy Group, had a securities dispute with first Venture Securities Co., Ltd. (hereinafter referred to as first venture), and Shenzhen intermediate peoples court required first venture to assist in lifting the pledge status of the 3649800 shares held by Yinhe Group and selling them at a judicial price To pay off debts. The above 3.6498 million shares have been sold through the secondary market, with a total transaction price of 6.2413 million yuan.
*St Galaxy announced on September 28 that Shenzhen intermediate peoples court has issued an enforcement ruling in the case of securities dispute between first venture and Galaxy Group, and ordered to auction and sell 22.9 million Pledged Shares of the company held by Galaxy Group to pay off debts. The above shares will be auctioned online for the first time on November 5, 2020 on Taobaos Shenzhen intermediate court judicial auction platform.
*St Galaxy announced on October 28 that the company recently learned through online inquiry that Beijing No.1 Intermediate Peoples Court issued an auction notice on Ali auction and judicial website. It plans to auction 142.1 million restricted shares held by Galaxy Group on Taobao online judicial auction platform, accounting for 31.98% of all shares held by Galaxy Group and 12.92% of the total share capital of the company. The starting price was 217 million yuan. All shares of the company held by Galaxy Group have been subject to judicial freezing and waiting to be frozen. If the judicial auction is successfully implemented, the shareholding ratio of Galaxy Group will be reduced to 27.48%.
How much debt hole do Pan Qi and pan Yong still have to make up for? At present, it is very difficult to make a clear statistics. The total amount of funds occupied by * ST galaxy and illegal guarantee is more than 2 billion yuan. *St Galaxy announced on August 13 that at present, the companys non operating funds occupied by Galaxy Group amounted to 445 million yuan, while the operating funds occupied by Galaxy Group amounted to 280 million yuan, totaling 725 million yuan, and the illegal guarantee balance was 1.69 billion yuan. The company decided to sue Galaxy Group to recover the occupied funds from it. At the same time, if the subsequent violation of the guarantee causes actual losses to the company, the company will continue to recover from galaxy group through judicial means.
*St galaxy also said that since 2020, the company has intensified efforts to urge the controlling shareholders to solve the problems of capital occupation and illegal guarantee as soon as possible, and intensively sent letters and talks to Galaxy Group to promote its progress in introducing strategic investors. According to the feedback of Galaxy Group, due to its large debt and litigation, the situation is more complex, and many matters need to be implemented one by one.
According to the information of the judicial documents network, the assets available for execution by Galaxy Group, panqi and panyong brothers are limited. We also considered that the controlling shareholder has no executable assets. The holding shareholders have fully withdrawn the provision for asset impairment for the capital occupation of the company, and some liabilities have been accrued for the non-compliance guarantee. If you can recover the following, of course, it is best. If there is no way to recover, it will not affect the financial data of the company. *The relevant personnel of the Department of securities affairs of St Galaxy told reporters.
St Tiancheng also has the situation of providing guarantee for the controlling shareholder Galaxy Group and occupying the funds of the controlling shareholder. According to st Tianchengs announcement, as of the end of 2019, Galaxy Group and its related parties occupied 312 million yuan of non operating funds, and St Tiancheng made full provision for bad debts; ST Tiancheng became a loan guarantee of 112 million yuan for Yinhe Group and its related parties, and all the guarantee matters have entered the litigation procedure.
Qixinbao information shows that galaxy groups own risk matters as many as 196. Since 2019, the total amount of execution by Galaxy Group is about 1.7 billion yuan.
According to the data, from 1982 to 1988, Pan Qi completed his bachelors degree and masters degree in economics and management of Nanjing University. Then he went to Southwest University of Finance and economics and received his doctorate in economics in 1991. The next year, at the age of 29, Pan Qi set up a business in Beihai, Guangxi, and led the establishment of Beihai Yinhe hi tech Industry Co., Ltd. (hereinafter referred to as Galaxy Technology, the predecessor of * ST Galaxy). He went to Hainan.
