Deep-State business crisis: The shame of debt to live by selling assets

July 20, Deep state merchants (000056.　　SZ) suspension, a huge loan of up to 1.3 billion yuan will be the final consideration by the shareholders ' meeting.　　According to the announcement of the deep state business, this loan is the Shenzhen state-owned company will be a holding subsidiary of SZ Investment Co., Ltd. (for short) to provide security, to the Bohai International Trust Limited (Bohai Trust) loans 1.3 billion yuan. According to the company's public information, the borrower's annual interest rate is 9.18%, the period of more than six months, the annual interest rate is 15%.　　Of these, 460 million yuan is used to repay the loan of the company, and 485 million yuan is used to repay the outstanding works of the Crystal Island project of the Rong FA company, and 355 million yuan is used to repay the loan from the company's historical legacy and to pay for the decoration of the Crystal Island project. Reporters from the Shenzhen Bank lending department learned that deep China's business to obtain this loan project is not easy.　　From 2005 onwards, the deep state business has been in trouble, bank loans are basically hopeless, the company funds tight. "We were involved, but we didn't vote," he said.　　"An investor with a substantial stake in the stock said to reporters. The dispute over the loan has lasted for more than a month, thanks to higher interest rates. "Most people disagree, but there are some who think that borrowing the money may turn over and the stock price will rise."　　"The investor said. Business dilemma: Rely on the sale of assets to live in the Shenzhen Special Economic Zone, the first commercial enterprises, but began to decline at the beginning of this century.　　According to its latest half-year performance forecasts, the first half of this year the company will lose 19 million yuan. For this performance, the company explained that the company's development of the Crystal Island Project and forestry project is still in the investment period, did not generate operating income.　　In addition, the company disposed of some properties in the same period last year, plus the interest of the project Bank of the island to suspend capitalization during the reporting period. But in fact, the deep state business for many years to sell assets to maintain operations. According to our correspondent survey, deep China Merchants in 2005 to 2008 to sell their commercial assets. At present, the company's main business consists of: Real estate sales revenue, last year for 6.34 million yuan, property management revenue, nearly 15 million yuan last year, the actual loss of 6.8 million yuan, rental income of 700,000 yuan.　　As a result of the continuous disposal of investment property, its property management income and rental income decline, the real estate sales business is mainly the Crystal Island Project part of the sale of shops. The Crystal Island International Shopping Center project is one of two projects under construction which has been supported by investors for many years, and is responsible for development by the company, and has 60% stake in Shenzhen.　　In 2002, the project officially acquired land use Rights, the January 2005 has been laid a foundation, lasted 6 years, has been basically completed the completion of the acceptance, the investment and two times hardcover repair. Another project is the forestry project claimed by the deep national business.　　The project also operates for no less than 5 years, is still in the early stage of investment, over the years did not generate business receipts. Reporter from the deep China business 2009 earnings found that the company's current holdings of assets basically become a loanMortgage assets or loan encumbered assets. Among them, the holding subsidiaries of the company for the development of property mortgage sales to provide security, as at the end of last year, the company's mortgage sales guarantee of nearly 25 million yuan.　　and Huizhou Rong FA Industrial Investment Co., Ltd. for its development of properties to provide mortgage sales guarantee, the balance is 9.75 million yuan.　　2009, deep State Business Forestry Development Co., Ltd. from the Agricultural Bank of Shenzhen Branch of the International Trade sub-branch of 6 million yuan, by the deep state-owned "Development Center building 23" as collateral. In addition, the Huizhou of Hong Kong, the state-owned enterprises and the 1003 properties of the Sun Yat-Bali estates are leased and developed, but some of the commercial premises of the Harbour Plaza Court also borrowed money from banks as collateral, with a mortgage of $9.11 million; The Crystal Island project also borrowed money from banks as collateral,　　Its book value of 1.137 billion yuan, its forestry projects, to the consumption of forest assets as collateral to the bank loans, up to 71 million yuan.　　At present, the available assets owned by the Shenzhen merchants are Bantian industrial land and Rong Fu Garden phase Two, however, there is no specific investment and start plan, there is no specific information, the company's annual report on the two project development costs are valued at 47.89 million yuan, 6.44 million yuan, the Crystal Island project is expected to invest 1.3 billion yuan.　　In addition, the stock assets available to deep countries have been sold.　　Crazy loans: A number of banks have long refused to lend so, since 2005, deep China's capital has fallen into a dilemma. Because the main business continues to lose money, the deep country merchant almost put the treasure all on the Crystal Island project. The investment amount of the project was increased from the initial 400 million to the later 700 million, which is now declared to be an investment of 1.3 billion yuan. But this project, in Shenzhen Bank has not been lent.　　"A Shenzhen Commercial Bank company business ministry Personage said, early in the early 2004, the bank rejected the deep country merchant a billion yuan loan intention." According to this person, not only that, to include a state-owned bank, including a number of Shenzhen banks, deep China is a higher risk credit enterprises.　　