The case has been under investigation for 6 years! The big sellers and the real and fake actual controllers were collectively fined

Nowadays, when talking about big sales, few people mention the price chain. Has it disappeared? No, it is just "different now than in the past". From the recent dynamics of its parent company, it can be seen that since the acquisition of the price chain, Xunxing shares have buried a lot of hidden dangers. The actual controller, the controlling shareholder, and the company itself have been investigated by the China Securities Regulatory Commission one after another. After many years, there is finally a conclusion.

Concealing the actual controller, manipulating stock prices ... illegal and irregular operations continue

Not long ago, Fujian Xunxing Zipper Technology Co., Ltd. (hereinafter referred to as " Xunxing Co., Ltd. " ) issued an announcement regarding the company and related parties' "Preliminary Notice of Administrative Penalty Receipt" .

Specifically, in October 2018, Xunxing Shares was investigated by the China Securities Regulatory Commission for suspected violations of information disclosure laws and regulations . Subsequently, in December 2023, the controlling shareholders Xunxing Xunxing Group and Tianjin Huizefeng were also investigated by the China Securities Regulatory Commission for the same reason , and Wang Lijun, the actual controller of Xunxing Shares, was also not immune .

Now , the China Securities Regulatory Commission has found out that Xunxing Co., Ltd. and others have committed many illegal acts .

In November 2016 , Tianjin Huizefeng signed an equity transfer agreement with Xunxing Group, acquiring 25% of Xunxing shares for 2.5 billion yuan in cash. However, the investigation showed that Huang Ningjie was the actual controller of Tianjin Huizefeng. After the relevant share transfer was completed, Huang Ningjie became the actual controller of Xunxing shares .

Tianjin Huizefeng and Xunxing Group also signed a "Supplementary Agreement on Equity Transfer", which stipulated that after the former completed the share transfer , it would inject assets into Xunxing Shares, and within one year, all existing assets and liabilities of Xunxing Shares on the date of signing the agreement would be sold to Xunxing Group or its designated third party . The operating rights before the sale would still be exercised by Xunxing Group, and Xunxing Group would vote in favor of Huizefeng's capital operation proposals at the board of directors and shareholders' meeting.

However , in multiple announcements and annual financial reports, Xunxing Co., Ltd. failed to truthfully disclose the situation of the actual controller and the relevant contents of the "Supplementary Agreement" , which violated the provisions of the " Securities Law of the People's Republic of China " and the "Management Measures for Acquisition of Listed Companies" .

Now that the incident has become clearer under continuous investigation, the China Securities Regulatory Commission has also issued an "Administrative Penalty Advance Notice" (Penalty No. [2024] 104, Penalty No. [2024] 105) to the above-mentioned parties involved , ordering the companies to make corrections and giving them warnings, and giving warnings to individuals .

In addition, both the companies and individuals involved were fined to varying degrees :

1. Xunxing Co., Ltd. was fined RMB 300,000 ;

2. Tianjin Huizefeng was fined RMB 600,000 ;

3. Xunxing Group was fined RMB 600,000 ;

4. Huang Ningjie was fined RMB 900,000, including RMB 600,000 as the actual controller and RMB 300,000 as the directly responsible supervisor ;

5. Wang Lijun and Shi Mingqu were each fined RMB 300,000 ;

6. Shi Nengjian was fined 100,000 yuan .

In addition to the above-mentioned illegal acts, Huang Ningjie also instructed Xunxing Co., Ltd. and Tianjin Huizefeng to carry out the illegal acts involved in the case. Wang Lijun, as the chairman of Xunxing Co., Ltd. and the executive director of Tianjin Huizefeng, and Shi Mingqu, as the president and director of Xunxing Co., Ltd. and the director of Xunxing Group, all participated in and were aware of the illegal acts involved in the case, and the circumstances of the violations were serious.

Due to these illegal operations, the China Securities Regulatory Commission banned Huang Ningjie , Wang Lijun and Shi Mingqu from the market for 10 years , 6 years and 4 years respectively .

And that’s not all. Through multiple layers of shareholding or appointment, Huang Ningjie secretly organized funds and accounts, allocated funds, and manipulated the share price of Xunxing Shares.

