Shuanghui Chairman Wanlong was reported by his eldest son in real name
The market value of the pork giant evaporates more than 10 billion yuan a day
On the evening of August 17, Wan Hongjian, the eldest son of the founder of Shuanghui Development, Wanlong, issued a document on the public account "Xin Meat Industry" to report his father's tax evasion and suspected illegal related-party transactions.
Affected by this, on August 18, the share prices of the two listed companies of the "Shuanghui Department" plummeted. Hong Kong stocks Wanzhou International suffered a heavy setback, down 11.33%; A-share Shuanghui Development fell 5.53%.
In one day, the combined market value of the two listed companies evaporated more than 10 billion yuan.
All-media reporter of Guangzhou Daily, Tu Duanyu, trainee reporter Zhang Wenzhuo
Reporting father's tax evasion and other stock prices fell
On the evening of August 17, the public account "Xin Meat Industry" published an article entitled "Wan Hongjian: Father and Bandung in My Eyes", signed by Wan Hongjian.
Wan Hongjian reported his father's "two sins" in the article.
One is tax evasion. In 2007, Shuanghui's state-owned enterprise restructuring came to an end. CDH, which participated in the state-owned enterprise restructuring, somehow granted Bandung 5% of Shuanghui’s shares free of charge. The two parties were unable or unwilling to disclose this transaction. 5% of the shares were sold directly to a Hong Kong company, and Bandung privately received a consideration of US$200 million and deposited the huge sum in Hong Kong DBS Bank.
For more than ten years, this huge amount of income has still not been declared or taxed.
In addition, Wan Hongjian also revealed that his father was suspected of violating related party transactions.
Wan Hongjian revealed that on February 26 this year, Bandung and Wanzhou International’s CFO Guo Lijun jointly issued the "Recommendation on Adjusting the Price of the U.S. Six Points". The two ignored the strong opposition from the domestic Shuanghui management staff and continued to import large quantities of six points from the United States. At the end of February, the average market price of imported sextiles was only 21,500 yuan. However, Bandung and Guo Lijun forcibly increased the US product import settlement price from 21,000 yuan/ton to 25,800 yuan/ton. The import volume is close to 100,000 tons.
Wan Hongjian stated that such related-party transactions are obviously illegal and involve the transmission of the interests of major shareholders.
In addition, Wan Hongjian also mentioned, "Wanzhou International, the parent company of Shuanghui Development, has no actual production and operation. It is actually a combination of Shuanghui Development and Smithfield. Its function is to use various dazzling financial means and complex structures. , The money from the development of Shuanghui in China was transferred overseas without any trace, and it has never been reversed."
Affected by this, on August 18, the share prices of the two listed companies of the "Shuanghui Department" plummeted. Hong Kong stocks Wanzhou International suffered a heavy setback, falling 11.33% to HK$5.950 per share; A-share Shuanghui Development fell more than 7% at one time. , Still fell 5.53% at the close, to 26.290 yuan per share.
Wanzhou International's response: The allegations are untrue and misleading
At noon on August 18, Wanzhou International issued a clarification announcement stating: the company has noticed the recent decline in the company’s stock price and the increase in trading volume, as well as several media reports about Mr. Wan Hongjian (the company who was removed due to misconduct. Former directors) against the Group's allegations.
The board of directors would like to clarify that the allegations are untrue and misleading.
Wanzhou International emphasizes that the company reserves the right to take legal action against Mr. Wan Hongjian and/or those responsible for the allegations.
It is reported that the conflict between the father and son in Bandung is, in the final analysis, a question of the successor of Wanzhou International.
On June 17, Wanzhou International announced that Wan Hongjian’s recent improper attack on the company’s property made the company believe that he was unable to perform his duties as a director, acting prudently and diligently.
Therefore, Wan Hongjian was removed from the position of director and terminated his position as executive director and vice president of the group.
On August 12, Wanzhou International issued an announcement that Bandung resigned as chief executive officer and remained as executive director, chairman of the board of directors, chairman of the nomination committee, chairman of the food safety committee and chairman of the risk management committee.
The former chief financial officer Guo Lijun replaced the post of chief executive officer.
In addition, Wan Hongwei's second son, Wan Hongwei, assistant to the chairman of Wanzhou International and vice chairman of Shuanghui Development, served as the vice chairman of Wanzhou International's board of directors.
Regarding this personnel change, Wan Hongjian commented on Guo Lijun in the article: “Although he is proficient in finance, Comrade Guo Lijun does not understand Shuanghui’s production, supply, sales, and research. The accumulated losses brought by the continent exceeded 10 million U.S. dollars."
In addition to the grievances between father and son, what is even more concerned is that the performance of Shuanghui Development is not satisfactory.
The reporter noticed that the 2021 semi-annual report of Shuanghui Development showed that the company achieved revenue of 34.841 billion yuan in the first half of the year, a decrease of 4% year-on-year; and realized a net profit of 2.537 billion yuan, a decrease of 16.56%.
The explanation given by Shuanghui Development is that pig prices fell in the second quarter, and the main reason for the decline in the company's meat product gross profit was the increase in market expenses, the increase in employee salaries and the impact of product structure.
Kaiyuan Securities believes that the poor performance of Shuanghui's development was affected by the decline in revenue from the slaughter department. In the second quarter of 2021, the revenue from the slaughter department of Shuanghui fell by 18.0% year-on-year. In addition, due to the narrowing of the Sino-US price gap, the reduced contribution of stocked meat and imported meat, and the provision of impairment, the profit of Shuanghui's slaughter business in the second quarter fell by 118% year-on-year. Looking forward to the second half of the year, although the pure slaughtering business is expected to continue to recover, the fresh meat business will continue to be under pressure due to the decline in the profit of frozen products.