The 100 billion Fujian real estate enterprise Yango Group Co.Ltd(000671) came bad news after the venture capital Taikang Department “cut its position with tears” and the executive chairman lost 40 million “abandoned the ship” after working for four years.
On January 10, the company announced that the holding stock Guangdonghectechnologyholdingco.Ltd(600673) group failed to raise the funds needed to increase its shares in the company in time, and sunshine group and its related parties planned to terminate the plan to increase its shares in the company. Looking back on the previous announcements, the commitment to increase holdings was made in December 2021, and the lower limit of the amount of increase holdings is not less than 1% of the company’s total share capital, while only 58% of the commitment to increase Holdings has been actually completed at present. From past cases, Sunshine Group’s “breaking the appointment” is likely to face regulatory penalties.
The reporter of China fund daily noted that Zhong Changhao, a director, rarely abstained from the board meeting to terminate the shareholding increase plan. He neither attended the meeting nor entrusted other directors to vote on his behalf according to normal procedures. According to previous announcements, Zhong Changhao was a director nominated by insurance capital Huaxia life and became a director of the company in May 2018. According to the third quarter report of 2021, Huaxia life holds two of the top ten shareholders of Yango Group Co.Ltd(000671) through products and its own funds, holding a total of 4.3% shares.
buy all the way and fall all the way
floating loss of 60 million, giving up the increase of
In the third quarter of 2020, Yango Group Co.Ltd(000671) share price began to decline continuously after continuous consolidation for nearly two years, from around 8 yuan at the end of September to around 6 yuan at the end of December.
In this context, Yango Group Co.Ltd(000671) holding stock Guangdonghectechnologyholdingco.Ltd(600673) group and related parties announced that “based on firm confidence in the future sustainable and stable development and long-term investment value of the company”, they plan to increase their holdings of the company’s shares by no less than 1% and no more than 2% of the total share capital within 12 months from December 30, 2020.
After the issuance of the increase plan, sunshine group and its related parties increased their holdings four times on January 29, 2021, February 3, 2021, April 30, 2021 and May 6, 2021 respectively, with a total increase of 23.96 million shares, accounting for 0.58% of the total share capital of the company, with an increase amount of 139 million yuan.
In terms of the increase price, the average price of the four increases were 6.1 yuan / share, 6.08 yuan / share, 5.68 yuan / share and 5.68 yuan / share respectively, basically buying all the way and falling all the way. Based on the latest closing price of Yango Group Co.Ltd(000671) of RMB 3.35, the above-mentioned increased holdings are covered by at least 40%, and the floating loss is about RMB 60 million.
The group’s shareholding increase plan was not released for more than half a year until 2021, and the group’s shareholding increase plan was terminated for more than half a year.
Sunshine Group: sorry
or face regulatory penalties
For the failure to complete the commitment to increase its holdings, Yango Group Co.Ltd(000671) said that after the disclosure of the increase plan, affected by major adverse changes in the development of the real estate industry and the financial market environment, sunshine group is also facing challenges such as intensified industry competition and continued pressure on profits. Due to the high pledge proportion of the company’s shares held by sunshine group and its related parties, limited financing channels, centralized due payment of debts (some debts are even required to be repaid in advance), the net outflow of funds is large, resulting in the failure to raise the funds required for the increase of the company’s shares held by sunshine group and its related parties in time, and the inability to continue to implement the increase plan.
In the announcement, sunshine group and its related parties apologized to the majority of investors for not completing the increase in holdings in full accordance with the increase plan. Sunshine Group also continued to say that “it is optimistic about the development prospect of the company for a long time, and will continue to support the sustainable, stable and healthy development of the company and safeguard the interests of shareholders”.
From the announcement, at present, sunshine group may have multiple debt default risks. Up to now, sunshine group has not reached a specific debt settlement plan with relevant creditors or signed relevant debt settlement agreements. Due to overdue debts, some bank accounts of sunshine group have been judicially frozen. In the future, Sunshine Group will continue to face uncertain matters such as litigation, arbitration and asset freezing.
Only less than 60% of the minimum commitment was completed. According to relevant regulatory regulations and past cases, sunshine group and its affiliates are likely to face regulatory penalties.
