(hereinafter referred to as “Huaxia Happiness”) issued the “Announcement on the Failure of the Company and Subordinate Subsidiaries to Repay Some Debts on Time” (hereinafter referred to as “Announcement”) on Feb. 2.
In the “Announcement”, Huaxia Happiness said that up to now, the principal and interest amount involved in the overdue debts of Huaxia Happiness and its subsidiaries is 5.255 billion yuan, involving bank loans, trust loans and other forms of debt, not involving bonds, debt financing instruments and other products.
It is reported that currently, HHH is actively coordinating with the financial institutions involved in the above overdue extension related matters.
As a matter of fact, the liquidity tension of Huaxia Happiness has been in the wind for a long time.
Liquidity tension has been in the wind for a long time
In terms of the shareholding structure, information from the sky-eye search shows that the top five shareholders of Huaxia Happiness are Huaxia Happiness Foundation Holding Company (29.69%), Ping An of China (601318, diagnosis) Life Insurance Company Limited – own funds (10.58%), Ping An of China Life Insurance Company Limited – dividend – individual insurance dividend (8.38%), Ping An of China Life Insurance Co. Ltd. – universal – individual insurance universal (6.09%) and Huaxia Holdings – Everbright Securities (601788, clinic) – 20 Huaxia EB Guarantee and Trust Property Special Account (4.57%).
Its controlling shareholder is Huaxia Happiness Foundation Holdings JSC, which holds 36.02% of Huaxia Happiness Foundation Co., Ltd. and the actual controller of Huaxia Happiness is Wang Wenming, which holds 31.49% of Huaxia Happiness Foundation Co.
It seems that the liquidity tension of Huaxia Happiness has been in the wind for a long time.
On January 20, Huaxia Happiness issued an announcement about the share pledge by the controlling shareholder Huaxia Happiness Foundation Holding Co. It is understood that the share pledge of 5.71 million shares, the pledge start date of January 19, 2021, the pledgor is Kunlun Trust. The share pledge of Huaxia Holdings is a supplementary pledge for its previous pledge financing business.
At that time, Huaxia noted that the credit standing of Huaxia Holdings was good, and the repayment sources of its pledged financing included its own funds, stock dividends and investment income, etc. It had the corresponding capital repayment ability, and the risk of its share pledge was within the controllable range.
Immediately after that, on January 22, China Merchants Bank (600036, diagnosis) Co., Ltd. announced that Huaxia Happiness confirmed in writing that it had reached a settlement with Zhongrong Trust, and Huaxia Happiness believed that the Zhongrong project had not triggered the “20 Huaxia Happiness MTN001” and “20 Huaxia Happiness MTN002” cross-protection clause. China Merchants Bank is the lead underwriter and bookrunner of the two medium-term notes.
China Merchants Bank said that on January 16, it was informed from public opinion and some media reports that two trust facilities of subsidiaries of Huaxia Happiness might not be repaid on time, involving “Zhongrong-Gida No. 11” and “Zhongrong-Rongyu No. 100” trust plans.
The reporter noted that in 2020, Huaxia Happiness issued a number of large amount of perpetual trust financing in succession, including Shaanxi Guotou Trust 1.5 billion yuan perpetual trust and Zhongrong Trust 1.5 billion yuan perpetual trust.
In addition, Huaxia Happiness also issued an announcement that the company intends to raise financing from Ping An Pension in the form of perpetual bond, and it is intended that Ping An Pension will set up a debt investment plan to make a total investment of no more than RMB 5 billion to the company for an indefinite period.
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