As of December 9, Ren-Eng Holdings, listed on China’s A-share small and medium-sized board, had 11 stops, its market capitalization evaporated 24.9 billion yuan, and its shareholders lost 1.91 million yuan per capita, known as “the strongest meat grinder of 2020.
11 stoppages, market value evaporated 24.9 billion yuan
On Wednesday (December 9), Ren-Eng Holdings closed at 18.88 yuan, down 70%, so far it has been 11 consecutive stoppages, and the total market capitalization fell to 10.572 billion yuan.
However, the small and medium-sized listed company Rendong Holdings from the end of June 2019 more than 13 yuan share price, all the way up to November 20, 2020 64.72 yuan, a cumulative increase of nearly four times, the total market value was once as high as 35.5 billion yuan, a rough calculation, the total market value evaporated 24.9 billion yuan.
China Fund News reported that, according to the company’s statistics at the end of the third quarter, the number of Ren-East Holdings shareholders was 13,090, which is a rough estimate, in the 13 trading days from November 20 to December 8, the average loss per shareholder was 1.91 million yuan. Therefore, Ren-East Holdings is known as “the strongest meat grinder in 2020” by the shareholders.
As of December 8, Ren East Holdings financing balance of more than 3 billion yuan, if the stock price continues to fall, these funds can not escape the fate of being “liquidated”.
The company has been in the process of developing the newest and most advanced technology in the world, and it has been able to develop the newest and most advanced technology in the world.
The “flash marriage and divorce” with the state capital.
According to public data, the main business of Ren Dong Holdings is third-party payment, financial leasing, commercial factoring, supply chain management, Internet small loans, financial technology product research and development, etc., and the actual controller is Huo Dong.
Huo Dong is the second generation representative of the Huo family of Qinghua Group. According to public records, Huo Dong’s acquisition of Ren Dong Holdings was mainly financed by his personal and family accumulation. His mother, Huo Xiuzhen, and her family have long been engaged in energy development and other businesses in Ningxia and Inner Mongolia, and his mother-in-law, Zhang Shuyan, has long been involved in large and medium-sized real estate development projects in China, holding a large real estate development company and investing in a number of companies.
According to the Securities Times, on the eve of Ren Dong Holdings’ share price drop, the company just had a change of control.
On November 15, 2020, RenDong Holdings announced that it had “broken up” with the Beijing Haidian District State-owned Assets Supervision and Administration Commission.
According to the announcement, on July 29, 2019, the former controlling shareholder of RenEast Holdings, Beijing RenEast Information Technology Co. (21.27% of the total capital stock of the listed company), Rento Information entrusted the management of voting rights and other shareholders’ rights corresponding to the 119 million shares of Rento Holdings (21.27% of the total capital stock of the listed company) to Hike Gold Group. The initial custody period is one year.
Hikejin Group does not hold any shares of Ren Dong Holdings, but owns the voting rights of 161 million shares (28.75% of the total capital of the listed company) through proxy voting and concerted action agreement, and becomes the controlling shareholder, and the actual controller of the company is changed to Beijing Haidian District SASAC. On November 15, 2020, one year after the implementation of the agreement, Hikejin Group no longer has voting rights in Rento Holdings. The controlling shareholder of the company changed again to RenDong Information, and the actual controller changed to Huo Dong.
Land media reported that this seems to be a “flash marriage and divorce” drama with the state capital. Since then, Ren-East Holdings has started a continuous decline in the road.
The bankers control the retail investors to become the catcher.
According to the “Securities Times” news on December 9, a source close to the regulators said that Rendong Holdings is indeed a banker’s stock, and the banker has been controlled by the judicial authorities.
The source said, “The banker controls a lot of personal accounts of the financing disk and OTC allocation disk. After the banker was controlled by the regulatory and judicial authorities, the financing plate was forced to be sold by the brokerage firm as required, causing the stock to start to fall and stop, and the funding plate was also sold in a big way on the news, while the trading volume of Rendong Holdings after the stop was extremely low and the selling order was very large, leading to a stampede caused by the continuous stopping.
As early as September 12, 2020, a netizen posted a warning, saying that Rendong Holdings is a “typical banker, collapse time is not far away, retail customers don’t be a catcher”. The netizen said, the banker left hand to sell, right hand to take over, the stock price speculation sky, just waiting to take off to find a catcher. Once it crashes, it will fall precipitously.
According to the report, a large number of retail investors will start “running” to take over the stock in the second half of 2020. Compal’s shareholder data shows that as of June 30, 2020, Compal’s shareholder count was only 6,638. In the second half of the year, RenEast’s chips are rapidly dispersed, with 13,100 shareholders as of Sept. 30, up 97.20% from three months ago.
In fact, Rento Holdings is losing money. According to the semi-annual report, the company’s third-party payment business accounted for 40.32% of revenue and had a gross margin of 11.44%, while its supply chain business accounted for 56.53% of revenue and had a gross margin of 0.32%. Into 2020, due to the Chinese Communist virus epidemic and other multiple factors, Ren Dong Holdings’ operating results showed a loss. According to the company’s 2020 quarterly report, in the first three quarters of this year, the operating income was 1.754 billion yuan, an increase of 89.77% year-on-year, and the net profit was a loss of 21.92 million yuan.
On October 30, 2020, Rendong Holdings announced that this year, due to the macroeconomic environment and the impact of the Wuhan pneumonia epidemic, the company’s liquidity is relatively tight, the principal of a 350 million yuan short-term loan from Industrial Bank failed to repay the situation on schedule.
As of October 25, 2020, the company’s monetary funds totaled 1.365 billion yuan, of which 1.314 billion yuan of restricted monetary funds. Rendong Holdings said that due to the characteristics of the diversified financial industry, the company’s main business expansion needs more financial support, but at present the company’s financing channels are relatively single, mainly relying on banks and other financial institutions.
In addition, Ren Dong Holdings is also involved in a guarantee amounting to 1.5 billion yuan of guarantee litigation disputes.
As of the end of the third quarter, Ren-East’s current liabilities amounted to 2.3 billion yuan, including 641 million yuan of principal and interest on loans from financial institutions, 332 million yuan of operating liabilities, and 1.327 billion yuan of other current liabilities. 815 million yuan of current liabilities due within three months.
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