The crisis of “oceanwide system” is no longer a secret. The “accounting” from its trust company adds another straw to it.
On April 18, Oceanwide Holdings Co.Ltd(000046) announced that it had received the notice of implementation. As the Oceanwide Holdings Co.Ltd(000046) subsidiary Wuhan Central Business District Co., Ltd. failed to pay off its debts in time, Minsheng trust applied to the notary office for the payment of the principal of RMB 2.208 billion, liquidated damages, notary fees and other RMB 1.72 million, and the Oceanwide Holdings Co.Ltd(000046) parent company China oceanwide shall bear joint and several liabilities Oceanwide Holdings Co.Ltd(000046) said that it would actively carry out communication and consultation with relevant parties and strive to resolve the dispute as soon as possible.
After pulling out the daily limit for the first two days, on April 18, Oceanwide Holdings Co.Ltd(000046) share price fell all the way and once hit the daily limit. It closed at 2.05 yuan / share on the same day, down 9.29%. And Oceanwide Holdings Co.Ltd(000046) , Minsheng Holdings Co.Ltd(000416) and other “oceanwide” listed companies have successively issued announcements, saying that their shares held by its shareholder China oceanwide have been judicial frozen / waiting to be frozen. What kind of disputes will happen between “oceanwide” companies?
Minsheng trust debt collection controlling shareholder
It’s a rule in the mall that brothers settle accounts clearly. But when financial institutions Sue shareholders for repayment, the scene is somewhat sad.
On April 18, Oceanwide Holdings Co.Ltd(000046) announced the announcement on receiving the notice of execution. Its holding subsidiary Wuhan Central Business District Co., Ltd. received the notice of execution (2022) e 01zhi No. 909 delivered by Wuhan intermediate people’s Court of Hubei Province, involving more than 2.2 billion yuan.
Specifically, the context of this implementation: previously, Wuhan CBD signed an asset usufruct transfer contract with Zhangjiang Heping Asset Management Co., Ltd., and Zhangjiang assets transferred its usufruct of specific assets in plots 23e and 24B of Wuhan CBD. Minsheng trust has transferred the usufruct corresponding to plots 23e and 24B and their buildings from Zhangjiang assets. The credit enhancement measure is that Wuhan Central Business District mortgages plots 23e and 24B to Minsheng trust, and Wuhan Central business district undertakes the obligation of usufruct repurchase.
Since then, Wuhan Central Business District and Minsheng trust have signed a credit and debt confirmation agreement on the corresponding creditor’s rights. The Oceanwide Holdings Co.Ltd(000046) shareholder China Oceanwide Holdings Co.Ltd(000046) Group Co., Ltd. has provided joint and several guarantee liability, and has gone through compulsory notarization at Beijing CITIC notary office.
Due to the failure of Wuhan CBD to pay off its debts as scheduled, Beijing CITIC notary office issued the (2022) jingzhongxin Zhizi No. 00186 implementation certificate according to the application of Minsheng trust, which determined that Wuhan CBD should pay the principal of RMB 2.208 billion, unpaid liquidated damages, lawyer fees and notary fees of RMB 1.72 million to Minsheng trust. China oceanwide shall bear joint and several guarantee liabilities for the creditor’s rights determined by the above execution subject matter within the agreed guarantee scope.
So, what is the relationship between these companies? Public information shows that Minsheng trust, formerly known as China Tourism International Trust and Investment Co., Ltd., re registered and changed its name to China Minsheng Trust Co., Ltd. in April 2013. The registered capital of the company is 7 billion yuan, and the controlling shareholder is “collecting debts” for the Minsheng trust. According to the information, Wuhan CBD holds 76.76% of the shares of Minsheng trust and is the largest shareholder of Minsheng trust.
In addition, it goes without saying that China oceanwide, which provides joint and several guarantee liability for Wuhan CBD in this financing, is the parent company of Oceanwide Holdings Co.Ltd(000046) . Even after the reduction in February this year, China oceanwide still holds Oceanwide Holdings Co.Ltd(000046) 6115% shares. In other words, those who participate in the above debt collection and debt collection are “their own people”.
In the case of failing to obtain the return of funds in time, Minsheng trust chose to apply to Wuhan intermediate people’s court for implementation. In this regard, Wuhan intermediate people’s court ordered Wuhan Central Business District and China oceanwide to perform their obligations, double the interest on the debt during the period of delayed performance, and bear the case execution fee.
Four generations of grandparents and grandchildren have been involved in disputes, and Oceanwide Holdings Co.Ltd(000046) said it would actively carry out communication and consultation with relevant parties and strive to resolve the dispute as soon as possible. At the same time, the company will pay close attention to the follow-up progress of the matters and fulfill the obligation of information disclosure in time in accordance with relevant regulations. Please pay attention to the company’s announcement and pay attention to investment risks.
