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Jiangxi photovoltaic giant Xuyang Leidi crisis: a total stop production, arrears of wages
After the bankruptcy of Jiangxi star photovoltaic company Saiwei, another photovoltaic giant was in trouble. From June 22nd to 24th, Jiangxi Xuyang Reddy High-Tech Co., Ltd. (hereinafter referred to as Xuyang Reddy) had a collective salary appeal. The employees reported that the company had defaulted on the employee’s four-month salary. And for more than five years since 2013, no employees have been paid social security contributions. Luo Xing, vice president of Xuyang Reddy, confirmed to the reporter the company’s unpaid salary and unpaid social security, but did not disclose to the reporter the salary and social security amount and debt situation. He said that the government and the company are currently discussing solutions. "The company almost went bankrupt in 2013, but there are still many banks' debts. In order not to make the loss of state property, they have come over and have come to the present." According to a former executive of Xuyang Reddy, Xuyang Reddy is currently The amount of social security contributions and wages owed to employees is over 100 million yuan, and there are also suppliers who owe a billion yuan to the company. The company is facing huge operational pressure. At present, the company has basically been in a state of complete shutdown. It has been completely discontinued. "Xuyang Reddy has already owed us four months' salary. After the New Year, we have only paid one month's salary." An employee named Zhang Qiang (a pseudonym) told reporters that both husband and wife are both After working in Xuyang Reddy, after entering 2018, the company only paid wages in March, and no wages were paid in January and February, April and May. Not only that, Xuyang Reddy has not given social security to employees since 2013, for more than five years. Wang Ping (pseudonym) was a middle-level of Xuyang Reddy before leaving the company and was resigned in 2015. A ruling from the Labor and Personnel Disputes Arbitration Court of Jiujiang Economic and Technological Development Zone, which she provided to reporters, showed that Xuyang Reddy had not paid social insurance to employees since October 2012, but at the same time deducted the employee's dues. Xuyang Reddy said in his reply that Wang Ping and others complained that the time limit for failing to pay social security was true. The reason was that the company had difficulties in operating and the funds were tight. It had applied to the Social Insurance Administration of Jiujiang Economic Development Zone for suspension of payment, and did not intentionally owe it. And all employees of the company are insured. Luo Xing, vice president of Xuyang Reddy, said in an interview that the company is indeed in arrears with employees' wages and social security. The company's operating conditions are sluggish, which is an adjustment of the industry. "Arrears are not started today. In 2013, they began to default. At present, most of the industry has stopped working. We have also stopped working at 70% and 80%. Everyone can't go to work, and it is only going to happen." Xing said that Xuyang Reddy would have gone bankrupt in 2013. All shareholders have been insisting on trying to revitalize the company in order to ensure the interests of suppliers. "We have been insisting on these years. In recent years, the scale has become larger and larger. We recently launched a new PV policy on May 31. The entire industry has been shut down for a large area. The employees do not understand this. Now the government and the company We are actively trying to solve the salary and social security problems of more than 2,000 employees.†Luo Xing also told reporters that Xuyang Reddy is now completely discontinued. According to a former senior executive of Xuyang Reddy, the total salary of Xuyang Reddy's arrears is more than 50 million yuan, and the unpaid social security amount is more than 70 million yuan, totaling more than 100 million yuan. For Luo Xing’s statement, the shareholders who have Xuyang Reddy’s unwillingness to be named do not agree. The shareholder said that since 2015, the photovoltaic industry has begun to pick up, the entire industry has recovered, and Xuyang Reddy has such a big problem, and the management's decision-making is very big (blog, Weibo). “After the restructuring in 2016, Xuyang Reddy has never had a shareholder meeting for so many years, and it has been in arrears with thousands of employees for several months. It’s really unique.†The second crisis of the expansion brought public information, Xu Yanglei Di was founded in 2008 and its promoters are Luo Hong and more than 10 other shareholders. According to one of the shareholders, in 2008, Jiujiang Development Zone went to Shenzhen to attract business. Luo Hong brought more than 10 shareholders and more than 40 million yuan of capital to Jiujiang to invest in the photovoltaic industry. "At that time, the industry was in full swing. The government funded, bank loans, and registered capital reached more than 400 million yuan." "Since the establishment of the company in 2008, in 2011, in just three years, the company's assets reached 47. The above-mentioned shareholders said that the local government was also very supportive of the company at that time. The government has built more than 1 