On January 14, a public announcement ordered the “person acting in concert” of Jinke Property Group Co.Ltd(000656) to land in suspense.
According to the announcement, Huang Hongyun and his ex-wife Tao Hongya, Hongtao company and Huang Sishi dissolved the relationship of concerted action. Meanwhile, Huang Hongyun and Jinke holdings signed a concerted action agreement with Hongxing Furniture Group and Guangdong Hongmin. So far, Huang Hongyun has temporarily stabilized the position of Jinke Property Group Co.Ltd(000656) actual controller.
A series of events last year made public the contradiction between Huang Hongyun and Tao Hongya. At this time, it is expected to dissolve the relationship of concerted action. The actual controller of Hongxing Furniture Group, Che Jianxing, helped in time to join the concerted action to avoid Jinke Property Group Co.Ltd(000656) actual controllers leaving others behind. After years of disputes over Jinke’s equity, can Huang Hongyun rest assured this time?
Huang Hongyun and his ex-wife lift the “person acting in concert”
According to the announcement on changes in shareholders’ equity issued by Jinke Property Group Co.Ltd(000656) , Jinke Property Group Co.Ltd(000656) received the notification letter on lifting concerted action and notification letter from the shareholders Chongqing Hongtao culture media Co., Ltd., Tao Hongya and Huang Sishi respectively.
It is reported that Tao Hongya is Huang Hongyun’s ex-wife and Huang Sishi is Huang Hongyun’s daughter.
After the termination of the above concerted action relationship, the total shares held by Huang Hongyun and his persons acting in concert will be reduced to 973 million shares, accounting for 18.22% of the total share capital of the company.
The storm between Huang Hongyun and his ex-wife Tao Hongya to remove the persons acting in concert had started as early as last year, but it is puzzling that Huang Sishi also joined the list of persons acting in concert this time.
In addition, according to relevant sources, Huang Sishi’s shares account for 2.31% of the total share capital of the company, and the dissolution of the relationship of concerted action with Huang Hongyun should be considered from the perspective of tender offer rules.
However, after the removal of the person acting in concert, Jinke Property Group Co.Ltd(000656) control did not pass to others. As early as last year, in order to consolidate Huang Hongyun’s position as the actual controller, Jinke Property Group Co.Ltd(000656) said that the main shareholders entrusted Huang Hongyun to exercise their voting rights in the company.
Red Star Furniture helps Huang Hongyun sit firmly and control his position
The announcement on January 14 also showed that Huang Hongyun and Jinke holdings signed concerted action agreements with Red Star Furniture Group and Guangdong Hongmin (a wholly-owned subsidiary of Red Star Furniture Group). Since the agreement came into effect, Huang Hongyun and his concerted actors Jinke holdings, Hongxing Furniture Group and Guangdong Hongmin have held a total of 1.568 billion shares of the company, accounting for 29.36% of the total share capital. Accordingly, Huang Hongyun is still the actual controller of the company.
According to the announcement, Hongxing Furniture Group and Guangdong Hongmin reached an agreement with Huang Hongyun this time, “Based on the full recognition of the company’s long-term investment value and future development prospects, in order to ensure and consolidate Huang Hongyun’s actual control position over the company, ensure that the company can obtain its recognition and support when financing from financial institutions, so as to ensure the safe and stable development of the company”.
Red Star Furniture Group is a large enterprise group integrating Red Star Macalline Group Corporation Ltd(601828) home shopping mall, Aegean shopping park, Red Star real estate, red star film and other businesses. Its actual controller is car Jianxing.
It is reported that as a financial investor introduced by Jinke before 2011, the two sides have maintained close contact and cooperation for more than ten years. Because of the optimistic future of Jinke Property Group Co.Ltd(000656) , red star again increased its holdings of Jinke Property Group Co.Ltd(000656) to more than 11% in April 2020. At that time, red star expressed its hope to combine the advantages of the two companies.
The “concerted action” relationship was in crisis
On March 31, 2017, Huang Hongyun and Tao Hongya went through divorce procedures and signed the agreement on concerted action, which means that the actual controller of Jinke Property Group Co.Ltd(000656) has changed from Huang Hongyun and Tao Hongya to Huang Hongyun alone.
On July 20, 2018, the two parties reached an agreement through mediation by the court to transfer the shares corresponding to the 49% equity of Jinke holdings held by Tao Hongya (i.e. 372 million shares) to its designated subject. It was not until June 2021 that the equity property division of the two parties divorced was implemented. Since then, Jinke holdings, Hongtao company, Huang Hongyun, Tao Hongya and Huang Sishi still acted in concert with each other.
Tao Hongya, as the concerted action of Huang Hongyun, resisted the “barbarians” together in the four-year equity dispute with rongchuang.
For a long time, the outside world has always thought that Tao Hongya’s concerted action with Huang Hongyun has an indestructible human relationship. Until May 20, 2021, Huang Hongyun was listed as the executee by Chongqing Higher People’s court. Due to differences caused by the division of equity property involved in the divorce of Huang Hongyun and Tao Hongya in 2017, he was taken to court by his ex-wife.
However, on July 8, 2021, Tao Hongya’s open letter made the contradictions between people acting in concert public again. The letter said: “since my divorce from Huang Hongyun in March 2017, he has delayed in every way to handle the equity split of Jinke financial holding until the morning of June 28, 2021. However, Huang Hongyun manipulated Jinke group in the afternoon of the same day and directly relieved my brothers Tao Guolin and Tao Jian of all their duties.”
It is reported that Tao Jian is the assistant to the president of Jinke and the general manager of the bidding procurement center, and Tao Guolin is the director of Jinke Supervision Committee. They are the brothers of Tao Hongya, and have a close cooperative relationship with Huang Hongyun and Tao Hongya.
Tao Hongya mentioned in the open letter, “Huang Hongyun has unilaterally violated the commitment terms of the concerted action agreement signed with me and unilaterally terminated the concerted action agreement signed with me by his behavior. Therefore, I will independently exercise the rights and interests of major shareholders of Jinke since I sent a letter to Zhang Qiang, the group’s secretary of directors.”
Since then, the relationship between Huang Hongyun’s concerted action has been in jeopardy. This uncertainty was not realized until the announcement announced today.
According to Jinke Property Group Co.Ltd(000656) , the newly agreed action relationship will further optimize the governance pattern of Jinke Property Group Co.Ltd(000656) , improve the level of corporate governance and promote the continuous improvement of the company’s operating strength and profitability. The agreed action arrangement is in line with the company’s long-term development plan and the interests of all shareholders and the company.
