Zitong Financial App NewsletterPoly Xiexin Energy (03800)To issue a notice about the lender's claim to exercise its security interest in the pledged shares, that is, to transfer it to the depository broker's account as a guarantee for the first tranche of the loan.Xiexin New Energy Holdings Co., Ltd.(Xiexin New Energy) 865.1 million shares.
The company attaches great importance to the incident and has been considering all possible legal remedies.
As previously announced, the company has reported its alleged exercise of a security interest in the pledged shares to the law enforcement agencies in Hong Kong. Since then, the company has been working with law enforcement agencies to provide additional documents and information to relevant law enforcement agencies on a voluntary basis and at the request of relevant law enforcement agencies.
Following the company's previous announcement, the company has also engaged the independent research firm Fushigao Consulting Limited (Fushiko Consulting) to investigate, among other things, the lender (Bentley Rothschild Capital 5 Limited), the lender's claimed successor entity, the depositary broker and such key individuals associated with such entities involved in the loan agreement transactions.
The main findings of the survey include the following:
(1) one of the key individuals associated with the lender has been accused of fraud and other financial disputes. Other companies under the individual's control have been suspected of fraud and disputes and have signed principal loan agreements with other borrowers. It is said that after receiving the shares as collateral, the loan amount was not paid in full, but the mortgage shares were sold in the market.
(2) the lender has no traceable history, corporate entity and profile. The investigation by Fushigao Consulting did not find any public records that included the lender's directors, senior managers or entity's business offices. The lender's registered address in the loan agreement is the address of his company secretary in the country of St.Kitts & Nevis.
Based on the findings and other available information (including CCASS shareholding records), the company considers that it is very likely that 865.1 million pledged shares will no longer be held by Jettel or its representative or any other member of the Group.
In spite of this, the company believes that it continues to control the management rights of Xiexin New Energy. Therefore, the board of directors is of the view that Xiexin New Energy is still consolidated as a subsidiary in the company's consolidated financial statements in accordance with the international financial reporting standards issued by the International Accounting Standards Board (IASB).
In view of the above, and after carefully assessing all relevant factors, including weighing the cost of legal proceedings and the possibility of obtaining meaningful compensation, the company decided not to take any legal action on the loan agreement for the time being. However, the company continues to review all possible approaches and will consider potentially favourable actions where reasonable.
In addition, trading in the company's shares continued to be suspended.