From 2017 to 2018, in order to avoid the liquidation of Xunxing shares pledged by Tianjin Huizefeng, Huang Ningjie and others took advantage of their shareholding advantages, continuously bought and sold, and took advantage of their advantageous position as the actual controller and chairman of Xunxing Shares to plan major asset restructuring information, which led to the suspension of Xunxing Shares and then manipulated the company's stock price .

In response, the China Securities Regulatory Commission imposed a fine of 2 million yuan on Huang Ningjie and a total fine of 1 million yuan on other persons involved .

After being acquired by Xunxing Shares, Jiazhilian finally made a profit ...

As we all know, Xunxing shares is a listed shell company borrowed by the super-large seller Jiazhilian. But since the acquisition, Jiazhilian's business has been going downhill. After 7 years, it is finally profitable now.

In 1992, Xunxing Co., Ltd. was founded in Fujian. It stood at the top of the industry with its zippers and became the " No. 1 zipper stock " in China's A-share market in 2006 .

In 2016 , the market value of Xunxing Co., Ltd. exceeded 10 billion . However, after the acquisition of Price Chain in the second year ( 2017 ) , Xunxing Co., Ltd. transformed into a cross-border enterprise. Instead of soaring as expected, it began a long road to turn losses into profits.

Since 2010, Xunxing's annual revenue has been maintained at the billion-level. Based on the revenue data from 2014 to 2016 before the acquisition price , it reached 1.05 billion yuan , 1.041 billion yuan , and 1.175 billion yuan respectively, and the net profit was 78.2 million yuan, 71.97 million yuan , and 119 million yuan respectively.

After the acquisition of Price Chain in 2017, Xunxing Co., Ltd.'s annual revenue soared to 1.86 billion yuan, but its net profit level remained almost unchanged .

From 2018 to 2022, Xunxing Co., Ltd. 's cross-border e-commerce business (Jiazhilian) had revenue of 775 million yuan , 474 million yuan, 375 million yuan, 550 million yuan, and 412 million yuan , and net losses of 74.93 million yuan , 58.58 million yuan, 24.40 million yuan, 9.89 million yuan, and 68.47 million yuan.

By last year, Jiazhilian's revenue had dropped to 336 million yuan, and its net loss had reached 12.3 million yuan .

If it were not for the support of the original zipper business, Xunxing Co., Ltd. might have been labeled "ST" due to years of losses, or even gone bankrupt and delisted.

Despite continued losses, Xunxing Co., Ltd. has not given up its determination to enter the cross-border circle. In the first quarter of this year, it also stated that it would turn this business from loss to profit this year.

At the end of August, Xunxing Co., Ltd. released its latest financial report, mentioning that the company's strategic focus in the first half of this year is divided into two parts: one is to focus on the development of the core zipper business, and the other is to get rid of the loss dilemma of cross-border e-commerce business .

In the first half of this year, Xunxing's total revenue was 1.199 billion yuan, a year-on-year increase of 30.75%; net profit was 123 million yuan, a year-on-year increase of 101.79%. The growth was mainly due to the zipper business, which contributed 1.013 billion yuan in revenue, a year-on-year increase of 28.43%, and 121 million yuan in profit, a year-on-year increase of 91.44%.

Fortunately, Jiazhilian has successfully turned losses into profits . In the first half of this year, its revenue was 187 million yuan, a year-on-year increase of 45.02%; its net profit was 1.878 million yuan, a year-on-year increase of 181.10% .

In terms of performance, Xunxing Co., Ltd.'s zipper business is still booming, and its cross-border e-commerce export business is finally starting to improve.

However, the company is still a mess. Due to various criminal violations mentioned above, the controlling shareholder, actual controller and other senior executives of Xunxing Co., Ltd. were punished to the maximum by the China Securities Regulatory Commission. The real actual controller behind the scenes was finally dug out during the six-year investigation, and many people from the Shi family, the actual controller of Xunxing Group, the controlling shareholder of Xunxing Co., Ltd., were also involved in the case.

Whether Xunxing Co., Ltd. can quickly rectify the hidden dangers in its corporate structure and whether it can maintain its current upward trend in performance are both unresolved issues ...

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