A public listing information caused a project of the listed company Sinosteel International to be "dragged down" and create new variables.
Recently, a reporter from the Beijing News learned from the Beijing Stock Exchange that Beijing Shougang Mining Investment Co., Ltd. put 51% of the equity in Anhui Shougang Dachang Metal Materials Co., Ltd. (referred to as Shougang Dachang) for sale at a reserve price of 1.77 billion yuan.
Shougang Dachang is mainly responsible for the Huoqiu Iron Mine project, and the listed company Sinosteel International provides engineering construction for it. The contract value of this project is 5.266 billion yuan, accounting for more than half of the listed company's annual revenue.
However, due to the project itself and its private shareholder Anhui Dachang Mining Group Co., Ltd. (referred to as "Dachang Mining") being involved in the Anhui officialdom case headed by Ni Fake, the first mine Dachang project continued to be suspended. Sinosteel International's performance has also been damaged as a result. Its largest debtor is Shougang Dachang, with a balance of about 1 billion yuan.
When state-owned shareholders intend to withdraw and private shareholders are involved in corruption cases, the project's resumption time and future "destination" are both in doubt.
State-owned shareholders have withdrawn
The suspended project was once a "hot potato"
Recently, a listing information seen by a Beijing News reporter on the Beijing Stock Exchange showed that Anhui Shougang Dachang Metal Materials Co., Ltd. (referred to as Shougang Dachang) 51% of the equity was listed for transfer, with a reserve price of 1.77 billion yuan, and the transferor was Beijing Shougang Mining Investment Co., Ltd.
Shougang Dachang Industrial and Commercial Information shows that Beijing Shougang Mining Investment Co., Ltd. with a state-owned background holds 51% of the shares, and private enterprise Anhui Dachang Mining Group Co., Ltd. (referred to as "Dachang Mining") holds 49% of the shares. After the transfer of 51% of the equity, the state-owned assets have completely withdrawn from Shouxing Mining Dachang in terms of equity.
While Shougang, which has a state-owned background, has withdrawn, another private shareholder, Dachang Mining, remains “left behind”. Public information shows that the actual controller of Dachang Mining is Ji Lichang. By clinging to a group of senior Anhui officials led by Ni Fake (who has been dismissed and sentenced), Ji Lichang became the "King of Anhui Mining" for a time. The Shougang Dachang project is also involved in his political and business network.
Public information shows that in March 2010, Shougang Mining , Dachang Mining, Lu'an Municipal Government , and Huoqiu County Government signed a cooperation agreement on the Huoqiu Iron Ore Deep Processing Project, agreeing to establish Shougang Dachang Company. It is the main body of development of Huoqiu Iron Mine Project, with a total investment of 9.9 billion yuan. According to reports, as the general contractor of the project, Sinosteel International has been involved in contracting projects related to the Huoqiu Iron Mine since February 2011.
According to the official website, Sinosteel International and its subsidiary Sinosteel Equipment are mainly engaged in industrial engineering and industrial services, municipal engineering and investment operations, energy conservation and environmental protection, and high-tech. It is a well-known metallurgical engineering technology company in China and has successively undertaken It has completed more than 400 national key construction projects for major domestic steel companies.
In recent years, China's steel industry has continued to have overcapacity, which has put pressure on the performance of related listed companies including MCC and Sinosteel International. As the last steel project in the country during the 12th Five-Year Plan period, the Huoqiu project was nothing more than a rare "feast" for Sinosteel International at that time.
According to the 2016 annual report of Sinosteel International, the Huoqiu project started construction in September 2012 and is scheduled to be completed in May 2015, with a contract value of 5.266 billion yuan. For the whole year of 2016, Sinosteel International achieved operating income of 9.444 billion yuan, which means that only one Huoqiu project is equivalent to more than half of Sinosteel International's revenue.
On November 26, a reporter from the Beijing News called a Shougang publicist regarding the reasons for the equity sale, but the other party said they were not aware of the matter. On the same day, the person in charge of the listed project said that it was temporarily inconvenient to be interviewed.
Judging from the progress of the project, the Shougang Dachang project has been suspended for many years, which may be one of the main backgrounds for Shougang’s decision to withdraw this time.
According to a document in Lu'an City People's Congress official website in April 2016, Huoqiu's annual 3 million tons steel project started construction in 2012. The steel plant has completed an investment of about 6 billion yuan, accounting for 66.7% of the static investment in the project. The Huoqiu County Government has invested 1.25 billion yuan in the supporting construction of the steel plant, and the overall construction of the steel plant is more than half progressed. “However, due to the impact of the case, the steel plant was completely suspended in early 2014."
