On December 11, according to tianyancha, China Deyuan Capital Co., Ltd. was sued by China Merchants Bank for financial loan contract disputes. Behind this dispute, Zhu Xinli, founder of Huiyuan Group, may be delisted. As early as September this year, China Merchants Bank appealed to the court for property preservation, requesting to seal up, seize and freeze the equity held by Deyuan capital, bank deposits and other assets with a value of 4.103 billion yuan.
A financial loan contract dispute between China Merchants Bank and Deyuan capital will be heard on May 13, 2020. According to the available data, Deyuan capital invested 3 billion yuan in 2015 to participate in the mixed reform of Sinopec Sales Company. Also in this year, Deyuan capital pledged this part of the equity to China Merchants Bank. Behind Deyuan capital is Zhu Xinli and the Huiyuan system he controls.
Zhu Xinli took over a county run fruit cannery on the verge of bankruptcy in 1992, established Shandong Zibo Huiyuan food and Beverage Co., Ltd., and changed the company's main business to the production of concentrated fruit juice in 1993. As it filled the market gap at that time, the enterprise began to grow rapidly. In 1994, Beijing Huiyuan was founded. In 1998, it began to face the great development of the whole country. In 2007, Huiyuan Juice (1886. HK) was successfully listed on the main board of the Hong Kong stock exchange. In September 2008, Coca Cola offered Huiyuan juice a total price of about HK $17.92 billion to acquire all shares of Huiyuan juice. However, this' marriage 'eventually died because of suspicion of monopoly. Now, Zhu Xinli, the former founder of China's national juice brand, is also in a whirlpool. In addition to the freezing of the assets of Deyuan capital under his name, the surging news reporter inquired China executive information disclosure website and learned that Zhu Xinli has been listed as the executee four times since 2018 to limit high consumption.
The latest consumption restriction order was issued by Tianjin No. 3 intermediate people's Court on December 2 this year. In the case of financial leasing contract dispute with Minsheng Financial Leasing Co., Ltd., Zhu Xinli was listed as a dishonest executee and received the consumption restriction order because he failed to perform the payment obligations determined in the effective legal documents within the specified period.
In addition, affected by the group's debt crisis, Huiyuan juice has been suspended for nearly 20 months. If Huiyuan Juice fails to complete the resumption conditions before January 31, 2020, Huiyuan juice may be delisted.
The development of Zhu Xinli
In 1992, encouraged by the wave of reform, Zhu Xinli, a rural youth who came out of donglidong village, Yiyuan County, Shandong Province, resigned from the post of deputy director of Foreign Economic Commission of Yiyuan County and resolutely went to the sea to establish Zibo Huiyuan Co., Ltd., which is the 'predecessor' of Huiyuan Group.
At the beginning of 1993, Zhu Xinli went to Germany alone to participate in the food exhibition and signed an export contract of US $5 million concentrated fruit juice, thus winning the first pot of gold. Since then, Huiyuan concentrated fruit juice has been exported to more than 30 countries and regions.
However, Zhu Xinli did not stop here. In October 1994, Zhu Xinli led a team of 30 people to camp in Shunyi, Beijing, officially founded Beijing Huiyuan food and Beverage Co., Ltd., gradually spread out the business territory, and won the bid for the 5-second Standard Edition advertising right of CCTV news network with a 'heavy money' of 70 million yuan.
This bold decision suddenly opened Huiyuan's popularity in the country. In 1998, Huiyuan began to layout and build factories nationwide, becoming a 'national brand' well-known in the country.
In 2007, Huiyuan juice was successfully listed on the Hong Kong stock exchange, and the share price soared 66% on the day of listing. Huiyuan also realized the successful connection with the international capital platform.
In 2008, Coca Cola planned to make an offer to acquire all the issued shares (66%) of Huiyuan Juice, with an offer of about US $2.4 billion. Stimulated by this, the total market value of Huiyuan once soared to the 'highest point' of US $3.636 billion.
In less than ten years, Zhu Xinli realized more than 50 times of Huiyuan's asset appreciation through the capital springboard.
At that time, Zhu Xinli might not have thought that ten years later, he and the Huiyuan empire he created would fall into a long 'dark night'.
In 2008, when Huiyuan juice was planning to sell to Coca Cola, in order to improve the asset evaluation value of Huiyuan, Zhu Xinli greatly expanded production, abolished and changed channels, reduced costs, improved profit margin, and loaded a large number of assets to further improve the evaluation value of the company.
During this period, Huiyuan also completely abolished its sales team. 21 provincial managers in 21 sales regions across the country have basically resigned. The number of employees has decreased from 9722 at the end of 2007 to 4935 at the end of 2008, and the number of sales personnel has decreased from 3926 to only 1160.
However, after the acquisition case was rejected by the Ministry of Commerce because it touched the anti-monopoly law, Zhu Xinli's "wishful thinking" about early retirement failed, and the drastic "adjustment" also greatly damaged the vitality of Huiyuan juice.
In the eight years from 2009 to 2016, Huiyuan Juice deducted non net profit for seven years and was in a state of loss.
During this period, the debt ratio of Huiyuan juice was also rising. By mid-2017, the total debt scale of Huiyuan juice had reached RMB 11.518 billion.
When the development is difficult, Huiyuan juice has encountered internal control problems.
In March 2018, Huiyuan Juice lent 4.275 billion yuan to Beijing Huiyuan, a related party of Huiyuan Group, without the approval of the board of directors, signing an agreement and disclosure. This behavior violated the provisions of the Listing Rules of the Hong Kong Stock Exchange on the declaration of connected transactions, shareholder approval and disclosure, and the trading of Huiyuan juice was suspended by the Hong Kong stock exchange.
According to the resumption conditions issued by the Hong Kong stock exchange, Huiyuan juice must conduct forensic investigation on the relevant loans, publish the investigation results, and take appropriate remedial actions; Conduct independent internal control review and prove that the company has sufficient internal control system; Prove that the management has no reasonable concerns about the integrity of the regulatory authority; Publish all deficient financial results and explain any audit amendments; And inform the market of all major information about the company.
It is worth mentioning that up to now, Huiyuan juice has not resumed trading, and the company's regular report after the 2017 interim report has been postponed. If Huiyuan Juice fails to meet all the conditions for resumption before January 31, 2020, Huiyuan juice may be delisted.
Source: Winner fortune