The translation from Chinese to English is a little tuff to say the least--
Industrial paint pie stock market cash? The stock price of the shelling in the United States soared 10 times. Zhongyu Mingyang’s “point to stone technique” suspense to be solved
2017-07-10 22:12 Annual Report / New Energy / Stock Price
The over-the-counter (OTC) pink market, which is dominated by exit companies and "senny stocks," is the US OTC market.
A powdered single-shell company code named "DOLV" suddenly jumped more than 10 times in the last two months due to its merger with China's Lieutenant Ming Yang, which has attracted the attention of domestic and foreign investors.
This makes the outside world wondering, what kind of company is Zhongming Mingyang, who claims to be engaged in research and development of new energy electric vehicle production? How is the research and development level of its electric vehicles? What is the consideration of the acquisition of powder single market shell company?
In response, the Securities Times reporter learned from the survey that there is some discrepancy between the information disclosed by DOLV and the fact that Zhongmou Mingyang currently has only low-speed electric vehicles in mass production, and high-speed SUV electric vehicles are still in the R&D pilot stage; The relevant parameters of high-speed SUV electric vehicles announced by various channels such as Yanmingyang official website and DOLV annual report have not been certified by the national authoritative testing agency.
At the same time, the reporter found that one month after Shenzhen Jinbo Investment Holding Group (Jinbo Group) took a share in Zhongming Mingyang, Zhongmu Mingyang started the operation of the pink market and was subsequently included in the Jinbo Group's new energy sector; The Jinbo Group claimed that the layout and business model of the nine plates have caused the outside world to see through the fog.
Why did the "powder unit" surge?
Looking back at the above-mentioned merger transaction, according to DOVL (Dolat Ventures, Inc)’s 2016 annual report announced in April this year, Zhongmu Mingde, Wang Dequn, acquired 300,000 shares of DOLV’s preferred stock (each of the preferred shares can be converted into 2500 shares Shares of common stock, ie a total of 750 million shares, were granted control of DOLV in December 2016. And in the same month, DOLV acquired JB & ZJMY.
According to the information obtained by the Securities Times reporter through the Tianyan investigation, Zhongming Mingyang is called Zhongyu Mingyang New Energy Technology Co., Ltd., and the company was incorporated in Beijing in March 2015. As of November 17, 2016, the company’s shareholders have changed, Jinbo Group and Wang Dequn have joined shares, and legal representative also changed from Han Zhiming to Wang Dequn.
At present, Zhongming Mingyang's shareholders are Han Zhiming, Jinbo Group, and Wang Dequn, respectively, holding 48%, 31% and 20%; further inquiry shows that Jinbo Group is controlled by Wang Dequn, its shareholding ratio is 95%. The two together controlled the 51% stake in Zhongming Mingyang; that is, Wang Dequn was the actual controller of Zhongyu Mingyang.
According to the reporter's observation, after the news of DOLV's acquisition of Zhongming Mingyang was disclosed in the annual report released in April 2017, the DOLV stock price started from 0.01 US$/share in the pink market, reaching a maximum of 0.129 US dollars in early May, or nearly 12 times; since then, the stock price has fluctuate frequently.
The DOLV annual report did not disclose the cost of Wang Dequn’s shareholding. The data shows that the price fluctuation range of DOLV in the past year was actually 0.0001-0.129 USD per share; if only estimated at 0.01 USD/share, the preferred stock will be converted into common stock. The total cost of its shares was approximately 7.5 million U.S. dollars; theoretically, the amount of floating profits was as high as 90 million U.S. dollars in just over a month.
So, what exactly does Zhong Yang Ming Yang really have in order to make the M&A in the pink single market popular?
According to the DOLV annual report, Zhongyu Mingyang currently develops a SUV electric vehicle named Zhongmu Mingyang V3 that can be recharged up to 600 kilometers.
In addition, Zhongmu Mingyang official website and relevant senior executives declared that the electric vehicle's appearance and body were built with Chery Kaiwing V3 (SUV), with an integrated operating range of 500 kilometers and a constant speed (60km/h) cruising range of 600. Km and it was announced at the end of last year that it was "the longest-running electric vehicle for the list of new energy vehicles of the Ministry of Industry and Information Technology".
