The State-owned Assets Supervision and Administration Commission (SASAC) initially selected China Resources Group (CRG) as a strategic investor to implement the capital reorganization of Sanjiu Enterprise Group after reporting to the State Council for approval.
Shenzhen Luohu District Court made a first-instance judgment on the case of abuse of power by Zhao Xinxian, a member of the 10th National Committee of the Chinese People's Political Consultative Conference (CPPCC) and the former general manager and party secretary of Sanjiu Enterprises Group, and four other people, sentencing the defendant Zhao Xinxian to one year and ten months' fixed-term imprisonment for the crime of abuse of power; and sentencing Chen Dada and Rong Longzhang to fixed-term imprisonment of between one year and seven months and one year and six months, respectively. The supreme people's court today to the legal daily revealed the true facts of the case, clarified the outside world on the issue of zhao xinxian all kinds of speculation. The court found that: in early 1996, Hong Kong Changteng (China) Investment Co., Ltd. was established by the Hong Kong Changteng company actually holds 100% of the Shenzhen Seaview Golf Resort Co., Ltd. is specifically responsible for the construction of the golf course and ancillary facilities in Longgang District, Pingshan Township, Ma Ruan Village, 7.64 square kilometers of project. Recognized the then Sanjiu Enterprise Group under the general manager of the Hong Kong Sanjiu Automobile Company Limited, the defendant Chen reached, Chen was informed that Lin has the Meisha golf course project, to the then general manager of the Sanjiu Enterprise Group, Zhao Xinxian report, Zhao Xinxian instructed Chen on behalf of the Sanjiu Enterprise Group to negotiate with Lin to acquire this project. Since then, Zhao and Chen have repeatedly negotiated with Lin Qingqiu about the acquisition and reached an agreement on the acquisition.
February 2000 in the acquisition of the project without formal assessment, without the party committee of the Sanjiu Group, and did not report to the State Planning Commission and the relevant departments for approval, Zhao Xinxian unauthorized on behalf of the company and Lin Qingqiu in Hong Kong signed the "Equity Acquisition Agreement," which agreed to the Sanjiu Group's subsidiary of the Hong Kong Sanjiu Industrial Company to the acquisition of Lin Qingqiu 80% of the equity interests in the Hong Kong Chanting Company, and 80% of Seaview Golf Company and owns 80% of the equity of Seaview Golf Company, the purchase price of HK$470 million, payable in two installments. Afterwards Zhao Xinxian and others forged the "Hong Kong Sanjiu Industrial Company Limited at its registered address held a board of directors meeting minutes", by the then director of the Hong Kong Sanjiu Industrial Company Limited Zhao Xinxian, the defendant Rong Longzhang and the defendant was then the Sanjiu Pharmaceutical Company's finance minister, chief accountant of the defendant's signatures to confirm the minutes of the meeting, fictitious directors' meeting to discuss the adoption of the acquisition of the above matters.
Because the Hong Kong Sanjiu Industrial Company Limited does not have the ability to pay, Zhao Xinxian instructed Chen reached, Rong Longzhang three people to organize the financing and payment of the acquisition. Proposed to apply for bank loans and shareholders dividends in the form of payment of 470 million yuan acquisition of money, and reported to Zhao Xinxian approval. Subsequently, Sanjiu Pharmaceutical Company obtained a loan of HK$200 million from CITIC Ka Wah Bank by pledging a deposit of RMB 230 million in CITIC Bank Shenzhen, which was paid directly to Lin Qingqu as the first installment of the acquisition of equity. Upon maturity of the said loan, Sanjiu Pharmaceutical Company used the pledged deposits to offset the loan debt of Hong Kong Sanjiu Automobile Company Limited.
On May 29 of the same year, Zhao Xinxian also instructed Chen Dada, Rong Longzhang and others to take the means of inflating the amount of dividends, and forged the "Shenzhen Sanjiu Pharmaceutical Company Limited Board of Directors on the distribution of the 1999 rolling profits of the resolution", which was confirmed by the signatures of Zhao Xinxian, Rong Longzhang, and others, and fictitiously paid 292.6 million yuan RMB to the Hong Kong Sanjiu Company in the name of dividends. And accordingly to the State Foreign Exchange Administration and the relevant banks fraudulently purchased foreign exchange *** amounting to 35.3 million U.S. dollars remitted to the Hong Kong Guangan Bank. In June of the same year, Hong Kong Sanjiu Company issued a bill of exchange of HK$270 million for the payment and delivered it to Lin Qingqu as the second installment of the acquisition of equity. After the completion of the above acquisition, Sanjiu Enterprise Group changed the name of "Shenzhen Seaview Golf Resort Co., Ltd." to "Sanjiu Dalong Health City Co. As the land use right certificate was not obtained before and after the acquisition, the government approval documents obtained before the acquisition of the project were all of a planning and programming nature, which did not have the conditions for development and operation, and the project has remained at a standstill. Sanjiu Enterprise Group in 2004, when the liquidation of assets, has been used for the acquisition of Hong Kong Changteng Investment Company 80% of the shares of the full amount of 470 million Hong Kong dollars reported to the State-owned Assets Supervision and Administration Commission approved as a loss write-off.
