Text | Ai Finance and Economics Intern Guo Yiran
| Deer chirping
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The first Xunxing shares of the zipper sent away the second new owner, but this time in the form of arrest.
On the evening of August 11, Xunxing issued an announcement that the company received a notice from the family of Wang Lijun, the actual controller of the company and former chairman of the company, on August 10 that Wang Lijun had been arrested by the Chongqing Municipal Public Security Bureau for suspected insider trading.
A week ago, the news of Wang Lijun's resignation seemed to have begun to brew up the arrest storm. On August 5, Xunxing issued an announcement that former chairman Wang Lijun submitted his resignation to the board of directors for personal reasons and no longer served as the legal representative. After resigning, he will no longer hold any position in the company. Before electing a new chairman, Du Huijuan, a director of the company, shall perform the duties of chairman and legal representative on behalf of the company. Public information shows that Du Huijuan is a post-80s and 37 years old this year.
As soon as the news of Wang Lijun's resignation came out, the stock price opened at a low price of 5.45 yuan / share on August 6, and closed at 5.50 yuan / share after the stage of the earth and sky board, down only 1.61% from the previous day. This small-floating share price performance seems to express the indifference of shareholders to the resignation of the former chairman.
The reason for this is also because the Xunxing shares after the change of ownership have gone too hard. Before the change of ownership, Xunxing shares were once known as the "zipper king", sitting on the huge domestic zipper market, and the former lord Shi Nengkeng family was even listed on the Hurun China Rich List. In 2016, after Wang Lijun's leveraged buyout and premium shell purchase, a series of capital operations failed, so that Xunxing shares began to move towards the road of no return.
According to the first quarter report of 2019, the operating income of Xunxing shares was 357 million yuan, a decrease of 33.1% from the same period of 534 million yuan in the previous year. The deducted non-net profit attributable to the shareholders of the listed company was -7.437 million yuan, a decrease of 3256.40% in the same period.
Borrow 2.5 billion, 2.2 times the price to buy equity
In 2016, on the same day of the "Double Eleven", Tianjin Huize Fenghao spent 2.5 billion yuan to acquire 25% of the equity of Xunxing shares. According to the announcement, Xunxing intends to transfer 89.5 million shares of the company held by it to Tianjin Huizefeng Enterprise Management Co., Ltd., accounting for 25% of the total share capital. After the completion of the transaction, the shareholding ratio of Fujian Xunxing Group Co., Ltd. dropped to 7.38%, and Huizefeng held 25% of the shares, becoming the new controlling shareholder of the company, and Wang Lijun, the actual controller of Huizefeng, thus becoming the new actual controller of the listed company.
It has been calculated that 2.5 billion yuan to acquire 89.5 million shares, equivalent to 27.93 yuan per share, this price is more than a decade since the listing of Xunxing shares in 2006, has never reached the height of 27.93 yuan / share. According to the previous stock price of Xunxing shares of 12.58 yuan / share, the purchase price of Huizefeng is more than twice that of it, in addition to the market value of 1.125 billion yuan of these 89.5 million shares, the shell price is as high as 1.375 billion yuan.
After Huize Feng spent 2.5 billion yuan to buy a shell, the stock market was like chicken blood, rising and falling for 6 consecutive trading days, and the stock price rushed from 12.58 yuan / share to 22.38 yuan / share. In just 6 days, the market value of Xunxing shares nearly doubled, reaching 8.012 billion yuan. But behind the beautiful results, I don't know that the 2.5 billion yuan is almost borrowed by Hui Zefeng.
On November 14, 2016, Huizefeng signed the General Entrusted Loan Contract with Qiyou Investment and Tangshan Kaiping Branch of Agricultural Bank of China Co., Ltd., whereby Qiyou Investment provided Huizefeng with an entrusted loan of RMB2.5 billion to transfer 25% of the equity of Xunxing shares, with an annual interest rate of 4.5% and a borrowing period of 4 years. After the completion of the transaction, Hui Zefeng pledged all 25% of the shares of Xunxing shares in its hands to Qiyou Investment.
According to Tianyan, Qiyou Investment was established in October 2016 by Huizefeng and ABC Innovation (Beijing) Investment Co., Ltd., Jingfu Asset Management Co., Ltd. and ABC International (Zhuhai Hengqin) Investment Fund Management Co., Ltd., with Huizefeng as a limited partner investing 1 billion yuan and holding 39.98% of the shares.
