Grassroots entrepreneurship was deceived into success, then borrowed money to expand, and then a crisis broke out. The experience of the richest woman in Zhejiang in the past conforms to all imaginations about entrepreneurship. Fortunately, she was rescued. Now that the voting rights are being quarreled with the aid side, what is under the water?
article/Daily Capital
Zhejiang’s richest woman He Qiaonu ’s darkest moment has not passed.
html On June 6, the Shenzhen Stock Exchange issued a letter of concern to Beijing Oriental Garden Environment Co., Ltd. (hereinafter referred to as Oriental Garden ). He Qiaonv, one of the original actual controllers of the company, issued a notice to the company’s controlling shareholder Beijing Chaohuixin Enterprise Management Co., Ltd. (hereinafter referred to as Chaohuixin) on May 20, claiming that He Qiaonv and Tang Kai (He Qiaonv’s husband) ) will terminate the voting rights entrustment agreement with Chao Huixin with immediate effect. Chao Huixin expressed objections to this and responded to He Qiao's wife on May 23.
However, on May 24 and 27, Oriental Garden received a letter from He Qiaonv’s lawyer stating that it had terminated the voting rights entrustment agreement, but the company did not follow He Qiaonv’s voting intention on Proposal 2 in the resolution of the 2021 Annual General Meeting of Shareholders. Statistics of voting results.
To put it simply, He Qiaonv believes that Chao Huixin and the persons acting in concert have breached the contract, and He Qiaonv has the right to terminate the voting rights entrustment agreement in accordance with the law.
However, information shows that the voting rights entrustment agreement signed by He Qiao's wife and Chao Huixin is "unconditional and irrevocable"; without the written consent of Chao Huixin, He Qiao's wife cannot unilaterally terminate the agreement . The Shenzhen Stock Exchange requested further discussion on whether the unilateral termination of the voting rights entrustment agreement by He Qiao's wife was inconsistent with the aforementioned terms, and whether the termination of this agreement was legally effective.
To be fair, He Qiaonv, the former richest woman in Zhejiang, did not have a good impression on the public. She seriously owed employees wages, laid off thousands of people, and donated 9.6 billion yuan to the United States. However, she became the "Queen of Donations" in China. ". Moreover, due to poor management, Oriental Garden's performance fluctuated significantly, and its stock price continued to fall.
Some investors expressed their dissatisfaction on the Internet. Some netizens said: "It took so many days to announce such a big thing, and we are treating our small shareholders as leeks!" Some netizens thought that He Qiaonv wanted to kick Chao Huixin away. Some netizens left a message in the stock forum, "... I dug out so many mines in listed companies, mortgaged all the shares, and then continued to reduce my holdings. The stock price fell all the way. You will pay me money!"
"Daily Capital" query The financial report of Oriental Garden for the first quarter of 2022 found that He Qiaonv is the largest shareholder of Oriental Garden, with a shareholding ratio of 23.81%, but a decrease of 17.97% from the previous price. Although her husband Tang Kai has significantly reduced his holdings, he is still the fourth largest shareholder of Oriental Garden, with a shareholding ratio of 3.15%. However, the actual controller of Oriental Garden is the State-owned Assets Supervision and Administration Commission of Chaoyang District, Beijing, and its legal entity is Liu Xiaofeng. Among the list of executives of Oriental Garden, only He Qiaonv’s sister, He Qiaoling, is a supervisor.
In this way, He Qiaonv's actions have to make many associations to the outside world: Is she sending a signal to the outside world that she is making a comeback? Or is there something else hidden?
"Queen of Gardens"
He Qiaonv once met all the imaginations of entrepreneurs - a grassroots background, a bumpy business and even being cheated, a successful IPO, and a business elite.
Her hometown is located in Xiawulong Natural Village, Xiabukou, Wuyi County, Jinhua City, Zhejiang Province, 25 kilometers southeast of Jinhua. Born in 1966, she once recalled that because she was too poor to buy sandals, she still walked barefoot until the summer when she was 10 years old. After
, He Qiaonv was admitted to the garden major of Beijing Forestry University, and was assigned to the Hangzhou Municipal Garden Bureau after graduation. But after working for about a year, she resigned and went into business with her father. During the Asian Games , she helped her father's company win its first order of 1 million yuan.
In 1992, He Qiaonv founded the Oriental Garden Art Service Department, the predecessor of Oriental Garden. This is the real starting point of her career.
But unfortunately. The year after He Qiaonv started her business, the manager she hired ran away with the money, and the iron ore she invested in was also defrauded.He Qiaonv has experienced the scenarios that have been shown on TV, countless IOUs, and migrant workers coming to demand debts. It can be said that that period was the most difficult time in his entrepreneurial stage.
