Ruixing Financial Fraud Aftermath Impact? UCAR was investigated! Lu Zhengyao was “double clicked”!

Original title: Ruixing Financial Fraud Aftermath Impact? UCAR was investigated! Lu Zhengyao was “double clicked”! Source: Wildfire Finance
According to the latest announcement on July 20, according to the latest announcement of UCAR, because of suspected information disclosure violations and other acts, the SFC will investigate the company.
CICC, as the lead underwriter, also issued a risk warning, saying that the investigation of China UCAR will have a negative impact on the company and remind investors to pay attention to preventing risks.
However, UCAR (838006) said that the investigation will not adversely affect the company’s normal operations, nor will it involve the company’s financial affairs.
Although listed on the New Third Board, UCAR is the third listed company in the capital map created by Lu Zhengyao. The other two are Shenzhou Car Rental and Ruixing Coffee, which are listed on the Hong Kong Stock Exchange and NASDAQ respectively.
It is well known that Ruixing Coffee has been delisted from NASDAQ and traded on the OTC market due to financial fraud. For Lu Zhengyao, it wasn’t Ruixing who delisted more; it was that he lost control of Ruixing.
According to the judgment of the overseas British Virgin Islands court, the liquidation of the shares of Ruixing Coffee held by Lu Zhengyao, the founder of Ruixing Coffee, was liquidated. Ruixing’s latest disclosure of equity distribution is that as of January 21 this year, Ruixing Coffee’s shareholding structure shows that Lu Zhengyao holds 23.94% of the shares, Qian Zhiya holds 15.43% of the shares, and Sunying wong, which is sister Lu Zhengyao, The shareholding is 9.72%, which is the top three shareholders. The combined equity of the three has reached 49.09%.
According to the court’s liquidation order, the equity of Lu Zhengyao’s brother and Qian Zhiya (former CEO of Ruixing) will be liquidated because of the pledge.
UCAR China has not yet announced its 2019 annual report so far, which is naturally not in line with the norm. Public data shows that in the 2019 interim report, the total revenue of UCAR was 1.92 billion yuan, a year-on-year decrease of approximately 49%, and a net loss of 653 million yuan. However, there are quite a lot of assets. By the end of June last year, the total assets were 15.9 billion yuan, the total liabilities were 5.5 billion yuan, and the net assets were 10.4 billion yuan.
Since China Automobile received an investigation order from the China Securities Regulatory Commission, according to the usual practice, once the violations are settled, the company and related responsible persons will be punished. Those who light the company and individuals will be fined, and the most important are executives who are banned from the market for life.
In early July, Ruixing held an extraordinary general meeting to remove many directors, including Lu Zhengyao. This was considered by the market to be Lu Zhengyao’s final effort for his own interests before the equity was lost. Subsequently, Ruixing Coffee’s board of directors re-elected and re-elected the chairman, apparently Lu Zhengyao’s agent Guo Jinyi became chairman and CEO.
However, as Dazheng Capital becomes the major shareholder of Ruixing, and although the shareholding ratio is less than 10%, due to the holding of B shares, it has high voting rights (1 share of B shares has 10 voting rights). Perhaps the board of directors will continue to carry out the cleaning, the premise is to hold a shareholders meeting first.
Whether it is because Ruixing faked the aftershock shock is not good to draw a conclusion. The situation now is that for Lu Zhengyao, China UCAR was investigated and lost most of Ruixing Coffee’s majority stake, undoubtedly being “double-clicked”. However, according to the company law, as long as he still holds the board of directors, he can still control the company nominally. Before the next general meeting of shareholders and the re-election of the board of directors, the equity and most of the seats on the board of directors were lost. The management reorganization was completed, and Lu Zhengyao was regarded as Ruixing Coffee. Only really “nothing”.
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Originally, about 600 million shares held by UCAR were to be acquired. SAIC Group also announced today that it will no longer seek acquisitions because of variables. At noon, SAIC announced that it would abandon the purchase. At night, it was reported that the Chinese car was investigated, which is not an ordinary coincidence.
With China Unicar being investigated by the China Securities Regulatory Commission, the capital responded to Lu Zhengyao. Will this day come soon?