On February 10, cedar Holdings Group Co., Ltd. (hereinafter referred to as “Cedar Holdings”), with the halo of “world top 500” and “Guangzhou No. 1 private enterprise”, was questioned by many investors about the overdue payment of trust products. On the same day, an investor who went to cedar holdings headquarters to discuss the statement told the Shanghai Securities News: “this morning, cedar (Holdings) executives have been talking about the plan in the conference room. Now they have not met with the investor.”
Cedar holdings official website pictures
According to the above investors, since the end of March 2021, many products of cedar trust under cedar holdings, such as Changqing and Changtai, have been overdue, involving nearly 8000 investors across the country, with an amount of nearly 20 billion yuan.
The reporter called cedar holdings for overdue payment, but the other party said there was no clear official response. So far, as of press time, cedar Holdings has not made any response.
repeatedly promised to honor but repeatedly postponed
Mr. Zhang, the investor, told reporters that the second phase of the cedar trust Changying No. 83 product, which he invested in at the end of 2020, should have received the payment on January 28, 2022, but the payment did not wait, but he waited for a “letter of apology”.
On January 30, 2022, Zhang Jin, chairman of the board of directors of cedar holdings, said in a letter of apology signed by him that due to various factors such as asset characteristics, transaction price and transaction process, the asset disposal and payment collection plan could not be implemented according to the overdue plan, and the cashing originally scheduled to be completed at the end of January could not be completed.
The letter of apology promises: “after the Spring Festival, we will further dialogue with investors to discuss the scheme and reach a consensus. In any case, we will ensure that the payment will be completed before the end of February (2022)”.
According to insiders close to cedar holdings, Zhang Jinzheng, chairman of the board of directors of cedar holdings, is seeking to raise funds by transferring the controlling rights of its subsidiaries.
In fact, cedar has been overdue for many times before. According to Miss Li, an investor, since April 2021, cedar trust has issued “notification letters on product cashing arrangements” to investors for many times, but she has never received any cashing funds.
A “notification letter on the use of products from September to December 2021” shows that for the products that expire and have not been cashed from September 1, 2021 to December 31, 2021, the principal will be cashed in phases according to the proportion of 10%, 10%, 10%, 20% and 50% in March, 2022, June, September, December and March 2023, respectively.
Notification letter of payment arrangement for cedar holdings products
Miss Li further said that in July and September 2021, she did not get any cashing funds for overdue projects such as “Shanghai Xinyi Qinghong 3M2 debt project”.
In September 2021, the reply from the Financial Bureau of Guangzhou Development Zone showed: “for complaints, cedar holdings will fulfill the obligation of making up the difference according to the agreement and speed up the collection to complete the payment obligation. At present, relevant cashing plans have been formulated, and the products will be cashed no later than the end of January 2022.”
Reply from the Financial Bureau of Guangzhou Development Zone
“I’ve been meeting and communicating this morning, and there’s no solution.” According to insiders of cedar holdings, as early as the beginning of 2022, Zhang Jin and senior management of the company had several rounds of communication on this issue, and no unified solution had been reached. On the evening of the 9th, cedar holdings employees received a notice and worked from home today, but did not tell the specific reason.
many investors invest in because they like big brands
Speaking of the reasons for participating in the investment, Mr. Zhang said: “cedar is a big brand. It is said to be the largest private enterprise in Guangzhou and one of the top 500 enterprises.” He said that it was against the strong strength background of cedar holdings that he bought cedar trust products.
According to public data, cedar holdings was founded in 1997 and headquartered in Guangzhou. It is a global top 500 enterprise growing up in Guangzhou and a leading commodity enterprise in China. With a revenue of 233.4 billion yuan, it ranks 359 in the Fortune 500 in 2021.
As a cedar trust under cedar holdings, formerly known as Zhongjiang trust, it was acquired by cedar holdings in 2018 and renamed cedar trust. Cedar holdings became a shareholder in April 2019. In May, it launched the face-to-face signing of the transfer of usufruct of overdue project investors, which is the largest transfer of usufruct in the history of the trust.
Insiders revealed that just dissolving the previous “sector” of Zhongjiang trust cost nearly 10 billion of cedar trust.
Mr. Zhang said that from the end of March 2021, some projects of Zhongjiang trust have also stopped cashing. According to the annual report of cedar trust in recent two years, the bad debt provision of cedar trust reached 1.085 billion yuan and the net loss reached 728 million yuan in 2020; In 2019, the provision for bad debts amounted to 1.292 billion yuan and the net loss was 1.534 billion yuan.
At the beginning of 2021, Zhang Jin said in a new year’s dedication entitled “the avenue is very Yiyi, the light is ahead”: “in the past year, cedar trust has been reborn and fulfilled its commitment of ‘being responsible to the end’ step by step. The historical burden has been basically removed, and the business has fully returned to the right track.”
