Zhongfang shares the main business or into industrial aluminum extrusions

Recently, Zhongfang Real Estate Co., Ltd. announced in succession that some directors and executives resigned. The “China Business” reporter found that this was the second wave of “departure tide” since the resignation of Chairman Liu Bo and Directors Wu Xiaohui and Zhong Li in June 2016, and the background for the resignation was China Fangfang and Liaoning. Zhongwang Refined Investment Co., Ltd. (hereinafter referred to as "Zhongwang Refined") restructured its major assets.

The reporter sent a letter to China Fangzhong and China Zhongwang on the issue concerning major asset reorganization. The representative of China Fangye Securities responded that all the information was based on the announcement of external information disclosure. At present, the interview is not accepted. The relevant person in charge of Zhongwang of China stated that after the reorganization, the “reorganization is completed, and as far as the needs of Zhongfang’s shares are concerned, it should be retained as much as possible”.

Executives have resigned

Zhongfang is formerly known as Changchun Changling Industrial Co., Ltd. (hereinafter referred to as "Changchun Changling") and sells power machinery, laser printers, digital cameras, digital scanners, and modems. In 1993, it passed restructuring and established a company limited by shares. On March 18, 1996, A shares were listed on the Shanghai Stock Exchange.

The first "remarriage" of Zhongfang shares took place in 2003. In 2003, Changchun Changling Group Co., Ltd., the largest shareholder of China Fangfang, transferred 29.78% and 22% of the shares held by the company to China Real Estate Development Corporation (hereinafter referred to as “Zhongfang Group”) and Shanghai Weiya Industrial Investment Co., Ltd. .

After Zhongfang Group Co., Ltd. became the largest shareholder, Changchun Changling entered the real estate business through asset replacement and realized the conversion of its main business. In September 2003, Changchun Changling changed its name to “Chongfang Real Estate Co., Ltd.”.

In 2006, Tianjin Zhongwei Trading Co., Ltd. obtained a 22% stake and became the second largest shareholder of China Fangfang. In June 2013, Zhongfang Group Company transferred the 18.96% equity held by it to Jiayi (Tianjin) Investment Management Co., Ltd. At present, the major shareholder Jiayi (Tianjin) Investment Management Co., Ltd. holds a share ratio of 18.96%, and the second shareholder Tianjin Zhongwei Trading Co., Ltd. holds a share of 18.42%.

In March 2016, China Fangfang Stock Co., Ltd. issued a major asset restructuring plan. It intends to use its 100% equity interest in Xinjiang Zhongfang as a placement asset, and to perform the equivalent of Zhongwang Group's 100% equity held by Zhongwang Group. Replacement. China Fangfang Assets Settled an Estimated Value of Xinjiang Zhongfang with a value of 200 million yuan, while the Zhongwang Group's asset price adjustment was 28.2 billion yuan, with a difference of 28 billion yuan. The difference was partially purchased by Zhongfang Stock to Zhongwang for the purpose of issuing shares, and at the same time It is planned to raise supporting funds of 5 billion yuan.

Zhongfang is the subject of this major asset restructuring. Zhongwang Group is a wholly-owned subsidiary of China Zhongwang Holdings Co., Ltd. (1333.HK, hereinafter referred to as “China Zhongwang”), and Zhongwang of China is a major player in the aluminum industry. It spent RMB 28.2 billion to restructure with China Fanggu Securities, only to split assets and achieve the purpose of listing A shares backdoor.

The reorganization plan of China Fangfang Stock Co., Ltd. showed that the remaining assets and liabilities of Xinjiang Zhongfang will not constitute a business after all the equity of Xinjiang Zhongfang is set aside. Zhongfang announced that the reorganization does not involve personnel resettlement issues. But in fact, executives have already left their jobs and seek out another way.

On December 31, 2016, Zhongfang announced that it received the directors Zhu Hongze, Qin Feng, Mao Rongzhi, Li Wei, independent director, Wu Xiaohui, general manager and secretary of the board of directors, Cui Yueyong, deputy general manager, and deputy general manager on December 29 and 30. Liu Hongyan's resignation report. According to the announcement, Supervisor Wang Haiming also resigned from the office of supervisor and supervisor on December 30.

Regarding the reasons for resignation, the announcement was merely an understatement of the “personal reason.”

As early as June 18, 2016, Zhongfang announced that it had received the resignation report of Chairman Liu Bo, Director Wu Xiaohui and Director Lu Jian on June 16. Liu Bo resigned from the posts of chairman of the board of directors, director, and member of the board of directors; Wu Xiaohui and Lu Jian resigned as directors and members of the professional committee of the board of directors. However, Wu Xiaohui still serves as general manager of the company and secretary of the board of directors, and Mr. Lu Jian still serves as deputy general manager of the company.

Major business changes exit the real estate market

Regarding the progress of restructuring, China Zhongwang stated in a letter to reporters that due to the complexity of its transaction structure and the special nature of the transaction plan, the asset reorganization requires more resources in the design and operation of the project. Prior to the announcement of the major assets reorganization draft, China Zhongwang not only carried out the internal business restructuring, but also required the approval of the Ministry of Commerce of the People's Republic of China during the adjustment process. At the same time, it also needed to obtain approval from the Hong Kong Stock Exchange on secession and exemption from quota requirements. , It takes a long time to complete the above approval work. At present, the reorganization plan has been approved by the Hong Kong Stock Exchange, and has been approved by the shareholders of China Fangzhong and China Zhongwang. Zhongfang is actively preparing for the reply of the Shanghai Stock Exchange inquiry letter, and it also improves the relevant application materials. Then submit a report to the China Securities Regulatory Commission.

As the old company that was listed on the Shanghai Stock Exchange in 1996, Zhongfang has its main business of real estate sales and property leasing. It mainly develops residential communities in North China and Beijing and participates in urban dilapidated housing renovation and affordable housing. Construction and other projects.

At the beginning of 2016, China Fangfang Stock Co., Ltd. announced that it expects to achieve profitability in 2015, and the net profit attributable to shareholders of the listed company will be approximately RMB 11 million to RMB 13 million. Most of its profit comes from the sale of the entire equity of Zhongfang Changyuan and Zhongfang Huabei.

According to the latest data disclosed by China Fangfang Stock, the net profit loss from January to September 2016 was about RMB 19,480,000. It was pointed out in the report that due to the decrease in housing sales by the main real estate business, it is expected that the cumulative net profit from the beginning of 2016 to the end of the next reporting period may be Loss.

The reporter combed out that since 2008, the real estate development business of China Fangfang has been in a stagnant state. After the sale of 55% equity of Xuzhou Tianjia Real Estate Development Co., Ltd. in 2009, Zhongfang has no new real estate development business in essence. During the reporting period, the income and profits of Zhongfang Stock mainly came from the sales of the remaining tailgates and the lease of its own properties. During the reporting period, the listed company’s continued profitability weakened, and its operating income and net profit declined significantly.

In the announcement, China Fangfang Stock Co., Ltd. stated that setting aside a weakly profitable real estate business and placing industrial aluminum extrusion business with good prospects, outstanding competitive advantages and strong profitability, will help promote the company's profitability in the future. Rapidly enhance and protect the interests of all shareholders of listed companies, especially the majority of small and medium shareholders.

The reply of the relevant person in charge of Zhongwang of China to the reporter also confirmed that the main business of China Fangfang Stocks will soon be changed. After completion of the reorganization, all the real estate-related businesses of China Fangfang will be discontinued and Zhongfang will become an industrial aluminum. Extrusion product development and manufacturing."