On March 14, 2019, due to the outflow of a meeting document, Jiangsu Huaxi Group was caught in the challenge of “liquidity difficulties”. Accompanied by doubts, listed companies of Huaxi GroupHuaxi Shares(000936.SZ) The stock price plunged. Before the deadline for publication, it has dropped from 11.3 yuan/share to 9.81 yuan/share, a decrease of 9.81%, which is almost down.
Earlier, the "China Business News" reporter reported that the Jiangyin Municipal Government held a meeting on the difficulty of the Huaxi Group's liquidity difficulties. Zhao Qiang, deputy mayor of Jiangyin City, was responsible for reporting the situation of the Huaxi Group to the meeting.
In response, the Huaxi Group responded to the reporter that at present, the production and operation of Jiangsu Huaxi Group is all normal. Steel, chemical fiber and tourism are the three traditional industries in Huaxi Village. Havesteel industryInsiders told reporters that under the background of national production capacity, the production capacity of steel companies has dropped, but as the current market demand remains high, the market price of steel has been greatly improved compared to the previous capacity.
Another person in the industry who is engaged in steel sales agents also told reporters that before going to production capacity, they often defaulted on the accounts of the steel mills. In the past two years, they had to prepay the accounts.
Regarding the operation of the steel industry, Huaxi Group said that with the deepening of the national supply-side reform, the main business of Huaxi Group, such as steel and other entities, has good production efficiency, sufficient operating cash flow, and repaid all maturing bonds on time andbankThe principal and interest of the loan did not have any bad credit history.
In the chemical fiber industry, since 2013, the domestic demand in the chemical fiber market has continued to slump, and the industry's prosperity has been declining. At the same time, its tourism industry has also encountered bottlenecks. In this context, Huaxi Group has embarked on a transformation in the financial sector. Currently, Huaxi Village has a number of shares in futures, pawns, banks, finance companies, and financial leasing companies. The transformation to the financial sector is known as the rescue of the Huaxi Group.
However, the high debt caused by the Huaxi Group has also received much attention. On the issue of funds, Huaxi Group said that in recent days, the Wuxi Municipal Government has actively responded to the call of the Party Central Committee and fully implemented and implemented the spirit of the superior instructions to support the development of the real economy and the private economy.fundProvide a series of financial support measures such as financing convenience and reducing financing costs to carry out the development of major enterprises in Wuxi.ResearchListen to the opinions of all parties to study and analyze the current development of the real economy, potential development difficulties, and situations or demands that require government support.
“Since Jiangsu Huaxi Group Corporation is a key enterprise in Wuxi City, it also actively supports and participates in the government's research and feedback on the real economy at the invitation of the government to provide suggestions for local economic development. The information from outside rumors has led this event to everyone. Cause misunderstanding, please do not speculate," Huaxi Group said.
(Article source: China Business Network)