Zhang Jin also said: “we should believe that more than 20 years of reputation and reputation are the best ballast.”
where does cedar trust fund invest?
What are the investment targets of cedar trust after all?
A number of investors said that the project investment of cedar trust includes projects such as Daojin stock exchange and factoring company, as well as projects such as Guangzhou old reform and smart city.
In September 2021, media reports questioned that the underlying assets of cedar trust’s 20 billion supply chain financial products were empty, and the company was suspected of self financing. However, cedar holdings subsequently clarified that the underlying assets of the product were clear, and the creditor’s rights and debts of each accounts receivable corresponded one by one.
Mr. Zhang said that the trust products he invested in by the end of 2020 raised a total amount of 1.8 billion yuan, with an investment period of 13 months, and were invested in smart city projects. According to the document “class C temporary information disclosure of cedar International Trust · Changying No. 83 Guangzhou smart city industrial investment collective fund trust plan” provided by it, The exit plan of the project is “100% equity of Yunzhi (Guangzhou) intelligent Siasun Robot&Automation Co.Ltd(300024) Equipment Co., Ltd. jointly held by the trust plan and Shenzhen Ruiying No. 2 investment partnership (limited partnership) (hereinafter referred to as” Shenzhen Ruiying “) is transferred to a third party, with a transaction price of 1.9 billion yuan.”
On the afternoon of February 10, a reporter from Shanghai Securities News visited “3701, jinzhonghuan international business building, 3037 Jintian Road, Fu’an community, Futian street, Futian District, Shenzhen”, where Ruiying was registered. However, he saw that the company working at the address was “Shenzhen Ivy League art and Culture Communication Co., Ltd.”.
The reporter then arrived at room 3701. The staff of the office confirmed that Shenzhen Ruiying did not work here, and there was no trace of Shenzhen Ruiying in other office areas on the 37th floor. However, a well-known investor told reporters that according to the standard industrial and commercial requirements, there must be a corresponding address when registering, but in practice, it may also happen that the office and registration place are not the same.
The reporter inquired about the industrial and commercial data and found that Yunzhi (Guangzhou) intelligent Siasun Robot&Automation Co.Ltd(300024) Equipment Co., Ltd. was enforced by the people’s Court of Haizhu District of Guangzhou City for 20000 yuan in 2019.
A-share company under was filed for investigation
Cedar Holdings has problems, and the A-share company it controls is difficult to be alone.
According to the company’s official website, cedar chemical industry group under cedar holdings focuses on technology research and development and high-end manufacturing in the field of new chemical materials. Its core enterprise Zibo Qixiang Tengda Chemical Co.Ltd(002408) is a number of world champions in the field of fine chemicals and the largest manufacturer of methyl ethyl ketone and maleic anhydride in the world.
Introduction to chemical business of cedar Holdings
On January 19, 2022, Zibo Qixiang Tengda Chemical Co.Ltd(002408) announced that up to now, the filing investigation of the CSRC is still in progress, and the company has not received the concluding opinions or decisions of the CSRC on the above filing matters. If the documents are received, the company will fulfill the obligation of information disclosure in time, and disclose the risk warning announcement at least once a month in accordance with the relevant provisions of the stock listing rules of Shenzhen Stock Exchange, explaining the progress of case filing and investigation and its impact on the company.
On November 17, 2021, Zibo Qixiang Tengda Chemical Co.Ltd(002408) controlling shareholder Zibo Qixiang Petrochemical Group Co., Ltd. (hereinafter referred to as “Qixiang group”) received the notice of filing a case from the CSRC. Because Qixiang group was suspected of insider trading and other illegal acts, according to the provisions of relevant laws and regulations, the CSRC decided to file a case for investigation against Qixiang group.
According to the introduction of Zibo Qixiang Tengda Chemical Co.Ltd(002408) , the controlling shareholder of the company is Qixiang group, and the actual controller Zhang Jin is the founder and chairman of the board of directors of cedar holdings.
Block diagram of property right and control relationship between Zibo Qixiang Tengda Chemical Co.Ltd(002408) and actual controller
Source: Zibo Qixiang Tengda Chemical Co.Ltd(002408) 2020 Annual Report
On December 16, 2021, Zibo Qixiang Tengda Chemical Co.Ltd(002408) announced that the company recently received a notice from the controlling shareholder Qixiang group that Qixiang group provided guarantee for the financing of its shareholders and handled the pledge business of some of its shares.
