Quest for green Water: membrane technology nominal executives like to engage in relationships

The junction of northwest four ring of Haidian District, a nine-storey red JuJube office building, the hall is empty, the gates and roofs are hung with "Beijing Municipal Engineering Administration" and "Municipal Road and Bridge Management conservation group" brand, in addition to no other signs, if not go to the second floor, no one knows that this is just boarded the gem and the top "　　The first high price stocks "halo of the bi-water office area." The company's front desk is close to the second floor elevator door, and squeezed in the shaped narrow corridor, the aisle on both sides of the room-style offices of various departments. There are no windows in the conference room, a dense display of various certificates of honor and engineering pictures.　　Whether from the structure of the office building or from the internal layout, the private company has a body and institutions of the conservative atmosphere. Compared with the humble appearance, the blue water source in the capital market performance is stunning. Not only is the 69 yuan/share price and 94.52 times times the price-earnings ratio stunning, and 1.61% of the online check rate has also refreshed the gem new heights.　　April 21 on the first day of the market, but also to 120% of the rise in the cities of the "top high-priced Shares" throne.　　The current P/E ratio is as high as 207 times times, as of April 26, the highest price of 175.58 yuan, the water market value of 25.8 billion yuan, and even more than the first listed in the Gem of the Shenzhou Thai Yue [65.03 0.92%]. Compared with other listed sewage treatment companies, bi-water is ridiculously expensive. Entrepreneurial environmental protection [7.21-1.23%] last year net profit was 2.24 times times that of the green water, and the day closing market value is less than half of the bi.　　The same is Beijing's environmental protection enterprises, the first shares [6.78-4.10%] last year net profit amounted to 447 million yuan, is the bi-water source net income 4 times times, and the day's closing market value is less than the bi-water 70%. is not well-known before the blue water source in the end what kind of emboldened? What causes the green water to go on the market madness?　　In the investors and many brokers analysis of the blue water source of the cheers, the "investor" reporter on the bi-source in-depth interview investigation. Technology leader is a nominal water source is a former national science and Technical Commission officials, returned to study abroad Wenjianping 2001 founded professional engaged in sewage treatment and sewage resources technology development and application of environmental protection enterprises, mainly using advanced MBR technology to provide customers with sewage treatment plant or renewable water plant construction. Such a listing after the frenzied pursuit of the company, 2007 years ago is only a silent nameless enterprises, all staff only 90 people. Even the company Dong He Lamping also said, "the company was unknown before 2007, the end of 2007 was to investigate the CMC leaders found that the company for the mountain litters in the Golden Phoenix." "The Golden Phoenix" listing has a high price and high market dream rate, and by investors hot hold one of the most important reason is that the company claims to be the sewage industry membrane bioreactor development and application of the leading. The company said in its prospectus that it has a comprehensive core technology in three key areas of the internationally recognized MBR technology, membrane equipment technology and membrane material manufacturing technology.With intellectual property, and claiming that the current MBR technology is only three worldwide, bi-water is one of them. Is that true? "Investor" through interviews with a number of people in the industry to understand that the green water is not engaged in the early film production, all membrane products from abroad to buy. "The company did not even know how to produce the film in previous years, there is no technology, there is no membrane production plant."　　said a sewage treatment technician.　　Bi-water in the sewage treatment project used in all the membrane materials imported from Japan, mainly from Japan Mitsubishi Imports, part of the Japanese Asahi into the product. In recent years, the company said to master the membrane production technology, can produce their own film. Dare to claim it is mainly due to the 2008 in the Beijing Wild Goose Habitat economic Development zone established a bi-source membrane industrial base, known as the world's largest membrane production base, with an annual output of 2 million square meters of PVDF membrane manufacturing capacity.　　When it was founded, Wenjianping even said the move formally proclaimed the end of the history of China's MBR membrane dependence on imports. The fact is that the company produced only partially self-sufficient membrane, the current self-sufficiency rate of only 30%, most still rely on buying from abroad.　　