How are the facts? How reliable is the relevant parameter? The reporter conducted an in-depth investigation.
SUV vehicle is not certified by authoritative department
The Securities Times reporter learned from the “Guide Catalogue of Recommended Vehicles for Promotion and Application of New Energy Vehicles” of the Ministry of Industry and Information Technology in the past from January to July this year. The Zhongming Mingyang V3 has not been ranked among them.
“Ministry of Industry and Information Technology will organize relevant institutions and experts to review and respond to the proposal, and the post-new energy vehicle will be able to go through the catalogue. For the relevant parameters of the car, it is strictly controlled and the reliability of the car parameters on the catalogue is higher. But it is not on the list. The car is difficult to verify and determine its published parameters.” Researchers in the field of new energy vehicles pointed out to the Securities Times reporter that the Ministry of Industry and Information Technology would publish a list of catalogues on the official website every two months.
The reporter once sent a letter to Zhongmu Mingyang, hoping to understand the situation of “Zhongming Mingyang V3 is in the list of new energy vehicles of Shanggongxinbu, how the current progress is,” and “whether the published model parameters have been certified by an authoritative technical department”. In response, Zhongming Mingyang replied that “V3 (SUV) is in the R&D testing stage; it is actively communicating with the national authoritative testing agency before the certification”.
According to a survey conducted by the reporter, DOLV originally planned to change its name to "JB & ZJMY" (Jinbo & Zhongyi Mingyang, actually Zhongye Mingyang) to reflect the current new business portfolio. However, it may be that the stock price has changed significantly, or related information has been disclosed, which has caused regulatory concerns. The renamed issue is temporarily hampered.
Zhongmou Mingyang confirmed to the reporter that for the renamed issue, “The FINRA (US Financial Supervisory Authority), the US regulatory authority for the powdered pink market, has conducted a more rigorous and detailed review of the company’s application, resulting in a significant increase in workload and an extension of time. Waiting for formal notification from relevant authorities."
Why did you choose to buy a powder single shell company? Zhong Yu Ming Yang said that the company's current operating scale and corporate governance structure can not meet the conditions for listing in the United States IPO; due to the future plans to expand overseas markets, the company first landed in the pink market (US OTC market).
“The over-the-counter (OTC) market in the United States consists of three base layers: an innovation layer (OTCBB) and an OTC Markets Group.” Dong Dengxin, a professor at Wuhan University of Science and Technology, told the Securities Times that OTC Market Group’s The three base layers are OTCQX, OTCQB, and OTC Pink (Pink Sheet Market).
The relevant definitions show that OTC Markets' function is to provide quotations and quotation services for those companies that do not choose to trade on the American Stock Exchange or Nasdaq IPO, delist, or fail to meet the listing conditions. Among the three strata, OTCQX is a higher-level OTC trading market. Companies trading here need to disclose the latest information and meet the minimum financial standards. Companies trading on OTCQB need to report to the Securities and Exchange Commission (SEC) and disclose the latest information.
The OTC Pink where the DOLV is located is classified as a lower level because the listed company's information disclosure is less time consuming and less effective. The listed companies do not have a minimum financial standard. Most of them are penny stocks, shell companies and troubled companies. The information is incomplete. Therefore, the official website of the pink rice market strongly recommends that investors Be cautious before making investment decisions and thoroughly study the company.
However, the information disclosed by Zhongyu Mingyang's official website may confuse the concept of listing and listing IPO in OTC market; one of the pages displays the title of “Jinbo Zhongmu Mingyang’s US-listed world premiere roadshow in Inner Mongolia”. .
Low speed car sales unknown
Corresponding documents obtained by the reporter also showed that Jinbo Group had sold Lieutenant Zhong Yang’s shares internally at a price of US$1 per share in January this year; the price is far from the listing price of Lieutenant Ming Yang in the pink single market.
In this regard, Zhongming Mingyang has denied it, saying: "The company has not sold the original shares to the public but it is a discussion plan for the internal employees' incentive mechanism. If the plan is passed, it will be carried out by means of option incentives. Yan Mingyang is still studying and adjusting the legal compliance of this program."