On another level, in addition to the 1 billion yuan invested by Huizefeng, its leverage funds are 1.5 billion yuan. Based on an annual interest rate of 4.5%, the annual interest expense of 1.5 billion yuan reaches 67.5 million yuan.
It turns out that the 1.5 billion yuan of leveraged funds only leveraged 6 consecutive trading days. Since then, the stock price of Xunxing shares has returned to rationality and gradually declined. Coupled with Wang Lijun's series of chaotic capital operations, Xunxing shares even fell to a halt for 7 consecutive trading days in September 2018, which triggered the risk of liquidation. As of August 9, 2019, Xunxing shares have fallen to 5.1 yuan per share, with a market value of only 1.901 billion yuan.
The 1 billion cross-border transformation failed, and mother and child turned against each other
In July 2017, Xunxing shares, which had been less than one year old, acquired a 65% stake in the price chain of the cross-border e-commerce platform for 1.014 billion yuan. Price Chain promises that the net profit from 2017 to 2019 will not be less than 100 million yuan, 160 million yuan and 250 million yuan respectively. After the transaction, Wang Lijun began to serve as the chairman of the price chain.
According to the 2017 semi-annual report, the book monetary funds of Xunxing shares are only 86.34 million yuan. Due to insufficient funds, Wang Lijun pledged 65% of the equity that had not yet arrived to Xiamen International Trust and obtained 550 million yuan of acquisition funds, plus leverage.
However, this hundreds of millions of high-stakes gambles are doomed to failure, and the chain of prices has not fulfilled its promise. In october 2018, Xunxing shares announced that the net profit of price chain in 2017 was 96.8696 million yuan, and the performance commitment was not completed; in the first half of 2018, a major loss occurred, the net profit was -19.0758 million yuan, and the operating conditions continued to deteriorate, and the promised performance was impossible to achieve. This also made Xunxing shares in 2018 goodwill impairment of 748 million yuan, net profit loss reached 650 million yuan, down 646.02% year-on-year.
At the same time, Xunxing shares filed a sky-high compensation of 1 billion yuan to the price chain, but at present, the hope of obtaining compensation is still slim. It is understood that the original shareholders of the price chain, Gan Qingcao and Zhu Ling, have taken refuge overseas with their young son.
It is worth noting that Du Huijuan, who succeeded Wang Lijun as the acting chairman of Xunxing Shares, was previously the financial director of Shenzhen Price Chain Cross-border E-commerce Co., Ltd.
It was once the first stock of the zipper, and the founding family was listed on the Hurun Rich List
According to public information, the predecessor of Xunxing Shares, Jinjiang County Shenzhen Shanghai Hualian Zipper Factory, was established in 1984, became the China Zipper Center in 1999, held the world's first zipper fashion trend conference in 2008, and has won the National Torch Plan Key High-tech Enterprises, Innovative Enterprises, National Laboratories, National Intellectual Property Demonstration Enterprises, National Technological Innovation Demonstration Enterprises and other awards.
In June 2006, Xunxing shares were listed on the Shenzhen Stock Exchange as the first stock of China's zippers. In the same year, the annual report of Xunxing Shares shows that its main business income in 2016 reached 640 million yuan, an increase of 29.86% over the same period of the previous year; the total profit reached 71.85 million yuan, an increase of 74.54% in the same period; and the net cash flow generated by operating activities reached 96.82 million yuan, an increase of 85.25% in the same period.
In 2007, the Shi Nengkeng family, the founder of Xunxing, ranked 627th in the Hurun China Rich List with a net worth of 1.1 billion yuan.
It is worth mentioning that while Wang Lijun is struggling after taking over Xunxing shares, the founder Shi Nengkeng family may be the biggest winner. In May 2018, Xunxing Co., Ltd. issued the "Preliminary Plan for Material Asset Sale and Related Party Transactions", which intends to sell the zipper business and its related assets and liabilities to Fujian Xunxing Group Co., Ltd., the Shi family, with an estimated valuation of 1.2 billion yuan. After the completion of the transaction, Xunxing will divest the zipper business and focus on the strategic direction of cross-border e-commerce business.
In other words, Wang Lijun bought the zipper industry of Xunxing shares from the Shi family for 2.5 billion yuan, and sold it to the Shi family for 1.2 billion yuan in less than two years. Between this purchase and sale, the Shinengkeng family earned 1.3 billion yuan.