Hong Kong listed companies that are suspended from trading againPeople's Financial Technology (00279.HK)Faced with liquidation because of insolvency. On April 6th, people's Financial Technology announced that the court had granted additional powers to the provisional liquidator. These include restructuring the company's business and operating or restructuring or selling its assets, and so on.
According to the notice, following an emergency application by the joint and separate provisional liquidators to the High Court on 23 March 2020, the High Court made an order on 26 March 2020 to vary the decree on the appointment of provisional liquidators dated 28 February 2020, to confer additional powers on the provisional liquidator.
Specifically, including, but not limited to, considering and conducting discussions or negotiations for and on behalf of the company to restructure the company's business and operations or to restructure or reschedule the repayment of the company's debts, or sell its assets as it considers it to be in the best interests of the company's creditors. However, Public Financial Technology said that without the approval of the High Court, any proposed restructuring, rescheduling or sale of corporate debt would not be binding on it.
The debt is recovered and faces liquidation.
According to Public Financial Technology, the provisional liquidator has contacted potential investors who have expressed initial interest in the potential restructuring of the company, and the provisional liquidator is in contact with them to determine whether they are interested in implementing their initial interest and are committed to formulating a feasible resumption proposal.
According to the Internet Financial News Center of Qi Finance, people's financial technology is mainly in the exhibition industry in Hong Kong and is positioned as an innovative financial service platform, mainly engaged in providing securities and futures brokerage services, placement, underwriting and margin financing services; provide factoring, financing guarantee and financial leasing services; provide insurance brokerage and financial planning services.
So far, the public financial technology has not yet released 2019 annual results, and is still in a state of suspension. According to the introduction, trading in the company's shares has been suspended on the Stock Exchange since the afternoon of February 28, 2020. Previously, public financial technology resumed trading on January 13, 2020 when it released its financial results for the first half of 2019.
By the time trading was suspended, people's financial technology had already become immortal shares, with a share price of less than HK $0.10 and a total market capitalization of HK $168 million (total share capital of 1.868 billion shares). In the most recent year, the share price of public financial technology peaked at HK $0.46 and as low as HK $0.085, with an amplitude of 81.5 per cent.
According to the people's Financial Technology Financial report, its income (revenue) in the first half of 2019 was HK $71.986 million. Of this total, HK $24.553 million was earned from securities and futures brokerage, placement and underwriting, HK $28.366 million from factoring, financing guarantee and financial leasing, HK $4.089 million from insurance brokerage business, and HK $15.011 million from financing.
The financial report shows that people's financial technology lost HK $1.836 billion in the first half of 2018 (before tax), a net loss of HK $1.838 billion, a net loss of HK $1.74 billion in the first half of fiscal year 2018, and a loss of HK $1.592 billion for shareholders and HK $1.758 billion in the same period in 2018.
It is worth mentioning that the public financial technology was recovered because of debts and faced with the dilemma of liquidation. It is understood that it received letters of request from a number of lenders on March 12 and April 10, 2019, demanding immediate repayment of loans with outstanding principal amounts of about HK $784 million and HK $429 million, respectively.
At the same time, people's Financial Technology also received a notice of default from another lender on April 26, 2019, reserving its right to demand immediate repayment of a loan with an outstanding principal of about HK $777 million; on June 10 of the same year, it received a default event and a repayment notice from an additional lender requiring immediate repayment of a loan with an outstanding principal of about HK $719 million, together with accrued interest.
On 10 May 2019, Public Financial Technology received a petition from one of the above lenders in the High Court of the Hong Kong Special Administrative region on the Company (Winding-up and Miscellaneous provisions) Ordinance (Chapter 32 of the laws of Hong Kong) requesting the court to wind up the company on the grounds that it was insolvent and unable to repay its debts.
It was previously understood that the lender applying for liquidation was Shinny Solar Limited, because the public was insolvent and unable to repay a total of US $112 million in debt. On June 18, 2019, the public financial technology announced again that the applicant had withdrawn the summons for the appointment of a temporary liquidator of public financial technology.
There are only five members left on the insolvent board.
On February 27, 2020, Public Financial Technology received a summons issued by the petitioner that, in accordance with the instructions of the High Court, Huo Xiyu and Zhou Weicheng of Fushigao Consulting Co., Ltd. would be appointed as joint and individual provisional liquidators of the company.
At the hearing on 28 February, the High Court of the Hong Kong Special Administrative region ordered that Mr Lai Ka-Yan and Mr Ho Kwok-Kai of Deloitte Kwan Wong Chan Fang were appointed as joint and separate provisional liquidators of financial technology of the public. the petition submitted on 10 May 2019 is determined or otherwise ordered by the High Court. On the same day, trading in financial technology was suspended.
Then, the chief executive of people's Financial Technology chose to leave. In mid-March, people's Financial Technology announced that Wang Xianghong resigned as executive director, chief executive and authorized representative of the company because he intended to devote more time to other career opportunities, effective March 16, 2020. Instead, Ye Ye, executive director and chairman of the board of directors, has been appointed as the authorized representative of the company.
After the suspension of tradingHKExInformed the public of the conditions for the resumption of financial technology trading. Among them, the public is required to prove that it complies with Rule 13.24 of the listing rules. At the same time, it is required to meet the requirements for the withdrawal or revocation of a company winding-up petition and the discharge of the appointment of joint and separate provisional liquidators.
In its letter dated 19 March 2020, HKEx also pointed out that under Rule 6.01A (1) of the listing rules, HKEx may cancel its listing status if trading in a company's shares has been suspended for 18 consecutive months. Take the public financial technology as an example, its 18-month period will expire on August 27, 2020.
People's Financial Technology said that if the company is unable to resume trading of its shares before the deadline, the listing department will recommend that the listing committee start the process of delisting its listing status. In this regard, it will take appropriate measures to fully comply with the listing rules to satisfy the HKEx in order to resume trading in its shares.
The lack of money makes it more difficult for the public to operate financial technology. On March 24, people's Financial Technology also announced that after the company appointed a provisional liquidator and due to the company's insolvent financial situation, it terminated the employment of Chen Yixu as its company secretary, effective March 6, 2020.
As of March 27, 2020, the people's Financial Technology Board has only five members, including Chairman Ye Ye, Executive Director Yang Haoying, and independent non-Executive Directors Andong, Feng Zihua and Wu Keli. In addition, the company also has Pan Kanghai, chief operating director, and Zhao Tong, chief investment officer.
In view of this, following an urgent application by the joint and separate provisional liquidators to the High Court on 23 March 2020, the High Court made an order on 26 March 2020 to vary the order for the appointment of provisional liquidators dated 28 February 2020, to confer additional powers on the provisional liquidator.
It is also understood that Zhang Yongdong, a shareholder of people's financial technology, was punished by the Securities Regulatory Commission for manipulating stock prices in 2015. According to public information, Zhang Yongdong was fined 686000 yuan by the CSRC for violating the prohibition of "manipulating the securities market by other means" and constituting an illegal act mentioned in Article 203 of the Securities Law.