Chuan Wei crisis: over 20 billion of financial debt is referred to as money without repayment.

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 Chuan Wei crisis: over 20 billion of financial debt is referred to as money without repayment.


In October 30th, Chuan Wei Groups Chengyu and vanadium titanium yard area. The environmental problems in the area were complained in September, and then the rectification was paved with dust-proof nets. But we can still see that there are red brown hot metal in the area, and some of the mineral powder is not covered completely.

On November 1st, only some decoration workers were busy in this ten-storey building in Sichuan Chengdu Chuanwei Building. Soon, the Management Committee of Sichuan Tianfu New Area will be welcomed here. The Chuan Wei group of Development Building is the second largest iron and steel plant in Sichuan.

In early 2014, there were two listed companies in Sichuan Province. However, since March 2014, the capital chain of Chuanwei Group began to be tense. In July, the debt crisis of Chuanwei Group broke out completely and began to restructure. With the help of the government and banks, Chuanwei Group began to gradually resume production and operation in the second half of 2017. In 2018, the company plans to break through the target of annual output value of 5 million tons.

Behind the gradual recovery of the group, high debt is still a problem to be faced. According to the Weiyuan County Peoples court judge, the group now faces more than 20 billion yuan in financial liabilities.

Recently, one of the creditors, Jiangxi City Construction, told reporters that when the company submitted to the court for implementation of the Chuanwei Group, it encountered difficulties and believed that the Chuanwei Group had money to pay back. And in the application for court enforcement, the court did not find enforceable property response. On November 2, a reporter from Beijing News interviewed Chuanwei Group and responded that the companys revenue in 2017 reached more than 40 billion yuan. In 2018, the group plans to break through the target of an annual output of 5 million tons. Chuanwei Group propaganda director said that Chuanwei will never default, but there is no one-time ability to pay off.

From 100 billion Chuan Wei to billions of liabilities

According to the official website of Chuanwei Group, the predecessor of Chuanwei Group was Weiyuan Iron and Steel Plant, which was founded in 1929, and has a history of 89 years. In 1997, the Weiyuan iron and steel plant was on the verge of bankruptcy. Wang Jin, more than 30, was appointed director of the factory.

In March 1998, Sichuan Economic and Trade Commission approved the restructuring of Weiyuan Iron and Steel Works. Weiyuan Iron and Steel Works became Chengdu-Chongqing Vanadium and Titanium. Wang Jin and others reorganized and established Sichuan Chuanwei Iron and Steel Group Co., Ltd. Sky eye data show that Wang Jin currently holds 15.71% stake in Chuan Wei group. But in what way Wang Jin participated in the restructuring, there was no detailed record. The propaganda director of Chuanwei Group told the Beijing News that at the beginning of the restructuring, it was also due to the imminent bankruptcy of Weiyuan Iron and Steel Works. Wang Jin had no funds at that time.

In 2005, Chuan Wei Group ranked 332nd among the top 500 enterprises in the country. In 2009, Chinas iron and titanium group was listed on the Hong Kong stock exchange.

In February 2014, Chuan Wei Group held a 100 year Chuan Wei and 100 billion enterprise development planning review meeting. At this time, Chuanwei Group has total assets of more than 40 billion yuan, more than 20,000 employees, China Titanium, Singapore Shengshi two overseas listed companies.

But one month later, on March 21, Wang Jin suddenly announced to the companys top management and core management backbone at the Chuanwei Group meeting that the companys capital chain was in trouble: the cold wave had come! Under the sudden crisis, the debt crisis of Chuan Wei group broke out in July 2014. In July 7th, Chuan Wei submitted an application for judicial reorganization to the court.

At that time, Chuan Wei group was on the verge of bankruptcy. According to the Economic Observation Network, in July 2014, Chuanwei Groups bank financing was about 26.5 billion yuan, involving 20 banks such as National Development Bank, ICBC and Bank of China. Trust financing amounted to nearly 1.150 billion yuan, together with other financing amounts, the groups total liabilities amounted to 32.3 billion yuan.

In October, according to the statistics of Judgment Documents Network, more than 200 Judgment Documents related to Chuanwei Group, most of which are loan disputes or contract disputes. With Chuanwei Group involved in litigation of enterprises, including CITIC Bank, Industrial Bank and other major banks, there are also large state-owned enterprises in China Smelter subsidiary Sinopec and so on.

According to Tian Eye Check data, there are 387 risks involved by Chuanwei Group and 1343 risks involved by the investment company. According to Tian Eye Check, Chuanwei Group has been listed as a dishonest person since 2015. Most of the status is not fulfilled, only a few belong to partial fulfillment.

