Loncin Group Co., Ltd., Loncin Holdings Co., Ltd., Chongqing Loncin Investment Co., Ltd., Chongqing Lien Industrial Co., Ltd., Chongqing Longheng Hotel Co., Ltd., Chongqing Yushang Industrial Investment Co., Ltd., Chongqing Loncin Mining Investment Co., Ltd., Chongqing Yuhan Real Estate Development Co., Ltd., Weinan Hongjing Trading Co., Ltd., Chongqing Yushang Renewable Resources Development Co., Ltd., Chongqing Changjiang Financial Holding Group Co., Ltd., Yushang Investment Group Co., Ltd., Chongqing Yingchuan Industrial Co., Ltd.
On the first working day after the Spring Festival in 2022, the "Loncin Department", which was famous in the capital market, received the news that "13 companies were ruled to go bankrupt and reorganized".
On February 7, the Red Star Capital Bureau learned from the Chongqing Bankruptcy Court that 13 Loncin companies were ruled to go bankrupt and reorganized, including Loncin Holdings, the controlling shareholder of the listed company Loncin General (603766.SH).
Loncin General Motors not only manufactures motorcycles for BMW, but is also the company with the largest motorcycle export volume in China. It has Loncin, Jinlong and high-end Wuji motorcycle brands.
In the capital market, the "Loncin series" has attracted much attention due to the actual controller Tu Jianhua and Chongqing motorcycle giant Loncin Motorcycle.
Together with Yin Mingshan, the founder of Lifan Motorcycle, and Zuo Zongshen, the founder of Zongshen Motorcycle, Tu Jianhua, known as the "Big Three of Chongqing Motorcycle Gang", built the capital map of Loncin.
But since 2018, Loncin has gradually exposed its debt crisis.
Bankruptcy and reorganization of 13 "Loncin" companies
One of the companies holds 4 listed companies
On February 7, the Chongqing Bankruptcy Court released the news that "13 Loncin companies were ruled to go bankrupt and reorganized" on the official account.
At the end of September 2021, 13 Loncin companies applied for bankruptcy and reorganization to the Chongqing Bankruptcy Court on the grounds that they "couldn't pay off their due debts, have bankruptcy reasons but have reorganization value and reorganization feasibility".
After half a year, the bankruptcy reorganization application finally "boots landed".
On January 30, Chongqing No. 5 Intermediate People's Court ruled to accept 13 companies including Loncin Group Co., Ltd., Loncin Holdings Co., Ltd., Chongqing Loncin Investment Co., Ltd., Chongqing Lianen Industrial Co., Ltd., and Chongqing Longheng Hotel Co., Ltd. Corporate bankruptcy and reorganization.
The Red Star Capital Bureau learned from the Chongqing Bankruptcy Court that at present, the above series of cases are under further trial.
It is worth noting that the Loncin Holding Co., Ltd. that was ruled to go bankrupt and reorganized this time is Loncin General Motors, Qihe Environmental Protection (00976.HK), Hanhua Financial Holdings (03903.HK) and *ST Fenghua (600615. SH) is the controlling shareholder of 4 listed companies and has a stake in Chongqing Rural Commercial Bank (03618.HK).
Among them, Loncin General Motors not only manufactures motorcycles for BMW, but also ranks first in China's motorcycle exports. It has Loncin, Jinlong and high-end Wuji motorcycle brands.
According to the official website of Loncin Holdings, as of 2021, the company has more than 30,000 employees, including nearly 5,000 overseas employees, with a cumulative tax payment of more than 10 billion yuan, and has won the top 500 Chinese enterprises for 20 consecutive years.
In addition to Loncin Holdings, the other 12 companies that were ruled to go bankrupt and reorganized involved Loncin's real estate, financial investment, environmental protection and renewable resource utilization businesses, but the core motorcycle business was not included.
"Motor Gang's richest man" builds "capital map"
Deploy 4 listed companies within 3 years
In the capital market, Loncin has attracted much attention due to its actual controller Tu Jianhua and Chongqing motorcycle giant Loncin Motors.
