At the same time, pioneer group, the main business entity of financial technology distribution and the new holding of Hong Kong listed companies, was announced to be delisted and is in liquidation.
These problems reveal the huge and complex capital map of vanguard and the tip of the iceberg of debt.
Equity auction of Lianhe agricultural commercial bank
Private enterprises in Shenzhen
On the morning of December 2, 120 million shares of Haikou United Agricultural Commercial Bank held by the joint venture group of Xianfeng Department ushered in the formal bidding.
Based on the total share capital of the bank, Lianhe venture group holds 20% of the shares, which is the largest shareholder of Jilin Jiutai agricultural commercial bank.
In the end, two private enterprises from Shenzhen, Shenshang hi tech industry and national transport technology group, respectively spent 95.5 million yuan to acquire 60 million shares, accounting for 10% of the total equity of Haikou United Agricultural commercial bank.
Among them, Huang Jihong holds more than 99% of the shares of national transport technology group, while Shenzhen Liangguang industry and Shenzhen business holding group hold 60% and 40% respectively. It is understood that Shenzhen business holding group is jointly established by 79 key private enterprises in Shenzhen.
In November 2016, at the request of Lianhe venture group, Huarong (Fujian pilot Free Trade Zone) Investment Co., Ltd. (hereinafter referred to as Huarong Investment) entrusted Zhangjiajie branch of Huarong Xiangjiang bank to issue entrusted loan of RMB 350 million to Lianhe venture with a term of 3 years.
At that time, the United Venture Group not only used its 120 million shares of Haikou United Agricultural commercial bank as pledge guarantee, but also provided the shareholders with the bottom line of the entrusted loan and issued the letter of guarantee to Huarong Xiangjiang bank.
At the end of October last year, due to the failure of Lianhe venture group to pay the loan interest as agreed, Huarong Xiangjiang bank issued a notice of early maturity of the loan according to the instruction of Huarong Investment, requiring the company to repay the principal and interest of the loan in advance within three working days after receiving the notice. As of September 20, 2019, united venture group still owes 130 million yuan of principal balance and 2.633 million yuan of interest.
Subsequently, Huarong Investment filed a lawsuit against Lianhe venture group and Haikou United Agricultural and commercial bank. Zhangjiajie intermediate peoples Court of Zhangjiajie ordered Lianhe venture group to repay the principal and relevant interest of Huarong Investment Loan of 130 million yuan, Haikou United Agricultural and commercial bank shall bear joint and several liability for debt repayment, and Huarong Investment shall have the priority to be paid for the realization price of 120 million shares of Haikou United agricultural commercial bank.
However, the United Venture Group and Haikou United Agricultural commercial bank failed to fulfill the corresponding repayment obligations. Zhangjiajie Municipal Intermediate Peoples court finally ruled that the 20% equity of Haikou United Agricultural Commercial Bank held by joint venture was auctioned.
Parent company listed in Hong Kong
It is worth noting that pioneer payment, a payment license of pioneer series, was closed for non-compliance last year. After one and a half years of investigation, its parent company, Zhongxin Holdings (8207. HK), was delisted by the stock exchange of Hong Kong (HKEx).
According to the announcement of the Hong Kong stock exchange, from 9:00 a.m. on November 30, 2020, the listing status of China new holdings Technology Group Co., Ltd. (in formal liquidation) will be cancelled in accordance with article 9.14a of gem rules. After the last listing date of November 30, 2020, although the shares are still valid, the shares will not be listed and traded on the Hong Kong stock exchange, the announcement said
Sino Singapore holdings used to be an important part of pioneer groups financial technology sector. Its main businesses include online investment and technology driven loan services, traditional loans and financing services, blockchain, asset management, and third-party payment. Pioneer payment is a wholly-owned subsidiary.
Securities Times reporter has previously reported that on July 8, 2019, Sino Singapore holdings was suspended due to suspected non-compliance operation of pioneer payment; on July 25, 2019, the company established an internal investigation team to investigate the non-compliance of pioneer payment. Until April 7, 2020, China Singapore holdings released the main findings of the internal investigation team, which revealed that the relevant senior management had misappropriated funds from the trust fund paid by pioneer without authorization.
