In January 29th, Yurun Group official public “Yurun” announced that 44 reformed companies in Nanjing, such as Yurun, were voted close by the high vote rate close to the vote. (the official account of the Nanjing intermediate people’s court decided that the voting agreement was more than 99.7%).
Zhu Yicai, the actual controller of Yurun Group, issued a document on the theme of “gratitude, gratitude and gratitude” to thank all parties for their support: “this is the turning point of Yurun, who has gone through seven years of hardships, from desperate to rebirth. After the winter cold, there will be sunshine.”
In 2001, Zhu Yicai entered the Forbes China rich list for the first time, ranking 53rd. In 2004, Zhu Yicai ranked 41st and became the richest man in Jiangsu with a value of 230 million US dollars.
Around 2014, Yurun Group had annual sales of more than 150 billion yuan and 130000 employees. Its comprehensive strength once ranked seventh among China’s top 500 private enterprises. It was one of the first batch of key enterprises in Jiangsu Province to hit the world’s top 500. However, since 2015, Zhu Yicai has been under surveillance and arrested for many times. As a result, Yurun Group has turned straight down and finally had to go bankrupt and restructure.
Source: official account of Yurun
Zhu Yicai is still in control, and the bet is listed in 2027
At the end of last year, the bankruptcy reorganization plan of Yurun Group was released.
According to Xinhua News Agency Jiangsu, the “second debt meeting” of the reorganization case of Yurun Group was held online recently. In this restructuring plan, the equity of 275 companies of “Yurun series” was adjusted to the securitization platform of “Yurun selection”. After the conversion, the creditors of 122 companies will hold 37.29% of the shares of the securities platform, and Huarong Jiangsu Branch, as the war investor, will contribute about 3 billion yuan and hold 7%.
According to a number of media reports, Zhu Yicai holds 33% of the shares of the securities platform at zero consideration through Yurun holdings controlled by him, and the other 23% of the shares are reserved. Yurun Holdings has 100% voting rights in this part of the shares. This means that Yurun holding has 56% of the voting rights.
The “Yurun select” securitization platform promises to realize a net profit of no less than 5 billion yuan in 2026 and apply for IPO listing in 2027. At that time, the restructuring investors will withdraw from the platform and the creditors will obtain higher income from the capital market.
The specific repayment plan for the debt is: cash repayment within one year after the approval of the reorganization plan for ordinary creditor’s rights less than 300000; Cash repayment within 5 years under 3 million; More than 3 million shares are “paid with shares” at 17.8 yuan per share, corresponding to 35 times the P / E ratio, which is equivalent to 65 billion yuan of creditor’s rights. The creditor’s rights are converted into shares at the valuation of 175 billion yuan in the future.
Yurun’s bankruptcy reorganization plan has two special features: first, the founder Zhu Yicai is not out, but continues to control the company and convert a large proportion of debt into equity; Second, the plan sets the net profit and IPO gambling commitment. If the listing fails, the securities platform will repay the debt converted into shares in installments in the next ten years.
Ping An and Huarong both intend to
According to the audit results, the total asset valuation of all the listed companies included in the Yurun restructuring plan is about 127 billion yuan, and the net asset is about 9 billion yuan, including 100% equity of Yurun holdings, Nanjing Central Emporium (Group) Stocks Co.Ltd(600280) (600280. SH), all stocks of two “Yurun” listed companies of Yurun Food (1068. HK) and other high-quality resources outside the system, which are used to ensure the smooth progress of the restructuring plan and debt repayment.
According to the annual report data of Yurun Food, the accumulated loss of the company from 2015 to 2020 was as high as HK $18 billion. As of June 30, 2021, the company has total assets of 1.117 billion yuan and total liabilities of 1.315 billion yuan.
Nanjing Central Emporium (Group) Stocks Co.Ltd(600280) from 2017 to 2019, the total annual revenue was more than 8 billion yuan, which fell to 3.183 billion yuan last year affected by the epidemic. However, the company reversed its losses in 2020, while the net profit attributable to the parent company in 2018 and 2019 was -928 million yuan. According to the official website, the company has 16 shopping malls across the country and 12 commercial real estate projects under construction.
In addition, Yurun Group also has layout in many fields such as construction, real estate, property, hotel and Shenzhen Agricultural Products Group Co.Ltd(000061) with considerable asset scale.
Huarong is not the only interested investor in Yurun. Ping An Trust and Huarong were shortlisted at the first creditors’ meeting on the bankruptcy and reorganization of 122 companies under Yurun Group held in June this year. To some extent, this shows that although the liquidity of Yurun Group is exhausted and the capital chain is broken, its assets are relatively excellent.
It is worth noting that another veteran private enterprise giant in Jiangsu sanbo group passed the restructuring plan on November 30, and Huarong Jiangsu branch was also rescued, providing it with 8 billion yuan of financial support.
