At the beginning of 2018, major shareholders of Jiajia Food Co., Ltd. (hereinafter referred to as Jiajia Food, stock code 002650) suffered from stock pledge ‘stock explosion’ and illegal guarantee. If it was not effectively resolved in time, Jiajia Food would face lawsuits, its share rights would be scattered and guarantee obligations would be assumed, resulting in management and financial difficulties. This would directly affect its staff and social stability of thousands of employees in the enterprise and would cause greater losses to the interests of tens of thousands of small and medium shareholders and the creditor's rights of many financial institutions.
As one of the four major state-owned asset management companies, China Orient Asset Management Co., Ltd. (hereinafter referred to as China Orient) regards rescuing troubled entity enterprises as an important mission to fulfil social responsibility under the new situation. After preliminary adjustment, argumentation and negotiation, on September 28, China Orient Tianjin Branch properly resolved the illegal creditor's rights related to Jiajia Food through compensation. In the next step, China Orient will continue to support the major restructuring project of Jiajia Food and urge its major shareholders to take active actions to prevent and control internal risks and improve the profitability of listed companies.
The rescue of distressed entity enterprises is a useful attempt by China Orient to implement the spirit of the 19th CPC National Congress, the Central Economic Work Conference, the National Financial Work Conference and the video teleconference on banking and insurance supervision, adhere to the original commission and focus on main business, flexibly use ‘triple’ (reorganization, reforming and reconstruction) models of transformation and upgrading of non-performing assets, give full play to the cooperative advantages of the financial toolbox of the Group, and effectively serve the real economy development and effectively prevent and resolve financial risks by activating existing assets.
