① Ruifengda ran away, and Riying Holdings, which specializes in construction projects, plummeted, and transactions related to the annual report revealed a mystery; ② Ruifengda's “high-ranking takeover” investment was shocking. The same method appeared in 7 New Third Board listed companies; ③ According to the industry, it was worse than Yuyao.
Financial Services Association, May 13 (Reporter Yan Jun) The impact of private equity Ruifengda's “run away” continues to ferment, and the stock prices of affiliated companies have plummeted.
On May 13, Riying Holdings once plummeted by more than 61%. As of today's closing, the decline was 58%, closing at HK$0.105, with a total market capitalization of about HK$84 million, ranking first in the Hong Kong stock decline list. As reports were unearthed, secret links between Ruifengda and Riying Holdings also surfaced.
Earlier, some investors revealed that Ruifengda is actually a “husband and wife store,” and that Sun Wei, the actual controller of Ruifengda, and Li Min, the actual controller of Riying Holdings, are the couple.
According to various media reports, when signing the product contract provided by Ruifengda investors, Chungran Investment and Sun Wei were 100% owned by Riying Investment Holding Group Co., Ltd. Furthermore, the offices of Ruifengda and Riying Holdings are all located in the Huigong Building, Pudong New Area, Shanghai, and are located in Building 10 and Building 8, respectively. A Financial Services Association reporter discovered during the visit that information such as product fund contracts under Ruifengda Assets was placed in the Riying Holdings office.
The larger truth is hidden in the annual report. Riying Holdings' 2023 annual report shows that Riying Equity Investment and Dengran Investment appeared in Riying Holdings' related party transactions. Among them, the annual report also shows that Riying's equity investment is controlled by Sun Wei's family members, while Chan Ran's investment is controlled by Sun Wei.
How to run away has always been something the outside world is concerned about. Simply put, the profit side used extremely low stock prices to raise several new third-board stocks to ten or even tens of times in the short term, then bought them at a high level by its private equity firm, and finally achieved a “takeover run.” It is the profit side that cashes out at a high level; private equity is the last source of net worth.
“I heard, can you run away with private equity?” A private equity practitioner was very helpless when confronted with questions from investors about “will they run away”. After Huasoft New Dynamics involved Yuyao's investments in layers last year, causing a thunderstorm in capital flows to equity investment, Ruifengda once again threw a huge thunderstorm on the private equity industry, affecting the reputation of the entire industry.
Stock prices experienced “foot voting”, and the Hong Kong-related company Riying Holdings plummeted 58%
Not surprisingly, after the Ruifengda runaway incident continued to unravel, Riying Holdings, behind it, fell sharply in response.
At a time when Hong Kong stocks are back at 19,000 points, Riying Holdings is at the top of the Hong Kong stock decline list with a 58% decline.
Established in 2012, Riying Holdings was listed on the Hong Kong stock market in October 2018. The listed price was HK$0.625. The stock price also rose to HK$2.25 at one point, but then began to decline. As of today (May 13), the lowest share price has hit HK$0.096.
The unfolding of the Ruifengda running away incident exceeded expectations. Beginning on May 9, news of Ruifengda's running away came out. Afterwards, media reports, investors came to the door, investigation intervened, and the Securities Regulatory Commission announced the opening of a case investigation. The facts of Ruifengda's violation of laws and regulations were further revealed.
According to the latest news, the office space on the 3rd floor of Yard 10 of Ruifengda's office building has been closed by the Pudong New Area Economic Investigation Detachment. The building property involved also posted a reminder. Disputes relating to Ruifengda's asset investment can be handled by direct consultation with the Economic Investigation Department.
On May 11, the Securities Regulatory Commission announced the opening of an investigation against Ruifengda over the weekend. The supervision is clear. Judging from the information currently available, Ruifengda is suspected of breaking multiple laws and regulations.
Seven new three-board stocks “take over the road”. The illegal operation is of a bad nature
Under the guise of pseudo-quantification, Ruifengda attracted investors with an annualized yield of 200%. Even when micro-capitalization stocks plummeted at the beginning of this year, it was unscathed. This performance was impressive, causing the industry to shout: unreal!
Last year, Yuyao Investment used multiple layers of nesting, illegal leverage, and false net worth to defraud customers. When the East Window incident finally happened, it was already a huge loss that could not be paid. According to the industry, until the results of the investigation were not announced by the regulatory authorities, the market tends to think that the actual controller of private equity does not necessarily start from the perspective of defrauding money; it is both “pretentious” and “playful”, and that there is no risk control at all.
