Han Li, the second generation of Jinxi Iron and Steel, recently stepped down from his post and no longer serves as the chairman of Zhonghuo Financial Leasing Co., Ltd.
Founded in September last year, Jinxi Steel had previously participated indirectly before exiting in August this year. On September 14, Shell financial reporter called Zhonghuo Leasing, and the employee who received the call said that the change of equity was not disclosed to the public, and the company was currently operating normally.
Founded in 1986, Jinxi Iron and Steel is now a large-scale enterprise group integrating three major sectors of steel, non-steel and finance, which is controlled by founder Han Jingyuan through the China Orient Group listed in Hong Kong.
At the beginning of September, Han Li mentioned in a speech at the conference that the sales revenue of jinxi steel's non-steel sector has reached 50%. It is reported that the non-steel sector business in Jinxi covers equipment manufacturing, construction assembly, commodity trading, semiconductors, real estate, etc. Shell financial reporters paid attention to the fact that in July this year, Jinxi Iron and Steel added a new energy enterprise to invest abroad.
In terms of capital market layout, Jinxi Iron and Steel was once quite low-key, and Wind data shows that it has never raised funds through public debt. At the end of October 2020, Jinxi Iron and Steel had planned to issue a phase of 500 million yuan of short-term financing for debt repayment, which was cancelled due to market fluctuations. Since the end of 2018, Jinxi Iron and Steel has accelerated its capital operation and successively entered Jiangsu Shentong and Huijintong. Jinxi Iron and Steel mentioned in its official website introduction that in the future, the group will strive to double its sales revenue through one or two "five-year plans", with 3 to 5 listed companies and advance to the world's top 500 companies.
In recent years, the expansion layout of Jinxi Iron and Steel in the main steel industry has focused on the Fangchenggang project with a total investment of 30 billion yuan. However, due to the impact of the epidemic and approvals, the overall progress of the project has slowed down, and the capital expenditure pressure brought about by the huge investment scale of the project has also been frequently concerned.
Jinxi Iron and Steel's second generation stepped down as chairman of Sino-Dutch Leasing, AndijinXi has withdrawn its investment last month
According to the industrial and commercial information of Zhonghuo Financial Leasing Co., Ltd. ("Zhonghuo Leasing"), it underwent a management change on September 9, and Han Li, the second generation of Jinxi Iron and Steel, no longer served as chairman and was replaced by Wang Zhendong. Jinxi Iron & Steel had previously indirectly participated in Zhonghuo Leasing, which was withdrawn in August with a series of equity changes.
On September 14, Shell financial reporter called Zhonghuo Leasing, and the employee who received the call said that the change of equity was not disclosed to the public, and the company was currently operating normally.
Zhonghuo Leasing was established in September 2020, and the initial shareholders were Oriental Xinyuan Financial Leasing Co., Ltd., Mingda Co., Ltd. and Beijing Jinxi Investment Holding Co., Ltd., of which Beijing Jinxi Investment Holding Co., Ltd. was wholly owned by Hebei Jinxi Iron and Steel Group Co., Ltd. ("Jinxi Iron and Steel"), and Oriental Xinyuan was originally controlled by Jinxi Iron and Steel until August this year, when it was changed to a wholly-owned subsidiary of Mingda Company. As for Mingda Company, which is registered in Hong Kong, China, Shell financial reporters consulted THEICRIS data and learned that it was wholly owned by a natural person named Chen Xueru.
In January this year, Beijing Jinxi Investment Holding Co., Ltd. withdrew from Sino-Dutch Leasing, and Oriental Yingfeng Leasing Co., Ltd. took a stake. Han Jingyuan, the head of the Jinxi department, is the legal representative of Oriental Yingfeng, and Huijintong, a listed company controlled by Jinxi, has disclosed that Oriental Yingfeng is a related party of the listed company, and Oriental Yingfeng is controlled by Jinxi Iron and Steel, the controlling party of the listed company.
In May, Orient Xinyuan Financial Leasing Co., Ltd. also withdrew from Sino-Dutch Leasing, which formed an equity structure jointly held by two shareholders, Mingda Limited and Oriental Yingfeng Leasing Co., Ltd. With the above-mentioned change in the equity of Oriental Xinyuan in August this year, Jinxi Iron and Steel has no longer participated in Zhonghuo Leasing.
