Zhongxin Finance, April 10 (Shi Rui) The former "king of soy sauce" Yang Zhen's family has become "Lao Lai".

　　On the evening of April 8, Jiajia Foods announced that the company’s actual controllers, Yang Zhen, Xiao Saiping (Yang Zhen’s spouse), Yang Zijiang (Yang Zhen’s son), and Jiang Xiaohong, chairman of the company’s board of supervisors, were arrested by the People’s Court of Jinfeng District, Yinchuan City due to contract disputes. Listed as dishonest persons subject to execution (commonly known as "Lao Lai").

Source: Jiajia Food Bulletin

Why became "Old Lai"?

　　Jiajia Foods disclosed that the cases involved in the above four persons were contract disputes between Ningxia State-owned Assets Investment Holding Group Co., Ltd. and Ningxia Cocomei Biological Engineering Co., Ltd., Ningxia Woye Fertilizer Co., Ltd., and the amount of the execution target was nearly 8.3 million yuan. The specific circumstances of the person subject to execution are all "having the ability to perform but refusing to perform the obligations determined by the effective legal document".

　　Jiajia Food announced that Yang Zhen, Xiao Saiping, Yang Zijiang, and Jiang Xiaohong were included in the list of dishonest persons subject to enforcement to provide a guarantee for Ningxia Cocomei Biological Engineering Co., Ltd., resulting in joint repayment liability, not a direct personal debt.

The inclusion of the above-mentioned persons on the list of dishonest persons subject to execution may have a negative impact on the company's image, but it has not had a substantial impact on the company's normal production, operation and management activities for the time being.

　　According to Zhongxin Finance and Economics, this is not the first time that Yang Zhen has been listed as a dishonest person to be executed.

In December 2020, Jiajia Food announced that it had recently learned that the company’s controlling shareholder, Hunan Excellent Investment Co., Ltd. and its actual controller, Yang Zhen, were included in the list of dishonest persons subject to execution by the Beijing Second Intermediate People’s Court due to their personal debt disputes. The specific circumstances of the behavior of the dishonest person subject to execution are "violation of the property reporting system".

Yang Zhen, the actual controller of Jiajia Foods.

Screenshot from Jiajia Foods official website.

　　Before Yang Zhen became a "Lao Lai", he had been punished several times by the securities regulatory authorities for violations.

　　In February 2020, the Hunan Supervision Bureau of the China Securities Regulatory Commission issued the "Decision on Administrative Penalty", showing that because the controlling shareholder of Jiajia Foods and related parties did not disclose the non-operating capital occupation of the controlling shareholder in a timely manner, and failed to disclose the related parties of the controlling shareholder as required Yang Zhen and Yang Zijiang were warned and fined 200,000 yuan and 50,000 yuan respectively for the transaction and failure to disclose the guarantee for the controlling shareholder in a timely manner.

　　In August 2020, the Hunan Supervision Bureau of the China Securities Regulatory Commission decided to take administrative supervision measures against Yang Zhen by issuing a warning letter.

The regulatory authorities found that Jiajia Food and its wholly-owned subsidiary Panzhong Catering Cereals, Oils and Foodstuffs (Changsha) Co., Ltd. had issued commercial acceptance bills to the company’s controlling shareholder, Zhuoyue Investment and related parties, to provide guarantee for Zhuoyue Investment’s external loans; in addition, Zhuoyue Investment and The related parties occupied the company's capital of RMB 54 million for non-operational purposes.

However, the above-mentioned issuance of commercial acceptance bills, guarantees and capital occupation did not fulfill the approval procedures, and did not fulfill the obligation of information disclosure in a timely manner.

　　In September 2020, the Shenzhen Stock Exchange publicly condemned Yang Zhen.

According to the report, the regulatory authorities found out that Jiajia Foods provided unlimited joint and several liability guarantee for the principal of 278 million yuan and the interest of 41.7075 million yuan, but did not perform the deliberation procedures and information disclosure obligations for the above guarantee; in addition, Hunan Sanxiang Bank Co., Ltd. The company has issued a total of 200 million yuan of loans to Excellent Investment and its controlled subsidiaries. Jiajia Foods subsidiary Panzhong Food Cereals and Oils (Changsha) Co., Ltd. provided guarantees for the above loans, but Jiajia Foods did not perform the deliberation procedures on the above guarantees. Information Disclosure Obligations.

　　According to the disclosure of Jiajia Foods, as of January 28, 2022, 100% of Jiajia Foods shares held by Yang Zhen, Xiao Saiping and Yang Zijiang have been frozen by the judicial waiting list. Condition.

Relying on the "first stock of soy sauce in China", he has been on the rich list several times

　　Born in 1962, Yang Zhen graduated from a normal school and served as a teacher for three years. After resigning from his teaching job, he ran businesses such as candy, candied fruit, canned fruit, and cakes. At the age of 34, he founded Jiajia Foods.

In January 2012, Jiajia Food was listed on the Shenzhen Stock Exchange and was known as "the first soy sauce stock in China".

　　According to the prospectus of Jiajia Foods at the time, in 2010, the company's output of soy sauce was 192,436 tons, with a market share of 3.30%.

According to the output statistics of the main products among the top 100 famous condiment brand enterprises in 2010 published by the China Condiment Association, the products of Jiajia Food ranked the 3rd in the soy sauce industry, the 5th in the monosodium glutamate industry, the 10th in the chicken essence industry, and the vinegar industry. 19th in the industry.

Screenshot from the official flagship store of Jiajia Food on the e-commerce platform.

　　In addition to Yang Zhen, his family members have also held important positions in Jiajia Foods.

Yang Zhen’s spouse, Xiao Saiping, joined Jiajia Sauce Industry (Changsha) (the predecessor of Jiajia Foods) in 1998. As of the end of 2020, he served as the company’s asset director; Yang Zhen’s son, Yang Zijiang, served as the deputy of Jiajia Sauce Industry (Changsha) when he was 19 years old. Chairman, as of the end of 2020, the assistant to the general manager of the company.

　　After landing on A-shares, the market value of Jiajia Foods once exceeded 10 billion yuan.

Benefiting from the rise in the share price of Jiajia Foods, according to the rich list released by Hurun, Yang Zhen entered the list for the first time with a fortune of 2 billion in 2014, and the wealth of Yang Zhen’s family increased to 3.7 billion in 2015.

　　However, the once "first stock of soy sauce" has gradually "left behind" in recent years.

　　For example, in 2020, Jiajia Food's operating income was 2.073 billion yuan, less than one-tenth of the revenue of Haitian, a leading enterprise in the same period.

In the prospectus that year, Qianhe Flavor Industry, which was not listed as the main competitor of Jiajia Foods, also began to catch up with Jiajia Foods in net profit in 2018.

　　According to the Hurun Rich List, the wealth of the Yang Zhen family shrank to 3.1 billion yuan in 2017, and after 2018, the Yang Zhen family never appeared on the Hurun Rich List.

　　The 2021 annual performance forecast released by Jiajia Food this year is expected to lose 59 million yuan to 88 million yuan last year, while it made a profit of 176 million yuan in the same period last year.

Jiajia Food explained the loss mainly due to the decline in sales revenue, the increase in procurement costs, the increase in sales expenses, and the provision for impairment.

　　As of the close on April 8, 2022, the share price of Jiajia Foods closed at 4.4 yuan, and the latest market value was 5.069 billion yuan.

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