Shares frozen again “soy sauce first share” dragged down by controlling shareholders

In early December, St Jiajia (Jiajia food) announced that the 100% shares of Jiajia food held by Zhuoyue investment and Shanxi cereals and Oils Group Commercial Development Co., Ltd. were frozen by the company due to the dispute over the sales contract. < / P > < p > before that, due to various debt disputes, the equity held by excellence investment has been frozen by the judiciary for many times. The worst result st Jiajia gave in the announcement is that “if the shares held by the controlling shareholder of the company are enforced by the court in the future, the controlling shareholder of the company may change”. < p > < p > as the “first share of soy sauce”, St Jiajia was founded in 1996 and listed on Shenzhen Stock Exchange in January 2012. According to the official website, the reporter found that the company mainly takes “Jiajia” soy sauce and vegetable oil as its leading products. In addition, it also deals in vinegar, chicken essence, monosodium glutamate, companion food, edible vegetable oil and other products. < / P > < p > from the perspective of equity structure, similar to most food listed companies, the company is also a typical family business. Financial data show that the largest shareholder of St plus is excellence investment, with a shareholding ratio of 18.79%. The second largest shareholder is founder Yang Zhen, with a shareholding ratio of 10.22%. Yang Zhen is also the actual controller of excellence investment. In addition, Yang Zijiang, Yang Zhen’s son, and Xiao Saiping, his wife, hold 7.16% and 6.13% shares of St plus respectively, ranking the third and fourth largest shareholders. Taken together, the Yang Zhen family actually holds 42.17% of St plus’s shares. < / P > < p > according to the announcement, Shanxi cereals and Oils Group Commercial Development Co., Ltd. is the Party of the application for freezing due to the dispute of sales contract, Wuzhong intermediate people’s Court of Ningxia Hui Autonomous Region is the executor of the freezing, and all the shares of St Jiajia held by Zhuoyue investment are frozen. The freezing start date is December 1, 2020, and the waiting period is three years. < / P > < p > st Jiajia said that after communication, the controlling shareholder replied that it was actively dealing with relevant matters, and promised to actively negotiate with relevant parties applying for freezing, so as to lift the waiting freeze on the company’s shares as soon as possible. Up to now, the company’s daily operation and production activities are normal, and the above matters have not had a substantial impact on the company’s operation. < / P > < p > it is worth noting that this is less than a month away from the latest judicial freezing of equity of excellence investment. On November 17, St Jiajia disclosed that due to the financial loan dispute with Ningxia state owned Assets Investment Holding Group Co., Ltd., the holding shareholder’s shares worth 8.3411 million yuan were frozen by the company. Prior to this, the st plus shares held by excellence investment have been frozen by the secretary. < / P > < p > in fact, in addition to excellence investment, the shares held by Yang Zhen, the actual controller of St plus, and Xiao Saiping and Yang Zijiang, the persons acting in concert, have also been frozen and all of them are in the state of pledge. According to the data of tonghuashun, as of December 4, the pledge ratio of Jiajia food’s shares totaled 42.17%. < / P > < p > some people in the industry told reporters that whether the equity is pledged or frozen by the judiciary, it all points to st plus’s controlling shareholders are suffering from financial difficulties. The reporter inquired China executive information disclosure website and found that in the short three months since September 2020, excellence investment has been listed as the executee five times. In addition, tianyancha data also shows that at present, there are 83 judicial risks faced by excellent investment. Since the beginning of the year alone, there have been seven court cases, mainly involving contract disputes and private lending disputes. < / P > < p > regarding the judicial freezing and pledge of the company’s shares due to the controlling shareholder, and whether the company has taken corresponding measures, the reporter of international finance contacted st Jiajia, but the relevant person in charge declined the reporter’s interview on the ground that it was temporarily inconvenient to accept the interview. < / P > < p > in the middle of June, due to the violation of guarantee by excellence investment and its related parties, and the failure to complete the settlement of its own debt problem within one month as planned, Jiajia food with the aura of “the first share of soy sauce” was officially “capped” and its name was changed to “St Jiajia”, and the daily rise and fall of the stock was limited to 5%. < p > < p > on May 11, St Jiajia announced that in the self inspection, it