A disposal of shares in Shell Clearance Science & Merchants Insurance crossing just realized 4.9 billion against crisis

June 8, China Science & Merchants released 2017 annual report, reported losses 7.2.2 billion yuan。Single Cheung, chairman, said the company has experienced double development "to the dark moment" in history。  Late last year China Science & Merchants were forced to withdraw from the market three new board, led to the company's liquidity crisis, creditors have to come。In order to repay 4.9 billion yuan debt, China Science & Merchants opponents in more than a dozen listed companies Shell shares were underweight clearance formula。A blessing in disguise, just to avoid a market crash earlier this year。  Although just against the storm tide, fell into a "penny stock" of China Science & Merchants have to face more than 2000 shareholders, many shareholders 10 billion yuan set by the company's huge losses。The company plans to hold a shareholder meeting at the end of a single Xiangshuang will explain the introduction of strategic investors and plans to market next year。  Just crossing clearance reduction formula against the crisis June 8, China Science & Merchants released 2017 annual report, reported losses of up to 7.2.2 billion yuan。Chairman of the company also released a single Xiangshuang letter to shareholders, said, "shares delisted from the transfer system and thus triggered a series of crises, is undoubtedly the China Science & Merchants Venture Group eighteen years of development to dark moment"。  (CSM letter to shareholders) Science & Merchants is a veteran of the domestic private equity fund management institutions, as of the end of last year, the company's private equity funds in existence tube 151 has a total paid-up capital of about 34.1 billion yuan。  Late last year, China Science & Merchants Not content with three new board "Private eight" rectification rule, was forced to withdraw from the market, investors withdraw from the market not only caused panic, but also led to the company's liquidity crisis。The company's bondholders demand an early redemption of bonds, bank, trust and other requirements of the debt prepayment。  During the three new board listing, CSM raised four corporate bonds, total 32.900 million yuan。By the end of last year, the company's short-term borrowing 100 million yuan, long-term loans of up to 20.800 million yuan。  Single Xiangshuang said in the letter, "credit, companies are forced to focus on low-cost to maintain the company's brand equity and body disposal of assets, return of funds to pay debt rigid, early repayment of debt combined total of 49.2.2 billion yuan。"" Rigid cashing thing almost did not survive, the shares were sold for the job or have problems of business survival。"People close to China Science & Merchants, told reporters," is an extension of debt in the past year, I heard a delisting, all creditors, banks are all required payment in advance, do not interest the future, we must now repay principal。"Early last year, China Science & Merchants breath announced the reduction of clearance type Tiansheng New Materials (300169.SZ), the North Mine Technology (600 980.SH), and three transformers Technology (002 112.SZ) and other eight companies listed equity。According to Reporters incomplete statistics, China Science & Merchants last year, 14 listed companies Shell shares were sharply cleanup。  However, China Science & Merchants blessing in disguise, last year, just to avoid the concentration of holdings make market slump earlier this year。  (CSM concentrated holdings of shares) "secondary market has undergone great changes, especially small and medium plates, the GEM, resources value decline, For PE firms, prior to cross-market arbitrage, speculation and other investment concept now the way is not applicable, in strong financial regulation, deleveraging stage to do well ,, core cash flow management。"Northeast Securities research director Fuli Chun told First Financial。  Second half of 2015 to the first half of 2016, China Science & Merchants spend 3.4 billion yuan, intensive placards 16 "housing stock" type of listed companies, the market strong concern。  The company's plan is to control the initial 50 listed companies to undertake their own investment project exit。However, such "store shell" behavior has caused a lot of dissatisfaction with equity counterparts, some in the industry worry China Science & Merchants will have a monopoly merger exit channel。  (CSM stock holdings progress) More controversially, the company raised placards funded from ten billion yuan three new board orientation, is considered to be crowding out the resources financing the real economy, and for stocks, there are real to the virtual removal suspected。This led directly to the supervision of large Sha Zhao。  By the end of 2015, the Commission listed and emergency brake PE financing in three new board。April 2016, Shares of the company introduced the national private rectification measures listed, the core requirements is the return the fund manager role should not be used to raise funds for secondary market arbitrage。Rectification is not completed within a year, will force the delisting。  Single Xiangshuang said that although emergency sell stock to keep the company's issuer credit, but by the impact of systemic risk in small-cap stocks, and the reduction announcement led to the bearish consensus expectations, the stock sold more down, resulting in full-year stock assets changes in fair value loss expanded to -12.7.3 billion yuan, dragging the company into a substantial loss。  "If a single point in time than with a year ago, the stock market is a loss, but the selling price of the stock last point is still at a high point, it has sold almost a year of semi-annual report will improve a lot。"Informed sources。  Introduction of strategic investors, start listing avoid crisis, although off the creditors, to avoid the liquidity crisis, but China Science & Merchants also face pressure from shareholders。  The closing price of the last trading day before the company was delisted 0.61 yuan, compared with the price at which the company ten billion set by the fallen by nearly 80 percent, the company's market capitalization has shrunk from highest break one hundred billion yuan to 6.6 billion yuan last, set by the secondary market to buy and many investors losses。The company more than 2,000 people。  According to the announcement, China Science & Merchants will be held June 29 shareholder meeting again to consider the company's 2017 Annual Report and the Profit Distribution Proposal。Due to negative retained earnings, the company approved by the Board, this year will be no cash dividend, bonus issue does not increase by transferring。  In January, China Science & Merchants in the first shareholders' meeting after the delisting, through a dividend for five consecutive years, landing other capital markets and the introduction of strategic investors and other six proposals。  