China Huarong (2799. HK) previously publicly said that it would take four measures to deal with huge losses, one of which is to “maintain and promote the return to the main business and the slimming development strategy of chemical insurance”. Become the investor of the reorganization war of Sanxian and Yurun private enterprises, with a total investment of more than 10 billion yuan, or the embodiment of returning to the main business of AMC.
If Yurun’s reorganization plan is not adopted, the next step is to go through the court bankruptcy proceedings. However, the final result of the high vote shows the recognition of the scheme by all parties.
The whole story of Yurun crisis
Recalling the Yurun debt crisis, it was mainly due to the long-term loss of contact of the company’s founder Zhu Yicai, which caused financial institutions to “draw blood” from Yurun for more than 15 billion yuan in a short time, resulting in the depletion of enterprise liquidity, the rupture of capital chain and the rapid deterioration of operation.
In 2001, Zhu Yicai entered the Forbes China rich list for the first time, ranking 53rd. In 2004, Zhu Yicai ranked 41st and became the richest man in Jiangsu with a value of 230 million US dollars.
On October 3, 2005, Yurun Food completed the IPO of Hong Kong stocks and successfully landed in the capital market. At the same time, Zhu Yicai became the actual controller of the listed company Nanjing Zhongshang ( Nanjing Central Emporium (Group) Stocks Co.Ltd(600280) predecessor, 600280. SH) through continuous placards. Control two listed companies in one fell swoop, and the “Yurun system” was officially formed.
A year later, Yurun Group was established and has entered many fields such as real estate, logistics, tourism, finance and so on. According to the list of China’s top 500 enterprises, in 2012, the overall operating revenue of Yurun Group reached 106.1 billion yuan, ranking 112th in China, and Yurun 100 billion Empire ushered in the peak.
However, all this ushered in a major turning point with Zhu Yicai being monitored.
On March 27, 2015, Nanjing Central Emporium (Group) Stocks Co.Ltd(600280) announced that the procuratorial organ would implement the compulsory measures of residential surveillance at the designated residence for Zhu Yicai, the chairman and actual controller of the company, from March 23, 2015.
As soon as the news came out, the market shook.
On the one hand, institutions began to tighten the borrowing of the whole Yurun system. Many creditors of Yurun Group asked the court to freeze Zhu Yicai’s personal property and the equity of listed companies. On the other hand, the company has laid off staff and is in turmoil.
On January 18, 2018, Hangzhou Municipal People’s Procuratorate filed a lawsuit with Hangzhou intermediate people’s court for the defendant Zhu Yicai’s suspected bribery, breach of trust and damage to the interests of listed companies, and intentional destruction of accounting vouchers. On January 12, 2018, Hangzhou Municipal People’s Procuratorate held that it did not constitute misappropriation of public funds and transferred it to Hangzhou intermediate people’s court for trial on the crime of bribery.
On January 10, 2019, due to unclear facts and insufficient evidence, Hangzhou people’s Procuratorate voluntarily withdrew the charges of bribery and other crimes.
On January 22, 2019, Yurun Food and Nanjing Central Emporium (Group) Stocks Co.Ltd(600280) both announced that Zhu Yicai, the actual controller, had returned home.
After “going home”, Zhu Yicai faced the “rain run system” that fell into the mire.
The actual controller lost contact for a long time, the company’s diversification stalled, and Yurun’s capital chain crisis broke out under the combination of many factors.
Xiao Zhuqing, a consumer goods expert, said to YEMA finance that “this is mainly because the strategy is not focused enough, and the talents and funds in the later stage can not keep up with the expansion speed. However, the fluctuation level of China’s pork price market itself is large. The ‘non-specific’ Yurun lacks all-round support from the industry chain, and it is very easy to have problems in the decline of the industry”.
Being courageous and adventurous is the impression of Zhu Yicai. In the seven years when Yurun fell into a trough, earth shaking changes have taken place in China’s private capital family. Tomorrow, HNA, AB, etc. will fall apart. The great leap forward M & A and high leverage operation are no longer applicable to the current environment. Xingwen Zhiyuan has become the theme word for the development of large enterprises.
Zhu Yicai also reflected in his letter of thanks: “Yurun has been very difficult in recent years. The company has reduced from 130000 employees at the peak to more than 30000 today. A large number of employees have no choice but to leave, which has brought a lot of pressure and burden to their families and life. I feel very guilty about this… I also want to thank this painful journey, those who don’t look good at Yurun, and even their opponents. It is because of you that Yurun can take every step more smoothly Be careful, more prudent and more stable. “
For a long time, from the latest restructuring plan, we can see Zhu Yicai’s determination to save Yurun. Do you think Yurun can rise again?
