March 17, 2021, is the day of delisting of Orient Jinyu (delisted Jinyu, 600086.SH) in A shares.
According to the notice of the SSE, after the expiration of the delisting period on March 10, 2021, the SSE will delist the company on March 17.
So far, once the market value of nearly 30 billion yuan of “jade first stock” fell, the Oriental Golden Yuy this end of its A-share career. As of March 10, 2021, the last trading day of its market value of only 216 million yuan, the share price of 0.16 yuan / share, the share price and market value fell by more than 99%!
Interface News reporter learned that the Oriental Golden Jade stock will be transferred to the national small and medium-sized share transfer system listing transfer, the company’s 57,600 shareholders can continue to trade here.
The “first stock of jade” was once famous
Formerly known as Duojia, Dongfang Jinyu was listed on the main board of the SSE in June 1997, initially focusing on textile and Education businesses. But the company’s performance from the third year of listing (1999) began to decline, to 2003, 2004, its consecutive losses of 0.28 billion yuan, 197 million yuan, and therefore in March 29, 2005 was the implementation of the delisting risk warning, reduced to “* ST Duojia”.
In October 2005, Zhao Xinglong, nicknamed the “King of Gambling Stones”, spent nearly 18.47 million yuan to acquire shares of Duogia and became its second largest shareholder with 10.49%. After that, Zhao Xinglong spent 39 million yuan to acquire 52 million shares of the listed company, becoming the largest shareholder with a 25.25% shareholding in Duojia.
On December 31, 2005, Yunnan Xinglong Industry Co., Ltd. controlled by Zhao Xinglong became the actual controller of the listed company. After that, Zhao Xinglong injected the jadeite assets of his Yunnan Xinglong Jewelry into Hubei Duojia.
In August 2006, Duojia shares changed its name to “Orient Golden Yul”, and in 2010 and 2015 staged a bull stock market, known as the “first stock of jade”. Public information shows that Orient Golden Jade has a complete industrial chain from jadeite raw materials to production and processing, wholesale and retail.
Interface News reporter learned that, Zhao Xinglong in 2005, the listed company in 2005 to reverse the loss situation and profit of 0.05 billion yuan. Since then, the performance of Orient Golden Yul has continued to grow, and in 2012, the profit broke 160 million yuan; in 2015, the tenth year of Zhao Xinglong’s ownership of the listed company, Orient Golden Yul’s profit stood at 300 million yuan high.
In July 2015, its share price rose to a record high of 20.46 yuan per share (before compounding) and its market value was once close to 30 billion yuan. Zhao Xinglong Family is the richest man in Yunnan.
Xu Xiang heavy position and “manipulation” of the East Jingyu
The year 2015 was not only an unforgettable year for A-shares, but also a fatal year for Orient Jinyu.
Despite the completion of the asset reorganization in 2005, but the historical problems left behind in the early years of the Oriental Golden Yuy is not completely solved. The company’s gearing has increased year by year, exceeding 80% for the first Time in 2011, and has not been able to reduce it since then.
Since 2011, Dongfang Jinyu has twice disclosed the fixed increase program, but both failed because the share price and fixed price inversions and so on. Until May 2014, Dongfang Jinyu threw out a third fixed-income plan to raise 1.5 billion yuan, and finally completed successfully in 2015, all the funds raised for the return of bank loans and additional working capital; subscribers are only one, that is, Zhao Xinglong family-controlled Rui Li Jinze Investment Management Co. ).
Seemingly the actual controller to the listed company “blood transfusion”, but the “private sector brother” Xu Xiang manipulation of the key step of the Oriental Golden Yuy.
This reporter learned from the 2014 semi-annual report of Orient Jinyu, Xu Xiang control of Zexi 4 as a new shareholder, appeared in the top ten shareholders of Orient Jinyu, holding 1,880,500 shares, accounting for 0.53% of the total shares of the listed company.
By the third quarter of 2014, Xu Xiang controlled another “Zexi system” products Zexi 1 also among the top ten shareholders of Oriental Golden Jade, and became the third largest shareholder of Oriental Golden Jade holding 8.83 million shares (accounting for 2.51% of the total shares of the listed company).
In this context, in June 2015, Zhao Xinglong issued a new fixed-term plan, this time Dongfang Jinyu intends to raise 8.008 billion yuan, mainly for small loans, pawnbrokers and other businesses. In July 2015, the A-share market changed dramatically. Orient Golden Jade terminated the fixed increase plan in March 2016.
