Rendong Holdings ‘reorganization plan was approved, and the company officially started reorganization implementation

Blue Whale News, February 19 (Reporter Huang Yujie)On the evening of February 18, Rendong Holdings (002647.SZ), a third-party payment concept stock, announced that the company’s reorganization plan had been approved by the court.

The content shows that the Intermediate People’s Court of Guangzhou City of Guangdong Province (hereinafter referred to as the Guangzhou Intermediate People’s Court or the Court) ruled on February 18, 2025 to approve the “Reorganization Plan of Rendong Holdings Co., Ltd.” and terminated the reorganization process of Rendong Holdings Co., Ltd.(hereinafter referred to as the company or Rendong Holdings), and the company entered the implementation stage of the reorganization plan.

The main contents of the “Civil Decision” show that the Guangzhou Intermediate People’s Court held that: the first creditors ‘meeting and the investor group meeting of Rendong Holdings reviewed and voted on the draft reorganization plan of Rendong Holdings and the relevant convening, grouping and voting procedures are in compliance with relevant regulations.

According to the report of the manager of Rendong Holdings, the draft reorganization plan of Rendong Holdings has been approved by the property-guaranteed creditor’s rights group and the ordinary creditor’s rights group by group voting. The adjustment plan for the equity of the investors involved has been approved by the investor’s group. Its content does not violate the law. Provisions are in line with the principles of fair settlement and maximizing the interests of creditors, and the business plan is feasible. To sum up, in accordance with relevant regulations, the following decisions are made: 1. Approve the reorganization plan of Rendong Holdings Co., Ltd.; 2. terminate the reorganization procedures of Rendong Holdings Co., Ltd.

Regarding the impact of the court’s ruling on the approval of the reorganization plan on Rendong Holdings, Rendong Holdings stated in the announcement that after the ruling approved the reorganization plan, Rendong Holdings entered the implementation stage of the reorganization plan. The company is responsible for implementing the reorganization plan, and the manager is responsible for supervising the implementation of the reorganization plan. If the company successfully implements the reorganization plan, it will help resolve the company’s debt risks, optimize the company’s asset and liability structure, improve the company’s going concern and profitability, and help the company return to healthy development. It will have an impact on the company’s relevant financial data for 2025., subject to the audited financial statement data.

Blue Whale News previously reported that in October last year, Rendong Holdings issued the “Progress Announcement on Public Recruitment and Selection of Restructuring Investors.”

Reorganizing the investor lineup can be said to be luxurious. The announcement content shows that the company’s temporary manager has determined in accordance with the law the industrial investor/strategic investor CITIC Capital (China) Investment Co., Ltd.(hereinafter referred to as CITIC Capital), the financial investors Guangzhou Asset Management Co., Ltd., Shenzhen China Merchants Ping An Asset Management Co., Ltd., Zhuhai Hengqin Shuimu Tongde Equity Investment Fund Management Enterprise (Limited Partnership) and Beijing Fenghui Investment Management Co., Ltd. is the company’s selected pre-reorganization investor.

Among them, the parent company of CITIC Capital is CITIC Capital Holdings Co., Ltd.(hereinafter referred to as CITIC Capital Holdings). After equity penetration, the majority shareholder of CITIC Capital Holdings is a subsidiary fully controlled by CITIC Holdings (0267.HK), the second shareholder is an investment company fully controlled by Tencent Holdings (0700.HK), the third shareholder is a wholly-owned subsidiary of Qatar’s sovereign wealth fund Qatar Investment Authority, and the fourth shareholder is Fubon Life Insurance.

According to the official website, CITIC Capital Holdings was established in 2002 and is an investment management and consulting company focusing on alternative investments. The company’s core businesses include private equity investment, real estate investment, structured financing, asset management and special opportunity investment, with more than US$15 billion in funds under management.

According to the official website, Xinchen Capital, the private equity investment department of CITIC Capital Holdings, is one of the most active private equity investment funds in China. The department conducts mergers and acquisitions for companies around the world. Since its establishment, through the funds it manages, the division has completed more than 100 investments in China, Japan and the United States. As of now, the total amount of funds under management is US$8.7 billion.

Data shows that among the companies invested by CITIC Capital Holdings, there are many companies such as Alibaba, Jingdong Digital, Focus Media, Harbin Pharmaceutical, and Piglet Short-term Rental. The investment areas include food, clothing, housing, transportation and entertainment.

In the same month, Rendong Holdings disclosed that it had signed a pre-restructuring investment agreement.

The temporary manager of Rendong Holdings has determined CITIC Capital, the industrial/strategic investor in accordance with the law, and the consortium composed of financial investors Guangzhou Assets, China Merchants Ping An Assets, Shuimu Tongde Equity Investment, Shuimu Tongde Equity Investment and Fenghui Investment is Rendong Holdings has selected the pre-reorganization investor. Among them, CITIC Capital invested 150 million yuan, and five financial investors invested a total of 682 million yuan, with a total investment amount of 832 million yuan.

In terms of corporate operations after restructuring investment, the content shows that after the Guangzhou Intermediate People’s Court ruled to approve the restructuring plan, CITIC Capital (strategic investor) will actively empower Rendong Holdings and promote Guangzhou Helibao Payment Technology Co., Ltd.(hereinafter referred to as Helibao), the core subsidiary of Rendong Holdings, to achieve the following business development goals: (1) assist and cooperate with Helibao in applying for cross-border foreign exchange licenses and obtaining overseas payment licenses;(2) actively connect with CITIC Capital’s shareholder resources and continue to improve Helibao’s competitiveness;(3) Actively promote cooperation between Helibao and invested companies in the CITIC Capital system.

Not exceeding the investment price of CITIC Capital stipulated in the Pre-Restructuring Investment Agreement (Including the transferred unit price and restructuring investment funds, the same below) or on the premise that although CITIC Capital exceeds the investment price of CITIC Capital stipulated in the Pre-restructuring Investment Agreement but CITIC Capital agrees to pursue the increase in restructuring investment funds, CITIC Capital will cooperate with the restructuring investment plan. Adjust the content of the investment plan and determine the adjustment content by signing a supplementary agreement; On the premise that the investment price of CITIC Capital stipulated in the Pre-Restructuring Investment Agreement exceeds and CITIC Capital does not agree to pursue the increase in the restructuring investment, both Rendong Holdings and CITIC Capital have the right to unilaterally terminate the Pre-Restructuring Investment Agreement without deemed breach of contract.

In terms of performance bonds and payment of performance bonds for restructuring investment funds, the announcement disclosed that when the restructuring investment funds are paid in accordance with the Pre-Restructuring Investment Agreement, the performance bonds (non-interest-bearing) paid by CITIC Capital or its designated entities will be automatically converted into restructuring investment funds in equal amounts, which is 149.5 million yuan.

Rendong Holdings ‘main business covers third-party payments, Internet small loans, etc.

Among them, the third-party payment brand is Helibao. Heli Bao was established in July 2013 and is headquartered in Guangzhou. It is a subsidiary of Heli Financial. It was acquired by Rendong Holdings in 2017 and was renewed with a payment license in 2019. Helibao has the “Payment Business License” issued by the People’s Bank of China. Its business types include Class I stored value account operation and Class I payment transaction processing. It covers the whole country and has cross-border RMB business qualifications.