Xiao Yongming, the richest man in Qinghai, is detained by criminal punishment on suspicion of illegal mining. The control of Tibet in ST will be uncertain.

Xiao Yongming, the richest man in Qinghai, suffered the darkest moment of his life when ST 000408.SZ announced last night that Xiao Yongming, the company's real accuser, had been criminally detained by the Qinghai Provincial Public Security Bureau on January 29, 2021, on suspicion of illegal mining.

In September last year, Xiao Yongming was put on file for investigation by the Securities Regulatory Commission on suspicion of violating the rules. So far, Xiao Yongming's stake in the company has been fully pledged, so a lawyer said in an interview with reporters, "Xiao Yongming holds * ST Tibetan equity has all been pledged, and because of suspected illegal mining, follow-up control of the company is very likely to 'change ownership'."

The company did not respond to this statement, but the company said in an announcement last night that the above matters have yet to be further investigated by the public security organs, and that the above matters involved in Xiao Yongming and Hongzhu materials have nothing to do with the company and the enterprises to which it belongs, and occurred before the major asset restructuring of the company in 2016, the company has not been adversely affected, and at present, all production and operation is normal.

According to the announcement, Xiao Yongming bought 100% of Shanghai Hongzhu Materials in 2006, and Hongzhu Materials held a 40% stake in Qinghai Coking Coal Industry Group. after the completion of the above acquisition, Hongzhu Materials became a shareholder in Qinghai Coking Coal. In 2011, Hongzhu material transferred its entire equity stake in Qinghai coking coal to Zhenpeng Lianxiao (Shanghai) Industrial. After the completion of the above transfer, Xiao Yongming and Hongzhu material no longer hold shares in Qinghai coking coal, during which time they are suspected of illegal mining.

In addition, in September last year, the controlling shareholder and actual controller of * ST Tibetan Group was put on file for investigation by the Securities Regulatory Commission on suspicion of letter-wearing violations, which is widely believed to be related to the illegal occupation of funds of listed companies by the Tibetan Group under its control. In addition, in December 2020, the Shenzhen Stock Exchange announced a decision to take disciplinary action against * ST Zangge and related parties, including Xiao Yongming.

The decision on disciplinary action showed that there were false records in the periodic reports in * ST Tibet, the failure of the reorganized performance compensator to fulfill its performance commitment compensation obligations, the audit report issued by the annual report that could not express its opinion, the failure to disclose the 2019 performance notice, and the illegal occupation of non-operating funds by the controlling shareholders.

According to public data, Xiao Yongming was born in Anyue County, Sichuan Province in 1964. He began to work in Yonghong Plastics Factory in Anyue County in 1981 and worked as factory director. In 1996, he went to Golmud, Qinghai Province to work in the catering industry. In 2002, Xiao Yongming started the potash business across the border from the catering industry and established Golmud Zangge Potash Co., Ltd.

Xiao Yongming's fortune skyrocketed when * ST Zangge (Zangge Holdings) completed its listing in Jinyuan Valley, which was backdoor in 2016. On the Hurun Rich list that year, Xiao Yongming became the richest man in Qinghai with a fortune of 26.5 billion yuan. During the National Day in 2017, a photo of "the National Day highway was so congested that Ziyang men drove a helicopter home directly" went viral on the Internet, and the owner of the helicopter was Xiao Yongming.

* ST Zangge has 724.3493 square kilometers of potash mining warrants in the mining area east of Chaerhan Salt Lake Railway. It is a resource-based potash fertilizer production enterprise based on Chaerhan Salt Lake resources. The production and sales of potassium chloride is the company's core business. However, the company's performance has been poor recently. in the first three quarters of 2020, the company achieved revenue of 1.186 billion yuan, an increase of 2.28% over the same period last year, and a net profit of 45.0975 million yuan, down 87.19% from the same period last year.