“Zhejiang’s richest woman” is in delisting crisis

Let’s talk about something A-share is a little touching. Zhou Xiaoguang, the “most inspirational former richest woman in Zhejiang”, has been deeply involved in the vortex of non operating capital occupation and illegal guarantee since the debt crisis in 2018. In addition, as of the close of January 15, the company’s share price has been less than 1 yuan / share for seven consecutive trading days, and the hidden worry of face value delisting is shrouded in the company. At this time, Yu Jiangwei, the new chairman of the company, plans to increase his holding of 10 million to 20 million shares of the company. He not only paid 9 million yuan out of his own pocket, but also borrowed 10 million yuan to increase his holdings. Why did Yu Jiangwei borrow money to increase his shareholding? It turns out that Zhou Xiaoguang and Yu Yunxin, the actual controllers of the company, are Yu Jiangwei’s aunt and uncle respectively. Unexpectedly, this is the way that my nephew came up with to “save” his aunt! Let’s see what happened? Chairman borrows money to increase holding On the evening of the 17th, * ST Xinguang announced that Yu Jiangwei, chairman of the board of directors of the company, informed the company of his intention to increase the company’s shares. When the company’s share price was lower than 1.08 yuan, he planned to increase the company’s shares by no less than 10 million shares and no more than 20 million shares. According to the fluctuation of the company’s share price and the overall trend of the capital market, he will choose the opportunity to implement the increase plan. The implementation period is six months from the disclosure of the increase plan It will be completed within three months. According to the announcement, Yu Jiangwei’s capital sources for the increase are his own capital of 9 million yuan and his plan to borrow 11 million yuan from relatives, friends or financial institutions. The financing situation is uncertain. In addition, the announcement shows that Zhou Xiaoguang and Yu Yunxin, the actual controllers of the company, are Yu Jiangwei’s aunt and uncle respectively. According to company information, Yu Jiangwei was born in 1989 with a master’s degree. He has successively served as the assistant to the president of the recruitment department of Zhejiang Wanxia Real Estate Development Co., Ltd., the assistant to the president of the Commercial Investment Promotion Department of Yiwu Shimao Center Development Co., Ltd., and the chairman of Zhejiang Guanli Trading Co., Ltd., and now he is the founding partner of Zhejiang chuangdao Investment Management Co., Ltd., and the chairman and President of Xinguang Yuancheng Co., Ltd. It should be noted that as a concerted actor of the actual controller, Yu Jiangwei is not allowed to implement the shareholding increase plan within 10 days before the performance forecast or express announcement. According to the relevant rules, * ST Xinguang must issue a performance notice before January 31, which means that Yu Jiangwei will not have much time to increase his shareholding in the near future. It is worth mentioning that the closing price of * ST Xinguang has been lower than 1 yuan for 7 consecutive trading days from January 7 to January 15, and the latest closing price of the company is 0.87 yuan / share, which means that there is a risk of delisting due to the closing price of the stock trading being lower than 1 yuan for 20 consecutive trading days. After announcing that the chairman of the board of directors will increase the shares of the company, * ST Xinguang received the letter of concern issued by Shenzhen Stock Exchange in the evening of the same day. Shenzhen Stock Exchange has made detailed inquiries on several issues disclosed by * ST Xinguang. According to the Shenzhen Stock Exchange, as of January 15, 2021, the trading price of your company’s shares has been lower than 1 yuan for seven consecutive trading days, and your company has the risk of being terminated due to the closing price of your shares being lower than 1 yuan for 20 consecutive trading days. According to the relevant requirements of the stock listing rules of th

