① The incident where Zheng Mei Ji's 300 million trust stepped on a thunderstorm in private equity; ② Huasoft New Power is a credit enhancer and may need underwriting; ③ As early as August, Wang Guangyu was applied for enforcement by Zheng Mei Machinery and was restricted from a high consumption order.
Financial News Agency, November 19 (Reporter Yan Jun) Investors have once again voiced their voices in the “Hangzhou 3 billion quantitative run away” incident. Zheng Coal Machinery's investment in Huasoft's new power products through a foreign trade trust cannot be repaid. It has invested 300 million yuan in less than half a year. Currently, it has recovered only 29.56 million yuan.
On the evening of November 19, the listed company Zheng Mei Ji announced that it had received a supervisory work letter on the progress of the purchase of trust products, and explained the progress and risk alerts of the company's purchase of trust wealth management products.
Zheng Coal Machinery announced that in May of this year, the company separately subscribed to the Foreign Trade Trust - Huasoft New Power Choice No. 1 Single Fund Trust (“Trust No. 1”), Foreign Trade Trust - Huasoft New Power Select No. 2 Single Fund Trust, and Foreign Trade Trust - Huasoft New Power Select No. 3 Single Fund Trust. The three trusts and financial management have each subscribed for 100 million yuan, for a total subscription amount of 300 million yuan. As of the announcement disclosure date, the above trust products have not yet expired.
In view of the above trust products facing payment risks, the company has already redeemed 29.563,400 yuan of trust funds for Trust Product 1 ahead of schedule. There is a risk that the rest will not be able to be paid on time or in full. There is uncertainty about the impact on the company's current and post-term profits. Currently, the company has reported the case to the public security authorities.
Earlier, the Financial Association had already reported on the incident where Huasoft Xindong stepped on Lei Yuyao's investment. The 10 billion dollar private equity Huasoft New Power announced that it was difficult to develop and disburse private equity products invested in Shenzhen Huisheng. After sorting out, this was a multi-level nested risk incident for private equity products. The second tier of Huisheng Investment invested in Yuyao, while Yuyao Investment invested in the equity capital that had already been cancelled by the Association.
The information revealed by Zheng Mei Ji in the announcement this time also confirmed previous market rumors. While pursuing investment, Zheng Mei Ji issued Huasoft New Power and discovered that the investment of Yu Yao, the third-level manager, had not been traced, so he reported the case to the Zhengzhou Public Security Bureau, unraveling the prelude to this private equity fraud case.
Zheng Coal Machinery still has 270 million dollars that have not been recovered
In Zheng Mei's announcement, the history of this investment was explained in detail. On March 29 of this year, Zheng Mei Ji passed the “Bill on Using Idle Funds to Invest in Financial Wealth Management Products”. In order to make rational use of idle funds and improve the efficiency of capital use, it was agreed that the company would invest in the purchase of wealth management products within 12 months from the date of review and approval by the board of directors. The investment in wealth management products includes, but is not limited to, banks, brokerage firms, trusts, asset management plans, etc.
On May 29, Zheng Mei Ji subscribed to the three single fund trust plans of the Foreign Trade Trust. The subscription amount is 100 million yuan each. The estimated annualized yield is 5%. The only difference between the three trust contracts is the expiration period.
Specifically, the period of Trust No. 1 is from May 30, 2023 to May 30, 2024, the Trust No. 2 period is from May 31, 2023 to May 31, 2024, and the period of Trust No. 3 is from May 31, 2023 to May 31, 2024.
In terms of trust asset management, Zheng Mei Ji hired Huasun New Power as a trust investment advisor to provide the trust with the service of issuing investment proposals. The trustee made targeted investments in Huisheng Asset Quantitative Hedge No. 4 Private Equity Investment Fund based on Huisun's investment suggestions.
Judging from the timing, none of the above trust products have yet to expire. However, Zheng Mei soon discovered the risk. The announcement said that through continuous tracking of the invested products and recent market public opinion, the company is concerned that the underlying products invested in the above trust products may face the risk that they cannot be redeemed on time, and that the trust products mentioned above may face the risk of not being able to be paid on time, and the above trust products may face the risk of not being able to be paid on time.
As a result, Zheng Mei Ji communicated with the trustee (foreign trade trust) and investment advisor (Huasoft New Power) and has already redeemed 29.5634 million yuan of trust funds for Trust No. 1 product in advance. Currently, 270 million yuan has not been redeemed.
The company stated that it has designated a special person responsible for project tracking, actively contacting and urging all relevant parties to pay the investment principal and income of the above trust wealth management products to the company as soon as possible, and do their best to protect the company's interests. At the same time, the company has reported the case to the public security authorities and reserves the right to use other rights protection measures, such as legal action measures, if necessary, to minimize the company's potential losses.
Furthermore, Zheng Mei Ji also stressed that in addition to the trust products mentioned above, the company has not purchased any other wealth management products for foreign trade trusts, nor has it carried out any other business with Huasoft New Power.
Does Huasoft New Dynamics provide credit enhancement measures, or do they need to be backed down?
Zheng Mei Ji said that a special person has been designated to be responsible for project tracking, actively contacting and urging all relevant parties to pay the investment principal and income of the above trust wealth management products to the company as soon as possible, and do their best to protect the company's interests. At the same time, the company has reported the case to the public security authorities and reserves the right to use other rights protection measures, such as legal action measures, if necessary, to minimize the company's potential losses.
Zheng Coal Machinery's wealth management products were invested in Huasoft New Power through a foreign trade trust. Although the relevant contracts were not disclosed, judging from Zheng Coal Machinery's announcement, products stealing thunder have also gradually surfaced, and invested in Huisheng Asset Quantitative Hedge No. 4 Private Placement.
Zheng Mei's announcement also revealed some details of the cooperation. In Zheng Mei Ji's three trust plans, Huasoft New Power, as an investment advisor, also acts as a credit enhancer for the trust, so it fulfills its obligation to add additional credit enhancement funds. The risk that the credit enhancer fails to add credit enhancement funds in a timely manner or that the credit enhancer is unable to fulfill its credit enhancement obligations due to reasons such as the deterioration of the credit enhancer's financial situation is borne by the trust asset.
In response, an industry insider told the Financial Services Association reporter that although this trust was signed with a foreign trade trust, Huasoft New Dynamics is a credit enhancer, which means it underwrites trust assets. “In recent years, there have been few cases where fund managers have provided asset funds to clients. Huasoft New Dynamics is willing to provide credit increases, or has a sense of luck in order to sell.”
This also involved Wang Guangyu, the former actual controller of Huasoft New Power. Some sources said that the former controlling shareholder of Huasoft New Power was Jinling Huasoft Investment Group, and the actual controller of the latter was Wang Guangyu. Jinling Huasoft Investment Group withdrew from Huasoft New Power in June 2015, but in August of this year, Wang Guangyu was applied to the court by the Zhengzhou Coal Mining Machinery Group for enforcement and was restricted from spending orders.