As early as 2005, banks had transferred their loans to security and emergency dun, and for many years the majority of creditor banks had to make short-term loans in the form of new ones.　　According to the Deep China Business Report, as at the end of December 2004, the Shenzhen merchants had a short-term loan of more than 400 million yuan, since then, the company's loans only increased. As of the end of last year, the company accounts for 570 million yuan, the other accounts payable nearly 240 million yuan. The company's disclosure statement even showed that its total liabilities amounted to more than 1.3 billion yuan.　　And its money is only 250,000 yuan.　　In addition, from 2005 onwards, in order to maintain the Crystal Island International project, through the investment to the enterprise employees, social personal high interest loans near 150 million yuan.　　Reporter investigation found that, in 2005, the company's financial companies to its corporate management staff and other individuals to borrow money, to the end of last year owed staff loans as much as 44.21 million yuan, in addition to Wei Bao, Chen Jianchi, Lin Wanying and other individuals to borrow up to 100 million yuan. 2009, the company said in its annual report of the financial companies high interest loan issues disclosed, the company and Wei Bao loan is to pay interest at 1% month interest rate, and Chen Jianchi, Lin Wanying loan is to pay interest at 0.9% month interest rate, the loan expiration date is May 20, 2009, if the principal and interest is not paid on schedule, the total amount of outstanding payment will be 0.04　　% payment of liquidated damages until payment date.　　By the end of last year, the deep country Shangji to mention the liquidated damages as high as 6.09 million yuan, which means that the loan is insolvent.　　Not only that, last year, the company also added a private loan, that is, to Shenzhen Royal Real Estate Group and its boss Zhengkanhao loans of 25 million yuan, the loan for three months, the bank loan interest rate at the same time.　　As a result, the company has a total of more than $1.5 billion in liabilities and guarantees, and the company has a number of historical and joint security claims in the body, totaling or nearly 2 billion yuan.　　A number of cases have been entangled: the management crisis has not been such a huge debt pressure, and management has always been a non continuous, deep China's business seems to have been a crisis.　　September 2004, one of the founders of Shenzhen, the company's general manager Song abroad financing, investment, has not returned! Public information shows that Song in 1984, the predecessor of the company was founded, from the Army literary group to work in deep country.　　According to the Shenzhen Business Insider, sung early in the song has been following the chairman Li Jinquan side, and soon promoted to the company's managing director, has been re-elected four session. Song left, the industry rumors, including rumors about the bank loan fraud, suspected tax evasion, illegal transfer of land.　　However, the deep state business has repeatedly explained that Song abroad is mainly for the Shenzhen Crystal Island Shopping Center for investment and financing.　　However, this reporter was only informed of a investigation letter, Song "away" before the July 2004, has been the Shenzhen Bureau of Investigation. The first sentence of the investigation letter said, "My bureau is investigating Song suspected of loan fraud."　　"The contents of the letter show that, according to the relevant materials, Song and other use of Shenzhen and 6 subsidiaries, shareholder companies, a total of fraud bank loans of more than 500 million yuan, misappropriation, encroachment on listed companies assets of more than 300 million yuan, and most of the assets transferred abroad." According to Shenzhen banking sources, the specific responsibility for the investigation is a brigade of Shenzhen Bureau.　　In mid-July 2004, the brigade's staff went to the Shenzhen banks to learn about the loans, and also to the stock exchange and securities companies to investigate the operation of listed funds. Two months later in September 2004, Song the name of foreign investment to the United States to Los Angeles.　　People familiar with the situation said song had a car in the United States.　　Before going abroad, Song authorized chairman Li Jinquan to handle various matters, including attending the company's board meeting and signing various economic legal documents on his behalf, the authorized agent period is October 1, 2004 to December 30, 2005.　　Since then, rumours about Song have been overwhelmed by the company's numerous asset deals. 2009, an item on the Crystal IslandThe dispute over the project project will expose the capital problem of the deep country business again.　　According to the Shenzhen state Business Bulletin, the company invested in the Crystal Island project construction units for the Shen Zhen Pan-China Engineering Group Co., Ltd. (hereinafter referred to as Pan-China project), the total cost of the project is about 787 million yuan, the company has paid the project 256 million yuan, still less than 531 million yuan, resulting in the arrears of 8.25 million yuan interest.　　Pan-China project in the last year will be financial investment Court, the beginning of this year, after the court decision, the loss of deep China merchants had to face up to nearly 600 million yuan in the project arrears.　　The cost of the Crystal Island project is so high, has become a mystery to investors, the derivative of the chairman of the Li Jinquan suspected of digging the company's rumors.　　According to a domestic financial media, Li Jinquan mistresses to the relevant departments and media reports that Li hollowed out deep state business assets, but July 20 deep state Business notice said the rumor is untrue. So far, deep China has not yet made a statement on the use of funds obtained by its huge borrowings.