In the letter to shareholders, the single Xiangshuang revealed progress "cited war" and "listed" plan。He said the company has approached more than 10 domestic and foreign institutional investors, including five central enterprises and large financial institutions。Companies from the two selected, the company's due diligence approach。  Reporters learned from informed sources, China Science & Merchants "cited war" in addition to enhance the strength of the company, there is an important goal is undertaking given by the shareholders, "the part of the old shareholders displace"。  First Financial Chen Wei for the private equity industry, said the share price and the price set by the too great, "cited war" how to price the most irritating。The company can be found in the central enterprises with political and business resources, state-owned enterprises to access disk, but if you find a listed company will face strict regulatory securities regulatory authorities。  In May this year, gold ham (002 515.SZ) announced mergers and acquisitions fail, which gives the company M & PE institutions Yu capital cast a shadow。  August 2017, gold ham and Yu marriage capital, also signed on gambling terms, the Yu-2 capital must then to profit.500 million yuan。However, Yu capital in profit last year only 12 million。Gold ham decide to buy one billion yuan of capital investment projects Yu, I wanted to do both, only the Shenzhen Stock Exchange has been questioned, and only fell through。  CSM also listed a chess move。Single Xiangshuang said the company has approached Credit Suisse and other intermediaries, loss last year will not affect the company's listing plan next year。  Reporters learned that the China Science & Merchants listed tentatively scheduled destination in Hong Kong。However, HKEx-listed financial company valuation is not high, close to Branch when the investment set by the one hundred billion market capitalization of only China Cinda (1359.HK) and China Huarong (2799.Hong Kong)。  Fuli Chun believes that large CSM earnings volatility, with very reasonable price-earnings ratio, book value valuation is more suitable for use, according to the company per share.2 yuan of net assets, current stock price should be at 0.6 yuan。  "(CSM) when the valuation set by the logic of the system is the company's funds to its own investment-based, according to the valuation of the Fund's net。After the return of the fund manager's financing agency, it is based on performance and in addition to the valuation scale tube funds。"Chen Wei said the company may soon be listed in Hong Kong, but the valuation and liquidity may not be high。  Hong Kong-listed asset manager Value Partners Group (0806.HK) total market capitalization of 13 billion Hong Kong dollars (about 10.6 billion yuan), the China Science & Merchants last year almost at an average market capitalization of the new board, but its $ 16.8 billion (about 110.9 billion yuan) in assets under management far exceeded Branch Merchants。  Sell property cut edge business concern is that, although the CSM has been delisted, but still in the disclosure report in accordance with the strict requirements of the three new board listed, 151 surviving fund all disclosed, the focus of the fund also disclosed investments, the specific amount of withdrawal。  "We are still in Guangdong Securities Regulatory Bureau, of all things, including disclosure of information in strict accordance with the requirements of the Securities Regulatory Commission, Securities Regulatory Bureau would like to report。Strict information disclosure is preparing for listing in Hong Kong。"Informed sources told reporters。  As the number of CSM shareholders more than 200 people, although the new three-panel delisted, but still a non-listed public company, in accordance with the "non-listed public company supervision and management measures" by the SFC, to assume the obligation of information disclosure, shareholder protection。  Fuli Chun believes that the large number of CSM shareholders a high degree of dispersion, large asset size, industry position and social influence is remarkable, even delisted, are also systemically important。  Analysts pointed out that encountered when China Science & Merchants delisting crisis, and subsequent strict supervision, with a warning to the new board listed PE。Large number of shareholders of listed PE firms can not withdraw from the market to shirk its responsibility to protect shareholders。  In addition to pressure rigidity cash crisis and investor protection challenges, CSM also face future losses and restructuring。  Over the past few years, China Science & Merchants mainly affected by the performance of the stock market value of about fluctuations in the shell, and the company's own investment performance is not leading in the industry。A-share IPO last year, the highest number of innovations, from the year amounted to 438, but the China Science & Merchants Investment of only six, which with its huge capital under management is not enough to match。  (CSM annual index data) Single Xiangshuang said it would implement the "downsizing" program, reduce redundant staff, the main business focus investments in technology innovation, while continuing to recover cash realization of assets, such as stocks continue to strengthen the disposal of the remaining assets of the cash to work。  The company began layoffs last year, according to the annual report, China Science & Merchants reduce the number of employees 702 people from the beginning to the end of 677 people, mainly the reduction of the fund management and risk control staff。  Reporters learned that the company will also sell real estate in Shanghai。By the end of 2017, total investment property assessment division of investment holdings is 36.300 million yuan, including 1.9 billion book value of Shanghai International Shipping Service Center building。  Single weight-loss plan is expected to double this year, Cheung will save the company about $ 200 million cost, and drastically reduced the size of loans is to reduce interest expense about $ 300 million。Showed a profit, administrative expenses and financial costs are the two largest expenditure last year, a total of nearly one billion yuan。  "Before too aggressive, stretched too thin, and thin is the business previously relatively marginal cut。"Informed sources, the equity investment payback period is too long, to 5–7 years, then the company will increase the asset-light, with a stable cash flow business, such as financial advisors。  Chen believes that CSM has deep resources of private industry, financial advisory services is a viable option, but now the industry is the lack of more projects head, if you can not get the head of the project, will not be able to attract investment mechanism。