On the afternoon of April 11th, the official account of the Chongqing bankruptcy court (the official WeChat public number of the fifth intermediate people's Court of Chongqing) released that in April 11, 2022, the 16 enterprises of Chongqing Energy Investment Group Limited (hereinafter referred to as Chongqing energy) and Chongqing could invest in the transportation and Transportation Battalion limited company, with the official account of bankruptcy, but with the value of reorganization and feasibility. Apply to Chongqing No. 5 intermediate people's court for bankruptcy reorganization and apply for pre reorganization at the same time
The 21st Century Business Herald found that the 16 companies applying for bankruptcy reorganization are Chongqing energy and its grandchildren and subsidiaries
Among them, Chongqing Neng investment and Operation Co., Ltd., Chongqing Yongrong Mining Co., Ltd., Chongqing Nantong Mining Co., Ltd., Chongqing Neng Investment Trading Co., Ltd., Chongqing Neng investment Chongqing New Energy Co., Ltd., Chongqing Qi Neng Dian Aluminum Co., Ltd. and Chongqing Shun'an blasting equipment Co., Ltd. are subsidiaries of Chongqing Neng investment, Chongqing Tianfu Mining Co., Ltd., Chongqing Tianhong Mining Co., Ltd Chongqing Energy Investment Group Materials Co., Ltd., Chongqing energy investment clean energy Co., Ltd., Chongqing Yunneng Power Generation Co., Ltd., Fengdu County Power Generation Co., Ltd., Chongqing Bashan Hydropower Development Co., Ltd. and Ganluo Gongpeng Power Development Co., Ltd. are the grandchildren and great grandchildren of Chongqing energy.
according to the reporter, the reason why Chongqing energy needs bankruptcy and reorganization is that some of its industries have cut off the source of income: due to the reduction of coal production in Chongqing and the requirement of the municipal government to eliminate backward production capacity and close out coal mines in 2021, 14 coal mines under Chongqing energy have been shut down
21 Century Business Herald reporter asked a number of local financial institutions that the debt repayment crisis of Chongqing energy began to appear two years ago, which also had a small impact on the asset quality of some banks in a short time, and many institutions have made risk provision in advance
On April 12, the official website of Chongqing energy released an article entitled "the group held a special meeting to study and deploy the promotion of pre reorganization", which revealed that song Kui, Secretary of the Party committee and chairman of the group, presided over a special meeting of the group on April 11 to study and deploy the promotion of the pre reorganization of the group.
total assets exceeding 80 billion and liabilities exceeding 60 billion
Chongqing energy is 100% directly controlled by Chongqing SASAC, with a registered capital of 10 billion and a stable rating of AA + by China integrity international. According to its official website, Chongqing energy was integrated and established by the former Chongqing coal (Group) Co., Ltd., Chongqing construction investment company and Chongqing Gas Group Corporation Ltd(600917) Group Co., Ltd. in 2007. is the largest state-owned energy enterprise integrating investment, development, construction, operation and service in Chongqing
Earlier, Chongqing energy was one of the "eight investment" in Chongqing, that is, one of the eight municipal urban investment platforms established around 2002 and controlled by the municipal SASAC. However, after the integration and establishment in 2007, it has transformed from an urban investment platform into an operating state-owned enterprise.
According to the data, the latest financial report released by Chongqing energy is the mid-2021 report, with total assets of 82.473 billion yuan, decreased by 14.37% compared with the end of the previous year and 28.98% compared with the end of 2019 its liabilities were 60.738 billion yuan, with an asset liability ratio of 73.65%, almost the same as that of the previous year
In terms of net profit, the loss in the first half of 2021 was 200 million yuan, the loss in 2020 was 1.818 billion yuan, and the profit in 2019 was 391 million yuan. The revenue also showed a sharp decline. The revenue in the first half of 2021 was only 10.22 billion yuan, less than a quarter of that in 2020. The 2021 interim report also showed that the cash flow from operating activities was -5.937 billion yuan, compared with 2.829 billion yuan in the previous year.
2021 on March 10, Chongqing Energy announced in the Hong Kong stock exchange that the company was undergoing industrial structural transformation and adjustment. Due to short-term liquidity problems, the onshore letters of credit and bank bills of the company and its related subsidiaries had defaulted the company is still evaluating whether relevant events will lead to any cross default under the bonds, and is actively seeking appropriate debt solutions to timely fulfill its obligations under the bonds.
On the same day, Fitch downgraded the long-term foreign currency issuer default rating of Chongqing Energy Investment Group Co., Ltd. from BBB to Rd. earlier, in February 2021, Fitch announced that by the end of 2020, the interest bearing debt of Chongqing Energy Investment Group Co., Ltd. of 47 billion yuan was mostly bank loans and financial leases related to coal mining business.
bankruptcy crisis can be traced back to two years ago
"Chongqing's energy crisis starts with the closure of coal mines two years ago." A local banker in Chongqing told reporters. He believes that the sharp decline in revenue and profits and the peak debt of Chongqing energy are mainly due to the coal of its main business
according to him, Chongqing's coal production has decreased in recent years and has withdrawn from the coal mining industry. In addition, there have been accidents in local coal mines in recent years. Chongqing energy bears the brunt in the process of eliminating backward coal production capacity
At the beginning of 2021, Chongqing Municipal People's Government approved the overall implementation plan of Chongqing energy group to eliminate backward coal production capacity, close and withdraw coal mines, and agreed to include 14 coal mines affiliated to Chongqing energy in the city's plan to eliminate coal overcapacity. In principle, they will be closed and withdrawn according to law before the end of June 2021.