Life is so dramatic. Just when He Qiaonv felt hopeless, in 1994, the person in charge of the Beijing villa garden landscape project took the initiative to find He Qiaonv and asked her if she was willing to contract the project.
This is undoubtedly a timely help. Of course, He Qiaonv cherishes this rare opportunity. She personally supervised the work to ensure quality. The project was ultimately highly recognized by Party A, and she also introduced other projects to He Qiaonv.
After surviving the first crisis in her business career, He Qiaonv's career entered the fast lane.
In 1998, the registered capital of He Qiaonv's "Beijing Oriental Landscaping Co., Ltd." was changed to 6 million. In the same year, she also won the Oriental Plaza project of Li Ka-shing , which made her famous and the project was not accepted. From being on the verge of bankruptcy to coming back from the dead, this successful experience of grassroots entrepreneurship has made He Qiaonv quickly become the idol of many entrepreneurs.
Oriental Garden Group was established in 2000. In 2009, He Qiaonv ushered in her highlight moment. On November 27 of that year, Oriental Garden was listed on the Shenzhen Stock Exchange, with an issue price of 58.6 yuan per share, becoming the first garden stock.
Not only that, Oriental Garden paid out a huge dividend less than 4 months after it went public, with 5 out of 10 giving out 3. Moreover, the stock price of Oriental Garden has been fluctuating and rising since its listing. By August 20, 2010, its stock price was as high as 229 yuan/share, becoming one of the five 200-yuan stocks in the A-share market at that time. He Qiaonv was also known as For the "Garden Queen" . Unexpectedly, Oriental Garden paid dividends again, this time directly from 10 to 10 to 2.
In less than a year, Oriental Garden has paid out two substantial dividends, and its stock price has hit new highs. Such strong performance is enough to make many investors jealous.
Controversial donation
In 2010, He Qiaonv and Tang Kai entered the Forbes China Rich List for the first time with a net worth of 11.3 billion yuan, ranking 54th.
At this stage, He Qiaonv began to devote herself to charity. In 2012, she initiated the establishment of Beijing Qiaonv Charity Foundation to devote herself to environmental protection and public welfare.
In 2013, the PPP business (Public-Private Partnership) began to become popular in China. In the autumn of that year, He Qiaonv went to Gree for inspection. At the end of that year, she stated at a meeting of entrepreneurs that her goal was to lead a large company, and one of the criteria for a large company was to have a market value of over 100 billion. At present, only Dong Mingzhu among female entrepreneurs in China has achieved this.
He Qiaonv said: "I also want to prove whether it is possible for women in private enterprises to achieve such a goal... Sister Dong will have no problem working for another 10 years, and I can still work for another 20 years."
The outside world also gave her a crown for this reason. To this end, has been given titles such as "The Second Dong Mingzhu" and "Business Mulan".
But the bad news is that in the first quarter of 2014, Oriental Garden achieved revenue of 536 million yuan, net profit fell 432.48% year-on-year, and its loss reached 74 million yuan. How can
reach 100 billion?
He Qiaonv keenly discovered business opportunities and raised the banner of "restarting a business". In 2015, He Qiaonv changed the main business of Oriental Gardens to river restoration, water landscape improvement, hazardous waste treatment and other work through the PPP model. At the same time, the industrial structure is optimized and the concept of resources → products → waste → renewable resources is realized, making Oriental Garden one of the first domestic companies to participate in the PPP project . From 2015 to 2018, He Qiaonv won 113 projects in the PPP field, with a total project value of 169.3 billion yuan.
At the same time, He Qiaonv is also becoming more and more famous in charity.
In 2016, He Qiaonv promised to donate all 76.3 million shares of Oriental Garden held by her, with a total value of 2.927 billion yuan. With this move, she became the top of the Hurun Charity List in 2016, surpassing Jack Ma and Wang Jianlin's won the first place in the " China Donation Top 100 " list. In 2017, He Qiaonv became the richest woman in Zhejiang with a net worth of 30 billion.
But no one expected that the turning point would come soon.
In October of the same year when she became the richest woman in Zhejiang, He Qiaonv announced at the IUCN World Conservation Union meeting that she would donate US$1.5 billion to the United States (approximately 9.5 billion yuan based on the then exchange rate ) for wildlife. Protect the cause.
This incident caused an uproar. There are many reports on the Internet about this matter, so I won’t go into details here. Readers can search for it by themselves. In short, some netizens are quite dissatisfied with it.
Bad news comes one after another. According to incomplete statistics, He Qiaonv's pledged donation amount has exceeded 18 billion yuan. Through verification and verification through Qiaonv Foundation’s annual report data and other means, the media found that combining the amount disclosed in the Qiaonv Foundation’s annual reports from 2012 to 2017, plus He Qiaonv’s personal donation (assuming that all has been fulfilled), the total donation amount is 4 About 100 million yuan. Because of the huge difference between promised donations and actual donations, He Qiaonv was called the "Queen of promised donations."
