Is "World Copper King" restricted from consumption? The response is coming
On September 4th, it was rumored online that Shenzhen Zhengwei Co., Ltd. and its legal representative Wang Wenyin were subject to consumption restrictions. On the same day, the company responded on its official website that the incident has been properly resolved and the relevant impact has been lifted.
Therefore, it was previously publicized that Zhengwei Group has a total copper reserves of about 30 million tons, and Wang Wenyin was once known as the "World Copper King". It is worth noting that as the only A-share listed company under the Zhengwei Group, Zhengwei New Materials has had mediocre operating performance in recent years, and its previous asset acquisition plan for transforming semiconductors has also been delayed in landing.
The restraining order has been revoked
According to Tianyancha information, the consumption restriction order was issued by the Intermediate People's Court of Zaozhuang City, Shandong Province, and the applicant for enforcement is China Construction Eighth Bureau First Construction Co., Ltd. The filing date was April 4, 2023, and the announcement date was August 31. The reason for the case is the construction contract dispute between China Construction Eighth Bureau First Construction Co., Ltd., Zhengwei Huaneng New Materials Technology Co., Ltd., and Zhengwei Group in 2022.
Zhengwei Group responded on its official website this afternoon, stating: "There is a lawsuit between the company under the group and the general contractor of the project engineering, which resulted in joint and several liability of the group due to communication issues. After friendly negotiations between the two parties, the incident has been properly resolved and the relevant impact has been lifted."
The reporter called the Intermediate People's Court of Zaozhuang City to obtain a more detailed process. Staff members of the Zaozhuang Intermediate People's Court told reporters that during the trial phase, both parties reached a mediation agreement, and one party applied for compulsory execution. During the compulsory execution process, both parties reached a settlement agreement, but due to Zhengwei Group's failure to fulfill its obligations according to the settlement agreement as scheduled, a consumption restriction order was issued. But currently, the relevant obligations have been fulfilled, so the consumption restriction order has been revoked.
According to the official website of Zhengwei Group, the company achieved a turnover of over 600 billion yuan in 2022, ranking 124th in the 2023 Fortune Global 500; We have over ten square kilometers of commercial development parks, one hundred square kilometers of industrial development parks, one thousand square kilometers of mining areas, ten thousand square kilometers of mining areas, and one hundred thousand square kilometers of exploration rights worldwide.
The acquisition plan has not been implemented yet
Yesterday afternoon, the reporter called Zhengwei New Materials, which is under the actual control of Zhengwei Group, as a shareholder. The securities department staff of the company responded that they were not aware of the detailed situation because the executed party is Zhengwei Group. However, the incident has not had any impact on the company's production and operation at present.
According to public information, in December 2017, Xi'an Zhengwei New Materials Co., Ltd. invested 340 million yuan to acquire 10.23% of the shares of Jiuding New Materials; In 2019, Shenzhen Yiwei New Materials Co., Ltd., a subsidiary of Zhengwei Group, acquired 65 million shares of the company from Gu Qingbo, the actual controller of Jiuding New Materials at that time, for 1.153 billion yuan. Wang Wenyin thus became the actual controller of Jiuding New Materials, and the company was later renamed Zhengwei New Materials.
The reporter noticed that since Zhengwei Group acquired control of Zhengwei New Materials four years ago, the company's performance has been mediocre. From 2020 to 2022, the company achieved operating revenue of 1.671 billion yuan, 1.498 billion yuan, and 1.442 billion yuan respectively, with a year-on-year decline; The corresponding net profits were 34.5147 million yuan, 41.3222 million yuan, and 36.2034 million yuan, which also showed fluctuations.
In the first half of this year, Zhengwei New Materials achieved a year-on-year increase of 32.5% in revenue, but the net profit attributable to the parent company decreased by 26.09% year-on-year. The net cash flow generated by the company's operating activities also dropped sharply from 37.0872 million yuan in the same period last year to 10.9198 million yuan, a decrease of 70.56%.
In addition, in 2021, Zhengwei New Materials also announced its intention to sign an equity acquisition agreement with Tianjian Jiufang Technology Co., Ltd. to acquire its subsidiaries, Tongchuan Jiufang Xunda Microwave System Co., Ltd. and Zhongke Digao Microwave System Co., Ltd., in order to acquire semiconductor assets and achieve company transformation. In July 2022, Zhengwei New Materials announced a change in its acquisition plan, changing the target company from two subsidiaries to the parent company Tianjian Jiufang, but there has been no substantial progress so far.
In June of this year, the Shenzhen Stock Exchange issued an inquiry letter to Zhengwei New Materials regarding the 2022 annual report, requesting the company to explain whether the acquisition of Tianjian Jiufang has made substantial progress and whether sufficient due diligence has been conducted on the acquisition target. In the 2023 semi annual report, Zhengwei New Materials stated that there is great uncertainty in whether the target corresponding to this intention item can be successfully achieved.
