In 2017, the TV series "Chicken Feather Flying to the Sky" hit the air. The drama takes the relationship and entrepreneurial story of a Yiwu couple as clues, and tells the tortuous and brilliant course of Yiwu's reform and development for more than 30 years. The prototype character of the story and the richest woman in Zhejiang Zhou Xiaoguang. It is also widely known.
It is a pity that the good times did not last long. Today, 5 years later, she not only has huge debts, but its listed company Shin Kong Yuancheng Co., Ltd. (hereinafter referred to as "Shin Kong Yuancheng") has also recently received a "delisting notice".
On May 24, due to the negative net profit in 2018 and 2019, negative net assets at the end of 2020, and the 2021 annual report was issued with a qualified audit report, the Shenzhen Stock Exchange decided to terminate the listing of ST Xinguang shares, which will be entered on June 1. The delisting arrangement period will be delisted on the next trading day after the expiry.
At that time, Shin Kong Yuancheng's 6-year listing road will come to an end.Zhou Xiaoguang, the "Queen of Jewelry" who started his business by running a street stall and once had a net worth of 33 billion yuan, has also experienced a life reversal from "the richest woman in Zhejiang" to a debt of 35.7 billion yuan. The executor has also been "rewarded for debt collection" by the court, and villas, luxury cars, etc. have also been auctioned many times.
Falling into the current predicament may stem from Zhou Xiaoguang's layout in real estate.Since 2011, Shin Kong Group has continuously borrowed new ones to repay the old ones. In 2016, Shin Kong Yuancheng also issued 6 bonds in a row in the year of its listing. Funding problems eventually triggered a debt default.And the richest woman who has been fighting for 40 years in the business sea and relying on the trend of the times to "fly to the sky", will she regret "going astray in real estate" in the face of today's chicken feathers?
After 6 years of listing, it was forced to delist, and 12,700 shareholders stepped on the thunder
The delisting of Shin Kong Yuancheng may not be surprising to its 12,700 shareholders.In the more than six years since it went on sale in April 2016, it has worn ST's hat for nearly three and a half years.
On December 3, 2018, Shin Kong Yuancheng was subject to other risk warnings, and trading was suspended for one day on the same day. After the resumption of trading, other risk warnings were implemented. The company's stock abbreviation was changed from "Xin Kong Yuancheng" to "ST Xinguang".
Since "wearing the hat", Shin Kong Yuancheng's operating conditions have not improved: its net profit in 2018 and 2019 was negative for two consecutive years, and a delisting risk warning has been implemented since April 29, 2020, but its net assets at the end of 2020 are still is negative.
Zhongxinghua Certified Public Accountants held a "reserved opinion" on its 2021 annual report, which triggered the "switch" of Shin Kong Yuancheng's delisting.Zhongxinghua believes that there are major uncertainties in the continuing operation of Shin Kong Yuancheng.From 2018 to 2020, Shin Kong Yuancheng suffered losses for three consecutive years, with net profits of -212 million yuan, -5.085 billion yuan, and -3.257 billion yuan respectively.
In addition, Shin Kong Yuancheng also has a large amount of loans and overdue interest that cannot be repaid, a large amount of overdue taxes and fees and late payment fees have not been paid, and its solvency is poor. There are many unfavorable events such as the mortgage or seizure of a large number of commercial houses, material adverse effects on real estate sales, and material uncertainty about the success of bankruptcy and reorganization.
In fact, Shin Kong Yuancheng has not "laid down". In 2021, it has carried out a series of debt relief operations for "protecting the shell", turning losses into profits in 2021 and realizing a net profit of 701 million yuan.However, Zhongxinghua believes that the non-recurring gains and losses such as the income from debt settlement and debt exemption are 1.924 billion yuan. After deducting the above-mentioned non-recurring gains and losses, the net profit attributable to ordinary shareholders is -1.223 billion yuan, so its financial statements are held. "Reserved opinion".
According to the relevant provisions of the "Shenzhen Stock Exchange Listing Rules (Revised in 2022)", after a listed company is issued a delisting risk warning, if there is an audit in the first fiscal year where the financial accounting report is issued with a qualified opinion, disclaimer of opinion or negative opinion According to the report, the Shenzhen Stock Exchange decided to terminate the listing and trading of its shares.
Judging from the annual reports since its listing in 2016, Shin Kong Yuancheng is not a healthy listed company.In addition to the substantial increase in revenue and net profit due to asset injection when it was listed in 2016, the other years have negative growth in revenue and negative net profit, and even in 2019, net profit fell by 2293.6% year-on-year.Strengthening internal control, recovering illegally occupied funds, speeding up the disposal of existing commercial housing, and maintaining normal operations have become the focus of Shin Kong Yuancheng's operations in the past four years.
In the 2019 annual report, Xinguang Yuancheng explained: "Because the company has made large guarantee losses and asset impairment reserves, and has large interest-bearing liabilities, some of them are not repaid when they are due to form a default, and default interest or penalty interest needs to be paid, resulting in Financial expenses, asset impairment losses and non-operating expenses in the current period are relatively high, and the current operating losses are affected. Affected by the factors of real estate mortgage and seizure, the commercial housing of the company's main projects cannot be sold normally, causing a certain degree of adverse impact on the company. "
It is worth noting that this year, A-shares have ushered in a wave of large-scale delisting, and more than 40 companies have reached the mandatory delisting indicator.Jiang Han, a senior researcher at Pangu Think Tank, told Times Finance that affected by the international capital market and the macroeconomic environment, A-shares have shown a pattern of multiple shocks this year, and A-shares are developing in the direction of better supervision and more standardized markets.