After pulling out the daily limit for the first two days, on April 18, Oceanwide Holdings Co.Ltd(000046) share price fell all the way and once hit the daily limit. It closed at 2.05 yuan / share on the same day, down 9.29%.
“oceanwide system” funding problems continue
Before the debt collection of Minsheng trust, the financial difficulties of oceanwide system have been emerging.
On April 12, Oceanwide Holdings Co.Ltd(000046) announced that the 2.184 billion shares held by China oceanwide had been frozen by the judiciary, and the freezing executor was the Beijing Financial court. This part of the shares accounted for 68.741% of the shares held by China oceanwide and 42.032% of the total share capital. After the share freeze, the Oceanwide Holdings Co.Ltd(000046) shares held by China oceanwide were frozen by the judiciary.
Oceanwide Holdings Co.Ltd(000046) said that the number of shares pledged and the number of shares frozen by the judiciary by the controlling shareholder China oceanwide and its persons acting in concert have accounted for more than 80% of the company’s shares. Please pay attention to the investment risks. The freeze has no significant direct impact on the company’s production and operation, nor will it lead to changes in the controlling shareholder and actual controller. However, if there is a subsequent judicial auction transaction transfer or other forced transfer of the frozen shares, there is a risk that Oceanwide Holdings Co.Ltd(000046) there will be a change in the controlling shareholder and actual controller.
Another important asset Minsheng Holdings Co.Ltd(000416) , A-share held by China oceanwide, has also been frozen recently. On April 13, Minsheng Holdings Co.Ltd(000416) announcement showed that the shares held by China oceanwide were subject to judicial re freezing and waiting for freezing. Among them, 649814 million shares were re frozen by the judiciary, accounting for 12.22% of the total share capital; 55 million shares are waiting to be frozen, accounting for 10.34% of the total share capital. As the controlling shareholder of Minsheng Holdings Co.Ltd(000416) of China oceanwide, 22.56% of its shares are pledged / frozen / waiting to be frozen.
On April 9, China Minsheng Banking Corp.Ltd(600016) also announced that the shares were waiting to be frozen. Due to the dispute over bond trading, the Beijing Financial Court suspended the 1.8 billion shares held by China oceanwide, accounting for 4.11% of the total share capital. The applicant for the freeze was rongchuang Real Estate Group Co., Ltd.
In addition, the “18 oceanwide G1” and “18 oceanwide F1” issued by China oceanwide have been extended, and the balance of the two bonds is 1 billion yuan.
In July 2021, because China oceanwide said that it was unable to provide some materials required for rating, united credit terminated the credit rating of China oceanwide entities and related debts.
Minsheng trust continues to make large provision in 2021
There is no finished egg under the nest. The former trust dark horse Minsheng trust has stepped on thunder frequently in recent years, and its performance has also declined significantly. According to the data of Bank Of China Limited(601988) inter market dealers association, Minsheng trust realized an operating revenue of 448 million yuan in the first half of 2021, a year-on-year decrease of 46.92%; The net loss was 4.1922 million yuan, a year-on-year decrease of 101.70%.
In January this year, Oceanwide Holdings Co.Ltd(000046) released the performance forecast for 20211, which is expected to achieve an operating revenue of 14.7-15.5 billion yuan and a net profit loss attributable to the parent company of 9-11 billion yuan. Among the reasons for the significant loss of net profit, Oceanwide Holdings Co.Ltd(000046) mentioned that the holding subsidiary China Minsheng Trust Co., Ltd. prudently made fair value loss and impairment provision for individual risk projects. Subsequently, Minsheng trust will continue to perform the duties of trustee and vigorously promote the disposal of relevant assets.
Specifically, in the Jinhuang series of trust plans, Minsheng trust stepped on Wuhan Jinhuang jewelry 8 billion “fake gold” and successively undertook relevant projects with its own funds in 2020. In 2020 and 2021, Minsheng trust accrued 25% of the impairment losses respectively, totaling 1.126 billion yuan and 1.125 billion yuan. At present, the book value is 2.251 billion yuan.
In addition, in Kaidi ecological private placement single fund trust plan, Minsheng trust will undertake relevant projects with its own funds in 2021. At present, Kaidi ecological shares, the underlying asset, has been delisted. Considering the recoverable amount, Minsheng trust confirmed a loss of 745 million yuan for the project.
In addition to the above two projects, Minsheng trust has also undertaken a number of cash projects with its own funds, and most of its underlying assets are market subjects with risks. For these cash projects, Minsheng trust accrued 1.102 billion yuan in 2021, leaving a book value of 654 million yuan.
After three large-scale provisions, Minsheng trust is expected to be unable to escape the fate of loss in 2021. On March 28, Minsheng trust became the executee again. The execution court was the Beijing Financial court, and the execution target was 222788 million yuan. The market will continue to pay attention to the disputes that will occur between “oceanwide” companies in the future.
