After nine days of harvest and five daily limit, Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) announced the termination of planning for major asset restructuring. On April 17, the company received the letter of concern from Shenzhen Stock Exchange.
Although still facing delisting risk, Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) share price rose again on April 15. Since the stock price started rising in March this year, the cumulative increase has reached 57%.
termination of transfer of equity of Tianchi molybdenum
On the evening of April 15, Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) announced that on January 29, the company started planning for major asset restructuring, and the company plans to transfer 521291% equity of Tianchi molybdenum industry held by Tianshou investment, a 100% controlled subordinate partnership. After careful study, the company has decided to terminate this major asset restructuring.
Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) announced on the same day that Jilin Tiancheng Mining Co., Ltd. has signed the creditor’s rights transfer agreement with Jilin Daheishan Molybdenum Industry Co., Ltd. to transfer all the debt rights of the company and 100% holding partnership Tianshou investment to Daheishan molybdenum industry in two cases being tried by Jilin Provincial Higher People’s court.
On April 15, the company, Tianshou investment and Tiancheng mining signed the settlement agreement on litigation cases. According to the agreement, Tianshou investment needs to pay the remaining equity transfer of Tiancheng mining before April 30, 2023, but Tiancheng mining will not lift the judicial seizure and freezing measures on the equity of Tianchi molybdenum industry held by Tianshou investment until all the funds are paid off. If the company and Tianshou investment fulfill their obligations according to the settlement agreement, Tiancheng mining promises not to apply to the court for auction of the equity of Tianchi molybdenum industry held by Tianshou investment before April 30, 2023.
The announcement said that after the agreement is signed, it needs to be reported to the Jilin Provincial Higher People’s court, and there is still uncertainty whether the court will make a ruling according to the content of the settlement agreement.
Tianchi molybdenum industry was the hope of Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) transformation and completely getting rid of “stars and hats”. As early as 2017, Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) acquired 75% equity of Tianchi molybdenum industry held by Tiancheng mining. However, on October 15, 2020 and January 15, 2021, Tiancheng mining sued Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) , Jilin intermediate people’s Court of Jilin Province, failed to pay the remaining transfer payment of RMB 284 million and corresponding interest for the acquisition of its equity in Tianchi molybdenum industry as agreed in the contract, and frozen all 521291% equity of Tianchi molybdenum industry currently held by Tianshou investment.
Regarding the progress of the above-mentioned debt settlement and related litigation matters, Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) said that it has effectively solved the litigation disputes caused by the company’s inability to pay the remaining payment for the purchase of equity due to financial difficulties, and resolved the risk of execution and sale of the equity of Tianchi molybdenum, the holding subsidiary of the company. The signing of the settlement agreement will help the company gradually and effectively resolve the debt crisis.
requires a description of the substantive role in resolving debt risks
In the stock bar, many investors interpreted the termination of the transfer of the equity of Tianchi molybdenum industry as positive, “the laying chicken has finally been retained”!
It is worth noting that it was announced on Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) 3 March 23 that since Tianchi molybdenum industry, a holding subsidiary of Tianshou investment, is in urgent need of continued construction funds, it is now necessary to introduce strategic investors to solve the problem of uncertainty in the sustainable operation of the company. The board of directors agreed that Tianshou investment applied for a one-year loan of no more than 390 million yuan from Daheishan molybdenum industry, with a loan interest rate of 8%. If Tianshou investment transfers all or part of the equity of Tianchi molybdenum without the consent of Daheishan molybdenum, the lender has the right to recover all the loans in advance.
On April 17, Shenzhen Stock Exchange issued a letter of concern to Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) company. It is required to explain the main purpose of signing the litigation settlement agreement, and timely and fully prompt whether the court can finally decide to agree to the settlement of relevant disputes. There are major uncertainties and related risks.
Source: website of Shenzhen Stock Exchange
According to the letter of concern, Tiancheng mining has not substantially solved the transfer of relevant creditor’s rights to Daheishan molybdenum industry, and Inner Mongolia Tianshou Technology&Development Co.Ltd(000611) still needs to continue to fulfill the obligation to pay off the principal and interest of RMB 284 million equity transfer, requiring the company to explain the substantive role of the above matters in resolving debt risks.
In addition, for the company’s 2021 financial report and relevant audit opinions, whether the above settlement agreement can eliminate the impact of matters related to the qualified opinions in the 2020 audit report, and whether the annual audit accountant can determine that the qualified opinions caused by relevant litigation and repayment of equity transfer funds have been eliminated. Ask the annual audit accountant to check and give clear opinions.
The letter of concern requires the company to explain the specific arrangements for the subsequent repayment of the principal and interest of the equity transfer of RMB 284 million, including but not limited to the source of repayment of funds and whether the company can substantially solve the debt, and give timely and sufficient tips on the risk of compulsory execution and sale of the equity of Tianchi molybdenum industry due to the failure to repay the debt on schedule.