"Zhejiang's richest woman" is in delisting crisis

e exchange and the guidelines for the standardized operation of listed companies, your company should disclose the performance forecast of 2020 before January 31, and Yu Jiangwei is unable to implement any shareholding increase before the disclosure of the performance forecast of your company. Please explain whether the above-mentioned personnel have the subjective motivation to raise the share price in order to avoid delisting. *Zhou Xiaoguang, the controlling shareholder and actual controller of St Xinguang, has been put on file for investigation and is now on bail. Born in November 1962, Zhou Xiaoguang, who started from scratch in the 1980s, is known as the most inspirational legendary woman among Zhejiang businessmen. In her early years, she grew up from an embroidery needle and a roadside stall. Zhou Xiaoguang, the former richest woman in Zhejiang Province, the chairman of Xinguang Group and the actual controller of Xinguang Yuancheng (now st Xinguang), is the prototype of the heroine of the 2017 hit TV series chicken feather flying into the sky. According to previous media reports, Zhou Xiaoguang was once known as “the richest woman in Zhejiang” and “the most inspirational female entrepreneur”. In 2017, Zhou Xiaoguang and Yu Yunxin ranked 65th on the Hurun rich list with a fortune of 33 billion. In 1985, after their marriage, Zhou Xiaoguang and Yu Yunxin sold plastic and glass headdress, corsage, earrings, rings and other accessories in Yiwu’s earliest commodity market. Seven years later, imitation jewelry became popular in the market, and Zhou Xiaoguang was selected as an agent by an jewelry manufacturer in Taiwan. After the business started, Zhou Xiaoguang came up with the idea of running a factory and embarked on the road of “jewelry Queen”. In 1995, Zhou Xiaoguang founded Xinguang Group, starting from the main business of small jewelry. After several years of development, the strength of the company has been expanding. In 2000, at an international jewelry fair, Zhou Xiaoguang became famous. The jewelry produced by her company has successfully attracted the attention of representatives of 50 countries. Later, Zhou Xiaoguang entered real estate, finance and other fields. Xinguang Group has built famous projects such as Yiwu World Trade Center, Yiwu Shangri La Hotel, Qiandao Lake Crowne Plaza Hotel, Dongyang Xinguang world, etc. At the end of 2015, Xinguang Group landed on A-share by backdoor Fangyuan support, and then renamed “Xinguang Yuancheng”. On December 4, 2018, due to the implementation of other risk warning, it was changed from “Xinguang Yuancheng” to “St Xinguang”. On December 31, 2019, Anhui Securities Regulatory Bureau issued the decision on market entry prohibition, which showed that Zhou Xiaoguang and Yu Yunxin, when they were directors and actual controllers of St Xinguang, instructed and arranged the related party transactions of non operating occupation of listed company’s funds by Xinguang Group, listed company’s violation of regulations and guarantee, joint borrowing, and they failed to perform the obligation of information disclosure, and the circumstances were serious. According to relevant regulations, the two were banned from entering the securities market by Anhui securities regulatory bureau for 10 years. Since the debt crisis of Xinguang Group in 2018, * ST Xinguang has been deeply trapped in the vortex of non operating capital occupation and illegal guarantee, and the production, operation and liquidity risks have become prominent. As of December 2020, the total amount of funds occupied by the controlling shareholders is 1.454 billion yuan, and the total amount of illegal guarantee is 2.703 billion yuan. In terms of performance, * ST Xinguang is also unsatisfactory. In 2019, the company suffered a huge loss of RMB 5.085 billion due to the provision of large amount of guarantee and asset impairment loss; in the first three quarters of 2020, the company’s net profit continued to lose RMB 1 billion, and the net profit after deduction was RMB 340 million. On January 5, * ST Xinguang announced on January 5 that China Securities Regulatory Commission decided to file a case against Xinguang Group and learn about the situation from Zhou Xiaoguang, the legal representative of Xinguang Group. According to the announcement, the company’s controlling shareholder Xinguang Group and its actual controller Zhou Xiaoguang recently received a notice of investigation from China Securities Regulatory Commission (CSRC): as the legal representative of Xinguang Group, Zhou Xiaoguang, suspected of failing to disclose the concerted action relationship with other shareholders of * ST Xinguang in accordance with the relevant provisions of the securities law of the people’s Republic of China, the CSRC decided to punish Xinguang The group filed a case for investigation and asked Zhou Xiaoguang about the situation. “The above matters will not affect the production and operation activities of the company.” *St Xinguang said that during the investigation period, the company’s controlling shareholder Xinguang Group and actual controller Zhou Xiaoguang will actively cooperate with the CSRC’s investigation work, and the company will continue to pay attention to the progress of the above matters. On January 3, * ST Xinguang announced that Ma’anshan Public Security Bureau decided to bail Zhou Xiaoguang and Yu Yunxin, the actual controllers. The decision of the Ma’anshan Municipal Public Security Bureau on the release of bail pending trial reveals that “our bureau is investigating the case of Limited by Share Ltd being suspected of breaking the rules and disclosing important information.” because the suspect Zhou Xiaoguang and Yu Yun Xin may be sentenced to more than sixty-seventh years’ imprisonment, they will not take any social risk on the bail pending trial. According to the criminal procedure law of the People’s Republic of China, According to the provisions of the first paragraph of the article, it is decided that the guarantor shall be granted pending trial, and the time limit shall be calculated from December 21, 2020. ” *St Xinguang said that the actual controllers Zhou Xiaoguang and Yu Yunxin did not serve as directors, supervisors and senior managers of the listed company, which did not affect the normal business operation of the company. As a listed company with a market value of 30 billion yuan, St Xinguang now has a market value of only 1.6 billion yuan.

One thought on ““Zhejiang’s richest woman” is in delisting crisis

  • The news media reported that Zhou Xiaoguang was already in crisis. Last September, the court froze his funds, and he owed tens of billions of dollars due to his real estate project. Now he has become an “old man”.

Leave a Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

©Spark Global Limited Financial information & The content of the website comes from the Internet, and any infringement links will be deleted.