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13 consecutive limits! Frequently rubbing the blockchain concept has been slapped, more than 10,000 investors are fleeing this super market
From the steadily rising “big bull stocks” to the sudden crashes, Rendong Holdings is comparable to the “strongest meat grinder” of A shares. In the past ten days alone, nearly 300% of the annual growth rate of this listed company has been wiped out.
“This is no longer cutting leeks, but planing this land.” With 13 limit drops, more than 10,000 shareholders were heartbroken and restless. With the abandonment of state-owned assets, the resignation of independent directors, poor operating performance, and the news that the behind-the-scenes dealer of Rendong Holdings was controlled by the judicial authorities spread like wildfire, market panic continued to spread, and more than 3 billion financing was waiting to escape.
Changed ownership in 4 years and 4 degrees, the “shell” of the players who flowed
The beginning of all stories dates back to 2016.
The predecessor of Rendong Holdings was Honglei. Its main business was the R&D, production and sales of enameled wires, high-precision copper pipes and other copper materials. However, the head Qi Jianping received the administrative supervision decision letter from the Zhejiang Securities Regulatory Bureau and withdrew from the management. Later, on January 19, 2016, the Qi family headed by Qi Jianping transferred 108.8 million shares to Yuzi Assets, Jianhui Investment and the natural person Jinghua at a price of 27 yuan per share, and Yuzi Assets became the controlling shareholder.
In September of the same year, after Honglei purchased 90% of Guangdong Heli Financial Technology Services Co., Ltd. (hereinafter referred to as Guangdong Heli) for 1.4 billion yuan, Rendong Holdings became a third-party payment. In February 2017, Rendong Holdings changed its name to Minsheng Jinke for “facilitating the development of third-party payment and other related financial technology business needs”.
Only one year later, Minsheng Jinke welcomed the new master again. In February 2018, Xinjiang Alashankou Minsheng Innovation Equity Investment Co., Ltd. transferred its 40,193,300 shares of Minsheng Jinke (accounting for 10.77% of the company’s total share capital) to Inner Mongolia Zhengdong Yunqi Technology Co., Ltd., and Jinghua And its concerted actors intend to entrust the voting rights corresponding to their 51.571 million shares of Minsheng Jinke (accounting for 13.82% of the company’s total share capital) to Yunqi Technology. Since then, the controlling shareholder of Minsheng Jinke has changed from Heyou Technology to Yunqi Technology, and the actual controller has been changed from Hao Jiangbo to Huo Dong, the second generation of wealthy Inner Mongolia.
On August 3, 2018, Minsheng Jinke changed its name to Rendong Holdings. At this time, Rendong Holdings’ main business has been officially transformed into a “financial technology” of Gaoda, covering third-party payment, factoring, supply chain management and other services by its subsidiary, Guangdong Heli.
On July 29, 2019, Rendong Information entrusted its shareholder rights such as voting rights corresponding to 119,088,160 shares of Rendong Holdings (accounting for 21.27% of the total share capital of the listed company) to Haikejin Group for management. The controller was changed from Huo Dong to Haikejin Group with a state-owned background.
On November 15, 2020, Rendong Information and Haikejin Group, Tianjin Rendong, Rendong Technology, and Huo Dong signed the “Agreement on Terminating Share Entrusted Management Relationship and Concerted Action”, and the company’s controlling shareholder was officially changed to Rendong Information , The actual controller was again changed to Huo Dong.
From Honglei shares to Minsheng Jinke, and then to Rendong Holdings, Rendong Holdings, whose actual controller changes frequently, can be described as an “veteran” in capital operation.
With more than 27 billion market value evaporated, who is behind the scenes?
Before 13 trading days, Rendong Holdings was still the “first low-key bull stock” that everyone envied. In the past year or so, the share price of Rendong Holdings has risen by about 278.5%, and its market value has exceeded 36 billion.
However, a letter of concern from the Shenzhen Stock Exchange caused Rendong Holdings’ share price to spiral downward. On October 30 this year, the Shenzhen Stock Exchange issued a letter of concern to Rendong Holdings, proposing to include “Please take into account the development of your company’s main business and operating funds, explain the specific reasons for the overdue loan, the impact on the company’s daily operations, and the company’s plan “Specific measures taken” and other issues should be explained in writing. On November 24, Rendong Holdings replied that the main reason for the non-renewal of the entrustment right was that after the state-owned Haikejin Group entered the Rendong Holdings, it promised to provide no more than 5 billion yuan in financial support. The support of the company is very limited, and affected by various factors, the progress of cooperation between listed companies and Haikejin Group is lower than expected.
Regarding issues such as loans from Haikejin Group and overdue loans of 350 million yuan from Industrial Bank, Rendong Holdings stated that as of the end of this year, the company will gradually repay the above loans in batches. As of November 20, 2020, the company has repaid 80 million yuan. The source of the repayment is mainly the loan from the major shareholder Rendong Information. However, the risk that the due debt cannot be repaid on time is still “not ruled out.”
