Was accused of money laundering and illegal transactions by Wan Hongjian, Wanzhou International responded: the allegations are false
On August 18, Wanzhou International (00288.HK) issued an announcement stating that its board of directors had noticed the recent decline in the company's stock price and increase in trading volume, as well as several media reports regarding Wan Hongjian’s allegations.
Wanzhou International’s board of directors clarified that the allegations made by Wan Hongjian were untrue and misleading.
"The company reserves the right to take legal action against Mr. Wan Hongjian and/or those responsible for the allegations."
Earlier, the WeChat public account "Xin Meat Industry" published an article "Wan Hongjian: My Father and Bandung in My Eyes" in the name of Wan Hongjian.
According to a report from China Business News, Wan Hongjian himself confirmed that this article was written by him. He is the eldest son of Shuanghui founder Wanlong.
In the article "Wan Hongjian: Father and Bandung in My Eyes", Wan Hongjian complained several points:
Wanzhou International has no actual production and operation. It is actually a combination of Shuanghui and Smithfield. Its function is to transfer domestic Shuanghui money out of the country without any traces through various dazzling financial means and complex structures.
With the employees in a weak situation, Bandung took advantage of the situation. From the employee-owned Xingtai Company, forcibly used half of the low-price transactions and made more than 5 billion Hong Kong dollars.
Bandung used the successful acquisition of (Smithfield) as an excuse, and the secretary self-rewarded more than 5 billion Hong Kong dollars. It was still not satisfied. It also pocketed all the 350 million Wanzhou award stocks originally promised to the management team in 2017.
Bandung ignored the strong opposition of the domestic Shuanghui management personnel and imported a large number of American sexts, forcibly increasing the settlement price of American products from 21,000 yuan/ton to 25,800 yuan/ton, and the import volume was close to 100,000 tons.
In 2007, Shuanghui's state-owned enterprise restructuring came to an end. CDH, which participated in the state-owned enterprise restructuring, privately granted 5% of Shuanghui shares in Bandung free of charge. The two parties were unable or unwilling to disclose the transaction, so the 5% of the shares were sold directly to a Hong Kong company. , Bandung received a consideration of US$200 million in private, and has not filed or paid taxes so far.
Wan Hongjian’s allegation article was sent out on August 17.
On August 18, the stock price of Wanzhou International fell by more than 10%. After its clarification announcement was issued, the decline has narrowed.
As of press time, Wanzhou International's share price reported 6.060 Hong Kong dollars per share, down 9.69%.
The Red Star Capital Bureau noticed that as early as June 17, Wanzhou International issued an announcement to remove Wan Hongjian from the positions of executive director, vice chairman of the board of directors, and group vice president because of his improper attack on the company’s property. The board of directors believes that he is unable to perform related responsibilities.
It is worth mentioning that whether it was the recall announcement on June 17 or yesterday's clarification announcement, Wan Hongjian’s father, Wan Long, signed his name as the chairman of the board of directors, at the bottom right of the Wanzhou International announcement.
Chengdu Commercial Daily-Red Star News reporter Yang Peiwen