It's unimaginable that 750,000 arrears have shaken a business empire of 70 billion!
The "thunderstorm" of 1.6 billion deposits not only made the Oriental Group hover on the verge of delisting, but also made the former richest man in Northeast China, who had dominated the capital market for many years, fall into a quagmire.
That's right, the former richest man in the Northeast is Zhang Hongwei of Oriental Group Co., Ltd.
In the capital market, Zhang Hongwei is an "old gun"-like existence. For more than ten years, Zhang Hongwei, who is good at dancing with long sleeves, has continuously expanded his business territory through investment, holding four well-known listed companies, forming a famous "Oriental Department" in the secondary market.
And Zhang Hongwei, who has been on the rich list many times, was once as famous as Liu Yonghao of New Hope and Lu Zhiqiang of the "Oceanwide Department", but now he was sued by the creditor for a mere 750,000 yuan in arrears. The Oriental Group under his name, a listed company with a net worth of more than 10 billion, has not only been applied for reorganization, but may also touch the "delisting at face value".
The share price of Oriental Group fell sharply, and then it was investigated by the China Securities Regulatory Commission one after another, some shares of major shareholders were forced to liquidate, creditors applied for reorganization...... liquidity and debt crisis of the "Oriental system" was highlighted.
As of the first half of 2023, the total assets of Oriental Group Co., Ltd. reached 75.281 billion yuan.
is such a company with both strength and status, how can it be reduced to the point that it can't even pay back the 750,000 yuan project payment?
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Because he couldn't repay 750,000 yuan, the Oriental Group was applied for reorganization by creditors, and the former richest man in Northeast China, who had been galloping in the capital market for many years with the giant ship of the "Oriental System", was also facing the risk of hitting the iceberg.
As of July 5, Oriental Group has been below 1 yuan per share for 10 consecutive days, and it is half way to trigger the "par value delisting". If the closing price is lower than the par value of $1 for 20 consecutive trading days, Oriental Group will trigger the condition for termination of listing.
And the risk of delisting doesn't stop there.
On June 25, Oriental Group disclosed that the company was applied for reorganization by the creditor Heilongjiang Donghui Construction Engineering Co., Ltd. due to its failure to repay 752,300 yuan of due debts. Up to now, the Oriental Group has not received any documents from the court to initiate the reorganization or accept the reorganization application, and there is uncertainty as to whether the reorganization procedure can be entered in the future.
It is worth mentioning that the "thunder" of 1.6 billion deposits was the fuse for the sharp drop in the stock price of Oriental Group and the crisis of delisting.
Specifically, on the evening of June 18, Oriental Group announced that due to the temporary tightening of the liquidity of the related party Oriental Finance Company, the company and its subsidiaries deposited in Oriental Finance Company were restricted from withdrawing large amounts.
As of June 17, the balance of deposits and loans of Oriental Group and its subsidiaries in Oriental Finance Company was 1.64 billion yuan, and the balance of loans was 666 million yuan, and the difference between deposits and loans was about 974 million yuan.
On the evening of June 19, Zhang Hongwei, the actual controller of Oriental Group Co., Ltd. (the controlling shareholder of Oriental Group), urgently issued a "Letter of Commitment", promising to repay the money from the sale of assets and ensure the safety of the deposits of the listed company.
However, after it was revealed that the company's 1.64 billion yuan deposit was restricted from withdrawing a large amount, on June 19, the share price of Oriental Group "fell to the limit", and the closing stock price was 1.22 yuan per share, which also hit a new low for the company's stock price since 2007, and the market value was only 4.5 billion yuan.
If the "thunder" of 1.6 billion deposits triggered the delisting crisis of the Eastern Group, then the overdue of 7.5 billion deposits is the beginning of the "Oriental system" giant ship touching the reef.
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Tianyancha shows that as of the first half of 2023, the total assets of Oriental Group Co., Ltd. will reach 75.281 billion yuan.
And the Eastern Group and the "Oriental Department" behind it, the helmsman is Zhang Hongwei. Tianyancha shows that Zhang Hongwei indirectly holds 94% of the shares of Oriental Group Co., Ltd. through 100% ownership of Mingze Oriental Investment Co., Ltd.
