Fu Anna’s 120 million yuan wealth management overdue: how can the unfinished building be packaged as a profitable project?

Spread the love

At the beginning of 2022, when Fuanna, a listed home furnishing company, audited its 2021 annual report, Fuan No. 1, a product that it entrusted with CITIC Securities for wealth management, received a report from the latter. The principal of 120 million yuan is at a premium of 8.753 million yuan.

However, just before and after this, on March 19, 2022, which is the expiration date of the wealth management product Fu An No. 1, CITIC Securities failed to pay the principal and investment income invested by Fu Anna.

Further investigation showed that the underlying assets involved in Fuan No. 1 were actually a project that had already been caught in a breach of contract and bankruptcy dispute. How can such a project be loaded into a wealth management asset package? How does the asset premium arise?

120 million financial management only recovered 13.5 million yuan

On August 23, on the day the semi-annual report was released, Fu Anna also issued an overdue announcement.

The announcement stated that the 120 million yuan fixed-income wealth management product purchased by the company through CITIC Securities was originally due in March 2022, but most of the principal and investment income have not yet been paid.

The wealth management product Fu Anna refers to is “CITIC Securities Fu’an FOF Customized No. 1 Single Asset Management Plan” (hereinafter referred to as “Fu’an No. 1”), and the product manager is CITIC Securities. Fu Anna purchased Fuan No. 1 for 120 million yuan on March 19, 2021. The company was supposed to get back the investment principal and income before and after the expiration date on March 19, 2022, but CITIC Securities did not pay the full amount. . After several rounds of communication, as of the time of the announcement on August 23, Fu Anna received a principal of 13.5 million yuan from CITIC Securities on April 14, 2022, and the remaining product principal of 106.5 million yuan and investment income were overdue.

Fu Anna said that due to the nature of non-guaranteed financial products, Fu An No. 1 has the risk that the principal and interest cannot be fully paid.

On the same day, Fuanna’s semi-annual report showed that in the first half of 2022, Fuanna’s revenue was 1.335 billion yuan, a year-on-year increase of 2.06%, and the net profit attributable to the parent was 211 million yuan, a slight increase of 0.68% year-on-year. This means that the overdue amount of wealth management products Fu Anna purchased from CITIC Securities accounted for more than half of Fu Anna’s net profit attributable to her mother in the first half of this year.

The relevant person in charge of Fuanna told China News Weekly that although this product is a non-guaranteed financial product, it is also a fixed-income financial product, and it is a product of a securities company with a state-owned background. Received investment income, this financial product overdue is indeed unexpected.

Wang Jianguo, an Internet strategy expert in China’s home furnishing/design industry and the general founder of China Design Dean’s Base, told China News Weekly that due to the slowdown in the development of the domestic and foreign economic environment, the domestic consumer market is generally conservative, and raw materials and logistics costs are rising. , rent and labor costs have been high for a long time, and it has become difficult for home furnishing companies to increase their income and make profits.

Wang Jianguo said that listed companies staged investment in wealth management products, which was once a relatively common operation. Judging from this “treading on thunder” incident, it has warned related listed companies that they have not formed industry-leading market share and market share in their main business. Before the right to speak, high-quality and low-cost capital resources cannot be easily used for financial investment and non-industrial collaboration projects outside the main business.

Since 2018, Fuanna and CITIC Securities have carried out five phases of financial cooperation for Fuan No. 1 product, each with an amount of nearly 100 million yuan. The principal and interest were successfully recovered in the first four phases, and the interest income was 18.65 million yuan. Thunderstorm is the fifth product.

Among them, during the fourth phase of cooperation, on April 19, 2020, Fu Anna “listened to the advice of CITIC Securities”, and in view of “changes in the relevant management regulations of securities and futures”, signed a supplementary agreement with CITIC Securities to convert the original wealth management contract. Changed to FOF contract.

On March 19, 2021, Fu Anna spent 120 million yuan to transfer to the designated financial management account to purchase the fifth product. The funds were invested in two targets, namely Dongfanghong Currency B, a monetary fund of 20 million yuan, and Hangzhou Harbour City, a resource of Peking University, of 100 million yuan.

According to the announcement, on March 19, 2022, after the fifth phase of the product was overdue, in order to reduce the risk, Fu Anna communicated many times and asked CITIC Securities to pay 20 million yuan of monetary funds in advance, but CITIC Securities only paid Fu Anna on April 14, 2022. 13.5 million yuan of principal, CITIC Securities did not make a reasonable explanation for the unpaid 6.5 million yuan of money fund principal.

