Peng Ling Rubber Tube Reform Maze: management low price access to controlled equity

Xu Yijian Li Yanling January 18, the board will review the board of Tianjin Peng Ling Rubber Tube Co., Ltd. (hereinafter referred to as "Peng Ling Rubber Hose") the first application.　　Pre-disclosure shows that in Peng Ling Hose Top Ten shareholders, 8 are from the original company management and the formation of major shareholders of Beijing Peng Ling.　　If it succeeds, it means that the original Beijing Peng Ling shareholders, led by the company chairman Zhanghongxi, will collectively enjoy a surge in wealth.　　However, the reporter found that in Peng Ling rubber tube in the process of restructuring, all have a puzzling move, and Beijing Peng Ling shareholders in 2002 restructuring, to nearly 0 of the cost of pay won Peng Ling Hose equity. The stock right to maneuver Peng Ling Rubber tube predecessor "Peng Ling" was established in 1994, is the village committee and 189 people in the Tang village jointly set up a collective enterprise.　　1998, withdrawal Village Committee, 248 people in the Tang village as a promoter, will be transformed into a joint-stock enterprise Peng Ling. However, in the four years after the company changed into a joint-stock enterprise, there were many flaws in the equity.　　Since 1998, the Port Peng Ling has repeatedly occurred shareholder withdrawal, financing expansion, dividend expansion, share capital quantification and so on, but the change of these shares is only recorded on the accounting register, did not deal with the changes in the above-mentioned shareholding change procedures, as at the beginning of 2002, the company's actual equity than the industrial and commercial registered capital more than 10.7784 million shares. In addition, the evolution of the company's share of equity in the same shares of different rights in the quantification of shares.　　Thus, the Port Peng Ling began in 2002 to clean up the equity. Pre-disclosure shows that by the beginning of 2002, the accounting of the outline Peng Ling's share capital has reached 31.3536 million shares.　　In the more than 10.7784 million shares, the company to raise funds to some of the staff to increase capital to share 19,901,270 shares, to all shareholders share a share of 2.9972 million shares, in addition to 12.12 million shares of withdrawal and transfer unit.　　To fully regulate equity, the company divides its shareholder holdings into "original investment stocks" (16.9712 million shares) and two parts of "quantitative shares" (14.3853 million shares). In which the original investment stock index shareholders should be entitled to share the shareholder's equity and the subsequent shareholder's cash investment and dividend expansion shares; quantify shares after the shareholders cash increase in the company according to the 1:1 allotment part (a total of 13.0648 million shares)　　And in February 1998, when the Chinese Tang Village Committee withdrew its shareholding, it quantified 1.3207 million shares owned by the workers and shareholders.　　It is noteworthy that the share allotment shares a large proportion of the quantitative shares.　　The allotment shares are actually produced by the company according to the shareholder's cash contribution from the surplus reserves and the unallocated profit by 1:1 proportion. That is, the shareholder's cash increase of 1 yuan, the company's 1-unit distribution policy, to encourage shareholders to increase capital, the essence is in accordance with 0.5 yuan per share of the additional shares.　　However, this practice violates the law of the stock price can not be lower than the par value of the provisions. In order to make up for the above equity flaw, the company's Equity liquidation plan stipulates: Shareholder's original vote40% of the capital part and the quantified shares are duly owned by shareholders, and the shareholders enjoy full rights (hereinafter referred to as "converted equity").　　To quantify 60% of the shares, all shareholders have to make up cash, and shareholders will enjoy full rights (hereinafter referred to as "tamping equity").　　Beijing Peng Ling Low price by the reporter noticed that by the company's senior executives and the large shareholder of the Beijing Peng Ling became the owner of the liquidation.　　Beijing Peng Ling, composed of 35 natural shareholders, are the management and major shareholders of the Zhanghongxi, including the chairman of the company, Zhang Zhaohui, Wang Zehiang, Li Fengmei, deputy vice President Li Jinfa's floor, financial Controller and Director of the Secretary of the Wang Zhongshen, Wang Pelli. In the liquidation of the equity, Beijing Peng Ling received 13.3329 million shares, a total of 14,103,708 yuan paid cash.　　This includes the purchase of $6,025,617 of the converted equity of 91 shareholders by $1 per share, with the exception of 17 shareholders in cash to make up the remaining 8.078 million yuan of the consolidated equity capital and the equity purchased in order to adjust the equity accounts.　　and different from other Dagang Peng Ling shareholders, Beijing Peng Ling 35 natural persons shareholders total 13.3495 million shares are free of charge by Beijing Peng Ling Holdings, no more than 3,840,821 shares of solid equity.　　This means that the above 35 natural person shareholders to 14,103,708 yuan to obtain the port Peng Ling Total 24.1124 million shares, equivalent to the cost of only 0.58 yuan per share, below 1 yuan of the stock value.　　After the liquidation of the stock rights, Beijing Peng Ling, the total holding of the port Peng Ling 24.1124 million shares, accounting for 76.9% of the total equity, thus, the company's control of a large concentration of 35 natural people composed of the company's senior executives and the hands of large shareholders. If this Peng Ling rubber tube successfully issued, according to 2009 diluted earnings per share of 0.587 yuan, with the gem on the average 60 times times the issue of price-earnings ratio, then its IPO price of about 35.22 yuan. The former Beijing Peng Ling held 24.1124 million shares, in the experience after the increase to 53.2884 million shares of the market value of about 1.876 billion yuan, is its original 14,103,708 yuan investment cost 133 times times.