However, looking back at Ruifengda's operation on the new third board, some industry insiders believe that this is a “deliberate” plan, causing serious impact and harm to the private equity industry.
Currently, the 7 new third-board listed companies involved in Ruifengda have all been suspended, and the operation methods are very similar:
First, none of these new third-board companies had any obvious transactions before, their liquidity was poor, and then they directly started a booming model;
Second, they all increased from extremely low stock prices to ten or even tens of times in a short period of time, and then bought at a high level by its private equity firms. Behind many “takeover” investment methods, if it were careless actions by managers, I'm afraid it would be difficult to convince the public;
Third, in Ruifengda's operation, another Jiangsu Ruizhu private equity firm followed suit and kept the same pace.
Who is Jiangsu Ruizhu Private Equity? According to public information, Jiangsu Ruizhu Private Equity was founded in 2015 by Luo Jianmin, the former financial advisor of Guoxin Securities. Previously, it was Qianhai Chuangxiang Capital Management (Shenzhen) Co., Ltd., then moved to Jiangsu and changed its name to Jiangsu Ruizhu.
Specifically, the situation of the relevant New Third Board companies involved in Ruifengda:
The first is Hejia Tianjian.In less than a year, the company's stock price exploded from 1.01 yuan to 54.8 yuan. Many private equity funds owned by Ruifengda and its partner company Jiangsu Ruizhu Private Equity took over at a high level at the end of last year and directly became the top ten tradable shareholders. He Jia Tianjian announced on May 13 that trading was suspended due to a major risk incident.
The second is Sai Rongxin.The company's stock price was manipulated in the same way. At the beginning of this year, the stock price of this individual stock was only 8 yuan. By May 7, it had risen to 80 yuan, which had increased tenfold during the year.
On May 7, Sai Rongxin issued an announcement stating that Ruifengda Ruixue No. 2 Private Equity Fund increased its holdings by 509,000. This means that on May 7, Ruifengda took over Sai Rongxin at a high price of 80 yuan.
In the information on the top ten shareholders released by Sai Rongxin on May 7, in addition to Ruifeng Da Ruixue 2, two funds owned by Jiangsu Ruizhu Private Equity, Ruizhu Jia'an No. 2 Private Placement and Xinfa Jia'an No. 2 Private Placement, also appeared.
In the case of Sai Rongxin, in the annual report at the end of 2023, the top ten shareholders appeared as Riying Investment Holdings. According to the industry, this is also the key message that Ruifengda will first use its own capital to push up the stock price, and then use private equity funds to take over the transaction. What is puzzling to the industry is that the liquidity of the New Third Board is poor. Some unpopular stocks may not be traded for a day, and the act of private equity taking over at a high level is itself abnormal.
The third is The Book of Good Fortune.The stock price started at 1.7 yuan in June of last year. In September of that year, the stock price exploded to 264.56 yuan in just three months. According to Weifuji's 2023 report, Ruifengda's capital and Jiangsu Ruizhu Private Equity once again joined forces to buy 6 private equity firms.
Fourth, Allianz Shengye.In October 2022, the company's stock price was 6 yuan; by November 2023, the stock price had reached 156.55 yuan. A total of four funds, Ruifengda and Jiangsu Ruizhu, took over at a high level. Currently, the company has also suspended trading.
The fifth is agricultural technology.From July 19, 2023 to December 18, 2023, Farmer Technology increased from 0.14 yuan to 66.66 yuan. As a result, in that year's annual report, Ruifengda and Jiangsu Ruizhu, a pair of “brothers”, once again occupied eight seats among the top ten tradable shareholders.
The sixth is Haotian energy storage.The stock price of this stock rose from 2.4 yuan on August 4, 2023 to 39.7 yuan in just over a month. Three private equity firms under Ruifengda and Jiangsu Ruizhu are involved.
Seven is Bangkoku.The company is currently also suspended due to major risks. Before the suspension, the stock price was nearly 7 yuan, while at the beginning of the year, the company's stock price was only 0.62 yuan. Two of Ruifengda's private equity firms appeared in the company's top ten tradable shares at the end of last year. On April 19 this year, Ruizhu Jia'an No. 2 Private Equity bought them at a high level.