Another investment of 100 million yuan in wealth management funds invested in Peking University Resources Hangzhou Harbour City is even worse.

The underlying assets have been thundering for a long time

This is a long-controversial project. Peking University Resources Hangzhou Harbour City is now known as “Peking University Resources Boya City”, which is a well-known local unfinished building in Hangzhou.

In November 2014, Peking University Resources Group took over the project and named it “Peking University Resources Harbour City”.

But soon after, several executives of Beijing Founder Group, the parent company of Peking University Resources Group, were investigated, and the future of the project was uncertain. In 2019, the project finally opened, with a new name of “Peking University Resources Boya City”, and its operation has not been good.

In 2020, as the debt crisis of Peking University Founder Group continued to ferment, it was filed for bankruptcy and reorganization by creditors, and Peking University Resources was also implicated.

In April this year, the Chongqing Financial Assets Exchange released a bidding announcement for the “Relevant Equity and Debt Asset Packages Held by Peking University Resources and its affiliates”. The starting price of the target is 1.53 billion yuan, and the balance of the other target’s claims is about 3.838 billion yuan.

On May 18, CDH Investments posted on its official account that it had successfully delisted the Peking University Founder asset package, and the total value of the delisted non-performing asset package exceeded 10 billion yuan.

Fu Anna stated in the announcement that the debtor of the “Peking University Resources Hangzhou Harbour City” project is Zhejiang Lande Real Estate Development Co., Ltd.

According to the company’s information, the current major shareholder of Zhejiang Lande Real Estate Development Co., Ltd. is Chengdu Tianyi Qibang Real Estate Development Co., Ltd. At the end of May this year, the controlling shareholder of Chengdu Tianyi Qibang was changed from Peking University Resources Group Urban Development Co., Ltd. to Sichuan Langhui Lingyi Enterprise Management Co., Ltd. After equity penetration, it was found that CDH Investment was behind Sichuan Langhui Lingyi Enterprise Management Co., Ltd.

According to Fuana’s announcement, Lande Real Estate, the debtor of Peking University Resources’ Hangzhou Harbour City project, has already defaulted substantially, and both the 2019 and 2020 audit reports have been issued with reservations by Zhonghui Certified Public Accountants. The main joint liability guarantees the implementation of the reorganization plan of Peking University Founder Group. The deadline was recently extended by the court to December 28, 2022.

The relevant person in charge of the above-mentioned Fuanna said that they were puzzled by why CITIC Securities should invest in such a high-risk asset package for such a project that has already defaulted substantially, a company that has already fallen into bankruptcy and reorganization, and such a high-risk asset package? Moreover, what Fuanna signed with CITIC Securities is a fixed-income wealth management product, and the yield is not high. The purpose is to obtain stable income with low risk.

After the incident, Fu Anna also asked CITIC Securities for an explanation, but the latter did not give a reasonable explanation.

Interestingly, CITIC Securities once provided Fuanna with the 2021 annual report and confirmation letter of Fuan No. 1 product, which showed that by the end of 2021, the total asset value of the product was 130.3773 million yuan, and the net asset value was 128.753 million yuan. This means that there is also a premium for the product, and Fuana also includes 8.753 million yuan of the premium part into the book surplus accordingly.

The person in charge of an accounting firm told China News Weekly that from the above announcement, the product has undergone the procedure of confirmation letter audit during the annual audit, but because the audit procedure mainly relies on the confirmation information provided by the other party, there are certain risk loopholes.

How can projects caught in default and bankruptcy be included in the wealth management asset package? How does the asset premium arise?

A few days ago, at the release site of the semi-annual report of CITIC Securities, some media asked questions about this, but the on-site staff of CITIC Securities refused to answer.

CITIC Securities told China News Weekly that the incident was subject to Fuanna’s announcement.

Risk management should be strengthened

At present, behind this incident, it can be described as a cloud of fog.

For Fu Anna, did they know in advance that the underlying asset of the purchased wealth management product was “Peking University Resources Boya City”, and when did they know this information?

In this regard, the relevant person in charge of the above-mentioned Fuanna said in an answer to China News Weekly that the company is reviewing relevant information.