" There is really no way. Many officials involved in the project have had troubles, and whether or not this steel project will be carried out is a question. " On November 26, regarding the suspension of the project, local sources in Huoqiu County told the Beijing News reporter, "This project is the last steel project in the country during the 12th Five-Year Plan. The problem of overcapacity is already serious, but the investment amount is so It’s big, and billions have already been invested, making it difficult to advance or retreat. "
Private shareholders involved in political and business scandals
The project company has benefited from it
The "case" mentioned in the official website document of Lu'an Municipal People's Congress refers to the Anhui official corruption case that began to break out in 2013.
Huoqiu, western Anhui Province A small county town, belonging to Lu'an City, bordering Henan to the west and Lu'an to the east, agriculture has been developed since ancient times. Under the vast alluvial plain of the Huaihe River, Huoqiu County has the fifth largest iron reserves in the country and the largest in East China. Mineral resources.
In 2002, the development of Huoqiu iron ore resources was launched. In this year, Hebei native Ji Lichang came to Huoqiu. According to industrial and commercial data, the predecessor of Jilichang's Dachang Mining Industry was Wu'an Dachang Mineral Products Economic and Trade. Co., Ltd., which was registered in 2002.
Eight years later, Ji Lichang became the 28th mining tycoon in the country with a net worth of 1.5 billion yuan, the "Anhui Mining King".
Behind Ji Lichang's "Wealth Legend". , with the help of a group of senior Anhui officials (who have been dismissed) such as Yang Xianjing and Ni Fake.
Public resumes show that Yang Xianjing was once the deputy director of the Anhui Provincial Department of Land and Resources. He was dismissed after retirement and was prosecuted.
In early 2014, Yang Xianjing was suspected of abuse. The case of crimes of power, bribery, and taking advantage of influence to accept bribes was heard in the Bengbu Intermediate People's Court. The court found that Yang Xianjing accepted Ji Lichang's request. In order to allocate Zhouji Iron Mine to Shougang Dachang as soon as possible, Yang Xianjing did both. This time, he changed the resolution of the director’s office meeting without authorization, and customized the listing and transfer access conditions for the company, helping the company to eliminate competition and obtain the exploration rights. In return, Yang Xianjing also received a lot of benefits: from 2003 to 2012, Yang Xianjing. He has repeatedly received property from Ji Lichang and others, totaling RMB 16.53 million and HKD 300,000, of which he demanded a total of RMB 1.3 million.
In November 2014, the Bengbu Intermediate People's Court sentenced him to the first instance of Yang Xianjing's case. Life imprisonment and confiscation of all personal property.
Ji Lichang's "upper-level connections" don't end there. In June 2013, the official website of the Supervision Ministry announced that Ni Fake, the former deputy governor of Anhui Province, was suspected of serious disciplinary violations and was being organized. Investigation.
According to news broadcast by Xinhua News Agency in October 2014, since being investigated in June 2013, many leading cadres and officials have been dismissed from the regions and departments that Ni Fake, the former deputy governor of Anhui Province, once presided over or was in charge of. It involves a power-for-money transaction with mineral businessman Ji Lichang, and the main target of the transfer of benefits is the iron ore in Huoqiu County under the jurisdiction of Lu'an City. As the deputy governor, Ni Fake worked with Ji Lichang to run his company. Environmental impact assessment and project approval helped him purchase iron ore exploration rights at a low price, and he did not hesitate to misappropriate the national affordable housing land quota. According to the court trial, from 2000 to 2012, Ji Lichang, the head of Dachang Mining, gave Ni Fake a value of 743.2 11 times. 143 pieces of gold products, jade, jade and other items valued at 10,000 yuan.
Bad debts breed
Sinosteel International's performance has been dragged down
With the outbreak of the Anhui scandal headed by Ni Fake, Shougang Dachang Company, which had benefited from this official circle in the past, completely suspended construction in 2014, and Sinosteel International began to bear the consequences of the suspension of construction. Come the pressure.
Beijing Stock Exchange project listing information shows that since 2016, Shouxing Mining Dachang has generated no revenue, and its operating income and net profit are both zero. As of the end of June 2017, the total assets were 4.69 billion yuan, the total liabilities were 1.775 billion yuan, and the owners' equity was 2.918 billion yuan.
In July this year, the Huoqiu County Market Supervision and Administration Bureau listed Shouxing Mining Dachang on the list of operating abnormalities because it failed to publish its annual report in accordance with the time limit stipulated in Article 8 of the "Interim Regulations on Enterprise Information Disclosure".
Project information listed on the Beijing Stock Exchange shows that due to delays in the construction of the project of the target company (i.e. Shougang Dachang), the performance of some contracts signed by the target company has been suspended, and related disputes such as claims by the counterparty to the contract may arise.
The cooperative companies whose contract fulfillment process has changed include the listed company Sinosteel International.