The specific list of these 14 coal mines is: Chongqing energy investment Chongqing New Energy Co., Ltd. Tongyi coal mine, Shihao Coal Mine, Yuyang coal mine, Songzao Coal Mine, Fengchun coal mine, Nantong Coal Mine, Hongyan coal mine, Donglin coal mine, Weijiagou coal mine, zhongxinqiao coal mine, Shaoxin coal mine, Tianjia coal mine, Sanhui No. 2 coal mine and Lutang coal mine of Chongqing energy investment and Operation Co., Ltd. A total of 11.5 million tons of coal will be eliminated in the year.
It is worth noting that Chongqing energy investment Chongqing New Energy Co., Ltd. and Chongqing energy investment property operation Co., Ltd. are also among the 16 bankruptcy reorganization.
According to the article published by energy magazine in 2018, Chongqing's coal output reached the highest level in 2012 and 2013, with an annual coal output of more than 40 million tons, and there were more than 700 coal mines at the end of 2012. In April 2017, Chongqing development and Reform Commission and Chongqing Energy Bureau jointly issued the "13th five year plan" for energy development in Chongqing, which proposed to reduce the coal production capacity to about 20 million tons by 2020.
In 2021, Chongqing completely withdrew from the field of coal mining. In January 2021, according to the data of China Coal Industry Association, in the table of raw coal output of Enterprises above Designated Size in China in 2021, the column of Chongqing in 2021 is "0", while the cumulative amount in 2020 is 9.394 million tonsP align = "center" financial institutions have accrued risks
"the impact of Chongqing energy on the local financial industry is mainly in 2020 and 2021. At present, part of the negative impact on asset quality has been eliminated." The above-mentioned local bankers in Chongqing said
Another person from a local financial institution in Chongqing also agreed with this statement and said that many institutions have long been concerned about the debt and revenue of Chongqing energy and have accrued risks in advance.
The above-mentioned local bankers said that Bank Of Chongqing Co.Ltd(601963) , which previously cooperated closely with Chongqing energy, has also been affected by its debt problem in the past two years.
The 21st Century Business Herald inquired the 2021 annual report data of Bank Of Chongqing Co.Ltd(601963) ( Bank Of Chongqing Co.Ltd(601963) . SH) and found that the amount of non-performing loans in the mining industry in 2021 soared from 2.27 million yuan in 2020 to 480 million yuan, an increase of more than 200 times. Its mining non-performing rate soared to 31.08% in 2021, compared with 0.13% in the previous year. According to the data, mining loans accounted for only 0.49% of the total loans in Bank Of Chongqing Co.Ltd(601963) 2021, but the non-performing amount accounted for 11.7% of the total non-performing amount.
the outbreak of bad mining industry has pushed up the overall bad rate of Bank Of Chongqing Co.Ltd(601963) as a whole Bank Of Chongqing Co.Ltd(601963) 2021 NPL ratio was 1.3%, up 0.03 percentage points from the previous year, but this NPL ratio is in the middle reaches of the banking industry and is not very high. According to the data of China Banking and Insurance Regulatory Commission, the non-performing loan ratio of commercial banks in 2021 was 1.73% Bank Of Chongqing Co.Ltd(601963) lower than this average value.
In this regard, on April 12, the 21st Century Business Herald reporter asked Bank Of Chongqing Co.Ltd(601963) relevant people whether the bad mining industry is related to Chongqing energy, but no reply has been received as of press time.
According to qixinbao information, Chongqing energy has directly invested in 57 companies, including the listed company Chongqing Gas Group Corporation Ltd(600917) ( Chongqing Gas Group Corporation Ltd(600917) . SH). The latter also announced the information of shareholders' application for reorganization on April 11, saying that Chongqing energy is actively negotiating with creditors and other parties to form a reorganization plan. Chongqing energy holds 645420000 shares of the company, accounting for 41.07% of the total shares of the company; The shares of the company held by the controlling shareholder have been frozen due to the pre litigation preservation measures taken by the creditor, accounting for 71382286 shares, accounting for 4.5428% of the total share capital of the company and 110598% of its shareholding.
" Chongqing Gas Group Corporation Ltd(600917) although it is a holding company of Chongqing energy, it has good qualification as the main natural gas supplier in Chongqing." A Chongqing local financial official told reporters
The reporter found through inquiry that the performance express of Chongqing Gas Group Corporation Ltd(600917) 2021 showed that during the reporting period, the company's total operating revenue was 7.784 billion yuan, a year-on-year increase of 14.11%, and the net profit attributable to shareholders of listed companies was 457 million yuan, an increase of 21.35% over the same period of last year.