The court found that: the behavior of the above defendants has constituted the crime of abuse of power, in view of the defendants in the return to the criminal facts can be truthfully confessed, the subjective malignancy of the small, and then made the above judgment, the first instance after the verdict of the four defendants did not file an appeal, the case is now legally effective. As one of the largest comprehensive pharmaceutical enterprises in China, Sanjiu Pharmaceutical Co., Ltd. is mainly engaged in the development, production, sales and corresponding health care services. The company's existing varieties are mainly Chinese patent medicines, and involves chemical raw materials and preparations, biological products, pharmaceutical and health materials and other pharmaceutical fields. The products radiate all over the country and the world, and sell well in Japan, the United States, Canada, South Korea and Southeast Asia, etc., and have established stable trade links with many foreign companies
Sanjiu Medicine has a number of nationally renowned famous brand-name products such as Sanjiu Gastro-Thai Series, Sanjiu Cold & Flu Series, Sanjiu Dermatitis Pill Ointment, and Shenmai Injection, etc., and the main products have a domestic market share of the forefront of the same kind, some of which are in the absolute leading position. Some of them are in the absolute leading position. As of December 31, 2003, the total assets of Sanjiu Pharmaceutical Co., Ltd. amounted to 8.296 billion yuan, and in 2003, the company realized a main business income of 2.674 billion yuan and a net profit of 209 million yuan. Sanjiu Enterprise Group centers around the main business of the pharmaceutical industry, and has pursued the business idea of high-tech, high-quality and high-efficiency from the very beginning of its establishment. Hard work, industry for the country has become the Sanjiu Group's business concepts and entrepreneurial spirit. Sanjiu Group has been running enterprises with first-class talents, engaging in production with first-class equipment, providing first-class products to users and dedicating first-class service to the society. Sanjiu Group has sales offices and warehouses in 15 provinces and 4 municipalities directly under the central government, forming a nationwide pharmaceutical sales network; the formation of antimicrobial agents, traditional Chinese medicine injections, biological products, health care products, medical equipment and other specialized sales departments.
Sanjiu Group carries out technological development in accordance with the combination of industry, academia and research; the Group's Institute of Pharmaceutical Research is responsible for the strategic direction of the Group's technological development, and each enterprise sets up corresponding specialized research institutes in accordance with its professional direction, while each institute cooperates extensively with major universities and research institutes in China. The research institutes are Sanjiu Bioengineering Research Institute, Sanjiu Huaxi Traditional Chinese Medicine Injectable Research Institute, Sanjiu Antimicrobial Research Institute, Sanjiu Proprietary Chinese Medicines Research Institute and so on. Sanjiu Enterprise Group is a state-owned large-scale pharmaceutical enterprise directly managed by the State-owned Assets Supervision and Administration Commission of the State Council, which owns the listed company "Sanjiu Pharmaceutical" and a number of GMP-certified pharmaceutical production enterprises involved in the fields of pharmaceutical manufacturing, pharmaceutical packaging, pharmaceutical sales, medical services, etc., and owns nearly 1,000 Chinese and Western medicinal products and a nationwide pharmaceutical sales network. The "999" brand has a great influence at home and abroad.
Sanjiu Enterprise Group, due to the internal management chaos and long period of high debt operation, fell into insolvency at the end of 2003, the production and operation is unsustainable, and there is a serious credit and debt crisis. 2004 July approved by the State Council, began the implementation of debt restructuring of the Sanjiu Group. 2006 December according to the debt restructuring framework plan determined by consultation with the Sanjiu Creditors' Committee, in order to ensure the smooth transition and long-term development of the enterprise, in accordance with the principle of overall restructuring and market-oriented operation, the introduction of strategic investors was implemented. Shanghai Industrial Holdings Limited (Carlyle Investment Group Asia Acquisition Fund / Hony Capital Advisors Limited), China Resources (Group) Company Limited, New World Infrastructure (China) Investment Company Limited (CCMP Asia Investment Fund), Deutsche Bank Group (CITIC Securities), Shanghai Fosun Hi-Tech (Group) Company Limited, and other five groups of investment consortium submitted the restructuring proposal. State-owned Assets Supervision and Administration Commission in the expert voting review on the basis of the group of strategic investors to submit a serious study of the program, the initial selection of China Resources Group as a strategic investor, reported to the State Council for approval after the implementation of the capital reorganization of the Sanjiu Enterprise Group.
The introduction of the Sanjiu Group strategic investor initially selected, will be conducive to resolving the Sanjiu Group as soon as possible the debt crisis and the occupation of listed companies, is conducive to effectively safeguard the rights and interests of small and medium-sized shareholders of the listed companies, is conducive to minimizing the loss of all parties, and is conducive to the promotion of the healthy development of enterprises.