In the last three years, the company has purchased 68.71 million, 36.72 million and 23.69 million yuan from Mitsubishi Business (China) Commercial Co., Ltd. and Mitsubishi Li Yang, accounting for 65.56%, 49.43% and 12.28% of the total purchase amount in the current period. China Membrane Industry association secretary General Liu Xianqiu to "investor" reporter said: "Although the current domestic membrane production technology and foreign advanced technology gap is getting smaller, but some technology still has a certain gap, and foreign enterprises in technology transfer is very cautious, resulting in many domestic enterprises by buying foreign devices to assemble. Some of the domestic membrane production enterprises are just an assembly plant, the foreign products loaded into their own technology. "The sewage treatment technicians said," The bi-source membrane industry base for some of the products are also bought from abroad to assemble the film. "It is noteworthy that even with the domestic membrane production technology as the ranking, known as the world's MBR technology, the third of the Blue water source is also difficult to list." Reporter on what domestic enterprises film production technology Better interview Liu Xianqiu, he thought, including reverse osmosis membrane, microfiltration membrane, ultrafiltration membrane, flat membrane and so on, do a better job is Hangzhou water Treatment center, North membrane Industry company, Tianjin Membrane-day Membrane Technology Co., Ltd. (hereinafter referred to as "Tianjin film film"), Jiangsu Blue Sky Planet Seoul, Shanghai Sinap,　　Hainan Sheng and so on, but did not mention the green water. In fact, the rate of return of sewage treatment projects is relatively fixed, there is no profiteering, many urban sewage treatment enterprises investment but limited profit margins, but return relatively stable.　　The MBR, although technologically advanced, has high operating costs, not only high price, but also life-limiting, involving replacement and later maintenance, which requires a large amount of cost, and hence is called "magical and noble" technology. Liu Xianqiu Introduction, in recent years, widely used because the cost is reduced by about 30%~50%, but still more than the traditional process cost of at least 10%.　[Page] government relations are unusual　The fact that a lot of sewage enterprises amazing from 2005-2007 years, China's daily processing capacity of more than 5000 tons of large and medium-sized MBR project market Share by the green water, GE and Siemens three divided, and no outstanding technology of the bi-water accounted for 60% of the market share, GE and Siemens accounted for 21% and 12%. In Beijing market, bi-water is in a monopolistic position, the company's main business in the last three years mainly from the Beijing region, 2007-2009 years in Beijing to achieve income of 204 million yuan, 214 million yuan and 140 million yuan, each accounted for the current main business income of 98.75%, 96.73%　　and 44.71%. "Beijing's big municipal sewage projects are basically taken away by the green water, and other companies do not have the opportunity to intervene." And these major projects are basically using MBR technology, because the municipal project value image, the pursuit of better water quality, also not afraid to spend money, so the green water is a natural MBR big project monopoly.　　"A colleague who is not convenient to be named is talking about the bi-water source. According to the Membrane Industry association statistics show that the current national scale of membrane production enterprises have 70~80, if some smaller enterprises also included, the total number of about 300.　　Since the green water does not have any unique technology, other sewage enterprises can also introduce foreign advanced membrane products, and its application to sewage treatment projects do not exist too high technical threshold, then why these enterprises market share is far inferior to the green water?　　This is not because of technological differences, but of differences in government relations. Several senior executives of the bi-water source are officialdom, with four of them having experience as national science and Technology Commission. Born in 1962, the current company chairman, general manager of the Wenjianping in November 1989 ~1994 years in May as the National Science and Technology Commission Social Development Division of the Deputy Director of ecological environment, June 1994 ~1998 March as the National Committee of China International Science Center Deputy Director, chief engineer, September 1998 ~　　July 2001 to study in Australia, July 2001 after returning home to establish a green water. 1965-born company vice Chairman Liuzhenguo in 1987 ~2006 years in Beijing, in the Water conservancy system, in June 2006 to join the green water.　　Company director, deputy general Manager He Lamping in December 1992 ~1997 year April as the National Science and Technology Commission China International Scientific Center International Cooperation Minister, September 2005 joined the Green Water. Lianghui, director of the company, deputy general manager of the Chinese Academy of Sciences Ecological Environment Development Center, Master of Ecology, senior engineer, 1993 ~1998 National Science and Technology Commission China International Scientific Center Department manager, July 2001 joined the Green Water.　　Chairman of the Board of Supervisors Chen Yili in April 1993 ~1998 June as the National Science and Technology Commission China International Scientific Center Planning Minister, 2001 joined the Green Water. Because there are different government relations, especially in the Water conservancy system in Beijing, which is not suitable for municipal sewage treatmentMBR technology, has been widely used in major municipal projects in Beijing.　　