More than ten listed companies become Chuan Wei creditors.

Behind the debt crisis of Chuanwei System, more than 10 companies have made provision for bad debts in accounts receivable or advance payment of Chuanwei System.

In 2014, Sichuan Zhongtuo and Chongqing Zhongtuo, subsidiaries of Zhejiang Merchant Zhongtuo (originally produced Zhongtuo), paid in advance 139 million yuan of purchase money to Chengdu-Chongqing Vanadium and Titanium, subsidiary of Chuanwei Group. After the outbreak of the crisis, the amount was also constantly charged bad debts, including the annual report of 2015, which said, Chengdu and Chongqing Vanadium and Titanium are still in production, according to 30% of the total amount of 41,69.05 million yuan bad debts prepared.

In April 2018, Zhejiang Merchant China Tour issued the announcement of the preparation for asset impairment in 2017, which showed that the company had an advance payment of 134 million yuan for vanadium and titanium in Chengdu and Chongqing at the end of the reporting period in 2017. Zhejiang businessman Zhongtuo said that the production and operation of vanadium and titanium in Chengdu and Chongqing were normal in 2017, so no provision for bad debts was added this year.

On October 31, 2018, a reporter from the Beijing News called Zhongtuo, a Zhejiang businessman, to learn about the repayment of vanadium and titanium in Chengdu and Chongqing. The companys operator told the reporter that he did not know about the matter and said he helped the journalist understand it. In November 1st, the reporter once again telephoned Zhejiang business extension, and the telephone was not answered.

Affected by the China Railways eight Railway Bureau. China Railway announced that in July 2015, China Railway Eight Bureau Group Modern Logistics Co., Ltd. sued Chengdu-Chongqing Vanadium and Titanium Technology Co., Ltd. and Neijiang Jiarui Building Material Trade Co., Ltd. for disputes over sales contracts in July 2015, involving an amount of 134 million yuan. In August 2016, the Chengdu Railway Transport Court accepted the execution case, but later ended the execution because no property could be found for execution.

With interest, the debt involves 169 million yuan of funds, which has become one of the concerns of the Shanghai Stock Exchange in China Railways equity acquisition plan for the Eighth Bureau of China Railway. On October 17, China Railway said in its reply to the Shanghai Stock Exchange and the updated draft acquisition that as of June 30, 2018, China Railway Eight Bureau Group Modern Logistics Co., Ltd. had reached an agreement with Chengdu-Chongqing Vanadium-Titanium and Neijiang Jiarui Building Materials Co., Ltd. to offset the advance payment by purchasing from the designated supplier scale of Neijiang Jiarui Building Materials Co. And as of October 17, 2018, waiting for closure of Chengyu vanadium titanium is located in Neijiang industrial park two.

According to the Beijing News, the second largest supplier in the list of the top five suppliers from January to June 2018 is Weiyuan Hongguang Trading Co., Ltd. The purchasing amount of the company in the first six months by the Eighth Bureau of China Railway is 194 million yuan, accounting for 4.48% of the total purchasing amount of the company in the current period. The address of Weiyuan Hongguang, like Chengyu and vanadium titanium, is located in Lian Jie Town, Weiyuan county.

The reporter noted that there were more than 10 companies that became Chuan Wei creditors. According to the semi-annual report of Minmetals Development in 2018, there are 49 million yuan of accounts receivable for vanadium and titanium in Chengdu and Chongqing, of which 2.2 million yuan is allowed for bad debts, accounting for 4.07%. According to Minmetals Development, the account receivable is insured and signed a repayment agreement and repayment according to the repayment plan.

In the semi-annual revenue situation of Yongqing Environmental Protection Company in 2018, the accounts receivable of Chengdu-Chongqing Vanadium and Titanium is 18.455 million yuan, of which the provision for bad debts is 7.69 million yuan, accounting for 4.17%.

Listed company Anyuan Coal Industry (* ST Anshan Coal) also showed in its semi-annual report in 2018 that the sales and transportation branch of Jiangxi Coal Industry, a subsidiary company, filed a civil lawsuit with the Peoples Court of Weiyuan County, Sichuan Province, on the receivable of 3.68 million yuan of vanadium and titanium from Chongqing, and won the lawsuit. On August 30, 2016, Jiangxi Coal Marketing and Transportation Branch applied to Weiyuan Court for compulsory execution of the judgment.

In addition, Jiangsu Shentong, Shaangu Power, Three-dimensional Silk, Atlantic, Sinochem Geotechnical, Jin Zitianzheng, Terrade, Zhongke Electric and other companies have made provision for bad debts in advance or receivables of vanadium and titanium in Chengdu and Chongqing in their periodic reports.

