Expose The Loss Of Hundreds Of Millions Of State Assets In Hebei's Cotton Group (1)

The old buildings with red brick structure, 32 old people who are pulling the wool, and the quiet community marked "several factories" dormitories, walking in the family area next to the state-owned enterprises in Baoding, Hebei Province, will be a little trance, as if it was back to the 80s and 90s of the last century.

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One is a textile enterprise, the other is a film enterprise. In the face of the same severe market competition environment, a joint venture with Kodak group has successfully preserved the brand, and one has collapsed in the process of introducing foreign capital.

In the case of cotton restructuring, senior officials and executives were all dragged down, which is the first case in China at present.

In Baoding intermediate people's court, in July 7th, from 8:30 am to nearly 12 in the evening, from 9 a.m. to 9 p.m. in July 8th, the two day high load trial might have outlined the general skeleton of this shocking case of loss of state assets: How did the 430 million yuan's state-owned assets be cheated?

Former classmates friends

Zhu Zhilin, Wang Lijuan, Ma Xiaolin and Cheng Jian, who are standing on the defendant's table, have 4 strong educational backgrounds and business experiences.

From 1999 to 2000, 4 people met at the China Europe International Business School. At that time, CEIBS was the hottest business administration institute in China.

Zhu Zhilin was vice president of Greater China in Hong Kong listed companies Zhongzhi group company, and Wang Lijuan was "three carriages" and "shoulder to shoulder" according to the chairman, general manager and Secretary of the Party committee of the cotton group.

Since then, because of the change of ownership in the China strategy group, Zhu Zhilin left the company and served as an executive in the metropolitan group of Canada.

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In 2002, Zhu Zhilin was familiar with the operation of capital operation and merger and acquisition of enterprises, and had experience in financing overseas listing. Wang Lijuan, Ma Xiaolin and Cheng Jian found Zhu Zhilin and discussed the acquisition and cooperation of Yi group.

In January 15, 2004, ASSOLIMITED (fictitious name Hongkong Asia Textile Enterprise Co., Ltd.) signed an overall purchase agreement with the cotton group, and acquired the state-owned assets by the cotton group.

In February 2004, the two sides signed a supplemental agreement confirming that the pfer price of the enterprise was 202 million yuan, but the pfer income should be arranged according to the regulations of the Baoding municipal government for more than 5000 retirees and nearly 10 thousand serving employees. That is to say, the acquirers can not pay more than 200 million yuan of consideration, but they should resettle the workers and bear the debts of the enterprises.

State owned enterprises in Baoding

In the trial, the reporter noted that the 4 people had differences or endorsed in the cross examination, but there was no mutual accusation.

Zero contribution

The procuratorate held that 4 people had made many premeditated plans, and agreed to purchase the cotton group under the condition of no investment. ASSOLIMITED was a shell company bought by Zhu Zhi Lin at Hongkong Jun Hui accounting Secretary company. The company was registered in the British Virgin Islands, without office space, without staff, without funds and without operation. Hongkong Asia Textile Enterprise Co., Ltd. is the fictional Chinese name of ASSOLIMITED.

The 4 people lied about the Hongkong Asia spinning company as a subsidiary of China strategy group, which used the name of China strategy group to purchase. Wang Lijuan vigorously promoted the acquisition of China strategic group company to the cotton group.

Since then, the 4 have also adopted Zhu Zhilin's false suspension negotiations to induce the two sides to sign the contract and change the CIC group into China strategy investment company in the contract.

Zhu Zhilin also lied that Li Xing Investment Co., Ltd. was the parent company of Hongkong Asia spinning company, forged the certificate of deposit balance and the financial proof of Li Xing company's US $50 million.

The 4 also made a bid auction by means of collusion, which made the pferee close to the pferable price and eventually formed a "zero acquisition".

Therefore, the procuratorate believed that the 4 party did not invest and swindled the ownership of the group according to the value of 430 million yuan.

For the allegations of the procuratorate, Wang Lijuan argues that it is not fraud.

She also believes that Hongkong Asia textile company has strong takeover.

The documentary evidence displayed in the courtroom shows that in the report to the government, there are both the name of the China strategy investment company and the name of the central policy group, and the CIC group has indeed announced the acquisition of Hongkong Asia textile company, including its affiliated cotton group.

During the court debate stage, the defendant's defender thought that the 4 party did not constitute a contract fraud, because no name was used in the name of the CIC group, and the contract was signed by ASSOLIM-ITED.

Moreover, after the restructuring of cotton, China once introduced the new China spinning Industrial and Trading Company, and signed the contract with the Sino spinning industry and trade. It is also the information of Hongkong Asia spinning company, and the Asian spinning company. The government and the SASAC have tried it in the acquisition, and the relevant departments have also reviewed the application for foreign exchange account.

For the 50 million dollar false fund guarantee that the procuratorate charged, Zhu Zhilin said that he did not know that it was a fake at that time, and later found that he had a lawsuit against Li Xuehan, general manager of Lixing company.

Wang Lijuan also knew in court that the certificate of funds was false.

Besides, in addition to ASSOLIM-ITED, a Ningbo company participated in the bidding phase.

The procuratorate accused 4 people of colluding tenders, and Wang Lijuan argued that the company in Ningbo was indeed interested in the cotton group. If the price was right, it would like to buy it.