Who is Zhang Hongwei?
Since the 70s of the last century, Zhang Hongwei started as a mason, and then developed into a "capital hunter", controlling a business empire of more than 75 billion.
Looking back on Zhang Hongwei's family history, it can be described as wonderful.
Zhang Hongwei was born in December 1954 in Harbin, Heilongjiang Province.
Public information shows that in the 70s of the last century, Zhang Hongwei started as a mason in Yanglin Township, Hulan County, Harbin, and then developed into a "contractor" for construction projects.
In 1978, Zhang Hongwei founded Harbin Oriental Construction Engineering Company and embarked on the road of professional businessman, which was the predecessor of Oriental Group Co., Ltd. In April 1989, the company was restructured into a joint-stock enterprise.
In 1994, Oriental Group landed on the Shanghai Stock Exchange and became the first private enterprise in Heilongjiang Province to be publicly issued and listed, which also became a new starting point for Zhang Hongwei's capital expansion.
In the same year, Forbes ranked China's richest people for the first time, and Zhang Hongwei ranked second, becoming the richest man in Northeast China, and has been on the rich list for 30 years.
After the listing of Oriental Group, Zhang Hongwei set his sights on Jinzhou Port.
In 1995, Oriental Group participated in the pilot restructuring of state-owned enterprises, invested in Jinzhou Port, and became the largest shareholder.
The following year, New China Life Insurance Co., Ltd., as one of the initiators of the company, was formally established and began to set foot in the financial field.
In 2000, Minsheng Bank planned to go public, and Zhang Hongwei entered the market with his "Oriental Department" and signed a concerted action agreement with China Life Insurance to ensure the right to speak in Minsheng Bank. However, the agreement was terminated in April 2021.
At present, Zhang Hongwei holds the position of vice chairman of Minsheng Bank, and Oriental Group holds 1.28 billion shares of Minsheng Bank, accounting for 2.92% of the total share capital, of which 1.268 billion shares are pledged.
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In addition, Zhang Hongwei also set his sights on mineral resources and information industries, and acquired United Energy, whose business has spanned China, Pakistan, Dubai, Iraq and Egypt. Established the Oriental Satellite Network Company to operate satellite communications and Internet services.
As a well-known "capital hunter" in the A-share market, Zhang Hongwei is very keen on the linkage between industry and capital, and has set foot in many industries such as modern agriculture and health food, oil and gas and new energy, finance, etc., and has built an "Oriental Department" including Oriental Group, United Energy, Minsheng Bank, Jinzhou Port, etc.
At its peak, Zhang Hongwei's "Oriental Department" was a capital family on the same level as Liu Yonghao's "New Hope Department" and Lu Zhiqiang's "Oceanwide Department".
And because they once held shares in Minsheng Bank together, on the official website of Minsheng Bank, the bosses of the three companies were also tied for vice chairman.
With the blessing of the "Oriental Department" capital, Zhang Hongwei has also become a frequent visitor to the major rich lists.
In October 2023, Zhang Hongwei was listed in the "2023 Hurun Report" with a wealth of 34.5 billion yuan.
In March 2024, Zhang Hongwei was listed on the "2024 Hurun Global Rich List" with a wealth of 30 billion yuan.
As a result, who would have thought that the 750,000 yuan arrears would stump the former richest man in the Northeast with 30 billion yuan, and it would cause a thunderstorm of 70 billion "Oriental Department", and the "moving game" of the capital market is becoming more and more difficult to play!
In recent years, affected by multiple factors such as the bankruptcy of its building materials business subsidiary, Oriental Home, and the performance of Oriental Group is less than expected, Zhang Hongwei's "Oriental Department" company is also a little stretched in terms of funds, and the former richest man in Northeast China has gradually fallen into a debt whirlpool.
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In recent years, the growth of Oriental Group's grain, oil and food business has been sluggish, and the company's real estate business has suffered serious losses, so that the company has continued to be in a state of loss.