After “breaking up” with state-owned shareholders and the Shenzhen Stock Exchange, the share price of Rendong Holdings has plummeted and has fallen by 76.3% from this year’s high. The market value of more than 27.4 billion has also been wiped out. Calculated based on the number of shareholder accounts of 13,000, the per capita loss is as high as 2.1 million yuan. As Rendong Holdings’ stock price continued to fall by its limit, the Shenzhen Stock Exchange suspended Rendong Holdings’ stock financing purchases. As of December 10, there were no way out for more than 3.01 billion in financing.
Along with the stock price plummeting, Rendong Holdings’ title of “the strongest “zhuang” stock in Shanghai and Shenzhen stock markets has also been confirmed. According to a report from China Business News, a source close to the Shanghai law enforcement agency revealed that Li Yuezong, a capital boss engaged in OTC and virtual disk transactions, has been controlled by the Pudong police, and Li Yuezong is likely to be highly related to Rendong Holdings. The above-mentioned person said, “Li Yuezong and his men have been detained by criminal law. It is not clear how extensive the case will be. The reason for the arrest is that these people were involved in virtual disks and were detained on suspicion of economic fraud.”
At the same time, a person close to Li Yuezong also said that Li Yuezong is not the maker of this batch of stocks, but a participant in the allocation. Dalian Sunya, Rendong Holdings, Langbo Technology, and Jinlitai, which fell in this wave, all have Li Yuezong’s deep participation behind them.
In this capital game, investors paid for their adventures, and the major shareholders who depended on state-owned assets to make good shipments became the winners. For example, from the public information of Rendong Holdings, from May to September this year, Rendong Information sold a total of 6.58 million shares through the secondary market, and the cumulative amount of reduction in holdings exceeded 200 million yuan. Jinghua, the fifth largest shareholder of Rendong Holdings, sold 18.8719 million shares through the secondary market on August 12, cashing in a total of 820 million yuan. In addition, before the share price crash of Rendong Holdings, several important shareholders including Chongqing Xinsanwei Investment Consulting Center, Beijing Rendong Information Technology Co., Ltd., Tianjin Heyou Technology Co., Ltd. also cashed out in advance.
Although the current shareholder reduction plan has been terminated, it is difficult for Rendong Holdings, which is mired in the negative vortex of performance decline and loan overdue, to return to the past. Investors can only take their own pains.
The stock price plunged into multiple dilemmas
The high stock price has something to do with Rendong Holdings’ repeated release of “good”.
Prior to this, Rendong Holdings was “named” by the Shenzhen Stock Exchange for repeatedly using the concept of blockchain. In July of this year, Rendong Holdings failed to objectively and completely introduce and reflect the actual situation of the company’s related leasing business on the company’s performance when responding to questions about the cooperation between its subsidiary Minsheng Leasing and Ant Technology Group Co., Ltd. The Shenzhen Stock Exchange issued a warning letter.
In fact, it is not only AntChain, but Rendong Holdings has also been questioned by the Shenzhen Stock Exchange for its strategic investment of 23 million yuan in Beijing Public Signing. The reply letter stated that due to the many uncertainties in the blockchain industry, the company’s investment in Beijing crowdsales will have uncertain future profitability. At the same time, the uncertainty of the follow-up Beijing crowdsale in personnel training and introduction of funds will also lead to uncertainty in its future development.
In addition, according to the information disclosed by Rendong Holdings, it has also cooperated and invested with many blockchain companies. Then, ironically, although the stock price has been steadily rising due to the “good” stimulus, Rendong Holdings’s continued decline in revenue is hard to cover up.
According to the previous financial report data of Rendong Holdings, in the first half of 2020, Rendong Holdings lost nearly 20 million yuan, and its performance dropped by more than 160% year-on-year. In the first three quarters of this year, the company’s net profit loss was 21.92 million yuan, a year-on-year decrease of more than 144%; the net cash flow from operating activities was 17.1326 million yuan, a year-on-year decrease of 83.96%.
Not only is its performance poor, Rendong Holdings is also under huge financial pressure. According to Rendong Holdings’ disclosures, as of the end of the third quarter, Rendong Holdings’ current liabilities were 2.3 billion yuan (including other current liabilities), of which financial institutions’ borrowing principal and interest were 641 million yuan, operating liabilities were 332 million yuan, and there was 1.327 billion yuan. The liabilities recognized for the settlement funds payable to customers arising from the third-party payment business are non-operating liabilities). In addition, there are still 815 million yuan of current liabilities due within three months.
Not only that, Rendong Holdings is also involved in litigation disputes over 1.5 billion guarantee contracts. Although Rendong Holdings stated that the company has reached an agreement with the Industrial Bank to gradually repay the arrears in batches, but it continues to lose money and has huge debts. Where does the repayment money come from? It is worth mentioning that Rendong Holdings’ liquidity is already stretched. At present, it has more than 1.3 billion yuan in monetary funds, of which only 51 million yuan is unrestricted.
Faced with many difficulties, how should Rendong Holdings solve? For the time being, its stock price plummeted, revenue decline, etc. may be difficult to reverse in the short term.
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