The “first stock of Film and Television shell” was terminated! The actual controller had been court bounty of ten million to recover debts, produced the “red sun”, (starring Li Youbin), “the great southwest bandits” (starring Liu Yunlong), “the East is red” (starring Tang Guoqiang), “the secret history of Wu Zetian
On March 12, the Shenzhen Stock Exchange announced that because the company’s share price was below 1 yuan for 20 consecutive trading days, it decided to terminate the listing of the shares of *ST Great Wall (0.46 suspension, clinic shares) (V.I.P.).
*ST Great Wall in the star cap before the securities abbreviation for “Great Wall Film and Television”, as the former “film and television shell of the first stock”, Great Wall Film and Television had produced “Red Sun”, “Great Southwest Bandits”, “Wu Zetian secret history” and other film and television works, the company’s market value was once as high as 16.5 billion The company’s market value was once as high as 16.5 billion yuan.
Since 2018, the Great Wall Film and TV has been continuously exposed to negative news such as broken capital chain, illegal guarantees, and investigation of letter disclosure violations, and the company’s performance has also fallen into the mire of huge losses.
From December 31, 2020 to January 28, 2021, the stock price of *ST Great Wall was below $1 for 20 consecutive trading days, touching the red line of delisting. As of the suspension, the company’s share price was fixed at RMB 0.46, with a market value of only RMB 240 million.
Source: Wind
The actual controller was a well-known film and television scriptwriter
On March 12, the Shenzhen Stock Exchange announced that from December 31, 2020 to January 28, 2021, the daily closing price of *ST Great Wall through the trading system of the Shenzhen Stock Exchange for twenty consecutive trading days was below RMB 1. The above-mentioned situation belongs to the circumstances of termination of stock listing as stipulated in Article 14.2.1 (d) of the Shenzhen Stock Exchange Stock Listing Rules (Revised 2020).
The Shenzhen Stock Exchange has decided that the listing of the shares of *ST Great Wall shall be terminated and the shares shall enter into the delisting period from March 22, 2021. The period of the delisting period is thirty trading days, the next trading day after the expiration of the delisting period, the Shenzhen Stock Exchange to delist the company’s shares.
Public information shows that in 1997, Zhejiang Province, Zhejiang Federation of Literary and Cultural Affairs founded the Zhejiang Film and Television Creation Institute. Three years later, in order to adapt to the development of the market economy and the company’s transformation strategy, Zhejiang Film and Television Creative Institute was restructured and formed Great Wall Pictures Co.
Born in 1954 in rural Zhuji, Zhejiang Province, Zhao Ruiyong worked as a radio station reporter, presided over Zhuji TV station, edited the magazine “Donghai” sponsored by Zhejiang Province Federation of Literature, and was named a national Writer in this country at the age of 36.
In 2007, the Great Wall Film and Television was restructured from state-run to private, and in 2008, as a screenwriter, Zhao Ruiyong took out his entire fortune to cast the first TV series of Great Wall Film and Television, “Red Sun”, and successfully earned the first bucket of money. Since then, Great Wall Pictures has entered into a period of rapid development, successively launching film and television works such as “The Great Southwest Banditry” and “The Secret History of Wu Zetian”.
In August 2013, after Jiangsu Hongbao disclosed that it would be listed on the shell of Great Wall Pictures, the stock price pulled out 12 consecutive stops, and then the stock price soared 4 times in two months’ Time. in June 2015, with the support of the bull market, the market value of Great Wall Pictures once stood at 16.5 billion yuan. The Great Wall Film and TV became the first A-share shell stock of film and television companies, and is also the core A-share listed company following Huace Film and TV (5.94+0.00%, shares), Hualu Baina (5.02+0.00%, shares), after the new Culture (2.87-1.03%, shares), another A-share listed company with TV series production as the core.
After the listing, with the power of the capital market, Great Wall Film and TV opened a “buy buy buy” mode and expanded in a big way. According to incomplete statistics, from 2014 to 2017, Great Wall Pictures spent 2.8 billion yuan to acquire 18 companies in 4 years, including 6 advertising companies, 9 travel agencies and 3 live entertainment companies, many of which were acquired at high premiums.
