Recently, Central China Securities Co.Ltd(601375) ( Central China Securities Co.Ltd(601375) . SH) announced that after the company and its subsidiaries conducted a comprehensive inventory and impairment test of various financial assets, inventories and long-term assets, the provision for credit impairment was RMB 218 million in the second half of 2021, of which the impairment of debt investment was RMB 650159 million.
The reporter of Huaxia times checked Central China Securities Co.Ltd(601375) financial report and found that by the end of June 2021, the company’s debt investment had totaled 610 million yuan, mainly divided into 205 million yuan of trust plan, 146 million yuan of private debt and 244 million yuan of asset management plan. The asset management plan is the alliance No. 17 and Zhongjing No. 1 that once exploded mines.
It is hard to understand that Central China Securities Co.Ltd(601375) 2019 accepted the above asset management plan with a price increase of 244 million yuan in the absence of principal guaranteed income after the mine explosion. Afterwards, Central China Securities Co.Ltd(601375) seems to think that the asset management plan is safe enough, while continuously withdrawing impairment losses for the above asset management plan.
Among the 650159 million yuan of debt investment impairment, how many asset management plans are there? What is the rationality of insisting that there is no bottom line? Has today’s large-scale accrual caused the loss of shareholders’ interests? In this regard, the reporter of Huaxia times sent an interview letter to Central China Securities Co.Ltd(601375) the staff of the company not only told the reporter that the specific impairment information of debt investment would be disclosed in the annual report, but also gave no specific reply to other questions as of press time.
A PE Manager from Henan told the Huaxia times: “at present, any form of principal and interest protection in the asset management plan is not subject to judicial protection, but the behavior of some state-owned enterprises can not always be understood by market logic. Some state-owned enterprises do so for the purpose of maintaining stability, or some leaders do not affect their official career.”
increase the price to accept the offer and insist that there is no bottom
The reporter of Huaxia times found that Central China Securities Co.Ltd(601375) acted as the manager and promoter of the above two asset management plans, and China Citic Bank Corporation Limited(601998) Zhengzhou branch acted as the custodian of the above two asset management plans.
According to the announcement issued by Central China Securities Co.Ltd(601375) 19 on July 12, 2019, the establishment scale of alliance 17 is 59.84 million yuan, which was officially established on December 8, 2017 and expires on April 24, 2019; The establishment scale of Zhongjing No. 1 is 181.65 million yuan. It was officially established on February 5, 2018 and expires on May 7, 2019.
At that time, Central China Securities Co.Ltd(601375) during the follow-up management of the above asset management products, it was found that there was a risk that the financier could not repay the principal and interest on schedule. In the process of risk investigation, the company obtained the evidence of false documents provided by the financier and reported the case to the public security organ, which filed the case for investigation on May 4, 2019.
According to the above announcement of Central China Securities Co.Ltd(601375) , the scale of alliance 17 and Zhongjing 1 is 241 million yuan in total.
The reporter of Huaxia Times noted that Central China Securities Co.Ltd(601375) said in the announcement that there was no principal and income guarantee clause in the documents related to the above asset management products, and the company’s own funds did not participate in the establishment of the above asset management products.
It is hard to understand that Central China Securities Co.Ltd(601375) unexpectedly accepted the above asset management plan at a price of 244 million yuan in the absence of principal guaranteed income and explosion.
In the announcement on July 9, 2020, Central China Securities Co.Ltd(601375) said that since July 2019, Zhongyuan small loan will transfer the usufruct of the asset management plan trustor in batches. As of the disclosure date of this announcement, Zhongyuan small loan has paid a total of 2411313100 yuan for the transfer of usufruct. In the 2020 annual report, Central China Securities Co.Ltd(601375) said that the remaining 03 million yuan of the share transfer of the asset management plan payable was included in other payables.
Why can’t we call it a bottom line for price increase?
Central China Securities Co.Ltd(601375) said in the announcement that in the case that the two asset management plans, Beijing No. 1 and alliance No. 17 cannot be cashed normally when they are due, with the progress of investigation, on the basis that the value of seized and frozen assets has far exceeded the total amount of creditor’s rights of the company, in order to prevent Risk Spillover and in combination with the situation of asset recovery, The company’s formulation of the usufruct transfer scheme of the asset management plan based on liquidity support is not the company’s potential disclosure to investors and making up for the difference.
After reading this lengthy and awkward statement, the reporter found that Central China Securities Co.Ltd(601375) believes that the rationality of the price increase and mine explosion asset management lies in that the assets seized and frozen far exceed 244 million yuan, so although the mine explosion is safe, the asset management plan.
who is harmed by a large proportion of provision
But is that really the case? The reporter of Huaxia times found that Central China Securities Co.Ltd(601375) is actually “split”. It seems that while it believes that the asset management plan is safe enough, it continuously accrues impairment losses for the above asset management plan.
According to the 2019 annual report, Central China Securities Co.Ltd(601375) confirmed the loss of 49 million yuan to Zhongjing No. 1 and Lianyuan No. 17 according to the recoverable asset value.
According to the annual report of 2021, Central China Securities Co.Ltd(601375) accrued 93 million asset impairment losses for Zhongjing No. 1 and Lianyuan No. 17.
By the end of June 2021, Central China Securities Co.Ltd(601375) had withdrawn 142 million yuan of impairment provision for Zhongjing No. 1 and Lianyuan No. 17, accounting for 58.2%.
If the impairment provision of 650159 million yuan mentioned at the beginning of the article is added, the book value of the two asset management plans of Zhongjing No. 1 and alliance No. 17 is little left.
A PE Manager from Henan told Huaxia times: “At present, any form of principal and interest protection in the asset management plan is not subject to judicial protection, but the behavior of some state-owned enterprises can not always be understood by market logic and is not always consistent with the interests of the company and shareholders. Some state-owned enterprises do so for the purpose of maintaining stability or for the purpose of not affecting their official career.”
According to the data, Kan Mingjun, chairman of Central China Securities Co.Ltd(601375) has served as president of Central China Securities Co.Ltd(601375) from October 2008 to August 2012, chairman of Central China Securities Co.Ltd(601375) since August 2012 and Secretary of Central China Securities Co.Ltd(601375) Party Committee since November 2014. At present, he is also the director of China Securities Association and the president of Henan securities and Futures Association. He was a cadre of the comprehensive planning department of the Ministry of finance, the deputy director of the office of Henan Provincial Department of finance, the executive vice president of Asia Pacific accounting group, the director of the Office of Henan Provincial Department of finance, and the chairman of the supervisory board of state-owned enterprises under the provincial administration of Henan Provincial People’s government.