Rich? No money? No property found for execution is doubtful.

Similar to China Railways not found property for execution in court enforcement and Anyuan Coal Industrys the defendant involved in many lawsuits, the amount of money is large, and the execution is difficult to get in place, Jiangxi City Construction encountered debt collection difficulties in the face of Chuanwei system debt.

At the end of October this year, Li Fang, deputy general manager of Xiamen Branch of Jiangxi Urban Construction Group Co., Ltd., once again came to Weiyuan County, Neijiang City to collect debts.

According to the information of Judgment Documents Network, in 2012, Jiangxi City Construction carried out a network laying project for Chengdu-Chongqing Vanadium and Titanium Company, a subsidiary of Chuanwei Group. As of 2015, Chengdu Chongqing vanadium titanium still had 120 million yuan of project money did not settle accounts for Jiangxi city construction. After 2015, Jiangxi Chengcheng will go to court with Chengyu, vanadium titanium and Chuan Wei group. In September 2017, the Supreme Court made a judgement on the success of Jiangxis urban construction.

In January 2018, Jiangxi city construction applied to Sichuan provincial high court to apply for the enforcement of the debts of Chengyu and vanadium and titanium. In March, the Sichuan Provincial High Court issued an executive ruling requiring the Neijiang intermediate peoples court to carry out the ruling. The execution case was finally carried out by the peoples Court of Weiyuan county.

Li Fang told Xinjing News that in the initial application for court execution, he received a reply from the Peoples Court of Weiyuan County that no property for execution has been found. Li invented that in Chengdu and Chongqing Vanadium and Titanium resumed production and generated revenue, the company can not find the property for execution. In August this year, Li invented and lawyers also provided property clues to the court, requesting the court to seize the steel products in the Chengdu-Chongqing Vanadium-Titanium Warehouse and the accounts receivable generated by the construction of China Railway.

On October 30, the journalist, in his capacity as a city construction worker in Jiangxi, followed Li Fan and his lawyer to the Peoples Court of Weiyuan County. In the mediation room on the first floor of the court, Zhang Ming, a judge of the peoples Court of Weiyuan County, was seen. Zhang Ming said in the mediation that during the implementation process, he communicated with Chengdu and Chongqing Vanadium and Titanium, but got the telephone reply that there was no trade between Chengdu and Chongqing Vanadium and Titanium and China Railway Construction; the steel stored in the warehouse of Chuanwei Iron and Steel Works was processed and produced by Chengdu and Chongqing Vanadium and Titanium instead of being owned by Chengdu and Chongqing

On the morning of October 30th, the Beijing News reporter came to the old factory area of Chuan Wei Group in Weiyuan, Neijiang. In the town of Lian Jie, Chuan Wei Group occupied almost half of the towns. In a small town, you can see the warehouse or production area of Chuan Wei group almost everywhere.

Reporters in a warehouse, you can see the China Railway Construction Southwest Regional Collection Center Storage warehouse, which is exactly why Li invented that Chengdu-Chongqing Vanadium and Titanium and China Railway Construction have trade. The reporter saw the introduction outside the warehouse and said that in order to promote the procurement and supply work in Chinas railway construction materials collection, Southwest Company explored a new mode of centralized procurement and supply of materials, and reached a new strategic cooperation mode with Chengdu-Chongqing Vanadium and Titanium as the carrier.

In the warehouse, there are many steel bars and steel rings, each bundle is labeled Chuanwei and Chengyu vanadium and titanium. Reporters then visited many warehouses of Chuanwei Group, at any time, various trucks can be seen to and fro, and the trailers are basically loaded with steel bars or steel rings.

A driver told reporters that like himself, there are many steel vehicles in Chuanweila. Sometimes time is spent in queuing. Sometimes a truck needs to rotate among warehouses. It has taken more than ten hours for a truck to be loaded and processed. He said he took a product quality manual from Wang Mei (a pseudonym). Wang Mei is a veteran employee of Chuanwei Group. Now, in the office building outside the warehouse, she draws up product quality instructions for the transporters. Wang Mei said that the steels pulled away by these drivers are made of vanadium and titanium in Chengdu and Chongqing. With the recovery of Chuanwei Groups business since the second half of 2017, five or six hundred cars a day can be pulled away, and the employees have to shift 24 hours.

In November 3rd, the Beijing News reporter telephoned the head of Publicity Department of Chuan Wei group. The person in charge said that why do we have to ask the court?

