"0+1": The Riddle of the low cost holding of the large shareholder of Hui-feng agriculture

Just after will soon Hui Fung Nong was questioned by the market. The focus is on the company's chairman Zunghangen "0" of the price of the shares and Low-cost capital increase.　　It is understood that at present, Zunghangen has been holding 71.92% of Hui-feng agricultural equity. "0" to the price of the Hui Feng Nong is located in Dafeng City, Jiangsu.　　November 1998, Hui Feng Nong by Dafeng Village Township Enterprises Management Service Station (hereinafter referred to as "Management Service Station"), Dafeng Agricultural Workers ' Union (hereinafter referred to as "Agricultural workers ' Union") and the Zunghangen and other 3 natural persons jointly sponsored the establishment, the establishment of the total share capital of 12.38 million yuan, each share value of 1 yuan, total 12.38 million shares. The Management service station and the agricultural labor union are the first two major shareholders of Hui-feng agriculture, holding 7.8271 million shares and 2.7229 million shares respectively.　　Zunghangen then subscribed to 215,000 shares in cash, accounting for only 1.74% of total equity and the fourth largest shareholder. However, when Zunghangen through the share of the shares, the rate of its shareholding in the Hui-feng farming rapidly increased. FAI Fung Agricultural Prospectus shows that, due to the weak technical base, the company's product variety single, resulting in poor sales, to the end of 2002 the company has been insolvent. October 2003, Zunghangen to 0 yuan for the price of the first major shareholder Management Service station (renamed as Xinfeng Town Economic and Trade service Center) transfer of 5.7901 million Hui Fung agricultural shares.　　In addition, the Xinfeng Town Economic and Trade service Center also 1.358 million shares to the "0" price transfer to the agricultural Plant trade union. Through this transfer of equity, Zunghangen's fourth largest shareholder jumped into the first major shareholder, the shares increased to 6.0051 million shares, the shareholding ratio reached 48.51%. Since then, Zunghangen also at the price of 1 yuan/share from the agricultural plant trade unions were entrusted to the employees to hold shares. By March 2007, Zunghangen held 8.1275 million shares of the company, up to 72.81%.　　The agricultural-plant trade union fell to 740,500 shares, with a 6.63% per cent stake. Hui Fung agrochemical Dong Zheng Luming to the "First financial daily" reporter that 2002 the company has been seriously insolvent.　　Zunghangen became chairman of the company, the company grew rapidly and contributed greatly to the company. Low-cost subscription Zunghangen increased shareholding in the company continues.　　April 30, 2007, Hui Fung agrochemical 2007 Third Provisional General Meeting of shareholders agreed to one of the company's sponsors shareholder Chen Yupan 1.54 million shares to 1 yuan/share price transfer to Zunghangen, and agreed to Zunghangen with its own funds in accordance with the price of 1 yuan/share, in cash to increase the capital of 8.838 million yuan.　　For the Zunghangen of the 1 Yuan subscription and the conduct of the shares, Zheng Luming to reporters, after many years, the company's capital is calculated according to 1 yuan, that is, the increase of 1 yuan to obtain 1 units of equity. After the transfer and increase in capital, Zunghangen holding company's shares increased to 18.5055 million shares, the proportion of 92.53%.　　Zunghangen this time to 1 yuan price to be let and raise capital or the company history last time. In the second half of 2008, the company increasedCapital expansion shares, Beijing Xia Qi jiuding Investment and Beijing Hui Tatsu jiuding investment in cash 70 million yuan and 2.33 million yuan to subscribe to the company's new shares, the price of 18.14 yuan per share.　　After a series of increase in capital stock, Zunghangen currently holds the first 53.9415 million shares of Hui-feng agrochemical listing, accounting for 71.92% of the total share capital, compensation as high as 1.39 million yuan is not just Zunghangen in the equity acquisition of "low input." The prospectus also shows that in 2009, Zunghangen's pay was as high as $1.3928 million.　　Zunghangen paid more than 1.185 million yuan to Wang Wei, chairman of Xin ' an. Of course, while Zunghangen are rich, some executives enjoy the same treatment as Zunghangen. October 2003, in Zunghangen to 0 yuan price to obtain 5.7901 million shares at the same time, Wei Guangquan, Hong also 0 yuan to the price of the Hui Fung Nong 339,500 shares.　　At present, Wei Guangquan, Hong is the company's deputy general manager and director, 2009 year salary is 148,400 yuan and 124,900 yuan respectively.　　In addition, in 2007, the current deputy general manager and chief engineer of Hui Feng Nong Chen also to 1 yuan/share of the price of the trade union on behalf of the holding of 140,000 shares, its 2009-year salary of up to 680,200 yuan, after Zunghangen. Compared with other companies in the industry, Zheng Luming said, the actual income that executives received might not be high, because there was no other source of revenue for executives except compensation. And this kind of public revenue way, also can make the company executive's tax.