Jiangmen Rich and his wife is a descendant of a famous family. Changxing International is not as famous as its founder Huang Bingjun.
Huang Bingjun was once a storied figure in the capital market. He was a well-known big dealer with him, such as the "-Tianjin " of the Taiwanese rich Gu family, and the industry leader Conch Cement.
Who would have thought that such a local giant who is good at dancing in the capital market would collapse one day.
has moved from Hong Kong GEM to mainboard , and the capital market also gives Changxing International time and opportunities. However, the company's iron ore transactions have shrunk year by year, and the transformation of real estate is still in areas such as Jiangsu Yancheng , Suqian , and even Zhumadian, Henan, with low returns.
Now, there are not many opportunities left in the company.
Changxing International issued a profit warning. Founder Huang Bingjun is more famous than the company
Changxing International (00803-HK), which was suspended for several days, issued a profit warning on June 20. The company will record losses in fiscal year 2019, but no specific losses have been announced.
announcement shows that the cause of the loss is due to the impairment of assets and the fair value loss of financial assets recorded in profit and loss at fair value. At the same time, the company claimed that the loss was purely the nature of impairment provisions and did not affect the group's cash flow status. The company still has money.
, the announcement mentioned a loan default of 589 million yuan, and stated that the cash on hand was limited and unable to repay the loan. This Caihua News Agency will also mention it later.
Changxing International must mention its founder Huang Bingjun. A rich man from Jiangmen and his wife is a descendant of a famous family, Huang Bingjun was once a storied figure in the capital market, and even his business partners were well-known big players, such as the "Taiwanese Clay" of the Taiwanese rich Gu family, and the industry leader Conch Cement (00914-HK).
He started his business in his early years by operating decorative panel building materials, and later established Changxing International , whose main business is iron ore trade. The company directly purchases iron ore from South Africa, Brazil and Malaysian manufacturers and sells it to the Chinese market.
Early, those who do international trade have made a fortune. At the most glorious time in their life, they once owned the equity of three listed companies. In addition to Changxing International , there are also PMHL listed in London and Chaodong Shares listed in Shanghai.
But what really made Huang Bingjun famous is his former ATV boss. In 2010, he bought a large sum of 52.4% of ATV equity. In 2015, ATV's sales were hyped up, and Huang Bingjun's figure was also common on the front pages of major media, making it famous.
However, the capital market is undercurrent. Who would have thought that such a local giant who is good at dancing would collapse one day.
Huang Bingjun pledged 529 million shares and was sold, Changxing International is a lamb to be slaughtered
Huang Bingjun is 66 years old and "Lian Po is old". Is it because the mineral projects at hand at Changxing International are not profitable?
From the latest half-year financial report, the company's two mineral projects located in Brazil and Malaysia have been suspended. On April 3 this year, United Goalink Limited, an indirect non-who has been sold for US$4.5 million in Brazil's iron ore mining and washing projects. In terms of cement business, Chaodong Cement, which once witnessed Huang Bingjun's long-standing and good-looking style, was also backed by Xinli Finance . Now Changxing International 's cement business is limited to porters, purchasing cement and clinker at low prices in the Far East and Southeast Asia, and then selling it to customers in North America and Asia-Pacific regions at high prices.
The company's transformation in recent years is still a bit of a good deal of real estate business. However, most of the company's real estate investment projects are in counties and cities such as Yancheng, Jiangsu, Suqian, and even Zhumadian, Henan, which have low economies and low housing prices. Not most of them are equity investments in local small developers, and they think the returns are not high.
's main business has been completely defeated, and Changxing International 's performance is obviously a mess. According to wind data, since 2011, except for the profit in fiscal year 2013, the company's net profit has been losses in the rest of the years.
Unit: HK$100 million Source: wind
Transfer from the Hong Kong GEM to the main board, and the capital market also gives Changxing International time and opportunities, but now, there are not many opportunities left in the company. Dongying Financial has begun to sell 529 million shares pledged by Huang Bingjun and his contacts.
Huang Bingjun and his contacts (i.e. Prosperity Minerals Group Limited, Juming (Asia) Co., Ltd. and Changxing Materials (International) Co., Ltd.) entered into a loan to Dongying in May 2018, accounting for 39.40% of the company's issued share capital.
Now these stocks have been sold off by Dongying Financial to repay loans. Due to the sale and disposal of shares, Huang Bingjun is no longer a controlling shareholder who controls or holds 30% or more of the company's voting rights, but he is still the single largest shareholder of the company.
.589 billion debt default, causing a greater default risk of 1.6 billion. Changxing International deadline has arrived?
founding stocks were sold, and Changxing International fell into a deep debt crisis.
Wind data shows that the company's liabilities have been rising year by year, with total liabilities in fiscal years of 2016 and 2017 reaching HK$6.1 billion. As of September 3, 2018, the company still had HK$6 billion in liabilities, with an asset-liability ratio of 68%.
also showed in the company's announcement on June 20 that the unpaid loan principal of Changxing International due to has HK$589 million, not counting interest. Creditors have already asked the company to repay the due loan, and the amount of this debt collection is approximately HK$393 million.
But the company also said helplessly in the announcement that there was no sufficient cash repayment. It's a bit helpless. The only thing that is thankful is that things have not yet fermented, and no creditors have committed compulsory repayment.
has not yet settled one wave, and the breach of contract has also put Changxing International on a greater risk. Among the multiple loan financings entered into by its group member companies and lenders, Changxing has required that it has no covenant that it has defaulted on any other loan financing entered into.
has violated the covenant under these financings due to the default of HK$589 million. The announcement shows that the loan repayment totaled approximately HK$1.6 billion due to failure to fulfill the repayment liability and potential violations of these financings.
Is it the "White Knight" or the financial restructuring waiting for Changxing International ?
Changxing International is more inclined to financial restructuring. The announcement shows that Changxing International is consulting with the lender for the financial restructuring plan and actively looking for investors with potential investment intentions.
Wind data shows that the company's mineral business has gradually shrunk in recent years. In fiscal year 2010, the company's iron ore business revenue was HK$7.8 billion, and by fiscal year 2017, there was still about HK$2.7 billion in revenue, while in the six months ended September 30, 2018, it was only HK$800 million.
This article is from Hong Kong stock decoding
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