ENERCHINA HOLDINGS LIMITED

Enerchina (0622) buys remaining 70% of HEC Securities Co Ltd
Company announcement, 21-Mar-2017
Another deal in what we call the "Chung Nam Network". Enerchina fails to say who owns the vendor, Satinu Resources Group Ltd, except that Enerchina owns 6.06% of it. The price is $1225m, a 69% premium to the attributable net assets of $723m. Satinu is Unitas backwards. The network has other companies using name reversal: Astrum and Murtsa.
Imagi (0585) swaps 16.45% of itself for 3.38% of Enerchina (0622)Enerchina announcement
Company announcement, 16-Mar-2017
Another deal in the "Chung Nam Network".
Enerchina (0622) buys 30% of HEC Securities Co Ltd for HK$525m
Company announcement, 15-Dec-2016
As far as we know, the vendor is 100% owned by HEC Capital Ltd, a hub in what we call the "Chung Nam Network". The price is a $236m premium to the attributable net assets at 30-Sep-2016. Enerchina already has an 88.22% subsidiary in financial services called Win Wind Capital Ltd, which owns Win Wind Securities Ltd.
Hiding behind the cornerstones
Webb-site reveals that investors who took 31% of a bank IPO had secretly laid off their risk by issuing derivatives to a mainland property developer from the same city, via two HK-listed companies which incidentally are bubble stocks. When we complained, HKEX did not require disclosure of the bank’s identity, thereby preserving the secrecy behind the cornerstone investors which facilitate HKEX’s IPO business. Once again, the regulatory conflict of interest is exposed. (3-Oct-2016)
The Joint Global implosion
A collapse in a hub of the "Chung Nam Network" has wiped about HK$2bn off the balance sheets of at least 11 listed companies, many of which never announced that they had invested in it. We piece together an ugly jigsaw and call on the SFC to investigate and HKEX to wake up and require announcements. (30-Sep-2016)
China Innovative Finance (0412) bubble
Hao Tian Development (0474) has confirmed our view by dumping 9.06% of CIFG at a 61.9% discount, still well above the net tangible asset value of $0.099. CIFG should trade below NTAV due to its appalling governance and membership of what we call the "Chung Nam Network". The purported profits of its leasing division are largely illusory and depend heavily on 1 customer in which CIFG has invested. HTD has also been allowed by HKEX to skirt the Listing Rules on corporate transactions. (26-Sep-2016)
Enerchina (0622) to buy Smart Jump Corp from Freeman (0279)Freeman announcement
Company announcement, 15-Aug-2016
China Opto (1332) discloses the junk held by Win Wind Capital Ltd
Company announcement, 28-Jun-2016
This follows a complaint filed by Webb-site on 23-Jun-2016 that the Major Transaction circular, which was presumably vetted by the Stock Exchange, failed to include any information on the underlying investments held by Win Wind Capital Ltd, with which China Opto is engaged in a share swap. Several of the stocks are in what we call the "Chung Nam Network".
China Optoelectronics (1332) swaps 28.56% of itself for 11.78% of Win Wind Capital LtdEnerchina announcement
Company announcement, 30-Mar-2016
Prior to this, Win Wind is 100% owned by Enerchina (0622). Both companies are in what we call the "Chung Nam Network".
China Optoelectronics (1332) subscribes CB in Win Wind Capital Ltd
Company announcement, 23-Dec-2015
Another deal in what we call the "Chung Nam Network". We believe that Win Wind Capital Ltd was formerly known as Enerchine Capital Ltd. It is owned by Enerchina Holdings Ltd (0622).
China Optoelectronics (1332) subscribes HK$80.03m for 3.45% of Freewill Holdings Ltd
Company announcement, 17-Jul-2015
Note: although the deal was stated to be subject to a due diligence investigation "to be carried out", this investigation was apparently completed within 1 hour and 12 minutes after the 22:48 announcement, because the subsequent interim report states that the transaction completed the same day. Freewill is a hub invested by 4 other listed companies in what we call the "Chung Nam Network".
