On The First Day Of The Delisting Consolidation Period, Only 130000 Capital Fled. Fengfeng Group Became The First Delisted Stock With A Drop Of 20%

In the past, the "king of demon shares", which set a total of 39 price limits in 54 trading days, has become the first delisted stock with a 20% drop.

On September 21, the first day of the delisting consolidation period, the abbreviation of Fengfeng Group was changed to "fengfengtui". The opening price fell sharply by 20%, and the one word limit was 0.05%. Only 130000 capital fled. As of the end of the third quarter of 2019, the company still has 63500 shareholders.

60000 shareholders in trouble

Prior to September 18 evening storm group announced that from September 21, the company's stock trading has entered the delisting consolidation period, and the company's stock will be delisted 30 trading days after the delisting consolidation period. According to the notice on risk warning stocks on GEM and stock trading system arrangement during delisting and consolidation period, the price limit ratio of the company's stocks during delisting and consolidation period is 20%.

Similar to LETV, according to the relevant provisions of Article 2 of the implementation measures for relisting delisted companies of Shenzhen Stock Exchange (revised in 2018), the gem of Shenzhen Stock Exchange will not accept the application for re listing of the company's shares, so Fengfeng Group will not be able to relist on the gem after delisting.

Due to the failure to sign an agreement with relevant audit institutions and the appointment of CFO, Fengfeng Group has not yet completed the disclosure of the annual report of 2019 and the interim report of 2020. Due to the fact that the annual report of 2019 has not been disclosed within two months after the expiration of the statutory disclosure period, Fengfeng Group has been suspended from listing since July 8 this year.

According to the latest disclosed financial report, as of September 30, 2019, Fengfeng Group still has 63500 shareholders.

On September 21, the first day of the delisting consolidation period, Fengfeng Group fell 20% at the beginning of the trading, and the limit of the whole day was one word lower, so the chances of capital flight were slim. By the end of the 21st, Fengfeng Group closed at 1.18 yuan per share, with a total market value of 390 million yuan, less than a fraction of the market value of 40 billion yuan at Gaoguang time. The turnover rate of the whole day was 0.05%, and only 130000 capital fled.

Everbright Securities still involved in 3.5 billion lawsuit

Looking back on the downfall history of Fengfeng Group, the merger and acquisition of MPS is a big event that cannot be avoided, and Feng Xin's imprisonment is also caused by it. And this failed merger and acquisition will also drag relevant financial institutions into the vortex. Everbright Securities is still in the litigation quagmire of 3.5 billion yuan.

In February 2016, Everbright capital, a wholly-owned subsidiary of windstorm group and Everbright Securities, respectively, invested 200 million yuan and 60 million yuan to set up Linxin fund, and mobilized other investors to raise 5 billion yuan, which was used to acquire 65% shares of overseas MPs company (MP & Silva holding S.A.) and March into the sports industry. However, after the acquisition, MPs quickly fell into a serious business crisis and cash flow problems. In October 2018, MPS was declared bankruptcy and liquidation by the British court.

The MPS storm directly led to the failure to withdraw as planned when the investment term of Linxin fund expired in February 2019. As a result, the interest related parties (China Merchants Bank and Huarui bank) of two priority partners of Linxin fund filed a civil lawsuit against Everbright capital.

On March 20, 2019, Everbright Securities announced that it plans to withdraw 1.4 billion yuan of liabilities in 2018, and 120 million yuan of assets impairment reserves for corresponding equity investment and receivables, and the total profit of the company will be reduced by about 1.52 billion yuan by combined withdrawal.

On the evening of May 8, 2019, Fengfeng Group announced that Everbright Investment Management (Shanghai) Co., Ltd. and Shanghai Linxin investment consulting partnership (limited partnership) filed a "equity transfer dispute" lawsuit against the company and its chairman, Feng Xin, requesting the court to order the company to pay to Everbright and Shanghai Linxin part of the loss of RMB 688 million and such losses caused by its failure to perform the repurchase obligation The interest on the delay in payment (temporarily calculated as at March 3, this year was 63.3066 million yuan), totaling about 750 million yuan.

On July 28, 2019, Fengfeng Group announced that Mr. Feng Xin, the actual controller of the company, was taken compulsory measures by the public security organ for suspected crimes. According to media reports, the arrest was mainly related to MP & Silva holdings S.A., a British sports copyright company jointly initiated by storm group and Everbright Capital Investment Co., Ltd. in 2016. Feng Xin had bribed in the financing process of the project. In September of the same year, Fengfeng Group was investigated by the CSRC for suspected illegal information disclosure.

As a result, Feng Xin is in prison, the storm is in the situation of "no owner" and is about to withdraw from the market. Therefore, Everbright Securities is still mired in a lawsuit of 3.5 billion yuan.

On August 8, 2020, Everbright Securities disclosed the announcement on the progress of litigation and arbitration of its subsidiaries. According to the announcement, Shanghai financial court ruled that Everbright capital should pay China Merchants Bank 3.116 billion yuan and interest loss from May 6, 2019 to the actual settlement date, and bear part of litigation costs and property preservation fees; it should pay 400 million yuan of investment principal to Huarui bank on January 1, 2018 Up to the date of actual performance, the total amount of investment income and legal costs and maintenance fees is more than 3.5 billion yuan. As of the announcement date, both judgments are still in the validity period of appeal.