Fallen Chinese tycoon Ye Jianming’s CEFC Anhui risks getting kicked off Shenzhen exchange

PUBLISHED : Tuesday, 08 May, 2018, 6:01pm
UPDATED : Tuesday, 08 May, 2018, 10:44pm

CEFC Anhui International, a unit of China’s fallen oligarch Ye Jianming, runs the risk of getting kicked off the Shenzhen Stock Exchange, after securities regulators on Tuesday called for the company to provide detailed disclosure of its financial and debt status. 

The company has until May 15 to respond to the exchange’s query

Regulators requested CEFC Anhui, the listed unit of China’s troubled oil giant CEFC China Energy, to explain the reason its auditor issued a disclaimer of opinion against its annual report for 2017.

They also called for the company to spell out the potential impact the auditor’s note would have on the credibility of the company’s annual report. Regulators also called for CEFC to disclose the size of its debt, along with maturity dates, and detailed plans for repayment.

CEFC officials could not be reached for comment.

Last week, CEFC Anhui received a delisting warning from the bourse.

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According to its annual report, CEFC Anhui saw a net loss at 245 million yuan to 360 million yuan (US$38.5 million to US$56.54 million) in the first six months versus a net profit at 239.6 million yuan a year ago, largely due to a business downturn. 

CEFC China, the biggest private oil conglomerate in China, has been unable to halt a growing crisis at the company, after claims earlier this year that its chairman Ye Jianming was under investigation.

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The group has 11.8 billion yuan of bonds due during the remainder of 2018, according to data compiled by Bloomberg. The company’s units have already missed payments totalling 85 million yuan on debt sold via an internet finance platform.

A creditors’ meeting in Shanghai last Friday was attended by financial institutions who had invested 10 billion yuan into bonds issued by CEFC. 

Creditors are pushing CEFC to disclose more about their cash flow and how they plan to repay debt at bondholder meetings in the coming weeks.

Creditors qualified to attend the meetings have been urged to sign confidential agreements that “safeguarding legal interest rationally”, according to a notice seen by the Post.

The Post reported earlier that the Shanghai municipal government had attempted to bail out the energy conglomerate via state-owned Shanghai Guosheng, but the investment and financing firm pulled out after reviewing CEFC’s finances.

On Friday, CEFC China’s planned takeover of Russian oil giant Rosneft collapsed. The US$9 billion deal for a 14 per cent of Rosneft fell apart after sellers, which included a consortium of Qatar’s sovereign wealth fund and mining giant Glencore Plc, decided not to proceed.