Tu Jianhua, together with Yin Mingshan, founder of Lifan Motorcycle, and Zuo Zongshen, founder of Zongshen Motorcycle, are also known as the "Big Three of Chongqing Motorcycle Gang", and Tu Jianhua is also known as "Motor Gang's Richest Man".
During the development of Loncin Motorcycle, Tu Jianhua established the capital map of Loncin series.
In 2003, Loncin Holdings Co., Ltd. was established.
With the help of Loncin Holdings, Tu Jianhua began to actively expand and enter the financial services market.
In 2004, Hanhua Guarantee Group Co., Ltd. initiated by Loncin was established.
In 2012, Loncin General Dynamics Co., Ltd. (Loncin General) was listed on the Shanghai Stock Exchange.
Soon after, Loncin Holdings acquired the control of Shanghai Fenghua (Group) Co., Ltd. (*ST Fenghua) through equity acquisition.
In June 2014, Hanhua Financial Holdings Co., Ltd. (Hanhua Financial Holdings), a subsidiary of Loncin Holdings, was listed on the Hong Kong stock market.
Hanhua Financial Holdings is also the founder and largest shareholder of Chongqing Fumin Bank, an important private bank in the central and western regions.
Also in 2014, Loncin Holdings became the major shareholder of Yushang Investment Group Co., Ltd. through equity acquisition, thereby gaining control of Qihe Environmental Protection (Qihe Environmental Protection), a Hong Kong-listed company.
In September of the same year, Loncin Holdings also became the largest shareholder of Chongqing Jinling Automobile (Group) Co., Ltd.
In just 3 years, Tu Jianhua took control of 4 listed companies through Loncin Holdings.
Since then, Loncin Holdings has also participated in Chongqing Rural Commercial Bank, and has involved multiple industrial sectors, covering industry, environmental protection and utilization of renewable resources, automobile trade, financial investment, etc., building the capital map of Loncin.
Tu Jianhua also took the position of the richest man in Chongqing. In the 2019 Hurun Report, Tu Jianhua ranked 320th with a net worth of 12 billion yuan.
Behind the scenery
Loncin series with unparalleled scenery in the past
already in deep debt crisis
The pace of expansion was too fast, and Loncin began to gradually expose the debt crisis.
According to China Business News, information obtained from the Shanghai Clearing House shows that from June to September 2018, Loncin Holdings began to have overdue debts totaling about 1 billion yuan.
Subsequently, overdue debts continued to increase. As of the end of 2019, Loncin Holdings had overdue liabilities of 2.489 billion yuan; as of January 2021, overdue liabilities rose to 6.037 billion yuan.
In June 2021, Loncin Holdings added another overdue debt of 3.112 billion yuan.
Since then, Loncin Holding's shareholdings in its listed companies have been frozen, first Loncin General Motors, and then Fenghua Shares.
In April 2019, Loncin General announced that some shares of the controlling shareholder were judicially frozen; in October 2019, Fenghua shares disclosed an announcement that some shares of the controlling shareholder were judicially frozen; in November 2019, Chongqing Rural Commercial Bank announced that Longxin Xin Holdings held its 570 million restricted tradable shares that were waiting to be frozen.
Until September 29, 2021, 13 Loncin-related companies including Loncin Holdings applied for bankruptcy and reorganization to the Chongqing Bankruptcy Court, which caused heated discussions in the market.
The "Loncin Department", which was once glorious in the past, has long been in a crisis of debt.
It is worth mentioning that the Loncin Department also occupied a huge amount of funds from other companies under its umbrella when funds were tight.
According to the announcement of Fenghua Co., Ltd. in December 2019, the 480 million yuan trust product funds purchased by Fenghua Co., Ltd. in March 2018 were actually occupied by the controlling shareholder Loncin Holdings for non-operational purposes.
After that, the Shanghai Stock Exchange publicly condemned or criticized Fenghua, Loncin Holdings and relevant responsible persons.
Chengdu Business Daily-Red Star News reporter Yu Yaoqiang YaxianKeywords: