SMM News: "the reorganization of Lifan will not be affected." The day after the company's controlling shareholder and actual controller was put on file for investigation by the Securities Regulatory Commission, an insider from Qiangfan told the Financial Associated Press.
On the evening of October 13, * ST Lifan (601777.SH) announced that it received notice from the company's controlling shareholder Lifan Holdings and the company's actual controllers Yin Mingshan, Chen Qiaofeng, Yin Xidi and Yin Suowei on the 12th and 13th of this month, respectively, because Lifan Holdings, Yin Mingshan, Chen Qiaofeng, Yin Xidi and Yin Suowei were suspected of violating the law and regulations in information disclosure. The CSRC decided to file a case against him for investigation.
Prior to this, on October 9, Lifan issued a progress announcement on recruiting restructuring investors. Liangjiang Fund and Geely Maijie Investment will participate in the restructuring of Lifan shares as intended restructuring investors.
It has nothing to do with the daily business activities of the company.
"the fact that the actual controller has been placed on file for investigation will not affect the restructuring currently under way." On October 14, the above Lifan insider said that the main body of the investigation is the company's controlling shareholder and four actual controllers, which has nothing to do with the daily management and business activities of the company, and has no impact on the normal operation of the company.
According to the announcement, Lifan Holdings is the controlling shareholder of Lifan shares, holding 47.08%. Yin Mingshan, Chen Qiaofeng, Yin Xidi and Yin Suowei all hold directorships in Lifan. Together, the above four directly hold 0.49% of the company's shares; the above four indirectly hold a total of 47.08% of the company's shares through holding shares of Lifan Holdings.
The reporter learned from Lifan that the suspected violations of information disclosure involved in this case investigation should be the company's illegal provision of guarantee to the controlling shareholder Lifan Holdings in 2018 and 2019 without consideration by the company's board of directors and shareholders' meetings. according to the "Progress announcement on the Company's violation of external Guaranty" disclosed on April 18 this year, On April 17, the controlling shareholder of the company received an irrevocable letter on exemption from guarantee liability from Fudian Bank and Industrial and Commercial Bank of China respectively, confirming the release of all the above-mentioned guarantee liability of the company and its subsidiaries, the company and its subsidiaries do not bear any obligation to make up the difference, and the above-mentioned illegal guarantee has all been lifted.
"from this point of view, bankruptcy restructuring should continue to proceed according to the process." Bai Yiyang of the International Research Department of China Merchants Bank said that in the capital market, it is also common for controlling shareholders to take advantage of their status as major shareholders and take advantage of listed companies to provide guarantees to shareholders in violation of regulations. "Lifan's explanation is that the controlling shareholder is ready to be fined in the past, does not affect the current operation, does not involve the issue of restructuring."
In fact, as early as March this year, Lifan has found that illegal guarantee. On March 20, Lifan shares announced that after self-examination, it was found that the company and its subsidiaries had violated the external guarantee regulations, involving an illegal guarantee amount of 550 million yuan, accounting for 7.38% of the company's latest audited net assets and 217.42% of the company's latest audited net profit. Specifically, the company and its subsidiaries have not been examined by the company's board of directors and shareholders' meeting to provide guarantee for the foreign loans of Chongqing Lifan Holdings Co., Ltd., including 200 million yuan from Fudian Bank and 350 million yuan from Industrial and Commercial Bank of China. In view of the fact that the illegal guarantee is a serious violation, and the CSRC has launched a case-filing investigation, the company will be subject to claims from investors in the future.
The property management plan of reorganization has been approved by creditors.
Lifan Holdings and others are likely to be punished by the CSRC. According to the provisions of the judicial interpretation, if Lifan Holdings is punished for false statements, damaged investors will be able to claim. " Liu Guohua, director of Guangdong Benyi Law firm, said that according to the Securities Law and the judicial interpretation of misrepresentation by the Supreme people's Court, if the actor of misrepresentation is subject to administrative punishment by the China Securities Regulatory Commission for misrepresentation, investors whose rights and interests are damaged may file a civil compensation lawsuit (including investment difference, commission, stamp duty and interest loss) with a court of jurisdiction.
Lifan is currently in a critical stage of enterprise restructuring. On October 9, Lifan issued a progress announcement on recruiting restructuring investors. Liangjiang Fund and Geely Maijie Investment will participate in the restructuring of Lifan shares as intended restructuring investors.
According to Tianyancha App, Liangjiang Fund is wholly owned by Chongqing Liangjiang New area Industrial Development Group Co., Ltd., which is wholly owned by Chongqing Liangjiang New area Management Committee; the major shareholder of Maijie Investment is Geely Technology Group Co., Ltd., and the actual control is Li Shufu, chairman of Geely holding Group. It can be seen that the two companies represent Chongqing Liangjiang New area and Geely holding Group respectively. This also means that Geely may take over and acquire Lifan shares.
"(reorganization) everything is carried out in accordance with the relevant procedures." On October 14, Geely Technology insiders said that the restructuring process is based on the contents of the announcement of listed companies.
"the current situation of Lifan will be more likely to continue to promote restructuring + post-mortem punishment." Bai Yiyang analysis believes that Lifan has entered the stage of judicial restructuring, and the will of the government to promote is obvious. "since the company revealed violations long before it was investigated, the two restructuring investors should not back down just because the company was investigated."
It is worth noting that on October 13, the first creditors' meeting of the Lifan restructuring case was held by the Fifth Intermediate people's Court of Chongqing in the form of a network meeting. At the meeting, the creditors voted and approved the property management plan for the reorganization of Lifan Industrial (Group) Co., Ltd.
According to the financial report, * ST Lifan achieved operating income of 1.584 billion yuan in the first half of the year, down 69.42 percent from the same period last year, and a net loss of 2.595 billion yuan, compared with a loss of 947 million yuan in the same period last year, an increase of 173.99 percent. The total assets are about 16.96 billion, and the net assets are only 106 million yuan, which is 96.12% lower than the same period last year. The debt is as high as 16.77 billion yuan, and the asset-liability ratio is as high as 98.87%.