Chuan Xiangsheng Industrial account and the equity of its subsidiaries were frozen, and Xiangsheng responded to the silver persimmon reporter

On January 20, some netizens posted that recently, some self-media broke the news that 85% of the equity of Zhejiang Hongyuan Venture Capital Co., Ltd. (hereinafter referred to as "Zhejiang Hongyuan") held by Xiangsheng Industrial Group Co., Ltd. (hereinafter referred to as "Xiangsheng Industry") was frozen, with an amount of up to 106.25 million yuan, and the freezing time was until January 9, 2025.

The above-mentioned insider also said that the account of Xiangsheng Industry was also frozen.

"This matter is currently involved in litigation, and some of the equity freezes that occurred in the process were caused by the litigation preservation applied for by the plaintiff. The application for litigation preservation is the right of the other party, and the court will implement the corresponding guarantee provided by the other party. The relevant person in charge of Xiangsheng responded to the financial reporter of Yinxi, "but this move does not mean that the case has been finally determined." In this lawsuit, the plaintiff defaulted first, and the company retains the right to counterclaim while actively responding to the lawsuit, and firmly believes in the fairness of the law. ”

According to Tianyan, Zhejiang Hongyuan was established in 2009 with a registered capital of 125 million yuan, and its business scope is venture capital business, venture capital consulting business, and investment business of agency start-up enterprises. Its legal representative is Chen Guoqing, who is 85% owned by Xiangsheng Industry, 15% owned by Chen Guoxiang, and Chen Guoxiang himself also holds 99% of the equity of Xiangsheng Industry.

Chen Guoqing is the younger brother of Chen Guoxiang, and on May 13, 2021, Chen Guoxiang retired as the chairman of Zhejiang Hongyuan, and Chen Guoqing took up the position of manager and executive director.

Just on January 18, Xiangsheng Holdings (02599. HK) issued an announcement of completion of the Exchange Offer. According to the announcement of Xiangsheng Industrial, the 2022 notes validly submitted for exchange and accepted under the exchange offer have been cancelled. According to the information, the above-mentioned 2022 Notes are 12.50% senior notes with a total principal amount of US$300 million issued on January 23, 2020 and maturing on January 23, 2022. It is also reported that as of the above-mentioned announcement date, the notes are still $19.47 million in circulation.

At that time, some media said that in this context, Xiangsheng Holdings completed the exchange offer, which played a positive signal significance for the company's continuous and steady operation.

From the perspective of debt structure, iFinD data shows that as of the first half of 2021, the total liabilities of Xiangsheng Holdings have increased to 153.093 billion yuan, of which the total current liabilities reached 128.764 billion, accounting for more than 84%; the current liabilities alone short-term borrowings and accounts payable and bills totaled 29.57 billion yuan, and cash and cash equivalents were only 7.624 billion yuan in the same period.