The story of corporate Weibo debt collection is happening again!
On January 30, Chuangyue Holdings issued a post on Weibo to collect debts of HK$340 million. And just three days ago, on January 27th, Sichuan Hongfengji Industrial Co., Ltd. released a "most humble official Weibo" on Weibo with "Sichuan Hongfengji" to demand 150 million yuan in debt.
"It turns out that we are not the only victims! How many people have been recruited by Xi Chunying?" The two sides pointed to "Xi Chunying, a professor of Henan University, the current chairman and executive director of the first holding group, and the third largest shareholder of Jinguan Electric, a proposed listed company." .
At present, the official Weibo of Henan University has refuted the rumors that Xi Chunying is not the corrective staff member. The other two companies mentioned, First Holding Group and Golden Crown Electric have not yet responded.
In the blog post of Chuangyue Holdings, the "truth" of Xi Chun welcoming the two companies is "a set of people, multiple brands, change the vegetable plot, and cut another crop." The Hong Kong-listed First Capital Group has experienced corporate transformation, frequent acquisitions and sales, and stock price declines in recent years, and is currently in danger of being liquidated. And now, Xi Chunying, who has failed in the first control, has taken a fancy to Jinguan Electric, which is about to be listed on the Science and Technology Innovation Board.
The injured First Control Group
What is the relationship between Chuangyue Holdings and China First Capital Group Co., Ltd. (hereinafter referred to as "First Capital Group")? The 2020 semi-annual report shows that Chuangyue Holdings is one of the major shareholders of First Capital Group, holding 14.78% of the shares.
The Weibo post on January 30 is not the first time that Chuangyue Holdings has "justified" the first control group in a positive light. In July and August 2020, as one of the major shareholders of First Capital Group, Chuangyue Holdings sent letters to inquiries about the other party’s frequent acquisitions and sales, as well as the status of convertible bonds and loans, such as the requirement on August 3, 2020 The counterparty shall explain the financing, lending, the use of funds, the default of repayment of convertible bonds, etc.
Of course, the letter of inquiry from Chuangyue Holdings to First Capital Group focused more on the latter's series of acquisitions and sales transactions. According to statistics, the transactions involved include Kaifeng Tiantai Culture Media Co., Ltd., Yunnan First Holdings, KSI Education Shares, Jinfeng Holdings, Kunming Vocational College of Art, G8 Education, Xishan Education, etc.
It can be seen that these acquisitions and sales transactions of First Capital Group are dominated by education companies. The financial report shows that before 2014, First Capital Group was mainly engaged in the auto parts business, and began to get involved in financial services at the end of 2014. In 2016, it began to lay out the education industry, forming a "based on education investment and operation, education management services and education financial services as the support "Troika linkage".
Since 2016, First Capital Group has successively made many acquisitions in education, and has reached cooperation with many foreign educational institutions such as the Mueller Center of Churchill College of Cambridge University in the United Kingdom, and acquired Jinan Century Yinghua Experimental School, Kunming Art Vocational College, Xishan School , SJW International, etc., owns and acquires Chengshiwai Education, Maijiesi Kindergarten, etc.
"In fact, as far as education is concerned, First Capital is more of a long-term investment and strategic investment. We are also a listed company, so there is no problem of exit. The process of First Capital's investment in education is also the process of First Capital's expansion. Process." Xi Chunying once said in an interview with the media in October 2018.
As he said, education is a long-term investment. The financial report shows that after 2016, First Capital Group began to lose money, with a loss of 2.188 billion yuan in 2019 and a loss of 339 million yuan in the first half of 2020. At the same time, its earnings per share are also negative.
Is Xi Chunying's goal, as he said, to make "long-term investment and strategic investment" in education? As its main shareholder, Chuangyue Holdings has questioned this. In its Weibo on January 30, it characterized the series of work of First Capital Group in education and other companies as "buying high and selling low, professionally hollowing out listed companies."
This conclusion is not without basis.
Chuangyue Holdings’ inquiry letter revealed that First Capital Group acquired Wenhua College of Yunnan Arts University for 380 million yuan in 2017, which was held by its wholly-owned subsidiary, Yunnan First Capital. In 2019, it sold Yunnan First Capital for 240 million yuan and 95 million yuan. 40% and 30% equity, the difference between the two sales is less than 7 months, but the valuation has shrunk by half. The first sale gained 74 million yuan, and the second sale suffered a loss of 89 million yuan (superimposed on the value of capital market fluctuations).
As we all know, the valuation of the education sector in Hong Kong stocks is not high, and may even decline. However, the board of directors is almost all of securities and financial backgrounds, or is related to Minsheng Securities, or has served in the Securities Regulatory Commission or local securities regulatory bureaus, or in corporate mergers and acquisitions, private equity For the First Capital Group, which has extensive experience in financing, financing, etc., the emergence of such cases as Yunnan First Capital is obviously quite unreasonable.
According to the financial report, Xi Chunying (Dr. Wilson Sea), chairman of the board of directors and non-executive director of First Capital Group, former president and chairman of Minsheng Securities, chairman of the board of directors of Kaifeng Lanwei Expressway Development Co., Ltd.; joint chief executive and executive director Zhao Zhijun, once Worked in the General Office of the Zhengzhou Special Commissioner Office of the China Securities Regulatory Commission and the Nanyang Sales Department of Minsheng Securities.
Of course, the acquisition and sale of education by First Capital Group in recent years is not "professional".
The inquiry letter revealed that in 2018, First Capital Group increased its capital for less than one year and did not find any business KSI Education, holding 48.99%. In the following two years (2018, 2019), KSI Education suffered a total loss of 400 million yuan. More importantly, for Liyuan Holdings and Ms. Yao involved in the capital increase, First Capital Group did not disclose detailed information.