The propaganda director of Chuanwei Group told reporters that there will be a fund dedicated to debt resolution within Chuanwei Group at present, and stressed that Chuanwei will never default on its debts, but there is no one-time ability to pay off its debts at present. If we spend so much money to pay off the debts at once, the enterprise will close down, there is no way. The person in charge said that during the crisis of Chuanwei Group, the bank proposed not to collect loans temporarily and continue lending to the latest projects. Under such help, Chuan Wei group slowly returned to the blood. Our customers are also actively resolving this problem. Some customers will continue to cooperate with us and pay slowly after the development of enterprises.

In fact, the court also recognizes that Chuan Wei group can not afford to pay no money. Judge Zhang Ming said in a mediation on October 30 that Chuanwei Groups production target for this year is 5 million tons, You should be able to calculate how much benefit can be generated, there will be profits indeed.

As far as our Weiyuan court is concerned, there are many creditors of Chuanwei and Chengyu Vanadium and Titanium. There are more than 160 execution cases in our court, and this year it is close to 2 billion. We must consider this issue all in all. Zhang Ming said, For example, Jiangxis urban construction is paid immediately. Should I pay immediately for more than 100 other cases?

Zhang Ming disclosed that at present, Chuanwei Group only has more than 20 billion financial liabilities. Compulsory enforcement of Chengdu-Chongqing vanadium and titanium steel is only thenext step. There are many other procedures after getting steel, and the auction is not a day or two. The best thing is that the two sides reach an agreement and all the problems will be solved.

Reporters learned that some creditors and Chuanwei Group have reached an agreement, discount to deal with debt. Zhang Ming disclosed that there are 110 enterprises dealing with debt through discount, but basically the amount is small. Now the remaining 50 cases are large amounts, all of them are more than 2 million yuan or have the background of state-owned assets, and discount is difficult to deal with.

Zhang Ming said that the repayment plan can be said to be based on a quarter of the debt repayment, we have to stand on their entire plate to consider this issue, if the whole is repaid in accordance with this proportion, it is estimated that in the end will damage the interests of all creditors. Enterprises can continue to be able to protect their claims. If everyone runs together, other creditors without priority may end up losing their money.

The government has taken the lead in helping finance in Sichuan.

It is worth noting that the group has survived under high debt and has been helped by the government and banks.

In July 2014, facing the bankruptcy of Chuanwei Group, the Sichuan Provincial Government began to find ways to solve the debt of Chuanwei Group. In that month, the Sichuan banking regulatory bureau and the Sichuan Banking Association came up with a specific plan to assist Chuan Wei. Wei Hong, former governor of Sichuan Province (in February 2016, due to serious violations of discipline, was dismissed from the Partys post, administrative dismissal sanctions) and asked relevant leaders to quickly convene special meetings to clarify the work, responsibilities and assistance measures of all relevant parties.

Less than a month later, the heads of the Sichuan Provincial Government Finance Office, the Chengdu Branch of the Peoples Bank of China, the Sichuan Banking Regulatory Bureau, the Neijiang Municipal Peoples Government and 22 relevant creditors rights financial institutions formed the Concerted Action Plan for Financial Assistance, and the Chuanwei Group established the Chuanwei Group Debt Restructuring Working Group.

Reporters learned from the 20th Anniversary Photo Exhibition inside Sichuan Wei Group that in October 2015, Liu Jie, then Vice Governor of Sichuan Province, presided over the convening of a conference on Studying the Assistance and Risk Resolution of Sichuan Wei Group, which was attended by the Neijiang Municipal Peoples Government, Sichuan Court of Justice, Sichuan Economic and Information Committee, Finance Department and provincial state-owned assets. The Finance Office of the provincial and provincial governments.

The performance of Chuan Wei Group has also changed. Chuan Wei group propaganda director told reporters that the companys revenue in 2017 was more than 40 billion yuan. But the specific debt situation, it did not disclose, but said, At present, the companys debt ratio has not decreased much.

The status quo of Sichuan power system: environmental problems need to be solved, Chinas iron and titanium losses

To add insult to injury, Chuan Wei Group is also facing the problem of environmental pollution.

According to the announcement of 12369 environmental protection hotline complaint handling information issued by Weiyuan Environmental Protection Bureau on September 27, 2018, some complainers reported that the Lion Mountain in Lianjie Town piled up lump mines, which were transported during the day and at night, and the noise and dust of automobiles disturbed the people.