In public media reports in the past, Zhao Ruiyong once said with great enthusiasm that he hoped to build Great Wall Pictures into a “full content, full industry chain” integrated film and media group, and to build a group like “Shaw Films” in the future.
In 2018, the company’s performance first “thunderbolt” loss, 2019, the company’s losses expanded to nearly 1 billion yuan. The main cause of the loss, the company attributed to a large amount of goodwill impairment.
In addition to the goodwill mine-out, at the beginning of 2019, Great Wall Pictures was also caught in an irregular guarantee fiasco involving an amount of 350 million yuan, and the company’s relevant main responsible persons were punished, and its 2019 annual report was therefore issued an audit report with an unavailable opinion by the accounting firm. Since June 22, 2020, the stock of Great Wall Pictures has been subject to delisting risk warning, and its stock abbreviation has been changed to “*ST Great Wall”.
Debt recovery by court with 10 million reward
In December 2019, the actual controller of *ST Great Wall was offered a bounty by the court to collect debts. At that time, the Hangzhou Central Court held a “bounty enforcement press briefing” to solicit property clues from the “Great Wall System” real controllers, Zhao Ruiyong and Zhao Xianghua, with a huge bounty of more than 13 million yuan.
According to the Hangzhou Intermediate Court, the execution of the case in question exceeds 130 million yuan, the applicant for enforcement of the case chose a 10% reward ratio, providing effective enforcement clues can be obtained according to the contribution of the bounty. The applicant in this case is China Construction Bank Hangzhou West Lake Sub-branch. In about 2017, the bank lent more than 100 million yuan to the “Great Wall System” company, but the amount recovered so far is “only two or three million yuan”.
The 2020 third-quarter report shows that *ST Great Wall’s revenue in the first three quarters of 2020 fell 71.88% year-on-year to 97.9851 million yuan, with a loss of 74.412 million yuan. By the end of the third quarter of 2020, *ST Great Wall’s liabilities totaled 1.859 billion yuan and its assets totaled 1.227 billion yuan.
On January 17 this year, *ST Great Wall released an announcement on the progress of litigation matters. The announcement showed that recently, the Hangzhou Intermediate People’s Court made a first instance verdict on the litigation case between Hengfeng Bank and *ST Great Wall and the controlling shareholder of *ST Great Wall, Qingfeng Yuancheng. The verdict shows that *ST Great Wall is required to return the principal amount of the loan of 98 million yuan, pay interest of 4,417,300 yuan and penalty interest of 2,597,700 yuan to Hengfeng Bank within 10 days from the effective date of the verdict.
In addition, *ST Great Wall also disclosed recently that the company was investigated by the SFC for alleged information disclosure violations. 17 January 2021, *ST Great Wall announced that the investigation is still ongoing and the company has not yet received the concluding comments or decision from the SFC on the matter of the investigation.
The other two listed companies under the beneficial owner are *ST
It is worth noting that in addition to Great Wall Pictures, Zhao Ruiyong controls two other listed companies, which are now also in jeopardy.
In August 2014, the Great Wall Group, controlled by Zhao Ruiyong, took a controlling stake in Sichuan Shengda and renamed it Great Wall Animation, and in 2015, the Great Wall Group took a 500 million yuan stake in Tianmu Pharmaceutical. At present, both Great Wall Animation and Tianmu Pharmaceuticals have been implemented the delisting risk warning, the company’s abbreviation changed to “ST ChangDong (1.83-4.19%, the consultation shares) (rights)” and “ST Megapharma (8.55-0.12%, the consultation shares) (rights) “.
*ST long-acting performance forecast shows that the amount of net loss attributable to shareholders of the listed company in 2020 is expected to be 170 million yuan to 230 million yuan, with operating income of 9.5 million yuan to 12.5 million yuan. As of the close of business on March 12, the company’s market capitalization was 600 million yuan.
Source: Wind
*ST Megadrug announced that it expects to achieve a net profit attributable to shareholders of the listed company of -34 million yuan to -68 million yuan for the year 2020, which will decrease by 84.11 million yuan to 118 million yuan compared with the same period of the previous year, down 167.85% to 235.70% year-on-year. As of the close of business on March 12, the company’s market capitalization was 1 billion yuan.
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