Bigger trouble followed. Just when He Qiaonv was using PPP to expand aggressively, the crisis of financial constraints had quietly arrived. In 2017, Oriental Garden had 16 PPP projects under construction. The company should have recognized revenue of 4.225 billion, but in fact it only recovered 2.486 billion, which is less than 60%.
Crisis breaks out
Things are getting worse and worse. In May 2018, Oriental Garden issued an announcement stating that it originally planned to issue corporate bonds of no more than 1 billion yuan, but actually raised only 50 million yuan. This "coldest bond issuance in history" incident made the outside world begin to smell Oriental Garden's funds. crisis.
Employees of Oriental Garden told the media at the time, "In June of that year, the company began to lay off employees, and it became clear that wages were suspended in July."
In September 2018, at a symposium, He Qiaonv, chairman of Oriental Garden, said, " It is too difficult for private enterprises now. If President Yi approves a bank for me, I will definitely save those enterprises from a pool of blood, one by one.” There are 1.113 billion pledged shares, accounting for 82.88% of its shareholding ratio. The overall pledge risk is currently controllable.
Oriental Garden's 2018 financial results show that its revenue was 13.293 billion yuan, a decrease of 12.69% year-on-year, and the net profit attributable to shareholders was 1.596 billion yuan, a year-on-year decrease of 26.72%. The net cash flow generated from operating activities in 2018 was 50.9292 million yuan. , a year-on-year decrease of 98.26%, and the cash flow of and is very bad.
In addition, the Shenzhen Stock Exchange stated that from 2018 to 2019, Oriental Garden had multiple private loans. The multiple loans to Ji Xianlei, Ma Lihua, Beijing Zhongyue United Technology Co., Ltd., Miao Yongheng, etc. were not in accordance with your company's "Board of Directors" The relevant provisions of the "Rules of Procedure (revised in August 2016)" were approved by the board of directors, and there were irregularities in the operation of the board of directors.
To put it simply, in 2018, the company experienced a complete rupture of the capital chain, bank forced debt, He Qiaonv’s equity experienced six rounds of freezes, forced layoffs, wage arrears, etc., Oriental Garden was on the verge of life and death.
Fortunately, on August 6, 2019, Oriental Garden issued an announcement stating that the actual controllers of the company, He Qiaonv and Tang Kai, planned to transfer their holdings of the company to Chaohuixin, a wholly-owned subsidiary of the Beijing Chaoyang District State-owned Capital Operation and Management Center. 5% of the shares in , priced at 792 million yuan; and the corresponding 16.8% voting rights were unconditionally and irrevocably entrusted to Chao Huixin. After the equity change of is completed, Chao Huixin will become the company's controlling shareholder, and Beijing Chaoyang District State-owned Assets Supervision and Administration Commission will become the company's actual controller.
However, the financial crisis of Oriental Gardens has not completely ended.
Oriental Garden’s financial report shows that in 2020, its net profit loss was 492 million yuan. In 2021, its net profit loss surged again to 1.158 billion yuan, and in the first quarter of 2022, it lost another 359 million yuan. In addition, in the first quarter of 2022, Oriental Garden's monetary funds were only 917 million yuan, while short-term borrowings were as high as 2.765 billion yuan, and non-current liabilities due within one year reached an astonishing 6.361 billion yuan. Obviously, its monetary funds cannot cover short-term debts, and the funding crisis has a tendency to get deeper and deeper.
As of the close of trading on June 9, 2022, Oriental Garden's stock price was 2.33 yuan per share, with a total market value of 6.257 billion yuan, and a total number of shareholders of 87,000..Thinking about the fact that its stock price fell from 229 yuan to 2 yuan, it cannot be described by the word "tragic". Moreover, Oriental Garden has suffered losses for two consecutive years, and there is a high probability that it will become a ST stock .
Seeing this, he couldn't help but curiously ask, why did He Qiaonv, who had finally "escaped" from her shell, choose this time to argue with Chao Huixin about voting rights?
"Daily Capital" inquired about the relevant announcements of Oriental Garden and found that there is this in a "Special Legal Opinion on the Entrustment of Voting Rights among Shareholders of Beijing Oriental Garden Environment Co., Ltd. and the Announcement of Resolutions of the 2021 Annual General Meeting of Shareholders". A paragraph: "Ms. He Qiaonv's claim about the unilateral termination of the "Voting Rights Entrustment Agreement" and the cancellation of the entrustment of voting rights corresponding to the authorized shares has no statutory, agreed basis or factual basis..."
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