Transfer difficulty! Will Chow Tai Fook abandon the equity of Wu Changjiang Dehao Runda?

On May 27, the CSRC issued the “Several Provisions on the Shareholders of the Listed Companies and the Supervisors of the Directors of the Board of Directors” (hereinafter referred to as the new regulations on reduction of holdings), which will be implemented as of the date of promulgation. The Shanghai Stock Exchange and the Shenzhen Stock Exchange have also introduced special rules for improving the reduction system.

In June, A shares had a total of 103 shares released this month, a total of 10 billion shares were lifted. The current market value of the lifting of the ban is 130.541 billion yuan. Among them, there are 130 million shares of Dehao Runda restricted shares held by NVC Lighting founder Wu Changjiang. It will be banned on June 17th.

The 130 million restricted shares held by Wu Changjiang were photographed on March 16 this year for the two companies under Chow Tai Fook at a reserve price of 741 million yuan. Due to the complicated procedures, they have not been transferred for more than two months.

At that time, Dehao Runda's restricted shares were sold at a price of 5.7 yuan per share, while Dehao Runda's latest share price was 4.48 yuan per share. Chow Tai Fook's proposed 130 million shares of Dehao Runda had a book loss of 158.6 million yuan. Insiders pointed out that Chow Tai Fook will passively become a long-term investor of Dehao Runda.

From floating profit 55.9 million yuan

To a huge loss of more than 100 million

Wu Changjiang’s 130 million shares of Dehao Runda’s restricted shares were acquired in 2014 when participating in the private placement of Dehao Runda. The fixed price was 5.86 yuan/share, and the lock-up period was three years. June 17 this year Unblocking circulation.

The 130 million shares of Dehao Runda restricted shares were auctioned for the first time on February 13 this year. In March, they auctioned on the Taobao auction platform again. In the end, two companies under Chow Tai Fook took it.

The 130 million shares of the restricted shares in this auction are still divided into two targets, namely, 58 million shares and 72 million shares, each of which is worth 329 million yuan and 412 million yuan, with a total price of 741 million yuan, corresponding to 5.7 yuan per share. Yuan, which is 5% lower than the starting price of the first auction of 6 yuan.

Both buyers are Wu Changjiang's creditors, namely Linzhi Huifu Investment Co., Ltd. and New World Strategy (Beijing) Investment Consulting Co., Ltd. The gold lords behind the two companies are both Chow Tai Fook.

As early as May 2014, when Zhou Dafu’s founder and Hong Kong business legend Zheng Yuzhen was still there, Wu Changjiang borrowed 250 million yuan and 200 million yuan from the two companies indirectly controlled by Chow Tai Fook. The loan period was 3 months and the annual interest rate was It is 20%. The shares of Dehao Runda pledged by the two borrowings were 72.222 million shares and 577.7778 shares, which also corresponded to the two targets of the equity auction. Since the past three years, Wu Changjiang has not repaid his interest, and his pledge of shares has also been applied for judicial auction in the Zhuhai City Court of Guangdong Province. The proceeds from the auction will be used to pay off debts. “Uncle Shu” has already gone, and the actual head of the repayment has also become Zheng Yuqi’s long-term Zheng Zhigang.

Dehao Runda's restricted stock auction price was 5.7 yuan / share, the day Dehao Runda stock price was 6.13 yuan, Chow Tai Fook's book floating profit 55.9 million yuan, but with the market downturn, Dehao Runda's latest share price is 4.48 yuan / shares, down 26.92%, Chow Tai Fook intends to hold 130 million shares of Dehao Runda, has a book loss of 158.6 million yuan.

Before the court auction

Prompted transfer risk

However, more than two months have passed, and the announcement of Dehao Runda has no follow-up news of this auction. On the register of shareholders of Dehao Runda this year, Wu Changjiang still ranked second largest shareholder with 130 million shares.