On June 17, this year, China Singapore holdings issued another announcement to disclose the investigation results. Xianfeng payment was misappropriated by Wangxin financial management, an online lending platform of Xianfeng department. The funds were mainly from self provided payment and funds from several institutions.
In accordance with article 9.14A of the GEM rules, if the company fails to resume trading on or before July 7, 2020, the stock exchange may remove the company from trading. The company failed to comply with all the guidelines for resumption of trading set by the SEHK on or before July 7, 2020. On November 13, 2020, the GEM Listing Committee decided to cancel the listing status of the companys shares on the stock exchange in accordance with rule 9.14a of the gem rules.
The Hong Kong Stock Exchange said in its announcement that it had asked the company to publish an announcement explaining the cancellation of its listing status. Subsequently, China new holdings also disclosed the liquidation announcement. However, in the announcement, the company said that as of the announcement date, none of the groups senior managers had been charged or detained.
In July last year, when China Singapore holdings disclosed the above investigation results, it said in the announcement that pioneer payment would fill in the misappropriated funds according to the requirements of the regulatory authorities. If the funds are not filled in within a reasonable time, pioneer payment will not be allowed to resume operation, and the license of pioneer payment will face the risk of revocation.
According to the public information, pioneer payment was established in 2007. It obtained the payment business license on July 6, 2013, and was allowed to carry out the Internet payment and prepaid card issuance and acceptance (Beijing, Liaoning) business, and then extended smoothly on July 6, 2018.
But at present, both pioneer payment and Sino Singapore holdings are difficult to solve the capital problem. According to the first quarter report of 2020, Sino Singapore holdings lost more than 60 million yuan during the reporting period. On June 19 this year, China Singapore holdings was also filed for liquidation by eternal sky Investments Limited for failing to pay off HK $500 million (with additional penalty interest of HK $74.72 million).
Sequelae of pioneers thunder explosion
Several debts and claims are being disposed of
Whether it is the judicial auction of its 20% equity of Haikou United Agricultural commercial bank, or the delisting of its main financial technology company, all are the sequelae of pioneer groups thunder.
These problems reveal the huge and complex capital map of Xianfeng department and the tip of the iceberg involved in debt. The debt problems of Xianfengs subsidiaries have gradually surfaced.
The reporter of the Securities Times noted that since June this year, a number of debts and claims involving Xianfeng department, including Wangxin securities, pioneer fund, kaidianbao Technology Group (parent company of kaidianbao payment), are being judicially adjudicated and facing disposition. In October 2019, Zhang Zhenxin, the actual controller of Xianfeng department, died suddenly in the UK. The collapse of Xianfeng Department accelerated. The financial and credit products of several platforms under the Xianfeng department were withdrawn, and some assets were frozen.
Since last year, the reporter of Securities Times has followed up the securities brokerage, third-party financial management and online loan business of Xianfeng department with a number of reports, which are deeply mired in debt. As a securities company under Xianfeng system, Wangxin securities has experienced operational difficulties since 2018, and has been named by China Securities Regulatory Commission (CSRC) in 2019. In early July last year, the P2P business of Xianfeng series Wangxin Puhui (formerly known as Wangxin financial management) was overdue. A few days later, Sino Singapore holdings of pioneer group announced the suspension of trading, saying that it would issue a notice on the non-compliance of pioneer payment, a wholly-owned subsidiary. After that, pioneer payment suspended all services.
Since April this year, the private placement platform and multi regional financial management companies under Xianfeng Department have been intervened by local judicial departments, and many financial licenses have been disposed of and auctioned in succession.
Among them, 34.21% equity of pioneer fund held by united venture was put up for auction on Alibaba auction platform in early June. Although it attracted a large number of onlookers, no one signed up for auction and finally withdrew.
In early August, 35% of the equity of kaidianbao technology group, which is the parent company of the licensed payment institution kaidianbao, was publicly auctioned. In the end, the equity was auctioned by a private enterprise in Tianjin at the reserve price, and the industrial and commercial change has been completed.
In addition, all the shares of nettrust securities held by united venture group were frozen as early as the second half of last year.
At present, Xianfeng Department under the network credit platform network credit inclusive is still promoting the work of risk resolution.