According to the DOLV annual report, Zhongming Mingyang’s unaudited financial report (English) showed that the company’s shareholders’ equity was US$869,900, total liabilities were US$42,100, and the company’s total assets were US$912,000, of which current assets were US$7.646 million; Profitability was not disclosed.
According to Zhong Yang Mingyang’s reply, the company’s current sales of SUVs for high-speed electric vehicles are in the R&D pilot phase, and sales of low-speed electric vehicles have begun.
Public information shows that in recent years, China's low-speed electric vehicles have emerged quietly. The main production areas are in Shandong, Henan, and Hebei. The speed is 40-60km/h, and the selling price is mostly 10,000-40,000 yuan. The buyers are concentrated in townships and counties. Most middle-aged and elderly people do not have driver's licenses; because China still does not have the same low-speed automobile production standards as the European Union and the United States, relevant policies have yet to be improved. At present, the top 10 companies such as Reading, LaCie, and Yujie have a market share of more than 60%. The industry is entering a reshuffle period, and backward production capacity has gradually withdrawn from the market.
Zhongming Mingyang did not disclose the overall sales of its low-speed electric vehicles in its reply letter.
It is worth noting that Jinbo Group held the "New Generation Electric Vehicle Press Conference and Fortune Forum" on June 24 in Nanning, Guangxi. According to a reporter from the Securities Times, in addition to the above-mentioned unit ceremonies for low-speed electric vehicles presented by Zhong Yu Ming Yang, there was no further information about the research and development progress of Zhongmou Mingyang V3 (SUV) high-speed electric vehicles. .
Instead, during the most hours of the press conference, Kimber Group's lecturer L introduced the e-commerce membership (joining) investment platform named An Taohui to the participants. According to Lecturer L, there are two ways to become an Amoy Mall member:
The first scheme is as an agent for the franchise region, which is divided into county-level agents (1 million yuan), prefecture-level agents (200 million yuan) and provincial-level agents (3 million yuan); Various types of related revenues under the jurisdiction of the division.
The second option is to join the New Business Alliance (a new type of e-commerce platform) platform, which is divided into first-level shops, second-level shops, and third-level shops, and each needs to pay a deposit of 10,000 yuan, 50,000 yuan, and 100,000 yuan. Among them, the margins of the first-, second- and third-tier shops will be gradually returned within 10 months, and related gifts will be provided. After 10 months, subsidies will be given separately and subsidies will be granted regardless of whether the merchants sell their products or not. Earn no compensation, but how much the specific subsidy needs to be communicated after the meeting.
In addition, Kim Bo Group Lecturer Y introduced the subsidy scheme when communicating with investors in private: Take a commercial shop as an example, the shop's deposit is invested 10,000 yuan, the company returns 1100 yuan to the customer every month, and will be returned for 14 months. (Total deposit + store subsidies totaled RMB 15,400). For Grade 2 shops and shops, the deposit was invested 50,000 yuan. The company returned 5,500 yuan to customers every month, and returned them for about 19 months continuously (the total amount of deposit + subsidies was RMB 100,500). Up to now, the third-level shops have invested 100,000 yuan in margin, the company returned 11,000 yuan to customers each month, and returned 29 months in a row (margin + subsidies totaled 319,000 yuan).
How does the high subsidy continue?
“Jinbo Group wants to build a mobile internet platform for 1 million users. Now that it is a subsidy stage for money-burning, the more users make more money, the more chance it will be. Now that the number of users has reached hundreds of thousands, the subsidy may be reduced. Lecturer Y said to investors that if a member's investment reaches a certain scale, such as 200,000 yuan, and then introduce other people to invest in the franchise, he can also get extra commission.
If a simple estimate is based on 500,000 member users (Kimbo Group’s official website disclosed its user accounts of 500,000 in the May press release) and investing only 10,000 yuan per person as an example, the total investment of the member users can be as high as 5 billion yuan, if the calculation of the total amount of margin + subsidy after maturity is even more embarrassing.
