Huafang Textile Litigation Ripped Past Grievances Over 900 Million Of Capital Occupation Doubtful.

Senior accounting experts pointed out that the non operating capital spanactions between Huafang textile and the prepaid accounts were obviously not in compliance with the regulations.

Recently, Huafang textile (600273.SH) the announcement of a successful lawsuit will bring an account of 12 million 317 thousand and 700 yuan.

Alex Hua Tian, a company mentioned in the lawsuit, has been losing money for over two years, and has become a bad asset that Hua Fang textile is determined to divestiture. It is precisely this hot potato that the spanferee, Xiao Zhao ya, has accepted from the generosity to the Fang Fang textile court.

In addition, when the textile industry is in a downturn, Huafang textile has borrowed heavily, and has invested in Xiajin textile, a wholly owned subsidiary in a loss situation. Not only does data fight, but also more than 900 million of the non operating capital is included in the accounts of prepaid accounts, making investors suspicious.

In July 24th, call the Huafang textile secretaries office to make a public phone call. The staff member said that Zhao Jiangbo was in a meeting and could not reply.

The lawsuit has not yet entered the final stage.

Why did it suddenly blow up after the deal?

The main business of Huafang textile is to produce all kinds of specifications. Knitting yarn Knitted grey cloth, Knitting dyeing and finishing And all kinds of knitted garments.

In the evening of July 17th, Hua Fang textile announced that in the case of the dispute between the company and the defendant, Zhangjiagang Hutian Mstar Technology Ltd (hereinafter referred to as "Alex Hua Tian company") and Xiao Chao Asian enterprise loan contract, the Huafang textile company won the principal and the total yield of 12 million 317 thousand and 700 yuan.

In from July 17th to 20th, Huafang textile shares closed for four consecutive days.

Recently, however, media reports reported that Xiao had already appealed to the Suzhou intermediate people's court.

It should be pointed out that Alex Hua Tian was founded in June 2010 by the joint venture between Huafang textile and natural person Xiao Zhao ya. As of July 31, 2011, Alex Hua Tian company received capital of 23 million 330 thousand yuan. Among them, Huafang textile invested 16 million 330 thousand yuan in real terms, accounting for 70% of the registered capital of Alex Hua Tian company. Xiao Zhaoya invested 7 million yuan, accounting for 30% of the registered capital of Alex Hua Tian.

As of July 31, 2011, the total assets of Alex Hua Tian company were 41419068.17 yuan and net assets of only 9148797.88 yuan. Statistics show that in 2010, Alex Hua Tian company's net profit was -819 million, and by the end of July 2011, the net profit of Alex Hua Tian company was -14181202.12 yuan.

It can be seen that Alex Hua Tian company, which has been established for less than two years, has been losing money and has become the bad assets that Hua Fang textile is determined to divestiture. It is also this hot potato that allows the spanferee Xiao Zhao to accept from the generosity to the two sides.

Statistics show that on August 10, 2011 -11, Huafang textile had received a 4 million yuan deposit for the spanfer of shares before the board had passed the examination and approval, and signed a pledge agreement with Xiao Chao, and pledged the 30% stake of Xiao Zhao's holding company to Hua Fang textile.