The Auction Cost 77 Million 300 Thousand Yuan! Why Did The Famous Printing And Dyeing Enterprise "Putian First Stock" Go To Such A Desperate Situation?

In August 21st, the two creditors of Xiamen Hua Lun printing and dyeing Co., Ltd. (hereinafter referred to as Hua Lun dyeing and printing) and Fujian Zhonghe Marketing Co., Ltd. (hereinafter referred to as "Zhonghe marketing"), held by Limited by Share Ltd branch of Xiamen branch of Xingye Bank, held an open bid on Taobao asset auction network platform.

The auction caused 3424 onlookers, a total of 6 people signed up, the final transaction price of 77 million 300 thousand yuan.

It is understood that Xiamen Hua Lun printing and dyeing Co., Ltd. is a well-known veteran printing and dyeing company in Xiamen. Its parent company and its shares have been known as the "Putian first stock", but now they are faced with the difficulties of delisting and many assets being auctioned.


So what happened in the past years?


Two the total amount of debt exceeds 95 million yuan.


According to the auction notice, the creditor's rights of the two companies, including Hua Lun dyeing, public and marketing, held by Limited by Share Ltd branch of Xingye Bank, as of July 29, 2019, amounted to 95697431.18 yuan, including 68855986.09 yuan in loan principal amount, 26541445.09 yuan in interest, penalty interest and compound interest, 300 thousand yuan in the cost of replacement, and the guarantee method was mortgage plus guarantee.


Among them, the borrower has 9 unpaid loans under the creditor's rights, and the total debt amount is 47268382.66 yuan. Another borrower and 8 outstanding loans under the marketing creditor's rights account for 8 yuan, and the total amount of debt is 48429048.52 yuan.


It is reported that the claims of these two households are all industrial buildings under the name of Hua Lun printing and dyeing, which are located at 30 apricot frame dehydrating machine room in Xing Road, Jimei District, with a total of 16 property rights certificates. The land area is 99715.19 square meters, and the gross floor area is 33929.77 square meters. All of them have been formally mortgaged, and the maximum principal amount of mortgage is 100 million yuan.


It is reported that Hua Lun printing, dyeing and marketing are both subsidiaries of Fujian public and Limited by Share Ltd. The former two have been jointly charged for providing joint and several liability guarantee.


The parent company used to be the first stock in Putian.


Public information shows that Zhonghe shares were founded in 1993, and its predecessor was a small printing and dyeing factory in Putian. After many years of development, Zhonghe shares landed on A shares in 2006. Its main business is the development, production and sale of medium and top grade cotton casual wear fabrics. And Hua Lun printing and dyeing was established earlier. It was once one of the largest printing and dyeing enterprises in Fujian province. It is also known as one of the best state-owned printing and dyeing enterprises in China. In 2007, Hua Lun printing and dyeing was bought by numerous and shares.


Hua Lun printing and dyeing has gone through a period of better development.


In 2002 -2004, its annual output value was about 150 million yuan, and it was listed as the top 300 industrial enterprises in Fujian province. Similarly, numerous shares and shares also experienced glory: in 2016, a company engaged in the lithium battery industry was acquired in 2016. At that time, the industry was in the draught, and the share price was once fired. The market value was once more than 20 billion yuan, and it was called "the first stock in Taiwan". At that time, the public and founder Xu Jinhe, Xu Jiancheng and his son were worth billions of yuan.


But it didn't last long. According to media reports, in 2010, the main textile and dyeing industry of Zhonghe shares began to slide. In 2011, when Xu Jiancheng took over the helm of the company, he stepped into the steel industry.


After the outbreak of the steel trade incident in Shanghai in 2012, a series of credit crises were triggered. In May 2017, Xu Jiancheng was arrested on suspicion of contract fraud, and the company's share price plummeted all the way.


According to the annual report of the company, the net profit attributable to the parent company in 2018 was -5.73 billion, and the net assets attributable to the parent company owner were -11.03 billion yuan.


In addition, according to media reports, since 2013, Xu Jinhe, Xu Jiancheng and his son have been listed on the list of "dishonest executors" many times, and the foreign debts that have not been paid off have been as high as 1 billion 300 million yuan.


In July of this year, Zhonghe shares were formally delisted. Some assets have been filted by the court. In this context, Hua Lun printing and dyeing can not be independent. After 2010, printing and dyeing enterprises had great difficulties in production. Since then, Zhonghe has shifted its focus to other fields, and even ignored the development of Hua Lun printing and dyeing.


In 2017, according to the announcement of Zhonghe shares, "Xiamen Huarun printing and dyeing Co., Ltd. and Fujian Zhonghe Marketing Co., Ltd. are deeply involved in many debt disputes, including the dispute over the loan contract with Limited by Share Ltd branch of Xingye Bank. The balance of the loan principal is 69 million 373 thousand and 700 yuan. In the case of the Xiamen China printing plant and the right to the use of land as collateral, Xu Jiancheng provides joint and several liability guarantee. At the same time, Xiamen Huarun dyeing, public and marketing provide mutual guarantee for each other, and the land has been sealed up."


According to the "ten major typical litigation cases and ten implementation cases" listed by the Fujian court in 2018, Hua Lun printing and dyeing is also among them. Statistics show that only 44 cases involving the implementation of the target of the Xiamen Jimei court and the Fujian company and its parent company, Fujian Zhonghe and Fujian public and marketing companies, have reached 3006 yuan. In the end, the Jimei court implemented a total of more than 2566 yuan in this series of cases. Source: chemical fiber sinks, Xiamen net