Moreover, in order to be able to more use the bi-water membrane in the project, the relevant authorities use the form of approval project to compel the Water Affairs Bureau of Beijing suburban to choose MBR process, otherwise it will not approve. Many people in the industry interviewed by the "investor" said that MBR technology is not suitable for municipal sewage treatment, preferably in the difficult, small emissions of industrial sewage. However, many municipal image projects to the image of the use of this technology at high cost, "the treatment of water quality is more beautiful, but put more money, in fact, these water quality improvement does not have much substantive significance." "In this context, bi-water resources to undertake the construction of the first large-scale MBR" Beijing Miyun reclaimed Water Project "and the world has been completed operation of the super large-scale MBR" Winzichau Olympic matching project "is not surprising, two items of daily treatment of sewage volume reached 45,000 tons and 100,000 tons respectively.　　And many of the same technology and application skills of sewage enterprises are difficult to hold.　　For the Beijing market of this monopoly situation, Liu Xianqiu to the "investor" reporter said, inconvenient to the specific enterprises to judge, but the sewage industry exists a monopoly of the situation is not normal, he thought that will eventually break the monopoly to market competition. The lack of core technology and too much reliance on the "background" of the government will make the company's high growth difficult to sustain. On the one hand, the current business almost entirely by the Beijing market contribution, although in Kunming, Shiyan and Wuxi also expanded the market engineering, but it is difficult to go out. He Lamping admits that some places are difficult to deal with, so the current market for bi-water is mainly concentrated in the Beijing market, "Beijing is a resource-deficient water, the government has economic strength, and is willing to accept new technology."　　"This is a very meaningful combination of corporate background," he said. On the other hand, corporate performance is too dependent on major customers. In the past three years, the operating income of the first three projects of the bi-water source accounted for 75.73%, 73.4% and 68.26% of the current operating income respectively. How to deal with peer competition in the future, how to get out of Beijing outside the market, become its biggest challenge. [Page] Chung Jin to build rich bi-wealth water source [142.00-5.65%] High-profile listing and was the speculation, making 9 sponsors Wenjianping, Liuzhenguo, He Lamping, Chen Yili, Lianghui, Zhou Niihun, Dong Ji Zhao, Shanghai Xin Lian, Yunnan province, the state of Fortune doubled. Among the most striking of these is the family of Chung Jin families.　　Chung Jin system figure appeared in one of the company's sponsors of Yunnan International Trust Co., Ltd. Equity structure of the table. Yunnan State's second largest shareholder is Chung Jin Industrial Co., Ltd., its capital contribution of 98 million yuan, holding the Yunnan state letter 24.5% of the equity. But the other shareholder of Yunnan National Letter also has the complicated correlation with the Chung Jin department.　　Yunnan Province, the third largest shareholder in Shanghai Nano Venture Capital Investment Co., Ltd. invested 92 million yuan, holds the Yunnan State letter 23% of the stake, the actual control is the late Chung Jin department boss Dong widow Chen Jinxia. Yunnan National letter fifth largest shareholder Beijing Golden Science and Technology Investment Co., Ltd.The actual control of the division is Dong Brother Wei, Beijing Golden Science and Technology Investment Co., Ltd. is the capital of 30 million yuan, holding the Yunnan State letter 7.5% shares.　　It is understood that it was due to the Yunnan state letter, so that the blue Water and Chung Jin Department established a link. And another member of the Chung Jin family is a natural person in the green water source, this person is Dong Mother Liu Shiying. Green water Prospectus shows that Liu Shiying was born in 1933, is now 77 years old, holding more than 2.86 million shares of bi-water source.　　According to the bi-water source has created the highest price of 175.58 yuan/unit measurement, Liu Shiying shareholding value of more than 500 million yuan. And Liu Shiying's cost of acquiring shares is surprisingly low. Its total cost is 7.3184 million yuan, the cost per share is only 2.55 yuan. This means that, in less than two years ' time, Liu Shiying's return on investment is now at a peak of nearly 70 times times.　　Liu Shiying to obtain Low-cost shares because the letter of the Yunnan state has a low-cost transfer of equity, the transferee includes Wei and Dong Mother Liu Shiying. There are also 412,500 shares of Wu in the stock holders of natural persons, accounting for 0.28%, holding 330,000 quietness, accounting for 0.22%, holding 185,600 shares of Wei, accounting for 0.13%.　　Wu is the chairman of Yunnan State letter Liu wife, quietness is holding Chung Jin group 10% shares. The Chung Jin system is closely related to the listing of the bi-water source. He Lamping said earlier, "our company becomes a fast growing enterprise and venture capital has a direct relationship," he admits, since the beginning of 2006, IDG, Goldman Sachs, Siemens, Sequoia, Carlyle, including more than 20 venture capitalists to the green water to extend the olive branch,　　Finally, the green water received the Shanghai Xin Lian Venture Capital Management company and Yunnan International Trust Investment Co., Ltd. A total of 40 million yuan investment. Green Water and Chung Jin Department of another layer of origin is the hometown of Hunan.　　