Xu Xiang’s Zexi 1 phase from the Oriental Golden Yuy successful “retreat”. According to the Oriental wealth Choice data, as of June 30, 2015 also held 8.83 million shares of the Oriental Golden Yuy Zexi 1, by July 31, 2015 has disappeared from the list of the top ten shareholders of the Oriental Golden Yuy. According to a previous report by China Business News, in July and August 2015, Xu Xiang sold all of the Oriental Golden Yul bought in the secondary market, making a profit of nearly 1 billion yuan.
But Xu Xiang “planted” in this year.
Since then, the details of Xu Xiang’s “manipulation” of Orient Jinyu have gradually come to light. on August 6, 2016, Orient Jinyu received a notice that the Shanghai branch of the Chinese registration company had frozen the property of the suspect Xu Xiang according to the “Notice of Assistance in Freezing Property” served by the Qingdao Municipal Public Security Bureau. -293 million shares of Dongfang Jinyu’s restricted outstanding shares held by Ruili Jinze and the fruits (referring to the additional proceeds generated by the original property), accounting for 21.72% of the company’s total share capital.
This news caused a market shock. From the public information, it seems that Ruili Jinze is not related to Xu Xiang. According to the previous introduction of Orient Golden Yul, Ruili Jinze is an enterprise controlled by Zhao Xinglong’s family. Business information shows that Ruili Jinze was established on May 13, 2014, registered in Ruili City, Dehong Prefecture, Yunnan Province, engaged in corporate management services, business information consulting, venture capital and other services.
In the evening of August 7, 2016, Oriental Jinyu replied to a question from the SSE that Rui Li Jinze has not changed its shareholding structure since its establishment, i.e., Zhao Xinglong and Zhu Xiangying hold 51% and 49% of its equity respectively. But 49% of the shares held by Zhu Xiangying said “I hold shares in Ruili Jinze, Xu Xiang capital, I only hold for Xu Xiang”.
According to several media reports, Zhu Xiangying is the wife of Zhou Jianming, who is one of the most core members of the early Ningbo stopping board death squad, and Xu Xiang is the most relied upon helper in Ningbo.
So far, Xu Xiang manipulation of the evidence of the Oriental Jingyu “surfaced”. As of September 30, 2020, the latest shareholder list shows that Rui Li Jinze is still the largest shareholder of 21.72% of Orient Golden Yuy.
On Nov. 1, 2015, the share price of Orient Golden Yul was 12.71 yuan/share, and the value of the shares held by Ruili Jinze in the listed company was 3.726 billion yuan; however, with an estimate of 0.16 yuan/share in Orient Golden Yul on March 10, 2021, the value of this part of the shares was only 46.932 million yuan.
According to this calculation, Xu Xiang holds 49% of shares of Ruili Jinze through Zhu Xiangying, and Xu Xiang indirectly holds about 144 million shares of Orient Golden Yuy, and the value of the relevant shares held fell from 1.83 billion yuan on November 1, 2015 to 22.98 million yuan on March 10, 2021.
Twice investigated by the Securities Regulatory Commission
In November 2015, with the case of Xu Xiang, Gu Feng, the then secretary of the board of directors of Orient Golden Yul, also lost his connection. In April 2016, Zhao Xinglong resigned as chairman of the board for “personal reasons” and handed over the company’s power to his 35-year-old son Zhao Ning.
The “change of hands” of the Oriental Golden Yul has since been subject to regulatory penalties for successive violations. Among them, the most market concern is that the Oriental Golden Yul twice by the Securities and Futures Commission to open investigations.
The reporter learned that since the beginning of 2018, the Oriental Golden Yul has failed to pay off its debts when due. On July 25 of that year, the company disclosed that its outstanding debts due totaled 916 million yuan, and its outstanding debts due had accumulated to 5.814 billion yuan by November 18, 2019. While the debt is high, Dongfang Jinyu has a huge jade inventory, and at the end of the first half of 2019, the company’s inventory balance was as high as 9 billion yuan, of which the jewelry and jade inventory balance reached 8.8 billion yuan.
Holding a lot of jewelry and jade, but can not be realized to pay off debts? This situation of Oriental Golden Jade has caused investors to question.
On January 16, 2019, the SFC announced that it had opened a case against Oriental Golden Yul for alleged information disclosure violations.2020 In April, the SFC disclosed the results of its investigation, stating that between December 2016 and May 2018, Oriental Golden Yul, in order to complete its performance indicators such as operating income and total profit, falsely constructed its controlled Ruili City Sister Su Hongning Jewelry Co. and six natural persons In order to meet the total operating revenue and other profit targets, Oriental Jinyu falsified the sales transactions of raw jadeite stones between its controlled company, Ruili Hongning Jewelry Co. Ltd. and six natural person nominee customers. Oriental Golden Jade recognized the above-mentioned revenue in the periodic reports involved, which at the same time led to an inflated operating revenue, operating cost, total profit and accounts receivable in the periodic reports involved.