According to the restructuring supporting fund-raising plan announced by Sinosteel International in 2013, 1.17 billion yuan was raised for "Huoqiu Iron Mine Deep Processing Project Gas Waste Heat Power Generation EPC General Contracting and other projects."
In November 2014, Sinosteel International announced that the planned completion time of the gas waste heat power generation EPC general contracting project of the Huoqiu iron ore deep processing project was changed from 2014 to 2016. The Huoqiu comprehensive pipe network facility project EPC general contracting project, informationization The planned completion time of the construction project has also been changed from the original 2015 to 2016. As the
project was completely shut down in 2014, the remaining funds raised were used for other purposes. In July 2016, Sinosteel International issued an announcement stating that in September 2014, it was approved to raise 1.17 billion yuan of funds specifically for Huoqiu Iron Mine-related projects, and it is now applying to change the remaining 555 million yuan to "supplement the company's working capital." ". During the suspension of the
project, Sinosteel International was exposed to a financial scandal, which was related to the Huoqiu project.
In March 2017, Sinosteel International received a "decision ordering corrective measures" from the Jilin Supervision Bureau of the China Securities Regulatory Commission. The company's wholly-owned subsidiary Sinosteel Equipment Co., Ltd.'s Huoqiu Iron Ore Deep Processing Project revenue recognition was intertemporal. In 2014, the settlement income of 407.6814 million yuan from previous years (2012 and 2013) was recognized, resulting in an inflated increase of 407.6814 million yuan in operating income of Sinosteel Equipment in 2014 and an inflated increase in total profit of 27.1616 million yuan.
According to subsequent announcements, Sinosteel Equipment's net profit after deducting non-recurring gains and losses in 2014 was adjusted from 454 million yuan to 434 million yuan. It failed to complete the profit performance compensation commitment during the restructuring, and the difference was 3.1562 million yuan. Sinosteel International The net profit in 2014 also decreased by 20.3712 million yuan.
After experiencing project suspension, changes in the use of raised funds and financial fraud scandals, the Huoqiu project has caused a large amount of bad debts in Sinosteel International's financial reports.
According to the 2016 annual report of Sinosteel International, the contract value of the Huoqiu project was 5.266 billion yuan, the cumulative recognized revenue was 1.326 billion yuan, the balance of receivables was 820 million yuan, and the completion progress was 30.69%. According to the 2017 interim report, the cumulative recognized revenue of the Huoqiu project is still 1.326 billion yuan, the balance of receivables has increased to 999.6 million yuan, and the completion progress is 30.69%. This figure continued in the third quarter report of 2017.
According to the top five accounts receivable at the end of the period compiled by debtor party announced in the 2016 annual report, Shougang Dachang ranked third with an end-of-period balance of 820 million yuan, bad debt provisions of 205 million yuan, provision The proportion is 25%. As of the 2017 mid-term report, Sinosteel International's accounts receivable from Shouxing Mining Dachang was 999.6 million yuan, ranking first, and corresponding provision for bad debts was 260 million yuan, with a provision ratio of 26%.
Since 2015, Sinosteel International’s revenue has continued to decline. In the first three quarters of this year, Sinosteel International's operating income was 4.839 billion yuan, down 18.34% year-on-year; net profit was 323 million yuan, down 12.53% year-on-year.
"Asset impairment losses drag down performance." Zhongtai Securities stated in the report that Sinosteel International's asset impairment losses last year were 556 million yuan, an increase of 217 million yuan year-on-year, mainly due to the aging of some domestic project receivables and the provision for Bad debt losses increased.
As of the end of September 2017, Sinosteel Equipment’s monetary funds were 1.34 billion yuan, which continued to shrink significantly from 1.81 billion yuan at the end of June.
"Sinosteel Equipment's funds are relatively tight, and our equipment payments are currently in arrears for a long time and have not been received." On November 25, a supplier of Sinosteel Equipment (that is, a member company of Sinosteel International responsible for the Huoqiu project) who requested anonymity Shang told reporters, "I asked them, and they said that the owner didn't give them money, so they didn't have the corresponding money to give us."
Private shareholders no longer have executable assets
The status of "Anhui Mine King" is a mystery
Regarding the long-term financial "burden" of the Huoqiu project, what is Sinosteel International's current attitude and will it dispose of this asset? In response, a reporter from the Beijing News called the Securities Department of Sinosteel International on November 26. The other party said that to accept the interview, one must contact Beijing personnel. No one answered the call after a reporter from the Beijing News called, and there were no replies to interview questions sent to Sinosteel International and its parent company Sinosteel Group .
While Shouxing Mining listed its shares for sale, the operating conditions of the remaining shareholder, Dachang Mining, were not optimistic.
