Displaying items by tag: Shanshui Cement

China: Li Liufa has resigned from Shanshui Cement with effect from 31 May 2016. He held the positions of an executive director, the chairman of the board, and the chairman of both the nomination committee and the executive committee of the company.

Li stated that his resignation would reduce potential conflicts of interest in any future fundraising campaigns by the company. The company and its major shareholder Tianrui Group is exploring various fundraising options, including equity fundraising, to resolve the financial difficulties of the group and to restore the public float of the company.

China: CNBM has cancelled its acquisition of Shanshui Cement due to changes in the board composition, disputes regarding the control of Shandong Shanshui Cement Group, the financial difficulties of Shanshui Cement and the prolonged suspension of trading of the shares in Shanshui Cement. It added that the final issue ‘significantly and adversely’ affected the liquidity of the company and impaired attempts to determine the current market price of shares in Shanshui Cement. Shanshui Cement has faced financial troubles since a shareholder battle for control of the company took place in late 2015.

China: Yang Luyu, the mayor of Jinan in Shangdong province, is being investigated for corruption by the Communist Party of China Central Commission for Discipline Inspection (CCDI). Yang has been accused of ‘serious disciplinary violations’ according to Xinhua news agency. He is also the city's Communist Party deputy secretary.

Yang was named in a writ filed with a Hong Kong court in March 2016 according to the South China Morning Post. Two companies, China Pioneer Cement (Hong Kong) and Shandong Shanshui Cement Group, allege that Yang and his deputy mayor, Su Shuwei, conspired with former company directors to take control of the Jinan plant on 7 December 2016. The ex-directors were named as Zhang Caikui and his son Zhang Bin.

China Pioneer Cement (Hong Kong) and Shandong Shanshui Cement Group are subsidiaries of China Shanshui Cement Group. Shanshui Cement has faced financial troubles since a battle for control of the company that took place in late 2015 between Tianrui Cement, its biggest shareholder, and the Zhang family, its second-largest shareholder and former owners.

China: China Shanshui Cement Group has reported a loss of US$998m in 2015 compared to a net profit US$53.9m in 2014. Its revenue fell by 28% year-on-year to US$1.73bn. The loss was blamed on a write-down of goodwill assets and an increase in administrative expenses, following a prolonged power struggle between shareholders and management, according to Dow Jones. The Chinese cement producer reported a US$364m write-down of goodwill assets due to forecasted poor results and over-payments for cement plant acquisitions. Administrative expenses increased by 86% to US$359m.

China: Shanshui Cement has issued a profit warning, predicting a significant loss in 2015 compared to 2014. It has blamed the impending financial result on poor market demand for cement, industry production overcapacity and management distractions with legal proceedings the company has undertaken concerning the company and its subsidiaries.

In late January 2016 Shanshui Cement defaulted on a US$270m bond. The default followed a battle for control of the company between Tianrui Cement, its biggest shareholder, and the Zhang family, its second-largest shareholder and former owners.

China: Shandong Shanshui defaulted on a US$270m three-year bond that matured on 21 January 2016. It is the second default for its owners, China Shanshui Cement, since November 2015. The move places Shanshui Cement at increased risk of bankruptcy and complicates plans by Tianrui Group to purchase the company. The previous debt default triggered multiple lawsuits from creditors that have already seen some of its assets frozen or put into impending auctioning, according to the South China Morning Post.

"The underlying cause of Shandong Shanshui's debt problems is unresolved disputes over shareholders' control, which restricted its fund-raising channels," said Shandong Shanshui in a statement. Since the estimated value of the company's assets far exceeds its debt, it expects court-ordered assets sales to bring in less proceeds than claims made by creditors, it added.

China: Shanshui Cement's largest shareholder, Tianrui Group, has provided a US$9.3m loan to the company for interest repayment of the onshore bond of its Shandong subsidiary, Shandong Shanshui Cement Group, which defaulted in November 2015.

The loan facility is unsecured, interest free and has no fixed repayment terms, and has been remitted to the bank account designated for the bond's repayment, according to Shanshui. It didn't mention when the company could also repay the principal of the bonds, which amounted to US$307m, or whether Tianrui will provide further funding. Shanshui defaulted on the bond payment and triggered a cross default of the company's other debt after a shareholder struggle. Shanshui's board, which is now controlled by Tianrui, still faces a mounting management dispute over its Shandong subsidiary with Shanshui's founder and second-largest shareholder, the Zhang family.

China: Shanshui Cement has announced that as of 31 December 2015, the company took over 100 factories that belonged to Shandong Shanshui, including the Shandong Cement Factory.

At the time, 'the former directors of Shandong Shanshui, namely Zhang Caikui, Zhang Bin and Huang Kehua, still illegally occupied the head office and five factories of Shandong Shanshui and illegally retained important documents, including but not limited to, seals, chops and books,' according to local media. As the company documents were illegally retained, Jinan Administration for Industry & Commerce refused to proceed with the application for the change of directors of Shandong Shanshui.

China: Shanshui Cement's major operating unit, Shandong Shanshui Cement Group, has said in a statement that the Shanshui Cement Board's removal of Management and Directors from Shandong Shanshui by Tianrui Group was illegal as it required government approval. Tianrui, the largest shareholder of Shanshui Cement, took control of the board at an extraordinary general meeting (EGM) on 1 December 2015, resulting in the removal of Shandong Shanshui management.

China: The management of China Shanshui Cement Group Ltd's operating unit was ousted two days after executives of its parent were dismissed, in a move analysts said underscores efforts by the company's biggest shareholder, Tianrui Group, to solidify control.

Shandong Shanshui Cement Group Ltd Founder Zhang Caikui, Chairman Zhang Bin and Chief Financial Officer Henry Li were among key managers whose positions were terminated on 3 December 2015. Tianrui's Vice Chairman Li Heping has succeeded Zhang Bin to become Chairman of the unit.