Fangchenggang project progress slows down short-term repayment pressure is greater non-steel plate expansion?
Jinxi Iron and Steel was founded in 1986, according to the official website, it is a large-scale enterprise group integrating steel, non-steel and finance, and now has nearly 100 domestic and foreign holding companies, including 4 national high-tech enterprises, with 3 listed companies, with annual sales revenue of more than 100 billion yuan, ranking among the top 500 Chinese enterprises for many years.
Jinxi Steel is controlled by founder Han Jingyuan through the Hong Kong-listed China Orient Group, who currently serves as Chairman and Chief Executive Officer of China Eastern Group and Chairman and President of Jinxi Group. Han Jingyuan's son, Han Li, also joined the management of Jinxi Steel a few years ago and is currently the executive director and chief financial officer of China Orient Group and the executive vice president of Jinxi Group.
Huijintong, a listed company of Jinxi Holdings, disclosed that Jinxi Iron and Steel achieved operating income of 35.346 billion yuan and net profit of 960 million yuan in 2020; as of the end of 2020, Jinxi Iron and Steel had total assets of 32.885 billion yuan and net assets of 14.902 billion yuan.
Wind data shows that Jinxi Iron and Steel has never raised funds through public bonds, nor has any existing bonds. At the end of October 2020, Jinxi Iron and Steel had planned to issue a phase of 500 million yuan of short-term financing for debt repayment, but due to market fluctuations, it was cancelled and reissued at a later time.
At the level of market environment, Shell financial reporters paid attention to the price increase in the main raw materials of iron ore and coke in the last two months of last year, driving the market to tail. According to the data of the Operation Bureau of the National Development and Reform Commission, the composite index of steel prices in the domestic market averaged 111.76 points in November 2020, an increase of 5.21 points year-on-year.
According to the above-mentioned issuance documents in October last year, due to the increase in raw material prices and the decline in steel prices, the gross profit margin of Jinxi Steel has continued to decline in recent years, and from 2017 to the end of June 2020, the gross profit margin of Jinxi Steel was 18.24%, 17.16%, 9.75% and 6.80% respectively.
Since 2017, the current liabilities of Jinxi Iron and Steel have accounted for almost 90% of the total liabilities, and as of the end of the first half of 2020, it was 87.32%. Jinxi Iron and Steel said that the company's debt structure is almost all short-term liabilities, which puts pressure on the short-term repayment of enterprises, and the debt structure needs to be adjusted, and if it encounters extreme situations such as centralized loan breaks, it will adversely affect the company's stable operation.
Jinxi Iron and Steel's expansion layout in the main steel industry focuses on the Fangchenggang project planned in recent years. In the second half of 2019, Jinxi Iron and Steel signed an investment agreement with Fangchenggang City, Guangxi Province, with a total investment of 30 billion yuan to purchase land to build a factory and build a new steel production base. According to the Jinxi Iron and Steel Plan, the Fangchenggang project will be built in two phases, the first phase is expected to invest 22 billion yuan, and the first phase of the project is expected to produce 6.5 million tons of H-shaped steel and steel sheet piles per year after it is put into operation.
Among the above-mentioned investments, 50% of the first phase of the Fangchenggang project, or about 11 billion yuan, came from Jinxi Iron and Steel's own funds, and the rest will be raised through syndicated loans and other means. However, due to the impact of the epidemic and approvals, the overall progress of the project has slowed down, and the issuance documents of Jinxi Iron and Steel in October last year have disclosed that the project has not officially started.
The scale of investment in the Fangchenggang project has also attracted the attention of rating agencies. The rating report on Jinxi Steel issued by United Credit in August last year mentioned that the project had greater capital expenditure pressure.
Shell financial reporters paid attention to the fact that Han Li mentioned in his speech at the Tangshan City Conference on Promoting the Development of the Private Economy in early September that Jinxi is not only the world's largest steel production and application base, but also has high-tech industries such as UHV power, nuclear power valves, chip testing, and international trade, and the sales revenue of non-steel plates has reached 50%.
According to Jinxi Iron and Steel, the main enterprises in its non-steel sector include Jinxi Heavy Industry, which is engaged in equipment manufacturing, Jinxi International Trade, which is engaged in commodity trading, Oriental Jingyuan, which is engaged in the semiconductor industry, and Boyuan Real Estate, which is engaged in real estate.