The result of the verification of the Weiyuan environmental protection bureau is that the problem is air pollution. Weiyuan Environmental Protection Bureau said that on September 26, 2018, law enforcement officers on-site inspection found that the enterprises block mine was loading and unloading materials. At present, it rained a few days, the dust during loading and unloading was not obvious, and the road dust during automobile transportation was more serious. Our law enforcement officers on-site ordered Chengyu Vanadium and Titanium to strengthen Road water spraying and dust, block mine non-work. Surface covering prevents dust emission, and night loading and unloading operations are prohibited to reduce the normal life of the surrounding residents.

On October 30, when the reporter visited Chuanwei Groups iron and steel plant, he found that the covering of some raw materials was not complete in the site where Chuanwei Group stored raw materials. In addition to the coal placed in the open air, some charcoal powder is exposed.

On November 2, the propaganda director of Chuanwei Group responded to the reporter that the raw materials stacked in the open air were working areas, and the dust-proof net needed to be uncovered because of the work. Dust nets have been placed in other places.

The environmental problems of Chuan Wei group have existed a few years ago. According to the Notice on Starting Class III Early Warning of Heavy Polluted Weather in Weiyuan County issued on December 12, 2017, the list of key industrial enterprises (Weiyuan County) ranking first is Chengdu-Chongqing Vanadium and Titanium.

In 2015, the Ministry of Environmental Protection carried out comprehensive environmental supervision in Neijiang City, listing four enterprises (parks) in Neijiang as listed cases, including Chuanwei Group. From August to September 2017, Chengdu-Chongqing Vanadium-Titanium Co. was connected to four administrative penalty decisions issued by the Environmental Protection Bureau. Among them, the companys pellet chimney was responsible for excessive discharge of air pollutants, sintering machine outlet was responsible for excessive discharge of air pollutants, raw material yard did not take effective measures to prevent and control dust pollution, and water-washed sand yard did not take effective measures. Prevention and control of dust pollution.

The head of propaganda of Chuanwei Group told reporters that the company has invested 225 million yuan in rectification funds to deal with environmental protection issues, completed the relevant acceptance and acceptance, and achieved the target and delisted in September 2017.

In November 2017, Weiyuan County Environmental Protection Bureau re-issued the list of key regulatory enterprises for soil pollution control in Weiyuan County in 2017, including Chengdu-Chongqing Vanadium and Titanium. In the list of key pollutant discharging units in Weiyuan County in 2018, water discharges of vanadium and titanium from Chengdu and Chongqing are related to pollution, ranking first among the key pollutant discharging units.

In response to the reporter, the propaganda director of Chuanwei Group said that with the production and operation of Chuanwei Group on the right track, it will continue to promote environmental protection governance and environmental upgrading of enterprises. Chuanwei Group plans to invest 200 million yuan this year to implement 32 key environmental protection promotion projects, and now has started 29 projects, investing 176.12 million yuan.

When Chuan Wei group broke out, its listed companies in Singapore flourishing rapidly. According to the 2017 annual report of Shengli enterprise, the company divested its remaining subsidiaries of steel business in 2014. In 2015, Shengshi Enterprise acquired Zhongtielong, and its income quickly reversed the loss situation of Shengshi Enterprise. Meanwhile, Shengshi Enterprise withdrew from the traditional steel business. In 2017, 81% of the mining services industry was sold. The loss of another iron and steel company in Hong Kong stock market continued to increase. Data show that in 2016, 2017 and the first half of 2018, the operating income of Titanium in China was 1.834 billion yuan, 1.318 billion yuan and 553 million yuan respectively, and the net profit was - 774 million yuan, - 349 million yuan and - 400 million yuan respectively. The companys total liabilities as at the end of June this year amounted to 1 billion 580 million yuan, and the total stockholders equity amounted to 940 million yuan. Source: Beijing News Editor: Zhao Yaping _NN9005

When Chuan Wei group broke out, its listed companies in Singapore flourishing rapidly. According to the 2017 annual report of Shengli enterprise, the company divested its remaining subsidiaries of steel business in 2014. In 2015, Shengshi Enterprise acquired Zhongtielong, and its income quickly reversed the loss situation of Shengshi Enterprise. Meanwhile, Shengshi Enterprise withdrew from the traditional steel business. In 2017, 81% of the mining services industry was sold.

The loss of another iron and steel company in Hong Kong stock market continued to increase. Data show that in 2016, 2017 and the first half of 2018, the operating income of Titanium in China was 1.834 billion yuan, 1.318 billion yuan and 553 million yuan respectively, and the net profit was - 774 million yuan, - 349 million yuan and - 400 million yuan respectively. The companys total liabilities as at the end of June this year amounted to 1 billion 580 million yuan, and the total stockholders equity amounted to 940 million yuan.