According to the financial report, from 2021 to 2023, the operating income of Oriental Group will be 13.729 billion yuan, 11.265 billion yuan, and 6.081 billion yuan respectively; The net loss attributable to the parent company was 1.719 billion yuan, 996 million yuan and 1.557 billion yuan respectively, with a cumulative loss of more than 4 billion yuan in three years.
In fact, there are more "holes" in the Eastern Bloc than these. As early as the end of 2023, the deposit-to-loan ratio of "Oriental Finance" has been as high as 131.61%.
"The loan-to-deposit ratio is an indicator used to measure the efficiency of capital use and liquidity risk management ability of financial companies. Generally speaking, in order to avoid liquidity risk caused by excessive lending by financial companies, the loan-to-deposit ratio should usually not be higher than 80%. More than 130%, indicating that the company's capital chain is already extremely fragile."
According to the announcement of Oriental Group, in 2023, Oriental Group Co., Ltd. will have a revenue of 70.118 billion yuan and a net loss of 4.830 billion yuan. As of the end of 2023, the total assets will be 68.933 billion yuan, the total liabilities will be 49.028 billion yuan, and the asset-liability ratio will reach 71.12%; The current liabilities were 38.038 billion yuan, the current ratio and quick ratio were only 0.78 and 0.59, and the total bank loans alone were as high as 23.407 billion yuan.
According to the first quarter report of 2024, the monetary funds of Oriental Group are 2.502 billion yuan, a year-on-year decrease of 47.06%, and if the restricted deposits of 1.64 billion yuan are excluded from the above-mentioned Oriental Finance Company, the remaining monetary funds are only more than 800 million yuan. However, in the same period, its short-term liabilities were about 6.925 billion yuan, and the non-current liabilities due within one year were about 5.765 billion yuan.
The "Oriental system" is so powerful, why is the Eastern Bloc like this?
Don't ask the controlling shareholder to "smear the liver and brain" of the listed company, but at least "do your best". However, look at what the shareholders of the Eastern Bloc are doing?
According to the disclosure of Oriental Group on May 23, the pledged shares of Oriental Group Co., Ltd. and its wholly-owned subsidiary Oriental Runlan are 904 million shares, accounting for 99.46% of the shareholding ratio of Oriental Group Co., Ltd., 67.93% of Oriental Runlan's shareholding ratio, accounting for 24.70% of the company's total share capital, and the corresponding financing balance is 3.409 billion yuan.
This "liquidation reduction" has angered and disappointed investors, and it also reflects a change in the attitude of major shareholders towards the company or the need for funds.
According to the data, in 2017, other receivables of the Oriental Group suddenly soared from 722 million yuan in previous years to 6.677 billion yuan, and although there has been an overall downward trend since then, other receivables will still have 2.602 billion yuan in 2023.
In terms of ageing, in 2023, the proportion of other receivables of Oriental Group that is more than 5 years old will reach 54.82%, and the proportion of accounts aged 4-5 years will be 17.06%, and the total proportion of the two will be as high as 71.88%.
Tianyancha data shows that as of the first half of 2023, the asset-liability ratio of Oriental Group Co., Ltd. reached 64.54%, of which long-term borrowings amounted to 7.138 billion yuan, and the monetary funds on the account were 7.505 billion yuan. Accounts receivable and notes receivable amounted to $7.129 billion.
Therefore, after listing, there are major shareholders who continue to reduce their holdings, high pledges, and a high proportion of accounts receivable, and there are always large amounts of other receivables.
Maybe it will be the next "malicious delisting" stock "ST iKang", which has been falling for 31 consecutive one-word limits since May 6, and this immeasurable empty decline mode has made 276,800 shareholders deeply trapped and have no chance to "escape".
In recent years, the capital family in the A-share market has been in danger, including the "Tomorrow System", "Zhongzhi System", "Yongjin System", "Fosun System", "Wanxiang System" and other well-known capital families or extinction, or transformation and adjustment, or cashing out blood, and now the dominoes of "thunder" have come to the "Oriental Department".
The time has come to test the resources, connections, and capital operation ability of Zhang Hongwei, the former "richest man in the Northeast", whether he has the courage and sense of responsibility of Wang Jianlin, the former "richest man in China", and what assets can be sold in Zhang Hongwei's "Oriental Department"?