Mission Capital (1141) subscribes HK$440m for shares in Freewill Holdings LtdFreeman announcement
Company announcement, 2-Jul-2015
This gives MC 23.05% of FHL, while Willie (0273) will own 26.70% and Freeman Financial (0279) will own 50.25%. However, on the same day, Freeman announced that FHL has also agreed to issue shares to Enerchina (0622) so if both deals complete then MC will be diluted to 20.77%. All are in the "Chung Nam Network".
Enerchina (0622) buys 1.5bn shares (5.58%) of Mascotte (0136) for HK$210m
Disclosure of interest, 14-Jan-2015
This is an off-market transaction and increases its stake to 9.51%. The 5-day average market cap of Enerchina before the purchase was $1432m, so the "consideration ratio" is 14.7% and this should be a Disclosable Transaction under the Listing Rules. Enerchina has not made any announcement. In our view, Enerchina has just bought into the Mascotte bubble.
Subscription agreement between Hao Tian (0474) and HEC Capital Ltd dated 18-Sep-2012
Company filing, 2-Jul-2014
This is a recent filing under the Takeovers Code. Schedule 1 reveals the shareholdings in HEC Capital Ltd on the subscription date, including 10 other listed companies which we consider to be in the "Chung Nam Network".
Enerchina (0622) buys CU Group Investments Ltd from HEC Capital Ltd
Company announcement, 4-Dec-2012
Another deal in the "Chung Nam Network". Interestingly, this gives them Radland International Ltd (a broker) but not its sister Chung Nam Securities Ltd.
Enerchina (0622): late disclosure of sale of 500m shares (10.95%) of Mascotte (0136)
Company announcement, 10-Apr-2012
The original purchase price was $0.40 per share, $200m in total, and they have been sold for $40.26m, or about $0.0805 per share, an 80% loss.
Enerchina (0622) subscribes HK$200m in shares of Mascotte (0136)
Company announcement, 6-Jul-2011
Another deal in the Chung Nam Network, following Enerchina's earlier investments of HK$300m in Cordoba homes and HK$200m in Hennabun.
Enerchina (0622) invests HK$300m in 18.01% of Cordoba Homes Ltd
Company announcement, 25-Jan-2011
Before this, Cordoba is owned as follows: 40.71% owned by "a listed company". That is Willie (0273), 17.57% by Hennabun, into which Enerchina has already sunk HK$200m, and 32.94% and 8.78% owned by "two private companies". The last time we heard, those are Ristora Investments and Supreme Castle Investments, owned by Karen Lo Ki Yan and Paul Suen Cho Hung respectively. Enerchina is now firmly part of what we call the "Chung Nam Network".
Freeman (0279) subsidiary Hennabun issues HK$200m in shares to Enerchina (0662)
Company announcement, 4-Nov-2010
Freeman also lends $500m to Hennabun from 1-Nov-2010, to be reduced to $250m by 31-Dec-2010.
Enerchina (622) sinks HK$200m into Hennabun, subsidiary of Freeman (0279)
Company announcement, 1-Nov-2010
Hennabun, the core of the Chung Nam network, has been loss-making for the last 7 years, totalling losses of $1,112m.
China Strategic bubble
We warn investors of a bubble in the stock of China Strategic, the 80% owner of the proposed buyer of Taiwan's Nan Shan Life Insurance, partly financed by a massive note issue convertible into 78bn shares at $0.10 each. We publish the placing list and analyse the names in the deal. Finally, we warn investors to avoid 7 companies in the "Chung Nam network", which has lost HK$6.2bn in 5 years. (13-Nov-2009)
The paid advert opposing the blackout rule
With links to the signatories in Webb-site Who's Who. (29-Dec-2008)
Emperor 'sorry' on arrest reaction
South China Morning Post, 5-May-1995

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