Delisted tomorrow! Will the era of "mesophytes" come to an end?
Choose the warp and weft spinning machine (000666) that is actively delisted, and the dust will settle on the delisting arrangement.
On the evening of October 24, the Shenzhen Stock Exchange issued an announcement that it decided to terminate the listing of Jingwei Spinning Machinery stocks. In the evening, Jingwei Spinning Machinery issued an announcement that the company set the delisting time for October 26.
As one of the earliest listed textile machinery enterprises in China, Jingwei Spinning Machinery is mainly engaged in textile machinery and also engaged in financial trust business. Zhongrong International Trust Co., Ltd. (hereinafter referred to as "Zhongrong Trust") is engaged in trust business, and the listed company is its largest shareholder, with a shareholding ratio of 37.47%.
In the first quarter of this year, the revenue of Jingwei Textile Machinery was 2.518 billion yuan, down 11.79% year-on-year, and the net profit was 97.48 million yuan, down 28.32% year-on-year.
Voluntary delisting
Recalling the voluntary delisting arrangement, Jingwei Spinning Machinery disclosed on the evening of August 29 that, in accordance with relevant regulations, upon the proposal of shareholders China Hengtian Group Co., Ltd. (hereinafter referred to as "Hengtian Group") and China Hengtian Holdings Co., Ltd. (hereinafter referred to as "Hengtian Holdings"), and approved by the board of directors of the company, the decision was made to voluntarily withdraw the trading of shares on the Shenzhen Stock Exchange by a resolution of the shareholders' general meeting, and applied for transfer in the national small and medium-sized enterprise share transfer system. The reason given by the company for delisting is that the company's operations are facing significant uncertainty due to market changes.
According to the disclosure of Jingwei Textile Machinery, after the shareholders' general meeting voluntarily terminates the listing, Hengtian Group will provide cash options to all A-share shareholders of record except Hengtian Group and China Textile Machinery (Group) Co., Ltd. (hereinafter referred to as Textile Machinery Group), with an exercise price of 9.24 yuan per share.
The latest annual report shows that in 2022, textile machinery and equipment will achieve revenue of 6.61 billion yuan, accounting for 57.6% of the main business income. The trust business achieved revenue of 4.86 billion yuan, accounting for 42.4%.
Although the income of the financial trust business is low, the financial trust business is the main support for the company's profits. Relevant annual reports show that in 2021 and 2022, the gross profit margin of the company's financial trust business has reached 100%. In contrast, the gross profit margin of textile machinery and equipment business is only 12.41%.
The implementation body of the Jingwei Textile Machinery Trust business is Zhongrong Trust, which was previously rumored to be thunderous. After the disclosure of the voluntary delisting announcement, market participants also identified it as the reason for the "major uncertainty in the operation of warp and weft textile machinery".
Since the specific reasons for the delisting were not specified, it is not yet known whether the voluntary delisting of Jingwei Spinning Machinery is related to Zhongrong Trust.
The disclosure information shows that in addition to equity connections, the company also has a large number of capital transactions with Zhongrong Trust. According to the annual report, as of the end of December 2022, the balance of securities investment in Jingwei Textile Machinery reached 14.38 billion yuan. The company said that these investments were all securities investment business engaged in by Zhongrong Trust, which is its daily operating business. Whether the above amounts have changed at this time is subject to further disclosure by the company.
As of the end of 2022, Zhongrong Trust has 1,633 existing trust plans and 629.3 billion yuan of entrusted assets.
Although Zhongrong Trust is under the name of Jingwei Spinning Machine, in the eyes of the outside world, about 20 years ago, "Zhongzhi Lineage" took the helm of Zhongrong Trust.
Business registration information shows that although it is the second largest shareholder, Zhongzhi's control over Zhongrong International Trust is very strong. Liu Yang, nephew of the late actual controller Xie Zhikun, is the chairman and legal person of Zhongrong International Trust, and Liu Yang served as vice president of Zhongzhi Group. In addition, Jin Qinghao, chairman of the supervisory board of Zhongrong Trust, was also elected by Zhongzhi Group.
Some reports pointed out that after taking a stake in a listed company, Zhongzhi, which has always been low-key, is accustomed to hiding behind the scenes, choosing to sit "impartially" as the second shareholder rather than seeking control.
