Leaving behind a pile of chicken feathers... The China Securities Regulatory Commission takes another action, causing the 80 billion dollar automotive empire to collapse with a bang. Automobiles | shareholders | collapse

On August 9th, the Hebei Securities Regulatory Bureau issued another regulatory letter to safeguard the interests of over 200000 small and medium-sized shareholders.

Let's take a look at the details together:

Hebei Securities Regulatory Bureau once again takes action

On August 9th, the Hebei Securities Regulatory Bureau issued administrative supervision letters to Shenzhen Shenshang Holdings Group Co., Ltd., Shenzhen National Yunli Technology Group Co., Ltd., and Shenzhen Yuanwei Asset Management Co., Ltd.

Fund Master, let's first review the origins of these three companies for everyone.

In 2019, as the giant group was on the verge of collapse, a consortium consisting of Shenzhen Commercial Holdings, National Transportation Power, and Yuanwei Assets became the restructuring investors of the giant group.

These three companies all point to the same actual controller, Huang Jihong, who later became the actual controller of Zotye Automobile.

In the restructuring plan, the restructuring party promised to adjust the business structure of Pangda Group to ensure its continued profitability, and promised that the net profit attributable to the parent company's owners of Pangda Group in 2020, 2021, and 2022 would not be less than RMB 700 million, RMB 1.1 billion, and RMB 1.7 billion respectively, or the total net profit attributable to the parent company's owners in 2020, 2021, and 2022 would reach RMB 3.5 billion.

But in the end, the huge group did not fulfill its previous performance commitments. Data shows that from 2020 to 2022, Pangda Group achieved net profits of 580 million yuan, 898 million yuan, and -1441 million yuan respectively, with a total of only 41 million yuan.

In May this year, Pangda Group announced that according to the restructuring plan, the performance commitment compensation that restructuring investors need to make up is 3.459 billion yuan. In response, Shenshang Group and National Transportation stated that "in accordance with the provisions of the restructuring plan regarding performance compensation commitments, we will make up for the performance compensation commitment of 3.459 billion yuan in cash by the end of July 2023. The specific implementation plan for performance compensation is currently being formulated."

Until the massive delisting, we didn't receive this compensation. On August 9th, the Hebei Securities Regulatory Bureau issued an administrative supervision letter to the three companies mentioned above, ordering them to strictly fulfill their commitments in accordance with the law, promptly negotiate and clarify corresponding compensation arrangements, and effectively safeguard the interests of the large group and small and medium-sized shareholders.

Lost contact with the actual controller?

In May of this year, the Hebei Securities Regulatory Bureau had already taken administrative regulatory measures against the actual controller Huang Jihong, the general manager Zhao Tieliu, and the secretary of the board Liu Xianghua.

It is worth noting that in April this year, Shenshang Group dismissed Huang Jihong from his position as CEO.

Subsequently, Huang Jihong resigned from his position as Chairman of Zotye Auto. After the termination of Zotye's 6 billion yuan private placement, he was also exposed by his own board secretary and lost contact.

On July 26th, an investor asked on the interactive platform of the Shenzhen Stock Exchange, "Has Huang Jihong, the actual controller of the company, been working in Shenzhen in the past few days? Is the change of the actual controller of the company already in the process of being processed?".

The response from Secretary Dong was "Hello, the company is not sure where Mr. Huang Jihong has been working in the past few days. Regarding the change of the actual controller of the company, the company has not received any further definite information. Thank you for your attention to the company!".

Subsequently, the company denied the claim that Huang Jihong was missing.

The China Securities Regulatory Commission has filed a case

At its peak, the market value of the huge group once exceeded 80 billion yuan, with over 1400 4S stores under its umbrella. It is truly the "king of 4S stores" in the Chinese automotive distribution industry. The number of shareholders reached over 400000 at its peak.

As of the delisting of Pangda Group, there are still nearly 250000 shareholders.

When learning about the imminent delisting of the huge group, many small and medium-sized shareholders complained and reported that the controlling shareholder was suspected of embezzlement of interests.

On May 19th, * ST announced that the Shanghai Stock Exchange received complaints from investors. According to the complaint report, the actual controller of the company, Huang Jihong, is suspected of indirectly occupying the funds of the listed company through potential related parties. The Shanghai Stock Exchange requires companies to verify relevant information by comparing investor complaint materials, whether there are transactions that conceal related relationships or fabricate no business background, and whether they constitute non operating fund occupation.

There are also complaints and reports that the board of directors of the company has reviewed the total amount of vehicles and parts purchased by the company from Zotye Automobile Co., Ltd. controlled by the actual controller Huang Jihong, which does not exceed 1 billion yuan, and is suspected of encroaching on the interests of the controlling shareholder. The Shanghai Stock Exchange requires the company to verify and demonstrate the necessity and fairness of the above-mentioned related party transactions, and shall not submit proposals for related party transactions that have not been fully verified to the shareholders' meeting for review.

According to the complaint report, the company's repurchase plan is suspected of false information disclosure, and the company misleads investors in investment decisions through the Shanghai Stock Exchange e-interactive platform, media releases of information such as the repurchase funds have been in place, and state-owned enterprises have taken over.

On May 27th, Pangda Group received a filing notice from the China Securities Regulatory Commission. Due to the company's suspected illegal and irregular information disclosure, in accordance with laws and regulations such as the Securities Law of the People's Republic of China and the Administrative Penalty Law of the People's Republic of China, the China Securities Regulatory Commission has decided to file a case against the company.