Chairman Wenjianping is Hunan People, deputy general manager He Lamping is also Hunan people, and Chung Jin family is Hunan people. It is the investment bank that makes the bi-water source famous and moves towards the goal of listing. Shanghai Xin Lian legal representative for Nie Yong, once served as Xinjiang de Long International industrial [22.35 1.5%] head office executive director, Huara Torch President, once left the DeLong system, and then back to DeLong system, for delong effect for more than 10 years, both Tangwan teacher, is also the Tang brothers into the capital market first person. This person in DeLong before the accident, had a company from the torch to Hong Kong listed, to obtain a small profit, in recent years, the establishment of Shanghai Xin Joint venture Company, and the DeLong system has no direct correlation.　　[Page] associated transaction delivery benefits through carding the water source and Yunnan National letter and Chung Jin department in less than two years before the listing of stock rights changes, "investor" found that its major shareholders have a clear linked transactions, and suspected of the transfer of interest and loss of state funds. In the 2007 ~2008 a short year, Yunnan State letter for its assets bi-water company 7.5% of the issue of equity disposal abnormal repeated, experienced from the transfer to the end, to the transfer, and thenThe winding process of termination and final transfer. In the end, Yunnan state letter to this part of the green water stake in almost parity of the transfer to their affiliates.　　Among them, 5.25% of the shares were transferred to the time of Yunnan state letter chairman Liu wife and Chung Jin actual control of the mother of Dong, such as 9 of the assignee, 2.25% of the equity was transferred to the affiliated company of Shanghai Nano, its control is Dong widow Chen Jinxia. The origin of the matter originated on September 18, 2006, Yunnan State Letter and the Blue Water source signed the "Increase capital agreement" to 20 million yuan to exchange the price of 7.5% of the equity.　　In October of that year, Yunnan State letter to the Yunnan provincial Banking and Regulatory Bureau submitted the "On the development of Rui source collection Funds Trust plan work report", Rui Source plan financing scale of 14 million yuan, the purpose is for the Yunnan state Letter held by the 5.25% bi-water ownership. March 1, 2007, the Swiss Source Trust program was formally established, beneficiary 45 people. But until the Swiss source Trust plan dissolved, the two sides also failed to deal with the agreement to change the registration of shares. After the Swiss Source trust program announced termination. But the Yunnan state letter has signed with the 9 enterprising beneficiaries of the source plan, "equity transfer contract", agreed to transfer this part of the stake in the 9 enterprising beneficiaries.　　Many of the 9 beneficiaries of the green-water stake were linked to the Chung Jin Group, which was the controlling shareholder of the Yunnan State letter. In Yunnan Province, the letter with these 9 persons signed the "transfer of shares" and "the contract for the commission of shares" three months later, February 27, 2008, Yunnan State Letter suddenly and these 9 people lifted the two contracts, the reason for "can not handle changes in the registration of shares."　　April 29, 2008, Chung Jin Group chairman Dong jumped to suicide. August 27, 2008, Yunnan State letter resolutely with the aforementioned 9 beneficiaries signed the agreement on the transfer of shares, the agreement to transfer the 5.25% equity of water resources, 5.775 million shares a total of 14.742 million yuan, equivalent to 2.55 yuan per share. At this time, the letter from Yunnan province to 2.42 yuan per share of the cost of the green water ownership has been over nearly two years, a share premium of 5.37%.　　9 of the 4 associated persons, Liu Shiying 2.86 million shares, Wu 410,000 shares, quietness 330,000 shares, Wei 180,000 shares, accounting for the total number of trading shares 65.7%. Trust companies to invest in potential science and technology enterprises, mainly in order to win high returns after the listing, in the company before listing parity Transfer equity is not common sense. Lu Ying, director of the Institute of Securities, Peking University, said, "No one will put a good quality of the original stocks, only a premium of 5% on the sale." Either the money is not his own, the transfer does not care about the price, or the transfer of the parity does not benefit, but let the relevant people benefit, the related people to the benefit of the people. If the shareholders of the trust companies have state-owned shareholders, but also suspected of the loss of state assets. "Lu Ying that the exposure of the suspected linked transaction issues in the bi-water ownership stake should be re-examined by the regulatory level."　　Because so many related transactions, insider trading exists, can not guarantee the public interest is not infringed. According《Investors reported that the Yunnan provincial banking and Regulatory bureau has been prepared to investigate, once the transfer of shares in the process of violation of rules and regulations, will be dealt with according to law.