billion projects, and hopes that the company will become bigger and achieve listing. On the original scale, Xuyang Reddy won a piece of land of more than 700 mu and carried out the third phase of expansion. The construction investment reached 670 million yuan. At the same time, the procurement of equipment was carried out, just the prepaid deposit. More than 100 million yuan. During this period, Xuyang Reddy also received investment from nine PE institutions, and the amount reached 900 million yuan. "The amount of this investment is more than the amount of money raised by the company's listing. It is obvious that all parties are particularly optimistic about the company's prospects," said the shareholders. Just as Xuyang Reddy expanded its arms and prepared for IPO, the photovoltaic industry has encountered an unprecedented crisis since 2012. The EU and the US have implemented “double opposition†to Chinese PV companies, which has caused Xuyang Reddy to fall into The first crisis. "At that time, the company's debts included more than 600 million yuan for suppliers, government construction fees of more than 1 billion yuan, bank loans of 900 million yuan, and financial leasing of 300 to 400 million yuan, totaling nearly 3 billion yuan." The above shareholders told reporters. The photovoltaic industry entered a long winter period. Xuyang Reddy almost went bankrupt. The company began to reorganize the company through reorganization. The Jiujiang Daily on January 15, 2016 published the first temporary shareholder of Xuyang Reddy in 2016. The meeting informed that an important part of the meeting was to discuss the restructuring plan of Shenzhen Fuyuan Group. A shareholder who participated in the general meeting of shareholders told reporters that Fuyuan Group was the second largest shareholder of Xuyang Reddy. The plan was for Fuyuan Group to invest 150 million yuan to restructure the company. "But the final result turned into a reorganization of the third largest shareholder Jiuding Investment with a capital of 150 million yuan." After the reorganization, Xuyang Reddy caught up with the recovery of the photovoltaic industry, and employees began to increase, from the bottom four A hundred people, slowly increased to one or two thousand people. “As soon as it warmed up, Xuyang Reddy began to expand, buy equipment and expand the workshop.†The aforementioned shareholders believe that Xuyang Reddy got a restructuring of 150 million yuan, which is very precious and should be used for the flow of production. In, not blindly expanding. To this day, Xuyang Reddy has fallen into a new crisis. “Gambling†failed Jiuding Investment took over the first major shareholder of Xuyang Reddy, Jiuding Investment, and the entry of Jiuding Investment was when Xuyang Reddy was in the middle of the day, when the company won 9 PE machine purchases, Jiuding The investment has become the company's third largest shareholder with an investment of 400 million yuan. After Jiuding Investment entered, Xuyang Leidi's shareholding structure was Luo Hong and the concerted action holders accounted for 30% of the shares, being the largest shareholder; Shenzhen Fuyuan Group held 13% of the shares, being the second largest shareholder. According to a person familiar with the matter, Jiuding Investment invested in Xuyang Reddy twice. The first time was in October 2010, with an investment of 200 million yuan. At that time, it also signed a gambling agreement. According to the agreement, Jiuding Investment invested in Xuyang Reddy Company by means of capital increase and share expansion. If Xuyang Reddy Company fails to achieve annual profit, Xuyang Reddy Company shall compensate investors. The two sides also agreed to strive to be listed on the domestic A-share market in 2012. The capital increase is based on Xuyang Reddy's 2010 annual net profit of 240 million yuan, which determines the company's price is 2.15 billion yuan. At the beginning of 2011, Jiuding Investment once again invested 200 million yuan to invest in Xuyang Reddy, but this time the two sides did not sign a gambling agreement. In the end, Xuyang Reddy failed to fulfill the profit of the year and did not achieve listing. Jiuding Investment sued Luo Hong, chairman of Xuyang Reddy, and the company, demanding that the defendant compensate Jiuding Investment. The court ruled that Luo Hong made performance compensation to the investor, and Luo Hong also transferred the 17% stake in Xuyang Reddy to Jiuding Investment. At this time, in the ownership structure of Xuyang Reddy, Jiuding Investment became the largest shareholder, Shenzhen Fuyuan Group is still the second largest shareholder, Luo Hong became a minority shareholder. In August 2014, Fan Lei, appointed by Shenzhen Fuyuan Group, became the general manager of Xuyang Reddy. Although Luo Hong also served as the chairman and legal person of the company, he said that it has faded out of the company's management. In January 2016, Xuyang Reddy reorganized and Jiuding invested RMB 150 million to carry out internal equity restructuring and became the largest shareholder of Absolute Holdings. In April of the same year, the company changed its legal representative, Fan Lei officially replaced Luo Hong as the company's chairman and legal representative. On June 24, the reporter repeatedly called Fan Lei's mobile phone and tried to contact the interview, but it has not been able to connect.