On Tuesday night, Jonjee Hi-Tech, a Chinese condiment giant owned by Baoneng Investment Group, issued a reply to announcement on receiving a Supervision Letter on the Pledge of Controlling Shareholders’ Shares from the Shanghai Stock Exchange, disclosing the amount of debt and the assets of its holders.
According to the announcement, as of the end of September 2021, the total assets of Baoneng Group in the consolidated statement were about 830 billion yuan ($129.8 billion). After excluding consolidated financial assets and liabilities, the total assets of Baoneng Group were about 430 billion yuan, while interest-bearing liabilities totalted 192.7 billion yuan (including bank loans, trust loans, wealth management products and issued corporate bonds), with an external guarantee balance of 30.8 billion yuan.
In order to relieve the financial pressure, Baoneng is increasing its sale of real estate assets and another 100 billion yuan-worth of assets. The company is also promoting a sale of eight major asset projects that involve commercial properties, land, and commercial complexes.
Baoneng Group is striving to ensure the sales and payment of residential projects and is accelerating the sales of Foshan in Guangdong, Shaoxing in Zhejiang, Kunming in Yunnan and Harbin. In the fourth quarter, the payment will be around 4.792 billion yuan.
Jonjee Hi-tech wrote in a letter: “Actively and steadily resolving the risk of stock pledges for listed companies is the requirement of the country, and it is also a goal of Zhongshan Runtian Investment Co., the controlling shareholders of Jonjee Hi-tech, and Baoneng Group, in addition to Yao Zhenhua, our actual controller.”
At the same time, Jonjee Hi-tech said that according to the payment plan provided by the controlling shareholder, it is actively resolving the pledge risk, but there is a the risk of an untimely payment of funds or a failure to repay the pledge of the company’s equity when it expires.
According to industrial and commercial registration data, Baoneng Group was established in 2000 with a registered capital of 300 million yuan. Baoneng Group includes five major sectors, including property development, finance, modern logistics, cultural industry and tourism and industries involving people’s livelihoods. The group also has control of many companies including Baoneng Property, Foresea Life Insurance, Jushenghua, Shenye Logistics and Chuangbang Group.