On the evening of May 13, Jinxin Fund Management Co., Ltd. (hereinafter referred to as "Jinxin Fund") issued an announcement on the "Explanation on Assisting the Court in Case Enforcement Procedures on behalf of our company's asset management plan" (hereinafter referred to as the "Explanation"). According to the Explanation, since the establishment of Jinxin Fund, no self-owned property needs to be enforced in accordance with the law, nor is it the subject of any case to be enforced, and only assists the court in the enforcement procedure on behalf of its asset management plan.
The Explanation originated from the fact that Jinxin Fund was enforced by the court. According to the China Enforcement Information Disclosure Network, on May 10, the company was enforced by the Intermediate People's Court of Shenzhen, Guangdong Province, with an enforcement target of 116 million yuan, and the case number is (2024) Yue 03 Zhihui No. 554, which is to resume enforcement this time.
(Image source: China Executive Information Disclosure Network)
In fact, the original case of this incident was in March 2021, and Jinxin Fund was enforced by the Shenzhen Intermediate People's Court, with an amount of 39.4074 million yuan at that time, and the case number was (2021) Yue 03 Zhi 2762.
It is worth mentioning that at the beginning of this year, Anhui Guoyuan Trust, one of the shareholders of Jinxin Fund, intended to transfer the equity of Jinxin Fund and traded it at a reserve price of 37.2 million yuan, which is currently awaiting regulatory approval.
Stemming from a buyback default
The incident was caused by an asset management plan product "Huaxia No. 1 Asset Management Plan" established in 2017.
According to the data, the product is a "channel-type product" for a single customer, which was established before the issuance of the "Guiding Opinions on Regulating the Asset Management Business of Financial Institutions", and its compliance was not controversial at the time, but it has now ended its operation and was liquidated in 2020.
According to the materials obtained by the reporter, the product bought the "17 Macrolink MTN001 Bonds" issued by Macrolink Holdings Co., Ltd. (hereinafter referred to as "Macrolink Holdings"), with a bond issuance scale of 1 billion yuan, and the product held 601 million yuan, accounting for 60.1%.
Due to the default of the issuer of the bonds, Jinxin Fund took the issuer of the bonds, Macrolink Holdings, to court, demanding the repayment of the principal and coupons. The court of first instance rejected the appeal, and the court of second instance upheld part of the appeal request of Jinxin Fund, and Macrolink Holdings should pay the principal of 537 million yuan and the corresponding interest within 10 days after the judgment took effect.
As the defaulted bond issuer entered the bankruptcy reorganization procedure, it was not until the end of 2022 that all the relevant judicial proceedings involving the product were concluded, and the court terminated the enforcement procedure as the product had no property to be distributed.
This was also confirmed by the statement issued by Jinxin Fund, which stated that the arbitral tribunal had ruled before the end of 2022 that all liability for breach of contract should be borne by the asset management plan, and that Jinxin Fund would not bear any legal liability, and that the arbitration procedure would be "final".
In the process of dispute resolution, due to the default of bonds, Jinxin Fund and Bank of China Asset Management, the counterparty of the bond repurchase transaction, had a commercial dispute. Bank of China Asset Management applied to the court for the seizure of the property in the name of Jinxin Fund and successfully froze part of the cash deposits.
However, at the beginning of this year, the bond issuer completed the judicial restructuring of a number of its subsidiaries, including Macrolink Holdings, and Macrolink Holdings generated a part of the distributable property, and Jinxin Fund, as the manager of the above-mentioned products, assisted the court in resuming the enforcement procedure on behalf of the products.
Jinxin Fund said that at present, new progress has been made in the reorganization procedure of the issuer of the defaulted bonds held by the above-mentioned asset management plan, which will produce a part of the distributable property, which belongs to the asset management plan.
"Since the establishment of Jinxin Fund, there is no self-owned property that needs to be enforced in accordance with the law, nor is it the subject of any case to be executed, and only assists the court in the enforcement procedure on behalf of its asset management plan." Jinxin Fund further stated.
Previously, the Economic Observer Network had reported on the risk events of Jinxin Fund special account products. See (http://www.eeo.com.cn/2019/0627/359739.shtml, http://www.eeo.com.cn/2019/0629/359983.shtml, etc.) for details.
Equity change?
According to public information, Jinxin Fund was established in July 2015, registered in Qianhai, Shenzhen, with a registered capital of 100 million yuan, and is held by Shenzhen Excellence Venture Capital and Anhui Guoyuan Trust with 34% and 31% respectively.
General Manager Yin Kesheng holds 6.5% of the shares, and Shenzhen Jucaihui Investment holds 28.5% of the shares. Shenzhen Jucaihui Investment is 100% controlled by Shenzhen Xingsheng Future Investment, which is 46%, 35% and 19% owned by Yin Kesheng, Gao Wenshe and Song Siying respectively. From the perspective of equity penetration, the total shareholding of the management team with general manager Yin Kesheng as the core has reached 35%, ranking the largest shareholder of the company.
Yin Kesheng previously worked in the China Development Research Institute, Shenzhen Securities Regulatory Office and other institutions, and later served as the executive vice president of Penghua Fund and the general manager of Golden Eagle Fund. Since the establishment of Jinxin Fund in 2015, he has been working until then.
In addition, the two chairmen of Jinxin Fund are from Guoyuan financial institutions, and the current chairman is Xu Bin, who is from Anhui Guoyuan Financial Holdings. Former chairman Zhang Yan is from Guoyuan Trust, which is 49.69% owned by Anhui Guoyuan Financial Holdings.
It is worth noting that at the beginning of this year, Anhui Guoyuan Trust had the intention of retreating, and listed the information on the transfer of 31% of the equity of Jinxin Fund held in the Anhui Provincial Property Rights Trading Center, and the corresponding listing price of 31% equity was 37.2 million yuan, which was 80% higher than the appraised value of 20.6507 million yuan. At present, the above-mentioned equity transfer has been completed at the listed reserve price of 37.2 million yuan.
On March 19, Jinxin Fund officially submitted an application to the regulator for approval of the change of shareholders holding more than 5% of the shares, and the application is currently in a state of amendment, if it can be successfully approved, Anhui Guoyuan Trust will withdraw from the list of shareholders of Jinxin Fund.
Due to the equity listing and transfer, the operation of Jinxin Fund in recent years has also been exposed. In 2022, Jinxin Fund will achieve an operating income of 92.247 million yuan and a net profit of 3.8217 million yuan, and in the first 11 months of 2023, it will achieve an operating income of 76.6348 million yuan and a net profit of 4.187 million yuan.
Wind data shows that as of the end of the first quarter of 2024, the management scale of Jinxin Fund was 10.594 billion yuan, and the non-stock scale was 10.196 billion yuan, ranking outside the top 100. From the perspective of product structure, the scale of bond funds was 6.710 billion yuan, accounting for 63% of the non-stock scale, and the scale of equity funds (stock + mixed funds) was 3.486 billion yuan, accounting for 34% of the non-stock scale.
In terms of products, the statistics of non-consolidated shares found that Jinxin Fund has a total of 2 stock funds, 8 mixed funds, 2 money market funds and 4 bond funds.
Among the above 16 products, 8 products have achieved positive returns of 7.3% to 13.52% since their inception, while another 8 products have had negative returns since their inception, among which Jinxin Value Select A, C and Jinxin Quantitative Select have lost more than 30% since their inception.