*ST Rise Control Struggle Again Why Did The Top Two Shareholders Voluntarily File For Bankruptcy?

Recently, *ST Gao Sheng (000971, SZ) issued a notice shows that the company's second major forces in Ping, Weng Yuan again shot, proposed to recall Wei Zhenyu (Note: listed company actual controller), Li Yao, Zhang Yiwen and other 3 directors. On the evening of August 2nd, the incumbent chairman Li Yao presented a counterattack bill. The listed company disclosed that the board of directors adopted the motion on dismissing the general manager of the company in August 2, 2019, and the general manager Wei Jiang was dismissed. The board of Directors voted 7 votes in favour and 4 votes against it.

The daily economic news reporter noted that the second major powers represented by Ping and Weng yuan hold 16.54% of the shares of listed companies. In addition, Hubei Shenzhen gaoshu *ST (hereinafter referred to as Gao Souyi), holding the equity stake in LAN Ding Industrial (Hubei) Co., Ltd., if the company successfully completes the transfer, will have a 5.09% stake in the company's holding up *ST. What are these interests parties' attitude towards the control right of listed companies? Reporters linked to the head of Ping and Gao search, Ping Ping with time sensitive nodes declined to make public voice, Gao search Yi's head clearly stated that "as long as there is conducive to the development of the listed company's negotiations are open-minded".

The top two shareholders are bankrupt.

As the actual controller, the Wei Zhenyu family actually controls the top two shareholders of *ST, Beijing Yu Chi Reed Investment Co., Ltd. and blue Ding Industrial (Hubei) Co., Ltd., and the Wechsler family collectively holds 304 million shares of *ST, or 27.94% of the total share capital, through the two parties.

Since July, the news of *ST has been constantly rising, especially Beijing Yu Chi Reed investment limited and blue Ding Industrial (Hubei) Co., Ltd. has been adjudication of bankruptcy application by court, and it has attracted the attention of all parties.

The head of an investment company in Hangzhou told reporters: "controlling shareholders of listed companies voluntarily apply for bankruptcy is very rare. Once they enter bankruptcy proceedings, they will lose control of listed companies. If there is no secret, it is hard to imagine that someone will voluntarily abandon the platform.

In response, a creditor who asked for anonymity told reporters: "this is obviously the debtor's tactics to hold the listed company's control right. After applying for bankruptcy, according to the relevant regulations, the company has to clear up the creditor's rights and debts, and the judicial auction of the relevant shares will be postponed. People who want to win the control of *ST rise naturally will not get chips. Creditors will also have a long repayment waiting. Although the debtor is likely to be out in the future, he has at least been given a respite. Creditors and creditors must be opposed.

The information obtained by reporters searching for Taobao auctions shows that since July, auctions of *ST Gaosheng shares held around Beijing Yu Chi Reed investment limited and LAN Ding Industrial (Hubei) Co., Ltd. have reached 8 auctions, but 7 of them are in a state of reprieve. The reason for the delay is identified as "legal cause", "Wei Zhenyu" and so on. One of the 55 million 360 thousand *ST stocks that was filmed in July 23rd was successfully sold.

The information disclosed by the listed companies shows that Gao Chao won the competition successfully. It is worth noting that Gao Chao Yi is the Pledgee of the auction. In November 15, 2017, blue Ding Industrial (Hubei) Co., Ltd. signed a pledge contract with Gao Shu Yi to pledge its 27 million 680 thousand shares to Gao Shu Yi, and then transferred to 55 million 360 thousand shares. In response, the director of a law firm in Hubei said, "if we do decide to accept bankruptcy, we should postpone the sale of all debtors' assets."

Chen Kang, the head of Gao Chao Yi, told reporters: "as a representative of the creditors and creditors related investors, we explained the special situation to Xiantao court, so the court only allowed the auction."

*ST rising control struggle again

After the equity auction, the dispute over *ST's rise in control was revival. In the evening of August 1st, Gaosheng holdings issued a notice showing that shareholders in Ping and Weng yuan again launched a proposal to recall Zhen Yu, Li Yao, Zhang Yiwen and other 3 directors. In response, the incumbent chairman Li Yao presented a counterattack bill. The board of directors passed the motion on dismissing the general manager of the company in August 2, 2019, and the general manager, Wei Jiang, was dismissed.

"Daily economic news" reporter noted that Yu Ping and Weng two shareholders background is Jilin Gaosheng Technology Co., Ltd., two people jointly founded Gaosheng Technology Co., Ltd., respectively, as chairman and deputy general manager. Because Gaosheng Technology Co., Ltd. was acquired by Gaosheng holding company in 2015, two people gained the shareholding of Gaosheng holding company, and served as the general manager and chairman of the board of supervisors of the listed companies respectively.

However, with the *ST high rise violation guarantee events continue to erupt, the two obviously can not sit still. According to the announcement of *ST's reply to the Shenzhen stock exchange's letter of concern, which was released in February 15, 2019, in January 20, 2019, it sent a proposal to the company's board of directors on the request of the 9 meeting of the board of directors on the basis of the equality of the 4 shareholders. It proposed to recall the 4 directors of Wei Zhenyu, Li Yao, Zhang Yiwen and Sun Peng. However, some shareholders subsequently withdrew the motion.

After a few months of temporary calm, the situation has changed dramatically. *ST has risen to the top of the market due to the wearing of caps, and its market value is less than 1/3 of its highest point in March. It is difficult for Ping and Weng yuan to propose a recall of the 3 directors of Wei Zhenyu, Li Yao and Zhang Yiwen.

For the reasons for this motion, the reporter sought to interview an equal person, but the other side declined to make public statements. A source close to the equal person said: "because of the Weis family's Beijing Chi Chi Reed investment limited and blue Ding Industrial (Hubei) Co., Ltd. has entered the bankruptcy proceedings, the Weis family is no longer a real controller of the listed company. The Weis family and *ST Gao Sheng have no common interests relationship, and the motion is proposed for the company's early return to the right track."

The shareholding structure shows that the total shareholding ratio of Ping and Weng two people has reached 16.54%, so the attitude of other shareholders is also crucial. Chen Kang, who took the 5.09% stake in the listed company, told reporters: "as long as we are in favor of the development of the listed companies, we are all open minded."

For many related issues, the reporter contacted *ST for many times, but has not been answered.