Behind the use of funds by Chengxing: Withdrawing from Wuxi Jinkong to divest the equity of Tin Commercial Bank

Behind the use of funds by Chengxing: Withdrawing from Wuxi Jinkong to divest the equity of Tin Commercial Bank
The operation of Chengxing Capital failed.Since the reorganization of Chengxing Group completed the clearance of non-operating funds of Hanbang Petrochemical on schedule, Chengxing shares announced the termination of the acquisition of Hanbang Petrochemical.Chengxing Co., Ltd. once planned to make an acquisition to inject Chengxing Group’s high-quality PTA business into listed companies.Sauna, Yewang was informed that Chengxing Group recently withdrew from Wuxi Jinruizhonghe Investment Company (Limited Partnership), and the state-owned capital platform took the lead.As a result, Chengxing Group no longer holds shares in Wuxi Financial Holdings, an important financial enterprise in this region.Earlier, Chengxing Group had quit Suqian Xinya Technology Co., Ltd. and Wuxi Chusu Venture Capital Co., Ltd.On the afternoon of May 7, the reporter called Jin Ruizhonghe, and the other party said that they would not provide the above equity change.The reporter first called Chengxing Group’s transitional investment department, and the receiver said the number was Chengxing Group, not Chengxing Group.The reporter sent an interview email to the mailbox posted on the official website of Chengxing Group, but no reply has been received.Chengxing Group is a private petrochemical giant located in Jiangsu. It has been among the top 500 Chinese companies for many years and has continuously operated capital.Sauna and Yewang noticed that just last month, the Tin Commercial Bank initiated by Chengxing was formally established, and Chengxing quickly exchanged its holdings for pledges.Occupied funds Last year, Chengxing Co., Ltd. planned to acquire Hanbang (Jiangyin) Petrochemical Co., Ltd. (hereinafter referred to as “Hanbang Petrochemical”) held by Jiangsu Chengxing Petrochemical Group Co., Ltd. and Wuxi Financial Holding.The transaction was announced a few days ago due to Chengxing Group and its related parties replacing the non-operating funds occupied by Hanbang Petrochemical on schedule and clearing it.According to the transaction plan released by Chengxing in June 2019, it plans to issue shares, convertible bonds and pay cash to purchase 100% equity of Hanbang Petrochemical held by Wuxi Jinkong; after the transaction, Hanbang PetrochemicalWill become a wholly-owned subsidiary of a listed company.According to the disclosure of the plan, after the adjustment of property rights, Chengxing Petrochemical and Wuxi Jinkong held Hanbang Petrochemical 93 respectively.32%, 6.68% stake.Chengxing shares said that after the completion of the above transaction, Chengxing Group’s high-quality PTA segment business will be injected into listed companies as a whole, and listed companies will become large-scale comprehensive chemical enterprises that integrate PTA production, sales and fine phosphorus chemicals.The transaction was quickly concerned by the Shanghai Stock Exchange. The target company, Hanbang Petrochemical, was also occupied by the funds of Chengxing Group ‘s controlling shareholder Chengxing Group and its related parties. According to the announcement of Chengxing ‘s response to the Shanghai Stock Exchange ‘s inquiry letter in December 2019As of October 31, 2019, Chengxing Group and its related parties had a balance of approximately 61 funds occupied by related parties of Hanbang Petrochemical.9.5 billion yuan.In the above reply, Chengxing Group promised to completely clean up Hanbang Petrochemical funds, assets and other non-operating funds before the board of directors of the listed company reorganizes the official plan for this major asset reorganization or before April 30, 2020 (whichever is earlier)The fact of the occupation of sexual funds, and said that if the problem of occupation of non-operating funds is completely cleared up before the above time, this major asset reorganization will be terminated.Regarding why Chengxing Group will occupy Hanbang Petrochemical funds, Chengxing ‘s announcement reiterated that the report reports that Hanbang Petrochemical ‘s capital operation is in good condition. Because other affiliated enterprises of Hanbang Petrochemical are small in scale or still under construction, the financing channels are single,In order to improve the efficiency of fund use and rational use of resources, Hanbang Petrochemical divests funds from