The liquidity crisis of the private zhegian shield group has raised widespread concern。
On 2 may, the zhejiang provincial finance office convened a debt coordination meeting of the group of shields to discuss issues such as bond financing and bank loans. The first financial journalist was informed that the participating institutions include the hanzhou central branch, the zhejiang monitoring board, the opening of the state of zhejiang province, the provincial export-import bank, the provincial industrial bank, as well as the zhejiang branch of the chinese finance corporation, the zhejiang branch of the chang city finance corporation and the zhejiang branch of the sindafi company. The two a-stock listed companies under the banner of the shields group, the guilder environment (002011. Sz) and the gangnam chemical industry (0022226. Sz), were suspended as a matter of urgency。
On 4 may, the gangnam chemical workers responded to the in-depth request that, as at 3 may 2018, the guilder's security holdings held 459,824,882 shares directly, or 36. 82 per cent of the company's total shares. To date, the above-mentioned shares held by the shields security unit have not been pledged。
At the same time, the gangnam chemical stated that, owing to macro-financial environmental impacts, bonds of the company's holding shareholder shield were not issued as scheduled, causing some short-term liquidity problems and the amount of the liability involved was still being verified; the liquidity risks faced by the shield control were likely to have some impact on the company's new financing environment, and there was uncertainty about the impact; and the current company was operating normally. There is a risk of a change in corporate control if the security and control of the shield is not able to properly resolve the debt settlement issue。
The first financial journalist tried to contact the business unit of the shields group, and the telephone had remained unattended as of the time of the report. When the first financial reporter contacted the head of the two operational blocks, the artificial environment and the new energy, the other side said that it was difficult to answer at the group level, but that, according to the head, the shield was currently calm and was not affected by too much external information。
According to sources within the former shield group, the rumours at the debt crisis workshop at the shield are exaggerated, and the company is said to have invested 34 billion dollars this year, although the tightness of the bank and the inability of banks to purchase corporate bonds have put the financial position at risk。
Mr. Guo zhong, president of the guilder, told the first financial journalist that “the recent bond situation has not been very good. In april, the guilders cancelled the established debt payment scheme, thus causing short-term liquidity pressure and group attention, so they reported to the provincial government. It's the only way to get attention."
First financial reporter learned that, as early as 28 april, zhejiang governor yuan jiajun of zhejiang province had been given an emergency report on the debt crisis of the zhejiang group as a redhead document. According to the red head document, the group currently has interest-bearing liabilities of over $45 billion and, with the exception of 12 billion outstanding bonds, most loans from banks and non-bank financial institutions are concentrated in zhejiang province。
Guo zhong further states that “the new energy plate is currently fully loaded into the main listed public-owned gangnam chemical industry and is currently in a good position with regard to the liability of the assets of the gangnam chemical industry, thus having little impact on the new energy plate”. According to the first financial reporter, in the first quarter of 2018, the liability rate for assets of the gangnam chemical industry was 50. 87 per cent, and both the current and the speed ratios were in a relatively normal range, indicating that there had been no particular deterioration in short-term solvency, but there had been significant changes in accounts receivable and liquidity pressures。
“banks and other financial institutions have made it clear that they will support qianan through the crisis.” from this point of view, although local governments are in a dilemma, there is a possibility that the group will survive this liquidity crisis, but it will depend on further developments。
From the beginning of the town, for 30 years, guilders grew from a small copper fittings processing plant to a large private enterprise that collected over $50 billion a year. Will the liquidity crisis in the shield group be the cause of the expansion of business in recent years
The former director general of the league has told first financial reporter li that, on the basis of the group’s chairman yao xinyi’s vision of a future business of 200 billion, the league has been looking for new industrial growth points in the industry. After that, the shield moved on to new energy sources, new materials and energy-saving services in three hundred billion class industrial blocks。
There are “hot spots” operations. As early as 2009, the guilder environment was betting on a total of $2. 2 billion across borders and in a hot, light-voltage industry. However, since 2011, as the light-voltage industry continued to fall into a cold winter in 2011, the shield environment announced on about 31 may 2013 that the light-voltage-related operations had been severed and that the process of “basic selling” to many light-volt enterprises under the flag had begun. And in 2015, the shield environment was targeted at robotics。
In its urgent report to the zhejiang provincial government, the zhejiang group stressed, inter alia, that it plans to complete the listing of 10 business blocks during the 13th 5th period (2016-2020), with billions of yuan annual interest tax and hundreds of billions of dollars in sales revenue。
Following the placement of an estimated 2. 5 billion yuan of guilder's new energy into the gangnam chemical industries, the future of guilder's foods, zhiqqin, minzawa ecology and yao, as planned by the libra group, will become the largest capital unit in the country. For the next three years, the group's investment company, like yamashita, plans to “promote the listing of nearly 30 companies”。
It is clear that sustained business expansion and listing practices can place greater financial chain pressure on groups。
U qi, a senior researcher in the chekugu think tank, told the first financial journalist that, as an effective means of scale growth, a more prominent expansion of diversity would lead to debt risks for enterprises, and radical expansion would put greater pressure on the financial chain of enterprises, resulting in higher asset indebtedness rates. As deleveraging deepens, highly leveraged enterprises will not be able to finance themselves through bank credit and debt issues and will be able to consume their own funds in large quantities, with the risk of breaking down their cash flows, leading to a debt-servicing crisis。
It was also suggested that the group's business team should reflect on issues in strategic and acquisition decisions。