On November 17, 2021, Chengxin Lithium Group Co.Ltd(002240) controlling shareholder shengtun group promised to increase its holdings by no less than RMB 300 million, but actually increased its holdings by only RMB 162 million, with a completion ratio of 54.08%. Therefore, it received the supervision letter from Shenzhen Stock Exchange.
On October 18, 2021, the Shanghai Stock Exchange disclosed that Zeng Zhibin, the then chairman of Jianxi Lianchuang Opto-Electronic Science&Technology Co.Ltd(600363) and Li Zhongyu, the then director and President, failed to increase their holdings in accordance with the announcement of the shareholding increase plan disclosed to the public. The announcement of the shareholding increase plan was inaccurate, which affected the reasonable expectations of investors and was given regulatory warning.
On May 21, 2021, Xinfengming Group Co.Ltd(603225) disclosed the expiration of the repurchase period and the announcement of the repurchase results. During the repurchase period, the company has repurchased 4707200 shares, with a repurchase amount of 46.8499 million yuan, which is greatly different from the planned repurchase amount of “no less than 150 million and no more than 300 million”, and the information disclosure is inaccurate. Therefore, Zhejiang securities regulatory bureau decided to take the supervision and management measures of issuing warning letters to Zhuang kuilong, the then chairman of Xinfengming Group Co.Ltd(603225) , Zhuang Yaozhong, the president, and Yang Jianfei, the vice president and Secretary of the board of directors, and record them in the integrity archives of the securities and futures market.
rare waiver of directors
Huaxia life also wants to quit?
Sunshine Group has no choice but to give up the increase in Holdings under the situation of domestic and foreign difficulties. Although it is not in compliance, it is reasonable. In the view of fund Jun, the information disclosed by the vote of the board meeting to terminate the shareholding increase plan is more critical.
On January 10, Yango Group Co.Ltd(000671) held the 31st meeting of the 10th board of directors, which considered three proposals, including the above proposal on the plan of controlling shareholders and related parties to terminate the implementation of the share increase plan of the company, and the other two proposals – the proposal on the change of guarantee for Huzhou Rongyang real estate, a joint-stock subsidiary Proposal on convening the first extraordinary general meeting of shareholders in 2022.
However, at the meeting, one director Zhong Changhao neither attended the meeting on site, nor participated in the meeting remotely, nor entrusted other directors to vote on his behalf in accordance with the regulatory provisions, that is, Zhong Changhao voted “abstention” on all three proposals.
According to the company’s previous announcements, Zhong Changhao was nominated by Huaxia Life Insurance Co., Ltd. and was co elected as a director of Yango Group Co.Ltd(000671) the 9th board of directors at the 10th extraordinary general meeting of shareholders in 2018 held on May 30, 2018. He has been reappointed at the 10th board of directors since then. Since Zhong Changhao took office, it has never happened that he neither participated in the board of directors nor entrusted voting. At the last board meeting more than a month ago, Zhong Changhao attended the meeting normally and voted in favour.
Yango Group Co.Ltd(000671) according to past financial reports, Huaxia life entered the list of its top ten shareholders as early as the fourth quarter of 2016, and has continued to increase its positions since then. As of May 10, 2018, Huaxia life held 190 million Yango Group Co.Ltd(000671) shares, accounting for 4.7% of the total shares of the company, so it obtained a board of directors.
By the end of the latest third quarter of 2021, Huaxia life had occupied the sixth and ninth largest shareholders of Yango Group Co.Ltd(000671) respectively with one product and its own funds, holding about 177 million shares in total, accounting for 4.3%, becoming the third largest shareholder after sunshine group and its concerted actors and Taikang system. From the stock price trend of Yango Group Co.Ltd(000671) since the purchase of Huaxia life insurance, it is in a deep state like Taikang system.
On October 28, 2021, the two directors nominated by Taikang rarely cast a negative vote at the board meeting to consider the third quarterly report of Yango Group Co.Ltd(000671) 2021, requiring the company to make a reasonable explanation for the sharp decline in performance and take the lead in making public their dissatisfaction. Since then, two directors have resigned from the board of directors in the near future. Taikang department also left the site with tears through agreement transfer, with a floating loss of about 50% and nearly 1.7 billion yuan.
The directors nominated by Huaxia life rarely abstain. Will it be a signal of departure? We’ll see.
(source: China Fund News)