related parties with tight funding, and the corresponding related parties bear the corresponding financing costs in accordance with Hanbang Petrochemical ‘s annual average expenditure budget.On April 28, Chengxing issued an announcement saying that due to the impact of the new coronavirus pneumonia epidemic and other factors, Chengxing Group and its related parties have delayed the progress of clearing up the non-operating funds occupied by Hanbang Petrochemical, and cannot be completed in April 2020.Completed the clean-up work 30 days ago and decided to terminate this major asset reorganization.According to the official website, Chengxing Group was founded in 1984 and is located in Jiangyin City. It is currently mainly involved in fine phosphorus chemical, petrochemical (PET, PTA), coal chemical, liquid chemical storage and logistics, new energy and new materials, financial services, commercialIn the real estate and other fields, the company has been among the top 500 Chinese companies for 18 consecutive years.Chengxing Group, a listed company under the Chengxing Group, currently performs well. The 2019 annual report shows that it achieved operating income of 33 during the reporting period.100,000 yuan, an annual increase of 5.20%; net profit attributable to mother is 6035.550,000 yuan, an increase of 212 per year.18%.Chengxing ‘s 2020 quarterly report showed that it achieved operating income during the reporting period6.4.4 billion, down by 17 every year.03%; net profit attributable to mother is 761.200,000 yuan, down by 7 every year.12%.Zhuo Chuang Information’s analysis of the yellow phosphorus market in the middle of last year showed that in July 2019, domestic atmospheric governance activities were suddenly launched, and many companies in the production areas stopped production.In the middle of the year, some companies raised their prices by more than 10,000 yuan / ton six months before the quotation.Zhuo Chuang Information predicts that after entering the second quarter of this year, the domestic yellow phosphorus market will generally show a downward trend.However, compared with the huge volume of Chengxing Group, Chengxing shares account for a relatively small amount.Judging from the available data, Chengxing Group’s 2016 annual report shows that the company’s debt at the end of 2016 reached 174.0.6 billion, ranking 145 at the beginning of 2016.1.3 billion US dollars in growth.As for the latest capital and asset debt status of Chengxing Group, Sauna and Yewang have not yet mastered it.However, Sauna and Yewang found that Chengxing has recently quit many companies.Together with Hongdou and Yangzijiang, they jointly withdrew from Jinruizhonghe. The state-owned platform took over in January this year. Sauna Night reported that Chengxing Group has recently withdrew from Suqian Xinya Technology Co., Ltd. and Wuxi Chusu Venture Investment Co.After a lapse of several months, Wuxi Jinruizhonghe Investment Enterprise (Limited Partnership) (hereinafter referred to as “Jinruizhonghe”) industrial and commercial information showed that its investor change occurred on March 19, and the original shareholder Horgos CityHongdou Equity Investment Partnership (Limited Partnership), Jiangsu Yangzijiang Shipyard Co., Ltd. and Jiangyin Chengxing Industrial Group Co., Ltd. withdrew, adding Wuxi Financial Investment Co., Ltd. as a shareholder.At present, the joint shareholders of Jinruizhong are Wuxi Jinrui Investment Management Co., Ltd. and Wuxi Financial Investment Co., Ltd.Within the Wuxi financial system, the level of Jinruizhong is important.It is hoped that one of Jinruizhonghe ‘s investment targets will be Wuxi Jintou Holdings Co., Ltd. (hereinafter referred to as “Wuxi Jinkong”), which was established in December 2016.Wuxi Financial Holding officially disclosed that as of the end of 2019, the company’s total assets were 28.800 million, net assets 10.USD 8.1 billion. In 2019, Wuxi Financial Holdings and its subsidiaries achieved a profit increase of more than 100 million yuan; the company gradually invested abroad12.3.5 billion US dollars, direct equity investment11.6.6 billion yuan; the scale of asset management of the subsidiary fund agreement.With 66 trillion US dollars, the affiliated funds gradually reached 19.500 million yuan.Sauna, Yewang found that the announcement of Chengxing Group, a subsidiary of Chengxing Group, at the end of December 2019 disclosed that Horgos Red Bean Equity Investment Partnership (Limited Partnership), Jiangsu Yangzijiang Shipyard Co., Ltd. and