The degree of capitalization of education in my country is relatively low, and there are few comparable references. Different capital markets and different sub-sectors have different acceptance and different development models, and enterprise valuation is not easy, which brings certain difficulties to the acquisition and merger of education enterprises. For First Capital Group, which is familiar with capital and acquisitions, the acquisition of KSI Education is obviously full of doubts.
At the same time, it should be noted that Hong Kong stocks are different from A-shares and have a short-selling mechanism. It is especially convenient to short-selling sectors whose valuation is difficult to judge. Compared with the “long-term investment and strategic investment” in the industry, Xi Chunying and First Capital Group's series of actions in the education market since 2016 seem to be more smoothly understood from this perspective.
First Capital Group went public in 2011. Since then, its stock price has been tepid. After starting to get involved in education in 2016, its stock price began to climb and reached its peak in 2018. However, in November 2019, due to tight funds and pledged equity, First Capital Group collapsed. The stock price fell by 75% in one day, and it collapsed thereafter.
In December 2020, First Capital Group announced that a convertible bond holder filed a winding-up petition to the High Court. The petition was heard in the High Court before the presiding judge on December 23, 2020. In the name of education, this stock that carries the "ambition" of Xi Chunying and his team's capital may be about to usher in "death."
The immortal "predator"
It seems that only the First Capital Group itself and tens of millions of shareholders are hurt. "Capital crocodile" Xi Chunying and his team have changed their targets and haunted another possible listed company.
On January 22, the 8th 2021 listing committee meeting of the Sci-tech Innovation Board was held. The issuer under consideration was Golden Crown Electric Co., Ltd. (hereinafter referred to as "Golden Crown Electric"). Founded in 2005, Golden Crown Electric is a high-tech enterprise specializing in R&D, manufacturing and sales of power transmission and distribution and control equipment. The main products include lightning arresters and smart power distribution network equipment.
This company had its first meeting on November 23, 2020, and was suspended for deliberation mainly because of the authenticity of its equity holdings.
The audit opinion at that time required Jinguan Electric to explain "evidence that Fan Chong is the actual controller" and whether Xi Chunying actually controls Jinguan. Although the First Control Group may be about to face "death", the trader Xi Chunying has not stopped his capital ambitions, and Golden Crown Electric is suspected of being his next "hunting ground".
Sichuan Hongfengji also emphasized Xi Chunying’s shareholding in Golden Crown Electric on its debt collection Weibo, and added on January 28: “The CSRC and the Shanghai Stock Exchange have given Xi Chunying’s support to the A real-name report was made on the issue of personal and malicious abolition of debts.”
According to Sichuan Hongfengji’s report letter, in 2005, Xi Chunying controlled Golden Crown Electric through Hexie Venture Capital. When borrowing previously, Xi Chunying had stated that he was the actual controller of Golden Crown Electric and controlled more than 60% of the equity, including through Xi His investment controls 11.31%, his nephew He Yaobin controls 1.88%, and "little brother, proxy holder" Fan Chong's holdings.
At present, Jinguan Electric and Xi Chunying have not responded to this, but from the prospectus, Xi Chunying obviously has a very important position in Jinguan Electric.
On the one hand, the prospectus shows that Fan Chong holds a 50.07% stake in Golden Crown Electric through Wan Chong Jiaming and is the company's controlling shareholder. According to media reports, Fan Chong and Xi Chunying have a close relationship. During the period of working in Minsheng Securities, Lanwei Expressway, and Hexie Ventures, Fan Chong was Xi Chunying's subordinate. In 2005, Xi Chunying established Jinguan Electric, and in 2008, Fan Chong joined Jinguan Electric.
In 2014, Fan Chong received over half of the equity of Golden Crown Electric and became the actual controller of Golden Crown Electric. According to data, on April 25, 2014, Fan Chong took the debt of 97.069 million yuan from Golden Crown Co., Ltd. as consideration, and transferred 56.67% and 6.66% of the issuer from Huaxing International and Hexie Ventures, which are actually controlled by Wilson Sea (Xi Chunying). 63.33%) equity.
On the other hand, the prospectus shows that Xi Chunying’s Xi’s Investment directly holds 100% of Dinghuitong’s shares and indirectly holds 11.31% of Jinguan Electric’s shares through Dinghuitong.
At the same time, it should be noted that Xi Chunying’s nephew He Yaobin appeared on the list of shareholders of Jinguan Electric, holding 1.88% of the shares and serving as an outside director of the company; Zhao Zhijun, co-CEO and executive director of First Capital Group, who has a close relationship with Xi Chunying , Also appeared in the list of shareholders of Golden Crown Electric, holding 1.88%.
Although it was founded very early, the first board of directors and board of supervisors of Jinguan Electric was formed in 2018. This seems to be the beginning of Jinguan Electric's listing plan.
2018 is a year worthy of attention. That year, the design of the core system of the Sci-tech Innovation Board entered a critical period before the public consultation. The entire market was staring at this piece of "sweet pastry"; the share price of First Capital Group under Xi Chunying's control reached its peak, and the layout of education This kind of problem has been highlighted, and Chuangyue Holdings' inquiries about it are also concentrated around this year.
Was it intentional, or was it a coincidence? Is it to lay out early, or to take advantage of the high valuation of the science and technology board? To be sure, after the First Control Group, Golden Crown Electric has become Xi Chunying's next goal.
Conclusion
The capital market is a game field that can never be more dangerous and exciting, providing everyone with the possibility of wealth and dreams. At the same time, this is also an unequal arena, where winning and losing are not equal to everyone.
Here, capital predators seldom die, but there are tens of millions of stockholders injured.