Zhongrong Trust has played a considerable role in the development of Zhongzhi system. In 2001, Zhongzhi took Zhongrong Trust by participating in the restructuring, and since then, it has played an absolute protagonist in the subsequent territorial expansion of the Zhongzhi Empire.
In 2010, Zhongzhi transferred its identity as the largest shareholder to Jingwei Spinning Machinery, which held 37.4698% of the shares. Zhongzhi Enterprise Group took second place with a shareholding ratio of 32.9864%.
In addition to Zhongrong Trust, Jingwei Spinning Machinery also holds 20% and 8.16% of the shares of Hengtian Wealth Investment Management Co., Ltd. and Xinhu Wealth Investment Management Co., Ltd., both of which are controlled by Zhongzhi member enterprises.
Hengtian Wealth, Xinhu Wealth, Datang Wealth and Gaosheng Wealth are known as the "four major wealth companies" of Zhongzhi Wealth.
Will the era of "mesophytes" come to an end?
According to the data, Xie Zhikun, the founder of Zhongzhi Group, started as the director of the printing plant in the 80s of the last century, contracted it down after the loss of the printing plant, and earned the first pot of gold in his life. Subsequently, he also dabbled in cement factories, pasta factories, breeding farms, garment factories, etc., and at the same time achieved raw capital accumulation by acquiring state-owned non-performing assets.
Moreover, Zhongzhi Group continued to increase its position in the real estate market.
According to a senior executive of a real estate company, since 2018, the expansion of real estate enterprises has accelerated, but the financing channels have begun to be limited. The "middle plant lineage" with a huge amount of money naturally became the "gold master".
The data shows that from 2017 to 2020, the proportion of Zhongrong Trust invested in real estate was 6.61%, 10.99%, 17.65% and 18% respectively.
In December 2021, Xie Zhikun passed away in Beijing. Seven listed companies issued announcements on the death of actual controllers on the evening of December 19, 2021.
The seven listed companies are Quasi-Oil Shares, Mejim Shares, Meierya, Kang's Shares, Kangsheng Shares, ST Tianshan and Yushun Electronics. You can get a glimpse of the vastness of its territory.
Since July this year, four wealth management companies of Zhongzhi Group have experienced problems of overdue wealth management and suspension of payment, which has attracted attention from the outside world.
The official website of the China Real Estate Association mentioned on August 14 this year that at present, the sequelae of real estate trust default are spreading, which has also made the "middle plant" that is already in the "quagmire" even worse.
In the view of many industry insiders, the payment crisis of the "Zhongzhi" company means that the risk resolution of the "capital pool" business is imminent.
In fact, since the beginning of this year, the "Zhongzhi lineage" has accelerated the liquidation of its assets.
In February, Quasi-Oil announced that Yanrun Investment intends to transfer 18% of its shares in the company to Karamay City Investment, and at the same time entrust the voting rights, proposal rights and other non-property rights corresponding to the remaining shares of the company to Karamay City Investment for exercise.
The transaction has been completed, the controlling shareholder of Quasi-Oil has been changed to Karamay City Investment, and the actual controller has been changed to Karamay State-owned Assets Supervision and Administration Commission.
In April, Kangsheng announced that the controlling shareholder will be changed to Lishu shares, and the actual controller will be changed to Lishui State-owned Assets Supervision and Administration Commission.
In June, ST Yushun announced that its controlling shareholder, Zhongzhi Rongyun, and its concerted actors, intend to transfer their equity in the company to Shanghai Fengwang. The transaction has been completed, the controlling shareholder of the company has been changed to Shanghai Fengwang, and the actual controller has been changed to Zhang Jianyun.
In addition, since the second half of this year, the legal representatives of the family office business companies of the four major wealth companies have changed. The legal representative of Qingdao Hengtian Ruixin was changed from "Yujun" to "Changdi"; The legal representative of Shenghe Family Office (Qingdao) Co., Ltd., a subsidiary of Gao Sheng Wealth, was changed from "Cui Yujie" to "Li Yanhai"; The legal representative, executive director and manager of Qingdao Honghu Best Family Office Co., Ltd., a subsidiary of Xinhu Wealth, were changed from "Kang Chaofeng" to "Lu Haijiang"; The legal representative, executive director and manager of Datang Shengshi (Qingdao) Family Office Co., Ltd., a subsidiary of Datang Wealth, was changed from "Sun Ming" to "Zhang Fuming".
(Source: China Fund News, Observer, company announcements, etc.)