Jiangyin Chengxing Industrial Group Co., Ltd.The companies each hold Jin Ruizhonghe 33.3328% equity, only 0 shares in Jinruizhonghe.001667%.The shareholders who are about to withdraw from Jinruizhonghe, including Jiangyin Chengxing Industrial Group Co., Ltd. (hereinafter referred to as “Chengxing Group”), are well-known local private enterprises in Jiangsu.For the industry, Hongguo City Red Bean Equity Investment Partnership (Limited Partnership) belongs to the Red Bean Group, but is one of the top 100 private enterprises in China.Attempted information shows that Wuxi Financial Investment Co. currently holds Jinruihe 99.9983% equity, Wuxi Jinrui Investment Management Co., Ltd. holds 0.001667% means that after a long-term distribution change, the conversion of Jin Rui Zhonghe from a joint venture established by a private enterprise will be absolutely replaced by state-owned assets.Wuxi Jinkong’s official WeChat public account introduction shows that it is a mixed ownership enterprise jointly established by Wuxi Jintou, Hongdou, Chengxing, and Yangzijiang, “to give full play to the advantages of state-owned resources and the efficiency of private capital.”And through the withdrawal of private enterprises, in a message on April 27th, Wuxi Financial Holdings described itself as “a market-oriented investment platform affiliated to Wuxi Financial Investment Co., Ltd.”.Wuxi City Financial Investment Co., Ltd. (hereinafter referred to as “Wuxi Financial Investment Company”), a new shareholder of Jinruizhonghe, was established in November 2013. It is a city-level comprehensive financial investment company in Wuxi; it is a strong financial city in Wuxi”Policy-owned financial state-owned assets platform.Although the pledged equity of Xishang Bank was launched just now, although it withdrew from Jinrui Zhonghe, the Chengxing Group still added extra weight in Wuxi’s financial system.Among them, Xishang Bank opened on April 16. It is reported to be the 19th private bank approved by the China Banking Regulatory Commission and the second private bank in Jiangsu Province, the first private bank in Suxi, Changzhou, and operated by Hongdou Group, ChengxingEight private enterprises in Jiangsu Province, such as Industrial Group, jointly initiated the establishment.Sauna and Yewang found that Chengxing Group’s shareholding will soon be pledged when it opens in Xishang Bank.Wuxi Xishang Bank Co., Ltd. (hereinafter referred to as “Xishang Bank”) industrial and commercial information shows that since its establishment in April, it has added three pieces of equity investment registration information, and the pledgee replaces Chengxing Group. One of the registration information status is “invalid””, The other two reset” valid “.The pledge information with the registration number 320200001491 was registered on April 22, and the pledged equity allocation was 11000, and the pledgee was Xingda Investment Group Co., Ltd .; the pledge information with the registration number 320200001495 was registered on April 29, the pledged equityThe democracy is 28900, and the pledgee is Wuxi Donghong Landscape Engineering Co., Ltd.Among the above pledgee, Xingda Investment Group Co., Ltd. is another shareholder of Xishang Bank.Xingda Investment Group is a shareholder of Wuxi Xingda Foam Plastic New Material Co., Ltd., a large privately-owned plastic chemical enterprise group specializing in the production of expandable polystyrene resin (EPS). According to this, the total production capacity has reached the initial output of EPS100.The scale and production scale ranks “the third in the world, the forefront of China.”Another pledgee, Wuxi Donghong Landscape Engineering Co., Ltd., was established in 2010 with a registered capital of 10 million yuan. Its business scope includes the design and construction of gardens and greening projects. After being allocated and penetrated, four natural persons Wu Xijun and Zhou Lidan, Held by Xu Jun and Zhou Jie.Sauna, Yewang noticed that in late March of this year, the Secretary of the Party Committee of the Agricultural Bank of China Jiangsu Branch, President Zhang Jianliang and his party went to Chengxing for review and guidance. Zhang Jianliang said that Chengxing is a leading enterprise in the industry. As a financial institution, it needs to increaseThe financial support for the prevention and control of the real economy epidemic like Chengxing must be fast and efficient, and it must be long-term.Sauna, Ye Wang Zhu Yueyi Zhao Yibo Editor Yue Caizhou proofreading Wei Zhuo