“Homes and villas, households have cars, and per capita deposits exceed one million”. As a benchmark, Huaxi Village, located in Huashi Town, Jiangyin City, Jiangsu Province, is known as “the first village in the world”.
Huaxi Village was founded in 1961. After the reform and opening up, under the leadership of the former village secretary Wu Renbao, it shines. The 328-meter star hotel, neatly arranged villa group... Huaxi Village was pushed to the altar under the lens of the media.
However, in recent years, the negative news in Huaxi Village has been constantly criticized, especially the high debt problem. On March 14, a notice issued by the Office of the People's Government of Wuxi City, “Report on the Situation of Jiangyin Huaxi Group's Difficulties in Liquidity Difficulties” (Xi Zheng Ban  No. 24) on the capital market Spread, once again put Huaxi Village on the cusp.
Huaxi Group denies liquidity difficulties
The notice shows that the submitting department of the topic is the Jiangyin Municipal Government, the reporting person is the deputy mayor Zhao Qiang, and the inviting unit is the municipal supervisory committee. The participating units also include the Municipal Audit Bureau, the State-owned Assets Supervision and Administration Commission, the local financial supervision bureau, the city Guolian Group, and the industrial group. City Jianfa Company.
Jiangyin City Government website shows that Vice Mayor Zhao Qiang is in charge of industrial and informationalization, private economy, financial supervision, capital management, market supervision and other aspects.
On March 14, the party secretary of Huaxi Village and the chairman of Huaxi Group, Wu Xien, said in an interview with the daily economic journalist that the outside world had misunderstood the theme of this conference and Huaxi Group did not exist. Liquidity is difficult.
Wu Xieen said that Huaxi Group, as a local key large-scale enterprise, has a good economic performance. At the same time, the local government departments are actively implementing the state's policies to support the development of the real economy. "The Jiangyin Municipal Government also hopes to see if it can pass a good policy and strive for some for us.interest rateLower funds to replace some of the previousinterest rateHigher funds. ”
"In the early stage of the enterprise, some capital costs were relatively high. See if there is a chance to change it. But at present, there is no specific amount of funds and interest rates." Wu Xien said, "But the outside world has misunderstood the theme of the meeting. ”
At the same time, Huaxi Group also sent a clarification to the reporter. Huaxi Group said that the current production and operation are all normal. With the deepening of the structural reform of the supply side of the country, the Group's main business operations have achieved good results, and the operating cash flow is sufficient. The interest on all due claims and bank loans has been repaid on time, and no bad credit records have occurred.
Huaxi Group said that since the company is a key enterprise group in Jiangyin City and even Wuxi City, it has made positive contributions to local economic and social development for a long time. At the end of last month, it was awarded the title of “Top Ten Enterprises with Contributions to Tax Payment in Wuxi City in 2018”. , with a strong typical demonstration. Therefore, the Jiangyin Municipal Government specially invited the Mayor of Wuxi Municipal Government to discuss and study the Huaxi Group.fundSupport scope to reduce financing costs, improve operational efficiency and sustainable development capabilities. At present, the rumors of the outside world have caused misunderstandings in this incident. Please do not speculate.
The debt of 36.9 billion is profitable by investment
The Daily Economics reporter noted that although the Huaxi Group denied the rumors of liquidity difficulties, the capital market did not give a positive response. The Huaxi Group's listed company Huaxi shares (000936, SZ) fell 9.42% on the 14th, the market value Evaporation of 900 million yuan.
The worry of the capital market is not unreasonable. As early as 2017, an article entitled "China's richest village debt of 38.9 billion, what happened to Huaxi Village, the first village in the world?" The article of "" sparked a heated discussion, making the debt problem of Huaxi Village a focus.
Although Wu Xien, the secretary of the Party Committee of Huaxi Village and the chairman of Huaxi Group, said that the article was taken out of context. However, according to the financial data provided by Huaxi Group, as of the first three quarters of 2017, Huaxi Village achieved a profit of 162 million yuan and a total liabilities of 38.742 billion yuan. It can be said that the debt situation in the article is basically in line with the facts.
Then, has the Huaxi Group’s debt situation improved over the past year? According to Huaxi Group in the third quarter of 2018Financial StatementsAs of the first three quarters of 2018, Huaxi Group's assets totaled 54.762 billion yuan and liabilities totaled 36.934 billion yuan, which calculated the asset-liability ratio to be 67.44%. It can be seen that after one year, the debt of Huaxi Group has decreased by 1.8 billion yuan.
Huaxi Group while reducing liabilitiesNet profitSignificantly improved, in the first three quarters of 2018, Huaxi Group achieved a profit of 361 million yuan.
However, the beautiful profit figures are difficult to conceal the difficult situation of the main business of Huaxi Group. Huaxi Group's consolidated income statement shows that the company's total operating income for the first nine months of 2018 was 22.72 billion yuan, and the total operating cost of the company was 22.935 billion yuan. The total cost was higher than the total revenue.
So, what does Huaxi Group take to make a profit? The answer is investment income. In September 2018, Huaxi Group's investment income reached 825 million yuan.
Disposal of shares in listed companies has become the killer of Huaxi Group's increase in revenue. On March 13, the small and medium-sized listed company Ocean King (002724, SZ) releasedannouncementSaid that the company has recently receivedshareholderHuaxi Group's "Notice of Shareholding Reduction Plan", Huaxi Group intends to reduce the holding of listed companies by no more than 21.6 million shares, accounting for 3% of the company's total share capital.
In the announcement, Ocean King also said that Huaxi Group will decide how to implement this share reduction plan according to market conditions and the company's stock price. Therefore, there is a certain uncertainty in this reduction plan.
As early as February 1, Huaxi announced that Huaxi Group reduced its holding of 32 million shares of the company on January 31, 2019, accounting for 3.61% of the company's total share capital. After the reduction, the shareholding ratio of Huaxi Group fell to 40.59%.
Transforming finance, can the legend of Huaxi Village continue?
In 1994, Huaxi Group was formally established. This group is wholly owned by the Huaxi Village Villagers Committee and covers a wide range of industries including steel, real estate, internet and finance.
In 1999, Huaxi, a subsidiary of Huaxi Group, successfully landed in A-shares. The steel industry has always been a pillar industry of the Huaxi Group.
However, since 2011, the steel industry has started to decline sharply. By 2015, Huaxi Group's steel companies began to lose money, which made Huaxi Group have to transform, and the financial industry is the main direction of Huaxi Group's transformation.
As the only listed platform of Huaxi Group, Huaxi has taken on the responsibility of transforming finance. Since 2015, Huaxi has been transformed from the traditional traditional chemical fiber and warehousing business to a company with financial investment and related industry investment as its core.
However, it is not easy to cross the traditional industry to the financial industry. Huaxi's 2018 semi-annual report shows that textile and chemical fiber still accounts for the bulk of Huaxi's share revenue, followed by warehousing business, while investment management income is only 7.275 million yuan, accounting for only 0.59% of revenue.
It is worth noting that since 2015, the income from investment management in the main business of Huaxi has not continued to grow. According to the financial report, from 2015 to June 2018, Huaxi's investment management income was 11.1 million yuan, 37.17 million yuan, 9.95 million yuan and 7.275 million yuan respectively, and the highest proportion of revenue did not exceed 1.75%.
Once the traditional industry made Huaxi Village live a prosperous life, the first village in the world, and now transforming finance, can such a legend continue?
(Article source: Daily Economic News)