Faced with the doubling of high subsidy, which is about one to two years in a row, one can not help but wonder about the Jinbo Group. Is the above model of subsidizing high subsidies real? How is the Jinbo Group's own strength? Where does the cash flow come from? What kind of role did Zhongming Mingyang play in the Jinbo Group?
According to the reporter’s investigation, Jinbo Group’s full name “Shenzhen Jinbo Investment Holding Group Co., Ltd.” was established in September 2014. Wang Dequn holds 95% of the company’s shares. The company's main business scope includes information technology products, communication tool technology development, technical consulting and so on.
After setting up the Jinbo Group for less than three years, when describing its business model on the Internet, it is said that “the current Jinbo Group has created a business ecosystem. Among them, the 'Golden Bosmeier New Business Alliance' is a center of business circles, Huaan paid to connect with other businesses, allowing merchants to sell products through the Amoyoshi O2O e-commerce platform, and at the same time, to shake the tree payment terminal can help merchants to use the Internet to pay for payments safely and easily.”
Relevant promotional materials also show that among them, Smeier Technology's An Tao Hui Mall and Huaan Payment are high-tech mobile financial terminal products R&D, production, sales, service and financial platform clearing, and financial business consulting. Internet financial platform service products.
Regarding the scale, a news item published by the official website of the Jinbo Group in May this year introduced that it currently has dozens of subsidiaries, more than 200 national agents, more than 40 operation centers, and more than 500,000 end users.
According to the Tianma investigation, the above information involved Jinbao Group's Shenzhen Smeir Global Technology Co., Ltd. (hereinafter referred to as "Smaier Global Technology") and Shenzhen Huaan Payment Technology Co., Ltd. (hereinafter referred to as "HuaAn Payment"). Shenzhen Antaohui Technology Co., Ltd., Shenzhen Ganganshu Technology Development Co., Ltd. and many other companies were established from May 2014 to February 2015. The legal representative is Wang Dequn.
How to play nine plates?
Further inquiries revealed that Wang Dequn is currently a legal representative of more than 60 companies, among which more than 40 companies are located in Guangdong and more than 10 companies are registered in Beijing.
According to the reporter’s investigation, Wang Dequn (commonly known as “Wang Jinlai”) is the chairman of Jinbo Group. The company’s publicity materials show that he is a soldier, has participated in Vietnam operations, experienced investment and financing experts, and has extensive experience in capital operations. Professional research on mobile payment for more than ten years, etc."
Jinbo Group executives and lecturers have announced that the Group’s three future goals are: first, to build a mobile Internet platform for one million users; secondly, to achieve a 100 billion yuan market value of mobile Internet listed companies; third, to Build a multi-billion payment cross-border payment group.
From the perspective of the nine major layouts announced by the Jinbo Group's official website, it mainly involves “new-type e-commerce platform” (abbreviated as “New Business Alliance”), mobile payment, new mobile smart terminal, big finance, big data, big agriculture, big health, and large "Culture, new energy," etc., have almost included the most popular industry sectors at the moment, among which "Middle China" is classified in the "New Energy" section.
However, it is somewhat puzzling to take the example of Huaan Payment, a mobile payment service that Jinbo Group attaches great importance to. The reporter found on the website of the People's Bank of China (PBOC) that at the moment it has been licensed including Alipay. In the list of more than 200 payment institutions, including TenPay, Caifutong, and Quick Cash, they failed to find out about the “Huaan payment”.
According to the survey, in the layout of the nine major sections of Jinbo Group, in addition to the ongoing capital operation of Zhonghao Mingyang, Smeier Global Technologies once listed the Qianhai Stock Exchange Center (commonly known as “New Four”) in March 2016. ), but the outside world can not further view the company-related information in the trading center. The relevant person of the trading center responded to the reporter that this was due to the fact that Smail was still in the state of “editing”.
At this point, outside doubts have not been dispelled. How can the Jinbo Group, which is less than three years old, be able to play nine major sections at the same time? What is the business model of each sector? How to profit? Which plates acted as the group's cash flow? Where does the funds that support millions of target user subsidies come from? These are difficult to verify from public information. For this reason, the Securities Times reporter will continue to pay attention.
PS: Beware of industrial paintings and the old routines of the stock market
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