On May 26, Chongqing Business Daily - upstream financial reporter called Dehao Runda, Dehao Runda said that it is not clear about the transfer of buyers, but Wu Changjiang holds 130 million shares of Dehao Runda The sale of shares involves a more complicated case, and it has not been so easy to be frozen by multiple courts and waiting for a freeze. If the transfer is completed, due to the change of more than 5% equity (Wu Changjiang holds 9.31% of the shares of Dehao Runda), a simplified change of equity will be issued.

The auction announcement in March and March showed that the court said that if the auction target can handle the transfer procedures and the processing time, the bidder should go to the relevant functional department to understand the consultation before bidding, and the other reasons may not be delayed or delayed. The consequences of the transfer procedures and the increase in the fees incurred for the transfer of the account are at your own risk. The court only issues an execution ruling and a letter of assist in the execution, and does not make any commitment to the transfer of the subject matter.

Will Chow Tai Fook not because of the stock price drop? Some insiders pointed out that the auction margin paid by the two companies under Chow Tai Fook is only 5% of the auction price of 741 million yuan, or 37.05 million yuan. If you give up the payment, the loss is 37.05 million yuan. The auction margin was worth 134 million yuan to win 130 million shares of Dehao Runda, and the floating loss was 158.6 million yuan.

However, an auction company official said that in fact, as an application executor, Chow Tai Fook’s Tibet Linzhi Huifu Investment Co., Ltd. and New World Strategy (Beijing) Investment Consultant Co., Ltd. should apply to the court for 130 million shares of Dehao Run. If the stock reaches the creditor's right, it is not necessary to pay the entire transaction price of 741 million yuan. Therefore, it may be necessary to solve the relevant obstacles in the transfer process.

Passive Chengde Runda

Long-term investor

According to the announcement of the equity auction of Dehao Runda on March 16, if the auction is auctioned, according to the law, the application executor has the right to apply for debts from the court.

Tian Ying, a professor at Chongqing Normal University, believes that in March this year, when Chow Tai Fook bid for the shares of Dehao Runda, he should not fully predict the future decline of the stock price and the new regulations of the SFC's current reduction. Therefore, he participated in the bidding.

If DHL Runda's 130 million shares were lifted after the ban on June 17 this year, and after efforts to finally transfer to Chow Tai Fook, they will be subject to the new regulations imposed by the CSRC, such as plans to reduce their holdings through the stock exchange. Shares shall be reported to the stock exchange and pre-disclosed by the stock exchange 15 trading days before the first sale, and shall be filed by the stock exchange. The total number of shares reduced through the stock exchange trading in the stock exchange within 3 months shall not exceed 1% of the total number of shares of the company.

In this way, if the share price of Dehao Runda continues to be sluggish, whether intentional or not, Chow Tai Fook and two companies will be forced to become long-term investors of Dehao Runda.

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Wu Changjiang sued back to NVC Lighting

The stock case is still in the trial stage

On April 28 this year, the first quarterly report released by Dehao Runda showed that Wu Changjiang sued Dehao Runda and NVC Lighting in Huicheng District, Huizhou City, Guangdong Province in August 2016, and added NVC Inc. as the first Three people.

Wu Changjiang said that he and the relevant defendants signed the "Cooperation Agreement" in 2012. The "Cooperation Agreement" mainly promoted the initial intention of the company's overall strategic cooperation and planning with NVC. Wu Changjiang claimed that the contract was invalid, based on the contract. The property acquired by both parties of the original defendant shall be returned, that is, the shares of the company held by the plaintiff Wu Changjiang shall be 130 million shares, and shall be returned to the company according to law. The NVC Lighting Company held by Dehao Runda subsidiary DHL is 5,874,290,000. Shares should be returned to Wu Changjiang according to law.

At the same time, the plaintiff requested the defendant to compensate for the loss of loan interest of 5.8 million yuan due to the invalidity of the aforementioned agreement and to bear the litigation costs of the case. The Huicheng District Court of Huizhou City, Guangdong Province accepted the case in August 2016, and Dehao Runda had objected to the jurisdiction of the case in September 2016. As of the disclosure date of this report, the case is at the stage of jurisdictional objection trial.


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