was found that the company and its wholly-owned subsidiary panchinese food (Changsha) Co., Ltd. illegally guaranteed about 466 million yuan for excellence investment and its related parties, accounting for 19.94% of the company’s latest audited net assets. < / P > < p > it is worth mentioning that Jiajia food is not aware of this. In its announcement, Jiajia food said that the above guarantee is the illegal guarantee of the actual controller, and the company has not found the approval process and record of seal use related to the above guarantee, nor the relevant legal documents retained. < p > < p > on the same day, excellence investment issued a letter of commitment, promising to completely solve the relevant debts within one month (May 11, 2020 – June 11, 2020) and eliminate the adverse effects of violations on listed companies. However, on the final commitment day, premier investment did not fulfill its promise. It was not until June 30 that st Jiajia said that the company’s illegal guarantee has been lifted, and it is expected to take off the st hat in the short term. After that, on September 21, he applied to Shenzhen stock exchange for revocation of other risk warnings of the company’s shares. < / P > < p > on the promotion of “decapitation”, the reporter contacted st Jiajia, but did not receive any response. The reporter noted that in mid August, St Jiajia, actual controller Yang Zhen and Zhuoyue investment were issued a warning letter by Hunan securities regulatory bureau for issuing commercial acceptance bill, guarantee and fund occupation in violation of regulations. < p > < p > just half a year ago, Hunan securities regulatory bureau just issued a “decision on administrative punishment” to st plus, its Chairman Yang Zhen and Zhuoyue investment, and imposed penalties of 400000 yuan, 200000 yuan and 400000 yuan, respectively, for over 1 billion yuan of funds suspected of illegal information disclosure. < / P > < p > according to the details of information disclosure, in November 2017, Yang Zhen used the official seal of Jiajia food to provide guarantee for the external loan of excellence investment in the name of Jiajia food, with a total amount of 295 million yuan, accounting for 14.33% of the company’s audited net assets in 2017 annual report; at the same time, from March 7, 2017 to January 30, 2018, Yang Zhen used the official seal of Jiajia food to provide guarantee for the external loan of excellence investment, with a total amount of 295 million yuan, accounting for 14.33% of the company’s audited net assets in 2017 annual report Yang Zhen also instructed relevant staff to issue commercial acceptance bills to related parties through online banking, with a total amount of more than 700 million yuan. In addition, in February 2018, due to external debt pressure, excellence investment occupied 54 million yuan of non operating funds, which was not reviewed by the board of directors, the board of supervisors and the office meeting of managers of the company, and was not timely announced when the event occurred disclosure. < / P > < p > “this investigation may lead to the company’s failure to meet the conditions of issuing shares to purchase assets as stipulated in the administrative measures for major asset restructuring of listed companies, thus leading to the uncertainty of the company’s ongoing major asset restructuring of issuing shares and paying cash to purchase 100% equity.” In September 2019, St Jiajia said so when receiving the “pre fine” issued by the CSRC. < p > < p > on July 10, 2018, in order to enrich the variety and competitiveness of products, St Jiajia announced that it plans to purchase 100% equity of Dalian tuna fishing held by Li Zhenyu and others by issuing shares and paying cash, with a price of RMB 4.71 billion. According to the data, as a pelagic fishery enterprise specialized in ultra-low temperature high-end tuna longline fishing, tuna fishing was established in 2000, and is the largest fishery company specialized in ultra-low temperature tuna longline fishing in China. Previously, the company had planned to list on the Hong Kong stock exchange, but finally decided to enter st plus through asset restructuring. < / P > < p > it is worth mentioning that the asset restructuring planned for more than two years is still pending. The reporter noted that at the beginning of December, on the investor exchange platform, St Jiajia said in response to relevant investors’ inquiries about the acquisition progress, “the board of directors arranges relevant matters according to the authorization of the general meeting of shareholders, please pay attention to the company’s subsequent announcement.” < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk. < p > < p > Chinanet is a state key news website under the leadership of the Information Office of the State Council and the management of China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website publishes information 24 hours a day. 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