The risk has already been exposed, why has not been fully clarified yet, is there any problem with Fuanna’s risk control mechanism?

The above-mentioned person in charge of Fuanna said that the company has a strict risk control mechanism. The company has conducted a comprehensive self-inspection of the investment direction of its existing wealth management funds. After a comprehensive self-inspection, the investment of the company’s existing wealth management products is safe, and no similar risk events have occurred.

However, it is clear that Lande Real Estate, the debtor of Peking University Resources Hangzhou Harbour City project, has already defaulted substantially, and both the 2019 and 2020 audit reports have been issued with reservations by Zhonghui Accounting Firm, and the debt crisis of Peking University Founder Group has been fermenting for many years, which is widely known .

The person in charge of the above-mentioned accounting firm said that from the perspective of the implementation of audit procedures, Fuanna’s risk control mechanism is still problematic. If the audit procedures are strictly implemented, some risks may be exposed.

Another question worth asking is, is Fuana’s information disclosure illegal?

The expiration date of the Fuan No. 1 product is March 19, 2022. On that day, CITIC Securities did not pay Fuanna the principal and investment income of 120 million yuan. It was not until April 14 that CITIC Securities paid the latter. The principal of 13.5 million yuan, the remaining principal and investment income have not been paid yet. Therefore, its actual overdue date is March 19.

However, this overdue information was not announced until the day the semi-annual report was released on August 23, which was more than 5 months later than the actual overdue date.

Article 2.2.4 of the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange stipulates that a listed company shall perform its obligation of information disclosure in a timely manner when it becomes aware of the occurrence of a major event.

The person in charge of the above-mentioned accounting firm told China News Weekly that according to the regulations, if the net profit of the transaction target accounts for more than 10% of the net profit of the listed company, and the absolute amount exceeds one million yuan, it constitutes a major matter. The annual net profit does not exceed the relevant standards in terms of the income value of the wealth management product, but since the principal and income in this matter are both overdue, the overall amount of overdue payment exceeds 10% of the net profit, and should be disclosed in a timely manner.

Han Xingqian, a lawyer from Beijing Yingke Law Firm, told China News Weekly that the Fuanna Fund product was overdue on March 19. If it cannot be repaid, it is a major loss to the company and may have a greater impact on the trading price of listed companies’ securities. According to the “Securities Law” ”, the “Administrative Measures for Information Disclosure of Listed Companies” and other relevant regulations, and should be disclosed in a timely manner.

According to Fuanna’s announcement, after learning about the overdue situation of Fuan’s No. 1 product, the company set up a special working group, and repeatedly communicated with CITIC Securities on the relevant situation and subsequent redemption arrangements through letters, telephone calls, videos, and on-site meetings. Urge CITIC Securities to dispose of the underlying assets of Fuan No. 1 as soon as possible, and to make actual actions and follow-up payment arrangements as soon as possible.

Regarding whether it was overdue, the relevant person in charge of the above-mentioned Fu Anna said that the company did not know much about the situation at the beginning, and there was a process of understanding and communicating about this matter. In addition, the amount of loss is difficult to identify. For investment income, based on the report of CITIC Securities and the overdue situation, the company has finally accrued RMB 8.75 million in the book surplus of the product in the semi-annual report for 2022. Loss from changes in fair value; , it is more difficult to identify losses due to asset collateral.

On August 23, Fuanna announced that since CITIC Securities has not issued the latest valuation table/net value statement, the company cannot accurately predict the principal loss that may be caused by the investment. .

Han Xingqian said that according to the existing information, it is more likely that the responsible party in this incident belongs to CITIC Securities, but the specific responsibility determination depends on the product agreement, as well as the specific communication facts of the product due diligence, purchase process, and risks between the two parties. to be more clear.

Wang Jianguo said that at present, Fu Anna should use the law as the basis, apply for redemption as soon as possible, and stop losses in time.

Han Xingqian suggested that Fuanna Company can first negotiate a solution with the manager CITIC Securities; secondly, if there is collateral in the wealth management product contract, it is suggested that Fuanna Company can start due diligence as soon as possible at the same time; moreover, it is suggested that the project approval, due diligence and asset evaluation of the wealth management product , risk control review, and due diligence of relevant legal procedures. If there are flaws, you can consider filing lawsuits to resolve disputes.

Author: Liu Debing

Leave a Reply

Your email address will not be published. Required fields are marked *