In less than five years, Pan Qi completed the whole process of an enterprise from scratch to listing through continuous acquisition of assets by shareholders with United Nations background. On April 16, 1998, Galaxy Technology officially landed in Shenzhen Stock Exchange. However, Galaxy Technology and the pan brothers have been surrounded by various scandals since the listing.
Galaxy Technology issued an apology announcement for financial fraud for the first time in 2006. It disclosed the financial fraud in 2002 and 2003, and admitted that the performance increased by 260 million yuan and 400 million yuan. In March of the same year, a lawyer once again reported Galaxy Technology to the CSRC. In June 2006, Galaxy Technology twice admitted that its performance had been falsified, and the net profit in 2004 was nearly 50 million yuan.
In 2006, China Securities Regulatory Commission launched a case investigation on Pan Qi and Galaxy Technology. It was not until 2011 that the punishment of the CSRC was implemented. His brother Pan Qi was banned from the market of the CSRC for 10 years. A total of 3.07 million yuan was imposed on Galaxy Technology and 14 people including Pan Qi, including Pan Qi. Among them, Pan Qi was personally fined 300000 yuan.
In addition to Pan Qi, his younger brother pan Yong was also banned from the market for 10 years. On August 20, 2018, the CSRC imposed an administrative penalty on Pan Yong. Pan Yong, as a shareholder of Tiancheng Holdings (now St Tiancheng) and the major shareholder of Galaxy biology, continuously used inside information to conduct insider trading. The CSRC decided to confiscate pan Yongs illegal income of 14.9333 million yuan, and imposed a fine of 74.6665 million yuan, with a fine of nearly 90 million yuan. In addition, he was also punished by the securities market for 10 years No entry measures.
In addition to financial fraud and insider trading, the pan brothers failed again. On June 9 this year, * ST Galaxy received the decision on administrative punishment and the decision on market prohibition issued by Guangxi securities regulatory bureau. Pan Qi was once again banned from the market for 10 years by Guangxi securities regulatory bureau.
It has been found out that there are four illegal facts in Galaxy biology, such as failing to disclose the related partys non operating capital occupation, providing guarantee for related parties, disclosing major litigation information as required, and failing to disclose the judicial freezing of Yinhe Groups shares held by Galaxy Group.
Pans brothers received successive fines from the Securities Regulatory Commission, and galaxy was also on the verge of collapse. As the controlling shareholder Yinhe Group occupied the funds of the listed company and violated the guarantee, the two listed companies, * ST Yinhe and St Tiancheng, were given other risk warnings, and their stocks were also investigated by the CSRC.
It is still unknown where the funds from the pan brothers occupation of the listed company and the illegal guarantee will go, and when the funds will be returned to the listed company and other creditors in full.
For the two listed companies of galaxy, the civil compensation cases caused by false statements are still increasing, and the amount of compensation losses involved is not small.
On the evening of November 16, * ST Galaxy announced that the company had recently received legal documents served by relevant departments. Relevant content shows that the plaintiff Li and other 121 natural persons respectively filed a lawsuit with the court for the reason of securities false statement liability dispute, requesting the court to order the defendant to compensate the plaintiff with a total loss of 156.796 million yuan. On October 24, * ST Galaxy issued a similar announcement, disclosing that 42 natural persons such as Huang, the plaintiff, filed a lawsuit with the court on the basis of the liability dispute of Securities Misrepresentation, requesting the court to order * ST galaxy to compensate the plaintiff with a total loss of 25115100 yuan.
Thus, in the past month, 163 investors have asked the court to order * ST galaxy to compensate the plaintiff with a total loss of more than 40 million yuan. By the end of the third quarter of this year, * ST galaxy had only 57.92 million yuan of monetary capital and 121 million yuan of short-term loans.
Source: Economic Observer: Wang Xiaowu, editor in charge_ NF