Dozens of products have been postponed and major shareholders have been questioned about embezzlement of funds. The Huaxin Trust, which is on the cusp of the issue, has issued an announcement explaining the recent situation, saying that There are situations where major shareholders occupy funds or funds are misappropriated”, and are studying and formulating feasible trust product redemption principles and plans. This article is from the WeChat official account:Tianxiayinbao (ID: tianxiayinbao), the original title “Large-scale deferred payment of products, major shareholder Suspected embezzlement of funds! Huaxin Trust responded to the latest …… “, author: Wu Linpu, Editor: Yvonne Chan, from the title figure: Vision China
On the evening of November 10th, Huaxin Trust issued an announcement in response to recent concerns about product redemption, shareholder behavior, and the introduction of strategic investors.
In the announcement, Huaxin Trust pointed out that there is no major shareholder’s possession or misappropriation of funds. The major shareholder Huaxin Huitong Group continued to provide liquidity support to assist the company.
The “International Finance News” reporter has learned from people familiar with the matter that Huaxin Trust has been supervised and suspended a few months ago, mainly because of the cleanup of the fund pool business. And its fund pool business has been going on for many years, during which a large number of rolling releases.
In this announcement, Huaxin Trust did not directly explain the progress of the regulatory suspension of the business and the liquidation of the fund pool business.
It is reported that all the collective fund trusts issued and managed by Huaxin Trust are applied to the underlying operating companies, includingFor 40 financing companies, collaterals are mainly distributed in Dalian, Shenyang, Beijing, and Shanghai. The total equity of related trust plans is approximately 23.8 billion yuan.
denies that major shareholders embezzle funds
In the announcement, Huaxin Trust stated that the company has grown from an initial registered capital of 50 million yuan, after a long period of development and growth, by the end of 2019, its audited net assets were 12.3 billion yuan.
The reporter learned that Huaxin Trust was established in 1981, formerly known as Industrial and Commercial Bank of China Dalian Trust and Investment Company; in 1988, it was restructured into a company limited by shares and renamed as Industrial and Commercial Bank of China Dalian Trust and Investment Co., Ltd.; in 1997, it was renamed Dalian Huaxin Trust and Investment Co., Ltd. In 2016, the company’s registered capital increased to 6.6 billion yuan.
According to the data of the 2019 annual report, the equity structure of Huaxin Trust is relatively dispersed, with a total of 20 shareholders. The shareholders holding more than 10% of the shares are Huaxin Huitong Group Co., Ltd., Beijing Wanlian Tongchuang Network Technology Co., Ltd. and Shenyang Pincheng Investment Co., Ltd., each holding 25.91%, 19.9% and 15.42%.
In this response, regarding the shareholders involved, Huaxin Trust stated that there is no major shareholder’s possession or misappropriation of funds. The major shareholder Huaxin Huitong Group continued to provide liquidity support to assist the company. Since April this year, due to the epidemic and other factors, trust plan financing companies have generally failed to repay in time. Under this circumstance, the company and Huaxin Huitong Group have invested a large amount of their own funds to help the trust plan to be paid in full on time.
Earth Trust believes that under special circumstances, companies and groups invest hugely, which is rare in the industry.
As for the progress of introducing strategic investors, Huaxin Trust stated that the introduction of strategic investors is to increase the company’s registered capital and net assets, increase the company’s cash flow, improve the company’s ability to resist risks, and better protect the interests of investors .
“The first condition for our company to choose strategic investors is to be able to recognize and support the company to protect the interests of stock trust investors. In the company’s history, this type of capital increase has been carried out many times, raising the company’s net assets from 50 million to 12 billion.” Huaxin Trust further pointed out that according to current regulatory policies, there are new requirements for review and approval of the qualifications of new shareholders, which will not be achieved overnight.
The payment plan is being studied
Since September 24 this year, Huaxin Trust has successively disclosed 27 trust plan extension announcements on its official website. The reasons for the extension are all due to the inability of the financing company to repay the principal and interest of the financing on time, resulting in trust products as stipulated in the trust contract Enter the postponement period.
For the product redemption issue that has received much attention, CEFC Trust stated in the announcement that due to factors such as the debts of some financing companies and the continued new crown epidemic, financing companies did not repay the principal and interest of financing as agreed, and some of the collective fund trusts managed by it , According to the situation of the trust asset collection and the relevant contractual agreements, there may be delays.
“The extension is for the consideration of conducive to the collection and disposal of the underlying assets. Under the current market environment, the eagerness to realize the sale of assets is not conducive to the protection of investors’ interests.” Regarding the progress of asset disposal and payment collection, Huaxin Trust is studying and formulating feasible trust product redemption principles and plans to protect the interests of investors.
It is worth mentioning that, in order to reassure investors, Huaxin Trust stated that because our company’s trust assets and self-owned assets are sufficient to cover all investors’ rights and interests, investors do not have to worry about principal and income Safety. It will, as always, protect the interests of investors, especially those of natural persons.
Even though Huaxin Trust has made such a “generous” guarantee, from the perspective of 2019 performance, it is one of the few negative-profit trust companies in the industry. Tianyan check information shows that after achieving a profit peak of 1.97 billion yuan in 2015, the net profit of Huaxin Trust has declined year by year. From 2016 to 2018, it was 1.606 billion yuan, 1 billion yuan and 807 million yuan, respectively. It dropped sharply to -152 million yuan, becoming one of the few negative-profit trust companies in the industry that year.
In addition, regarding the progress of the regulatory suspension of business and the liquidation of the fund pool business, Huaxin Trust did not directly explain the relevant information in the announcement.
“All the collective fund trusts issued and managed by our company are all applied to the underlying operating companies, including 40 financing companies. The collaterals are mainly distributed in Dalian, Shenyang, Beijing, and Shanghai. The equity of the company’s related trust plans The total is about 23.8 billion.” Huaxin Trust said.
On the afternoon of November 11, a reporter from “International Finance News” called the number disclosed in the annual report of Huaxin Trust several times to learn more about the relevant situation, but it was never connected.
This article is from WeChat official account:Tianxiayinbao (ID: tianxiayinbao) author: Wulin Pu, editor: Chen Shih