According to the introduction of Zibo Qixiang Tengda Chemical Co.Ltd(002408) , as of December 16, 2021, Qixiang group and its concerted actors have accumulated 1079149417 pledged shares due in the next year, accounting for 81.51% of the company’s shares and 37.96% of the company’s total share capital, with a corresponding financing balance of 4.105 billion yuan (including 3.105 billion yuan of financing exposure). if the borrower and the pledgee adjust the repayment date and repayment amount, the maturity date and number of Pledged Shares will be adjusted together.
Cedar Development Co.Ltd(002485) supply chain business questioned
Cedar Development Co.Ltd(002485) is another A-share company of cedar holdings, which has been filed and investigated by the CSRC.
On October 12, 2021, Cedar Development Co.Ltd(002485) received the notice of filing a case from the CSRC. The company was suspected of illegal information disclosure. According to relevant laws and regulations, the CSRC decided to file a case against the company. As of January 13, 2022, the investigation work of the CSRC is still in progress, and the company has not received the concluding opinions or decisions of the CSRC on the above filing matters.
Cedar Development Co.Ltd(002485) originally engaged in clothing business, it will transform supply chain operation management and comprehensive services in 2020, which is one of the key points questioned by the outside world.
Cedar Development Co.Ltd(002485) equity structure chart
According to the introduction of Cedar Development Co.Ltd(002485) , under the strategic guidance of “diversified development and professional operation”, the company has actively restored the cultural tourism business and promoted the rapid development of supply chain management and comprehensive service business, but Cedar Development Co.Ltd(002485) is expected to make a large loss in 2021.
Cedar Development Co.Ltd(002485) 2021 performance forecast
Cedar Development Co.Ltd(002485) said that while actively restoring its cultural tourism business, the company continued to develop its clothing business steadily and rapidly developed supply chain management and comprehensive services. Affected by the repeated epidemic in many places in China, especially in East China and Yunnan, the company’s cultural tourism business did not meet expectations.
Statistics show that Cedar Development Co.Ltd(002485) ‘s supply chain management and comprehensive service business is a combination of large enterprise ERP, offline business development, online digital management, risk control management, logistics system and financial services through its “Cedar smart chain” technology platform.
Introduction to commodity supply chain business of cedar Holdings
the reporter noted that it was the supply chain operation management and comprehensive service business that led to major differences between Cedar Development Co.Ltd(002485) and the former audit institution zhongxinghua Certified Public Accountants (special general partnership) (hereinafter referred to as “zhongxinghua”).
On January 22, 2022, Cedar Development Co.Ltd(002485) announced that in comprehensive consideration of the company’s business development and audit work arrangement, it is proposed to appoint Zhongxi Certified Public Accountants (special general partnership) as the company’s external audit institution in 2021 to be responsible for the company’s 2021 financial report and relevant special audit work for one year.
In this regard, the Shenzhen Stock Exchange issued a letter of concern on January 24, 2022. On January 29, 2022, Cedar Development Co.Ltd(002485) replied to the concern letter that company changed its appointment of audit institution, mainly because zhongxinghua had different opinions on the judgment of the company’s main business and the recognition of the new regulations on revenue deduction, and the chief auditor of the original project team had also changed.
On November 19, 2021, the Shanghai and Shenzhen Stock Exchange issued guidelines on “operating income deduction”. Among them, the Shenzhen Stock Exchange issued the guidelines for the business handling of listed companies No. 12 – matters related to the deduction of operating income (hereinafter referred to as the “guidelines for the deduction of operating income”) to further standardize the deduction caliber of operating income. Zhongxinghua determined that Cedar Development Co.Ltd(002485) added new supply chain business in 2020. Within the scope of the revenue deduction guide, the company is required to deduct the revenue from supply chain business. The company has different opinions on this.
Among them, ZTE and Cedar Development Co.Ltd(002485) management have different opinions on the judgment of the company’s main business and the recognition of the new regulations on revenue deduction. After several rounds of communication, there are still great differences.
Cedar Development Co.Ltd(002485) believes that the supply chain business has become one of the main businesses and accounts for the largest proportion of operating revenue, which should not belong to the revenue deduction identified in the revenue deduction guide. In the first half of 2021, the company’s supply chain business achieved an operating revenue of 785 million yuan, accounting for 81.82% of the operating revenue.
In addition, the shares of Cedar Development Co.Ltd(002485) indirectly held by cedar holdings were frozen.
On January 29, 2022, Cedar Development Co.Ltd(002485) announced that the company recently received a notice from Guangzhou Junkai Investment Co., Ltd. (hereinafter referred to as “Guangzhou Junkai”), the controlling shareholder of Guangzhou cedar Cultural Tourism Investment Co., Ltd., who acted in concert, and learned that some shares of the company held by Guangzhou Junkai had been frozen due to joint and several guarantee liabilities arising from debt disputes.