Desperately increasing leverage, the richest woman, Zhou Xiaoguang, has a poor real estate
"Although chicken feathers are light, they can fly to the sky with a little wind."The classic line of "Chicken Feather Flying to the Sky" outlines the story of a generation of Zhejiang businessmen represented by the heroine Luo Yuzhu, who seized the trend of the times, started from scratch, and achieved life transcendence.
Zhou Xiaoguang, who was born in a poor mountain village in Zhuji, Zhejiang, also took advantage of the wind for a time.Backed by Yiwu, a "holy place" for wholesale of small commodities, she went from a mobile hawker to a "Queen of Jewelry", and accumulated hundreds of thousands of net worth in the 1980s when "10,000-million-dollar households" were scarce.
In the era of making wealth in Yiwu's small commodity market, Zhou Xiaoguang and her husband Yu Yunxin became the group of people who "get rich first". They bought a house and opened a new store in Yiwu early, and even spent 7 million yuan in 1995 to set up "Xinguang Jewelry Co., Ltd." ", creating a precedent for the production of jewelry in Yiwu.But the "queen" also has troubles: employees keep running away and become competitors; once new products are launched, their peers will follow suit and plagiarize; low-price competition...
In order to remain invincible, in addition to cooperating with well-known international brands, Zhou Xiaoguang also began to diversify his business.In 2004, Zhou Xiaoguang and his wife operated multiple industries such as cross-border real estate, finance, Internet, and investment from a single jewelry.In terms of real estate business, she established Xinguang Real Estate Development Co., Ltd. and acquired Zhejiang Wansha. The real estate development is mainly concentrated in Yiwu and its surrounding Zhejiang Dongyang, Jinhua, Hangzhou and other cities. The product forms include residential, shopping malls, commercial complexes, Hotel etc.
However, the rapid development of Shin Kong Group is based on the desperate increase of leverage.In order to broaden financing channels and relieve debt pressure, Zhou Xiaoguang and his wife sought backdoor listing many times. After trying to backdoor * ST Jinlu failed, they quickly reached cooperation with Maanshan Fangyuan Slewing Bearing Co., Ltd. (hereinafter referred to as "Maanshan Fangyuan").In April 2016, Shin Kong Holdings became the controlling shareholder of Maanshan Fangyuan by purchasing new shares, and injected 100% equity of its Wanxia Real Estate and Shin Kong Building Materials City into the listed company, realizing the backdoor listing of the real estate business and changing its name to "Shining Light".
Xinguangyuan became Zhou Xiaoguang's real estate map. After deducting the issuance costs, the 3.2 billion yuan raised through backdoor listing was mostly used for Yiwu World Trade Center, Crowne Plaza Qiandao Lake and its annex, Xinguang Tiandi Phase III and other projects. Supplementary liquidity.
It is worth mentioning that at the time of the reorganization and listing, Shin Kong Yuancheng made a three-year performance commitment of 4 billion yuan in total, but it was not realized as scheduled. The controlling shareholder was also exposed to illegal operations such as borrowing in the name of the company and being occupied by it.However, due to the lack of funds of the controlled companies or affiliated companies, Shin Kong Group also illegally used Shin Kong Yuancheng's official seal to sign a guarantee contract in the process of financing from banks and borrowing funds from other companies or individuals, including financing 900 million yuan from banks and using The company's Yiwu World Trade Center hotel property provides the third-rank mortgage guarantee.
Under the distress, Xinguang Yuancheng also "sold children" to survive.In May 2018, Wanxia Real Estate, its wholly-owned subsidiary, transferred 46% of the project equity of Yiwu Xinguang Yipin, jointly developed with Binjiang Group, to Binjiang Group at a consideration of 1.824 billion yuan.
However, in recent years, real estate regulation has become stricter, market sales have declined, and Shin Kong Yuancheng's financial and operating conditions have not improved. It disclosed its current predicament in its 2021 annual report: "In previous years, the controlling shareholder occupied the company's funds and violated regulations in the name of the company. The guarantee has not been lifted, resulting in tight liquidity of the company, default of due debts due to failure to repay on time, failure to carry out external financing normally, and some saleable properties being mortgaged or sealed up and unable to be sold normally, which has a great negative impact on the company’s operations.”
Yan Yuejin, a real estate analyst at E-House Research Institute, believes that the development of the voluntary commodity market allows Zhou Xiaoguang to obtain original capital accumulation, but he has not formed a professional degree and his own development path in the real estate field, so he will become increasingly passive.
Although the real estate sector did not perform well after the backdoor listing, it made Xinguang Group a large private enterprise with total assets of about 80 billion yuan, and also made the wealth of Zhou Xiaoguang and his wife increase rapidly, ranking No. 1 in the 2017 Hurun Rich List with a net worth of 33 billion 65, and Zhou Xiaoguang ranked 26th on the "Hurun Global Self-Made Rich Women List" in March 2018, becoming the richest woman in Zhejiang.
Now Xinguang Yuancheng's "defeat" may also confirm the line in the play: "Chicken feathers can't stand without roots, and the roots are too heavy to fly."
"Chicken feathers can't stand without roots, and the roots are too heavy to fly."