In July this year, Jinxi Iron and Steel added a new energy enterprise to invest abroad. According to the industrial and commercial information of Hebei Nuwo New Energy Technology Co., Ltd., its equity changed on July 21, and Jinxi Iron and Steel became the controlling shareholder holding 60% of the shares, and Yu Jianshui, an executive of Jinxi Steel, served as the company's legal representative.
Accelerate capital operations
In recent years, Jinxi Iron and Steel has accelerated its capital operation.
In 2019, Ningbo Juyuan Ruili Investment Partnership (Limited Partnership) ("Juyuan Ruili"), which is controlled by Hanli Holdings, became the owner of Jiangsu Shentong. Juyuan Ruili has successively obtained 17% of the equity of Jiangsu Shentong through shareholding increase, agreement transfer of equity, and voting rights entrustment, and controls a total of 25.46% of the voting rights of Jiangsu Shentong, becoming the controlling shareholder of the listed company, and Han Li becoming the actual controller.
Jiangsu Shentong is a national high-tech enterprise specializing in the research and development, production and sales of new special valves, and its products are widely used in metallurgy, nuclear power, thermal power, coal chemical industry, oil and natural gas gathering and transportation and petroleum refining and chemical fields. In 2010, Jiangsu Shentong, as the first A-share listed company in Qidong City, Jiangsu Province, landed on the SME Board of the Shenzhen Stock Exchange.
Han Jingyuan said in an interview with the media at the end of last year that in recent years, the group has achieved five footholds to achieve high-quality development, one of which is based on the goal of building a leading valve enterprise in China and cooperating with Jiangsu Shentong. After Juyuan Ruili entered the ownership, Jiangsu Shentong obtained related orders from Jinxi Iron and Steel several times.
Another target of Jinxi Iron and Steel Capital operation is Huijintong.
Founded in 2004, Huijintong is a high-tech enterprise specializing in the production and sales of various galvanized steel structures such as angle steel towers, steel pipe towers, substation structures of transmission lines, etc., and was listed on the main board of the Shanghai Stock Exchange in 2016.
At the end of 2018, Huijintong announced that Tianjin Ansai Asset Management Co., Ltd. ("Tianjin Anse"), which is indirectly wholly owned by Jinxi Iron and Steel, intends to participate in the fixed increase of listed companies. In September 2019, Huijintong completed the fixed increase, and Tianjin Ansai spent 313 million yuan to subscribe for 30.8859 million shares, becoming a shareholder of 15% of the listed company.
In June 2020, Jinxi Iron and Steel once again increased the size of Huijintong. According to the announcement, Liu Yanhua, the original controlling shareholder of the listed company, transferred 15% of the equity of Huijintong to Jinxi Iron and Steel by way of agreement transfer, with a total share transfer price of about 639 million yuan, and Liu Yanhua promised to irrevocably give up the voting rights corresponding to the 8.88% of the shares of the listed company held by him.
After the completion of the above-mentioned equity changes, Jinxi Iron and Steel directly holds 15% of the shares of Huijintong, and the concerted actor Tianjin Ansai holds a total of 30% of the shares, and the proportion of voting rights of the listed company is 30%, Jinxi Iron and Steel becomes the controlling shareholder of Huijintong, and Han Jingyuan becomes the actual controller.
In June this year, Jinxi Iron and Steel plans to increase its holdings again by participating in the fixed increase of Huijintong. According to the transaction plan, Jinxi Iron and Steel intends to subscribe for 50.87 million shares of Huijintong's non-public offering at a price of 7.51 yuan per share, and the controlling shareholder status of Jinxi Iron and Steel will be further strengthened after the completion of the issuance.
Shell financial reporters paid attention to the fact that Jinxi Iron and Steel mentioned in its official website introduction that in the future, the group will strive to double its sales revenue through one or two "five-year plans", with 3 to 5 listed companies, becoming a super large comprehensive enterprise group and advancing into the world's top 500.
Beijing News shell financial reporter Zhu Yueyi Image source: Screenshot of the official website of Jinxi Iron and Steel
Edited by Zhao Fangyuan Proofreader Li Ming
Contact email: [email protected]
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