According to a 2013 report by China Business News, while Ni Fake was under investigation, Ji Lichang was also controlled by relevant departments.In public reports and in open case trials, Ji Lichang’s information has been difficult to find. Regarding whether Ji Lichang was investigated, prosecuted and tried, on November 26, a reporter from the Beijing News called Lu Yongtao, head of the Propaganda Department of Huoqiu County, and the other party said he did not know the situation.
At present, Ji Lichang is no longer the major shareholder of Dachang Mining. According to
industrial and commercial information, in 2010, Ji Lichang held 96.72% of the shares, Zheng Gaizhong held 1.64%, and Wang Yanwei held 1.64%. Currently, Ji Shaoqing, Ji Shaojie, and Ji Shaobo hold 30.17% of the shares respectively, while Ji Lichang holds 9.49% of the shares.
There are unconfirmed rumors that Ji Shaoqing is the son of Ji Lichang. What is certain is that Ji Shaoqing and Ji Lichang have a close relationship. A reporter from the Beijing News saw on the live broadcast of the Yang Xianjing case published on the official website of Bengbu Intermediate Court in Anhui Province that Ji Shaojie and Ji Shaoqing appeared as witnesses. They proved that 10 million yuan was transferred out of the company according to Ji Lichang's arrangement, and that Ji Shaojie handled it and transferred it to another person's account at Yang Xianjing's request, etc.
As a private shareholder of the first mine Dachang, Dachang Mining’s operations are not optimistic. According to the case information collected by Tianyancha, Dachang Mining is currently involved in more than 100 lawsuits, and has been listed as a defaulter 10 times and a person subject to execution 21 times. According to Tianyancha, the Anhui Local Taxation Bureau issued a tax arrears announcement in July 2017, and Dachang Mining was among them. The tax type was value-added tax, and the amount of tax arrears was not announced.
The judgment document shows that Dachang Mining has no enforceable assets.
For example, in the execution ruling issued by the People's Court of Huoqiu County, Anhui Province in November 2016, this court applied for execution in the case of a dispute over the sales contract between Jiangsu Juda Machinery Manufacturing Co., Ltd. and the party subject to execution, Anhui Dachang Mining Group Co., Ltd. The person did not provide clues about the property of the person subject to execution, and after investigation, this court did not find that the person subject to execution had any property that could be used for execution. In accordance with regulations, this execution procedure is terminated. If the person applying for execution finds that the person subject to execution has property available for execution, he may apply for execution again.
Sinosteel International is waiting to be "rescued"
The problematic project is now the "intended party"
When state-owned shareholders withdraw and the only remaining private shareholders are "unable to protect themselves", an unknown new takeover may become the project itself or even go public The company is the "savior" of Sinosteel International's current predicament.
As of now, "who will come to the rescue" is not yet known.
In fact, the local government also tried to promote the resumption of the project and planned to introduce external investors to resolve the crisis, but nothing happened later.
In April 2016, the official website of the Lu'an Municipal People's Congress announced the "Recommendations on the Establishment of a Leading Group for the Resumption and Construction of Huoqiu's 3 Million Ton Steel Deep Processing Project", which recommended the establishment of a leading group for the resumption and construction of the Huoqiu Steel Plant in Lu'an City, which would be composed of the municipal party committee or the municipal government. The main government leaders serve as team leaders, and relevant municipal party committee members and deputy mayors serve as deputy team leaders.
More than a year has passed, and the resumption of work on the Huoqiu project is still a problem.
In June this year, a "Summary of the Work of the Huoqiu Economic Development Zone Management Committee from January to June 2017" published by the Huoqiu County Development Zone Information Disclosure Network stated that "Although it has received great attention from provincial, municipal and county leaders, especially Since October last year, provincial, city and county leaders have inspected many times, but the resumption of the project has been slow, and the adverse social and economic impacts of the shutdown have become increasingly apparent.”
The report also said, “The city, county and district are linked together, and Hebei De. Long Group, Xinjin Holding Group and other interested parties have conducted in-depth negotiations, pushing the First Mining Group to agree to transfer the equity, and preparations for the resumption of work at the steel plant have achieved effective results. "
Since the complete shutdown in 2014, the issue of the resumption of work at the First Mining Dachang has continued to remain unresolved. Decide. Affected by this, Sinosteel International's performance difficulties have continued to intensify.
On November 26, regarding the current progress of the project and the introduction of investors, Lu Yongtao, head of the Propaganda Department of Huoqiu County, told the Beijing News reporter that he “didn’t know much” about the situation. Recently, reporters from the Beijing News called Dachang Mining and Shouxing Mining Dachang many times, but no one answered the calls of the two companies.
Beijing News reporter Zhao Yibo reports from Beijing
For more detailed news, please visit the Beijing News website www.bjnews.com.cn
