Xingye Leather High Priced Assets Before Listing Are Sold At Low Prices

The original priceless assets were sold at low prices in the share reform.

Reporters found in Xingye

Mysterious associates

The SFC will examine the first application of Xingye leather Polytron Technologies Inc in December 28th.

Xingye leather intends to issue 60 million shares, with a total share capital of 240 million shares after the issue, and will be listed on Shenzhen Stock Exchange.

The main business of the company is the development, production and sale of the middle and top grade cattle top shoe upper leather. The main products include the Napa series, the natural throw series and the special effect leather series. The products are widely used in the manufacture of leather shoes, bags, leather goods, etc.

Like all listed companies, Xingye leather has been growing rapidly in recent years.

Turning to the company's application data, found that from 2008 to 2010, Xingye leather business income in turn was 824 million yuan, 820 million yuan and 1 billion 42 million yuan, the net profit realized also has 66 million 220 thousand yuan, 80 million 470 thousand yuan and 107 million yuan. Three.

From the perspective of revenue, Xingye leather fully meets the performance requirements of the main board.

Reporters noted that in the details of Xingye leather profit list, there is a surprising growth rate of the project, that is, the company's investment income.

The consolidated income table shows that from 2008 to 2010, the investment income of Xingye leather was 1 million yuan, 1 million 250 thousand yuan and 562 thousand and 500 yuan in the first half of the year, and this index increased to 3 million 375 thousand yuan.

For the company's rapid investment returns, Xingye leather mainly comes from investment in joint ventures and joint ventures.

According to this idea, reporters read the situation of Xingye leather subsidiary.

Before the public offering, there were only two participating companies in Fujian's leather industry, namely, the Swiss Leather Company Limited (hereinafter referred to as "the Swiss leather") and the Fujian Jinjiang Rural Cooperative Bank (hereinafter referred to as the "rural cooperative bank").

According to the application data, the rsson leather Department established a limited company in Zhangpu, Fujian province in April 11, 2006, with a registered capital of 40 million 86 thousand and 600 yuan. It is engaged in the processing of new technology of leather and wet blue, and finishing after leather finishing.

According to the capital verification report, by the end of 2010, the total assets of lehson leather were 38 million 893 thousand and 100 yuan and net assets 38 million 789 thousand and 300 yuan, but last year the company lost 458 thousand and 400 yuan.

This situation has continued to this year, data show that in the first half of this year, the Swiss leather still lost nearly 440 thousand yuan.

And another equity company, rural cooperative bank, invested 13 million 500 thousand yuan in Xingye leather, with a shareholding ratio of only 1.915%.

As at 06 30 2011, the total assets of rural cooperative banks were 16 billion 372 million yuan, net assets of 1 billion 623 million yuan, and net profit of 116 million yuan in 2011 2011.

If the profit ratio is close to 2% and the profit of the rural cooperative bank, the investment income of Xingye leather is only about 2 million 300 thousand yuan.

The earnings data of the two subsidiaries, compared with the materials supplied by Xingye leather, are still different. What causes the investment income of Xingye leather to increase? The reporter tried to interview for verification, but the company's staff responsible for media publicity were on a business trip, so the reporter couldn't contact the company.

Assets are sold cheap

Not only is the authenticity of the investment project doubtful, but there are also loopholes in the restructuring process of Xingye leather, and even worse, there has been a bad practice of selling the assets of the company at a low price.

The predecessor of Xingye leather is Fujian Jinjiang Anhai Xingye Leather Product Factory (hereinafter referred to as "leather products factory"), founded in 1992, and its enterprise is a collective owned enterprise with a registered capital of 750 thousand yuan.

The business scope is mainly for leather products, and the legal representative is Wu Huachun.

Since then, with the development of the company, Xingye leather has experienced many capital increase.

By the end of 1997, Jinjiang Anhai Anton village committee and Wu Huachun increased nearly 10 million yuan.

Between 2001 and 2004, Xingye leather company implemented the stage of stock cooperation.

In February 20, 2001, Wu Huachun, Wu Huajie, Ke Xianyu, Ke Rongxian and Ke Rong Miao signed the shareholder agreement. Wu Huachun invested 20 million 750 thousand yuan in real assets to the company, and Wu Huajie, Ke Xianyu, Ke Xianyu, and Kirgiz invested 1 million yuan in leather products factory, becoming a new shareholder in the leather products factory. After the capital increase, the registered capital of the leather products factory was changed to 35 million yuan.

In April 7, 2002, the shareholders of the leather products factory passed the resolution of shareholders' meeting on behalf of Wu Huachun and pferred to investment. The resolution was 15 million yuan from 15 million 6 thousand and 400 yuan of land paid by the company on behalf of Wu Huachun as the new investment of Wu Hua Chun, and the registered capital of the company increased to 50 million yuan.

In 2004, Xingye leather went through a major change -- changed to Limited Liability Company.

In September 17, 2004, the shareholders' meeting of the leather products factory decided that the leather products factory was pformed into a limited liability company from a joint stock cooperative enterprise.

In September 21, 2004, the leather products factory held a shareholders' meeting and made a supplementary decision. It agreed that the gross profit and equity ratio of the original shareholders were unchanged on the basis of the audited net assets value of 65 million 875 thousand yuan as of 31 days in August 2004.

However, compared with the net assets of 65 million 880 thousand yuan, the actual contribution of the shareholders of Xingye leather is only 50 million yuan, so the assets of Xingye leather are sold at a low price.

Doubts about foreign capital status

After the shareholding system reform, Xingye leather tries to develop in the direction of foreign capital.

Since November 2005, the company plans to go overseas, and the stockholders of leather products companies are going to adjust the equity structure of the leather products company and establish a return investment structure. The concrete process is as follows: the Wu Huachun, Wu Huajie and some of the leather products companies of the leather products company and Wu Huachun's business partners set up the Yin Hua company and Jinmao company in the British Virgin Islands respectively, and then jointly set up Jiasheng company by Yin Hua company and Jinmao company. The original shareholders of the leather products company will pfer all their respective shares to Jiasheng company.

After the pfer, the shareholders of the leather products company are changed into Jiasheng company, and the nature of the enterprise is changed into a wholly foreign-owned enterprise.

In April 7, 2006, a decision made by the shareholders committee of the leather products company agreed that all the shareholders of the leather products company should be purchased from the HK $52 million worth of Hong Kong dollars by the company. All the debts and debts would be inherited by the foreign-funded enterprises after the change, and all shareholders should give up the right of preemption.

After the change of stock rights, Xingye leather became a wholly foreign-owned enterprise. However, it can be clearly seen that the actual control of the company is still on the part of Wu Huachun, Wu Huajie and some of the leather products companies. The overseas registered companies are just a cover for listing.

Since then, the move of Xingye leather has also verified this view.

In 2009, Jiasheng company pferred the stock ownership of Xingye leather through the equity pfer.

Before the public offering, Xingye leather also has a foreign shareholder, Hua Jia company, and the nature of Xingye leather has been pformed into a Sino foreign joint venture.