In October 2021, the Central and State Council issued the Plan for the Construction of a Two-Cities Plan for the Construction of the Economy in Custodian Region, which was deployed as a comprehensive scientific centre. It is understood that the major scientific and technological infrastructure built by the start-up, with the construction of platforms, the implementation of major projects, team-building and output-oriented results, will strongly support the building of national-impact science and technology innovation centres in the developing and transition regions.

On the evening of May 10, St Longjing announced that the controlling shareholder Longjing industry and its concerted actors yangguanghongrui, yangguangruize, Lin Tengjiao and Wu Jie signed an agreement with Zijin mining. Zijin Mining held 161 million shares of the company through agreement transfer, accounting for about 15.02% of the total share capital. Affected by this news, on May 11, St Longjing raised the limit to 9.43 yuan / share, with a total market value of 10.08 billion yuan.

Spend 1.7 billion on environmental protection “fellow villagers”

Zijin Mining and St Longjing belong to Longyan, Fujian Province. They are the first two local listed companies.

Zijin Mining is known as the “first brother of nonferrous metals” by the outside world, focusing on the exploration and development of gold, copper, zinc and other mineral resources, while st Longjing focuses on the field of environmental governance.

As a non-ferrous giant, Zijin Mining has increasingly highlighted the pressure of environmental protection. According to the annual report, in 2021, a total of 23 branches (subsidiaries) of Zijin mining were listed as key pollutant discharge units by the competent administrative department of ecological environment, and 964 million yuan was invested in the transformation and upgrading of environmental protection facilities and equipment throughout the year.

Zijin Mining said that st Longjing’s dust removal and desulfurization flue gas treatment, industrial wastewater and vegetation restoration technology have synergistic effects with the environmental protection treatment business of the company’s mining and smelting sectors; The existing belt conveyor, pneumatic conveyor and micro fog dust suppression have broad prospects for cooperation with the company; St Longjing has long been engaged in technical research in the field of energy, which can make up for the company’s lack of technology in equipment manufacturing. The company is optimistic about the industrial value of St Longjing in environmental protection, energy conservation and carbon reduction and equipment manufacturing, and has large cooperation space and strategic complementarity with the company’s long-term sustainable development.

According to Zijin mining, the share transfer price is 10.8 yuan / share, 32.68% higher than the net closing price of 8.14 yuan / share on the trading day before the signing of the agreement, and the total transfer price is 1.734 billion yuan.

At the same time, Longjing industry and sunshine Hongrui entrusted the remaining 107 million shares of St Longjing held by them, that is, 10.02% of the total share capital, to Zijin mining.

After the equity change is completed, the shareholding ratio of Longjing industry and its persons acting in concert is reduced to 10.02%; Zijin Mining has a shareholding ratio of 15.02%, controlling 25.04% of the total voting rights of St Longjing shares in total, becoming the shareholder with the highest proportion of voting rights of the controlling company’s shares, and the actual controller of St Longjing is changed to the Finance Bureau of Shanghang County, Longyan City, Fujian Province.

In fact, Zijin Mining and St Longjing had an intersection before. At the end of February, St Longjing issued a fixed increase plan and planned to issue 119 million additional shares to Zijin Mining at a subscription price of 6.93 yuan / share and raise 823 million yuan to introduce it as a war investment. On May 10, St Longjing said to terminate the fixed increase plan.

At the end of March, St Longjing’s wholly-owned subsidiary signed a cooperation agreement with Fuda Zijin, a subsidiary of Zijin mining, in order to jointly promote the ammonia hydrogen energy conversion technology project.

Multiple risks exist in the acquisition object

On the surface, Zijin Mining made a leak picking deal, pocketing 15% equity and 25.04% voting rights of St Longjing with 1.7 billion yuan, which is nearly 50% lower than the acquisition price of the controlling shareholder of the latter in 2017.

But st Longjing is actually a little “hot”. Due to the large advance payment made to Mingzhu Construction Engineering Co., Ltd., Dingcheng Construction Engineering Co., Ltd. and other relevant parties, St Longjing’s 2021 annual report was issued with a qualified opinion by the annual audit accountant, and the internal control was issued with a negative opinion. The company has implemented other risk warnings since May 6.

In addition, the company announced in the early morning of May 9 that the self inspection found that the controlling shareholders had occupied 365 million yuan through the above partners, and 156 million yuan has not been returned so far.

Zijin mining related people told the reporter of the international finance news that it is precisely because of the above matters that st Longjing will no longer meet the refinancing conditions in the short term. The two sides decided to terminate the non-public offering scheme at the end of February and change it to share transfer. St Longjing also said that the controlling shareholder paid off the Occupied Funds and interest by transferring shares. The two parties agreed that within three working days after the delivery date of the underlying shares, the acquirer would directly pay the Occupied Funds and interest to the company, totaling 168 million yuan.

On May 9, the Shanghai Stock Exchange issued a supervision letter to st Longjing, requiring the company to check whether there were other capital occupation, and provide rectification measures and accountability measures for the responsible person, as well as the reasons for the significant increase in the impairment loss of accounts receivable and the significant decrease in the cash flow of operating activities last year.

Behind the transfer of St Longjing shares, the dilemma of sunshine city is projected. St dragon is located in the Sunshine Department, and the actual controller Lin Tengjiao is the helmsman of sunshine group. On May 5, sunshine group disclosed that the total amount of debt principal due and unpaid in sunshine city was 30.191 billion yuan, and was negotiating with financial institutions or other partners.

According to the financial report data, the net asset liability ratio of St long has remained high for many years, with more than 68% from 2014 to 2021 and the first quarter of this year. By the end of the first quarter, its monetary capital was 2.234 billion yuan, notes payable and accounts payable were 4.52 billion yuan, and interest bearing liabilities included short-term loans of 1.221 billion yuan, long-term loans of 2.122 billion yuan and 1.831 billion yuan.

Make efforts to distribute new energy

Joining st Longjing is also a part of Zijin Mining’s new energy territory.

In October last year, Zijin Mining announced that it would acquire all the issued and circulating common shares of Xinli company for C $6.5 per share, about 4.939 billion yuan. The core asset of new lithium company, 3Q lithium salt lake project, is one of the largest and highest grade projects of its kind in the world. Zijin Mining reported in 2021 that it had successfully completed the merger and acquisition of 3q lithium salt lake project and started construction, taking a key step in new energy minerals.

At the end of April this year, Zijin Mining made another effort to acquire four asset packages of Dunan group at a price of 7.68 billion yuan. Among them, Jinshi mining holds 70% equity of Lago resources company, which owns the lithium mine project of lagocuo Salt Lake in Gaize County, Ali, Tibet. Lagocuo Salt Lake is a large sodium sulfate subtype brine lake to be developed. The project has large-scale resources, stable grade and low magnesium lithium ratio. By the end of 2012, lagoco salt lake had been protected