*ST Gaosheng (000971): Two Shareholders Apply For Bankruptcy Reorganization To Receive The Actual Control Power To Add Variables.

It has been more than a year since the real control people's illegal guarantee and common loan swirl. The difficulties faced by *ST's high rise (000971, SZ) have not improved at all. Instead, there is a possibility of a real controller changing. In July 10th, *ST announced that the two shareholder blue tripod Industrial (Hubei) Co., Ltd. (hereinafter referred to as the blue tripod industry) could not repay debts due to insolvency and filed for bankruptcy reorganization with Xiantao court.

LAN ding industry now holds 146 million shares of *ST, representing 13.37% of the total share capital, and is the largest shareholder in Beijing, Reed Yu Chi Investment Co., Ltd. (hereinafter referred to as Yu Chi Reed), which is controlled by Gaosheng real controller Wei Zhenyu. *ST Gao Sheng said that the subsequent restructuring of landing industry will cause uncertainty in the company's real power control and other effects.

LAN Ding Industrial debt 1 billion 760 million yuan

At present, LAN Ding holds 146 million shares of *ST, but all of them are in a state of judicial freeze and waiting for freezing, of which 145 million 360 thousand shares are in pledge. Information from the sky shows that the blue tripod industry has been involved in many disputes over private lending, loan contracts and debt transfer contracts, and has been applied for property preservation by many creditors.

*ST Gaosheng 2018 annual report revealed that Lan Ding's own liabilities amounted to 1 billion 760 million yuan, providing 4 billion 83 million yuan for external guarantee. By the end of July 10th, the market value of *ST's high rise stock was 349 million yuan.

Due to insolvency, LAN Ding filed for bankruptcy reorganization in court. The court decided in July 3rd to accept its reorganization application. *ST Gao Sheng said that the bankruptcy of the blue tripod industry will bring about changes in the control of the company and other uncertainties.

In fact, in addition to the possible changes in the shareholding ratio of the real controller, *ST Gaosheng has provided illegal guarantees for many times of the blue tripod industry. Whether the joint and several liability will be restructured with the latter is still unknown.

*ST Gaosheng disclosed the situation of illegal guarantee to the real controller and its related parties in the 2018 annual report. Among them, there were 5 guarantees for the blue tripod industry: the guaranty contract of Shenzhen Qianhai high search Cci Capital Ltd (hereinafter referred to as the high search easy), the guarantee balance of 473 million yuan, the guarantee contract of Dong Yunwei, Yan Yu Qing, the guarantee balance of 35 million 420 thousand yuan, the Beijing Zhongtai Chuang Ying guarantee contract, the guarantee balance 21 million 550 thousand yuan, the Zhejiang Sino Thai development guarantee contract, the guarantee balance 27 million 480 thousand yuan; the Baoying factoring guarantee contract, the guarantee balance 15 million 130 thousand yuan.

It is worth noting that the blue chips *ST holding 55 million 360 thousand shares will be auctioned on Alibaba's judicial auction network platform in from July 22nd to 23rd.

Holding of controlling shareholders will be auctioned off.

With the continuous exposure of *ST high rise violation guarantee matters, the debt crisis faced by the real Wei Zhenyu family is gradually emerging, and the enterprises such as Yu Chi Reed and LAN Ding industries have all been debts. According to the 2018 annual report, in addition to the 1 billion 760 million liabilities of the blue tripod industry, Yu Chi Reed's own liabilities also amounted to 2 billion 240 million yuan.

At present, the blue ding industry has applied for bankruptcy reorganization. Whether Yu Chi Reed will follow the lead is still uncertain. However, the majority of *ST shares held by Yu Chi Reed will be auctioned by the judiciary, which is about to happen.

Since June, *ST Gaosheng has announced three announcements that the controlling shareholder's shares will be auctioned by the judiciary. It is clear that creditors have begun to recover debts through judicial proceedings. Among them, the 22 million 650 thousand restricted shares held by Yu Chi Reed will be auctioned online in from July 15th to 16th, involving the lenders of Zhongrong International Trust Co. The 55 million 360 thousand tradable shares held by landing industry will be auctioned in from July 22nd to 23rd, involving the lender Gao search easy; the 101 million 250 thousand restricted shares held by Yu Chi Reed will be auctioned from 30 to 31 July, involving the lender of Zhongrong International Trust Co, Ningbo Free Trade Zone Yu Rui Xin Tong equity investment partnership (limited partnership).

Yu Chi Reed and LAN Ding will have a total of 179 million shares in judicial auction, accounting for 16.47% of the total share capital of listed companies. At present, Yu Chi Reed and LAN Ding are holding *ST up 159 million shares and 146 million shares respectively. Wei Zhenyu has become the actual controller of the listed company through two companies, and the total shareholding ratio is 27.94%.

If the above three auctions are successful, Yu Chi Reed and LAN Ding jointly hold the number of *ST holding shares, which will drop to about 125 million shares, and the shareholding ratio will drop to 11.47%, which may lead to a change in the real control rights of the listed companies. In addition, the blue tripod industry is about to undergo bankruptcy reorganization. Its *ST holding shares are all waiting to be frozen. Whether it will be transferred with bankruptcy reorganization is uncertain. This will add more variables to the actual control of listed companies.

How will the joint guarantee liability of *ST rise after the bankruptcy of the blue tripod industry? Does Yu Chi Reed also have the plan of reorganization? What are the actual control options for stock auctions? For all sorts of questions, the daily economic news reporter called *ST Gao Sheng in July 10th and sent an email, but no reply was received as of press release.