Recently, cedar holdings, the “No. 1 private enterprise in Guangzhou”, was exposed to be in a financial cashing crisis, which aroused great concern in the market. Its listed companies Zibo Qixiang Tengda Chemical Co.Ltd(002408) (002408) and Cedar Development Co.Ltd(002485) (002485) also received letters of concern from the exchange. Just now, both listed companies replied to the inquiry of the exchange.
Among them, Zibo Qixiang Tengda Chemical Co.Ltd(002408) said that cedar holdings was taking measures to settle the payment of overdue products, and the company’s daily production and operation activities were normal. Cedar Development Co.Ltd(002485) said that the operation of cedar trust will not have an impact on the company’s operation, and there is no risk of closing positions in the short term for the Pledged Shares of the controlling shareholder.
The matter can also be traced back to February 10. Some media reported that a number of trust products of cedar trust under cedar holdings failed to be cashed as scheduled at the end of January 2022, involving an amount of nearly 20 billion yuan. Cedar Holdings has two listed companies, namely Zibo Qixiang Tengda Chemical Co.Ltd(002408) , Cedar Development Co.Ltd(002485) . Among them, the actual controller of Zibo Qixiang Tengda Chemical Co.Ltd(002408) is Zhang Jin, the founder of cedar holdings, and the indirect controlling shareholder of Cedar Development Co.Ltd(002485) is cedar holdings.
In the context of the above news, on February 11, Cedar Development Co.Ltd(002485) , Zibo Qixiang Tengda Chemical Co.Ltd(002408) fell 7.94% and 5.15% respectively. The matters reported by the media soon attracted regulatory attention. On February 11, the Shenzhen stock exchange quickly sent a letter of concern to Zibo Qixiang Tengda Chemical Co.Ltd(002408) and Cedar Development Co.Ltd(002485) on the above matters.
So far, how about the guarantee provided by the actual controller of Zibo Qixiang Tengda Chemical Co.Ltd(002408) and its subsidiaries for Zibo Qixiang Tengda Chemical Co.Ltd(002408) ? Does the overdue payment of trust products affect the guarantor’s ability to perform guarantee obligations? Zibo Qixiang Tengda Chemical Co.Ltd(002408) is debt renewal adversely affected? With regard to the above issues, the Shenzhen Stock Exchange has inquired about Zibo Qixiang Tengda Chemical Co.Ltd(002408) one by one in the attention letter issued by the Shenzhen Stock Exchange.
In the latest reply letter, Zibo Qixiang Tengda Chemical Co.Ltd(002408) disclosed that cedar holdings and the actual controller of the company are taking measures to solve the cashing of overdue products and made a commitment on the cashing schedule. Zibo Qixiang Tengda Chemical Co.Ltd(002408) said that at present, the above events have not affected the company’s production and operation and the construction of new projects, and the company’s daily production and operation activities are normal.
In addition, according to the reply letter, up to now, the loan balance guaranteed by the actual controller of Zibo Qixiang Tengda Chemical Co.Ltd(002408) and its subsidiaries for Zibo Qixiang Tengda Chemical Co.Ltd(002408) is 2.15 billion yuan. Zibo Qixiang Tengda Chemical Co.Ltd(002408) said that up to now, the above loans have not expired. According to the current project construction progress, it is expected that the above loans do not need to be renewed.
In addition to Zibo Qixiang Tengda Chemical Co.Ltd(002408) , whether Cedar Development Co.Ltd(002485) as another listed company under cedar holdings is affected is also the focus of the exchange. According to the annual report of Cedar Development Co.Ltd(002485) 2020, Cedar Development Co.Ltd(002485) controlling shareholder cedar cultural investment and its concerted actor Junkai investment have pledged 97.44% of the company’s shares. On January 21, 2022, the Cedar Development Co.Ltd(002485) 4895500 shares held by Junkai investment were frozen by the judiciary.
Therefore, the Shenzhen stock exchange requires Cedar Development Co.Ltd(002485) to explain the impact of overdue non cashing of the trust products of cedar trust under cedar holdings on the production and operation of the company, whether the controlling shareholders of the company have the risk of stock pledge closing positions, and whether the control right of the company is at risk of instability.
For the exchange problem, Cedar Development Co.Ltd(002485) frankly speaking, although the company and cedar trust are legal persons under the control of the same actual controller, the company and cedar trust are independent legal persons, which are completely separated in terms of business, personnel, assets, institutions, finance and so on. Therefore, the operation of cedar trust will not have an impact on the company’s production and operation. At present, the operation of the company is normal.
In addition, Cedar Development Co.Ltd(002485) said that there was no risk of closing positions in the short term for the shares pledged by cedar cultural investment and its concerted actor Junkai investment, which would not lead to the change of the actual control of the company. At present, the control of the company is stable. Cedar Development Co.Ltd(002485) will also continue to pay attention to the share pledge, freezing and risks of the controlling shareholders and their persons acting in concert.