According to the SEC’s investigation: in 2016, the inflated operating revenue was RMB 141.69 million, the inflated operating cost was RMB 46.65 million, and the inflated total profit was RMB 95.04 million, accounting for 29.60% of the total profit of the consolidated income statement in that year; in 2017, the inflated operating revenue was RMB 294.87 million, the inflated operating cost was RMB 110.389 million, and the inflated total profit was 184.482 million yuan, accounting for 59.70% of the total profit of the consolidated income statement in that year; the 2018 semi-annual report inflated operating revenue by 120 million yuan, inflated operating costs by 41 million yuan, inflated accounts receivable by 77.2 million yuan, and inflated total profit by 79 million yuan, accounting for 211.48% of the total profit of the 2018 semi-annual report.
On December 18, 2020, Dongfang Jinyu was again investigated by the SFC for alleged information disclosure irregularities.
On December 22, 2020, the Hubei Securities Regulatory Bureau issued a Decision on Administrative Penalty to Dongfang Jinyu. The Hubei Securities Regulatory Commission pointed out that in 2019, Dongfang Jinyu disclosed a proposed change in control, saying that China Lantian was a “nationally owned enterprise under the supervision of the Ministry of Agriculture”, but the disclosure was falsely recorded. The Hubei Securities Regulatory Bureau warned Yunnan Xinglong Industrial Co Ltd, the controlling shareholder of delisted Jinyu, and Zhao Ning, the actual controller, and imposed a fine of 400,000 yuan respectively.
After years of tossing and turning, Dongfang Jinyu is caught in a whirlwind of huge losses. 2016 to 2019, the company’s earnings were 251 million yuan, 231 million yuan, -1.718 billion yuan and -1.827 billion yuan. 2020, Dongfang Jinyu is expected to lose 1.95 billion yuan to 2.45 billion yuan.
Delisting is not the same as the end of the trouble
Investors are finally “chilled” about Orient Golden Jade. The company’s share price also continued to fall. 20 consecutive trading days from November 25 to December 22, 2020, the daily closing price of Orient Jinyu was below the par value of the stock (1 yuan), which triggered a broken face delisting. 2021 January 13, the SSE decided to terminate the company’s listing, and Orient Jinyu entered the delisting period from January 21.
On March 10, 2021, the delisting period expired and Dongfang Jinyu had its last trading day. Trading quotes show that the stock opened flat that day, after the stock price to maintain the shock trend, as of March 10 closing, the shares of Orient Golden Yul at 0.16 yuan per share, down 5.88%, the day the turnover rate of 7.02%, the turnover of 12.4 million yuan, the total market value of only 216 million yuan.
The company also set off a tide of departures after the fate of the delisting of Dongfang Jinyu was determined. The company’s finance director, Song Xiaogang, also said goodbye to Orient Jinyu on March 10.
On March 17, the SSE delisted Orient Jinyu. However, the A-share delisting does not mean that the trouble of Orient Golden Yul ends here. The reporter learned that as of September 30, 2020 the latest shareholders show that the Oriental Golden Yuy still has 57,600 shareholders.
Jiangsu Zhuyi Law Firm Lang Yihua lawyers believe that whether or not Orient Jinyu is delisted, investors have the right to claim compensation from those responsible; the company’s delisting will reduce the listed company’s ability to pay, but the object of investor claims is not only the listed company itself, the directors, supervisors and executives responsible for Orient Jinyu should be jointly and severally liable with the listed company.
Lang Yihua also pointed out that three types of Oriental Golden Yul investors can apply for claims: first, investors who bought after April 18, 2017, still held before the opening of the market on January 18, 2019, and continued to hold or sell thereafter and suffered losses; second, investors who bought after the opening of the market on February 2, 2019, still held Oriental Golden Yul after the closing of the market on May 23, 2019, and continued to hold thereafter Or sell and suffer losses; third, in December 17, 2020 after the close of business is still holding Oriental Golden Yul, and thereafter continue to hold or sell and suffer losses.
The reporter learned from the SkyEye App, Oriental Golden Yul cumulative 8 times by the court included in the list of executors, the current total amount of the implementation of 1.257 billion yuan, 36 times listed as a defaulted executee, the company and some shareholders have been restricted from high consumption.
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