Announcement • Sep 01
Top Shareholder of Zhongrong Trust Plans to Buy Shares China's Jingwei Textile Machinery Company Limited (SZSE:000666) the biggest shareholder of troubled Zhongrong International Trust Co., Ltd. - saw its stock surge on Wednesday after offering to buy out investors who object to the firm's plan to switch bourses. The price of Jingwei stock, which resumed trade following a two-day halt, jumped the maximum 10% to CNY 8.86 ($1.22) after the firm said it would buy shares for CNY 9.24 each from holders who did not wish to carry them over to another exchange. Jingwei owns 37.5% of Zhongrong International Trust which has missed payments on dozens of investment products since the end of July, investor sources said, triggering contagion fear in an economy suffering from huge debt in the real estate sector. Delisting from the Shenzhen Stock Exchange could shield public market investors from liquidity woes at Zhongrong, a major shadow bank with heavy exposure to real estate. "Due to changes in market conditions, the company's operations face huge uncertainty that could have a major impact," Jingwei said in an exchange filing late on August 29, 2023. Under a proposal from parent China Hi-tech Group (600730.SS) intended to "protect the interest of small shareholders", Jingwei will withdraw its Shenzhen listing and seek to float on the New Third Board, a smaller equity trading venue in Beijing that has a high threshold for investor participation. The proposal requires shareholder approval. Asset manager Zhongzhi Enterprise Group, the second-biggest shareholder of Zhongrong International Trust, told investors at a videoed meeting this month that it is facing a liquidity crisis and will restructure debt. Valuation Update With 7 Day Price Move • Aug 18
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CN¥8.15, the stock trades at a trailing P/E ratio of 13.8x. Average trailing P/E is 35x in the Machinery industry in China. Total loss to shareholders of 14% over the past three years. Announcement • Jul 12
Jingwei Textile Machinery Company Limited Announces Final Cash Dividend on A Shares for the Year 2022, Payable on July 17, 2023 Jingwei Textile Machinery Company Limited announced final cash dividend of CNY 0.65 per 10 shares on A shares for the year 2022. Record date is July 14, 2023, Ex-Date is July 17, 2023 and Payment Date is July 17, 2023. 
