In recent months, the Evergrande Group, which has attracted the most attention from us, is naturally the Evergrande Group founded by Xu Jiayin.
And with the explosion of Evergrande Group, we know that it is actually in debt5 trillion, but compared with the following company, what is Evergrande's debt of more than 2 trillion?
Zhengwei Group was once a large-scale enterprise that has been ranked among the Fortune Global 500 for a long time, with new materials, electronic information and minerals as its main business, and has made remarkable achievements.
Recently, however, the conglomerate has fallen into a serious crisis of confidence, with a series of negative incidents such as asset fraud, repeated mortgage financing, and internal related party transactions surfacing the surface, causing unease and widespread skepticism in the market.
Wang Wenyin, the founder of Zhengwei Group, known as the "World Copper King", was once the owner and shareholder of Evergrande Group.
But now he is subject to restrictions on high spending and is facing accusations of falsifying his academic qualifications, which puts his credibility in jeopardy.
The truth about asset fraud
Zhengwei Group claims to have 30 million tons of copper resources, but this is not the case, and these mineral rights are disputed and litigated, and some have even been recovered or transferred to other companies, revealing the fact that Zhengwei Group may have exaggerated its copper resources.
Through repeated mortgage financing, Zhengwei Group has expanded its operating income and asset scale, making it enter the list of the world's top 500 companies for 11 consecutive years.
However, this method of financing can lead to false financial data, which is misleading to investors and the market.
Zhengwei Group's subsidiaries were accused of reselling goods to each other and creating false transaction amounts, and in addition, the group frequently transferred land through equity transfers to create false land assets.
These practices not only violate business ethics, but also directly damage the sustainable development of enterprises and the trust of society.
Zhengwei Group, with an asset-liability ratio of 90%, has a debt scale that far exceeds the actual asset value, and there is a serious debt risk, which may lead to the rupture of the capital chain and trigger financial risks.
What to do in the future?
The root cause of asset fraud lies in the personal ambition and greed of Wang Wenyin, the founder of Zhengwei Group.
He tried to improve his social status and influence through false data in order to obtain more political and economic benefits and satisfy his personal vanity and desire for wealth.
However, Zhengwei Group has expanded and diversified too blindly, and entered areas that are unrelated to its main business or cannot have synergies, resulting in resource dispersion and low efficiency, forming a huge asset bubble and debt risk.
The failure of this business strategy shows that companies should be more careful in their choice of business areas and pay more attention to internal management and risk control.
Zhengwei Group's internal management system is not sound, there is a lack of transparent and fair financial audit and information disclosure, and there are a large number of internal related party transactions and benefit transfer, which provides convenience and space for asset fraud and highlights the weak links in corporate governance.
In addition, there are flaws in the external regulatory mechanism, and the lack of effective market competition and legal sanctions allows companies to go unpunished for violations.
This requires the relevant regulators to strengthen the supervision of enterprises to ensure the fairness and transparency of the market order.
What are the implications?
Zhengwei Group's asset fraud has caused a huge impact and harm to the society and economy.
First, it damages the group's reputation and development, makes partners and investors suspicious of it, and can lead to debt defaults and broken capital chains, triggering financial risks and social unrest.
Second, such behavior undermines the fairness and order of the market, damages the image and reputation of the country, and affects the integrity and rule of law in society.
Businesses should recognise the importance of establishing a sustainable business model and upholding integrity to avoid falling into a similar crisis of trust.
It can be said that Zhengwei Group's asset fraud is a social phenomenon worthy of attention and reflection, which not only reflects the development crisis of the group, but also reveals the deficiencies and deficiencies in social and economic aspects.
In order to build a healthier and more sustainable business environment, companies need to strengthen internal management, transparency and integrity.
Regulators should strengthen the supervision of enterprises to ensure the fairness and transparency of the market order.
Most importantly, entrepreneurs should have the right business ethics and pursue sustainable development rather than short-term financial success.
Write at the end
Zhengwei Group's asset fraud incident also reflects the group's development crisis, while also revealing social and economic deficiencies and shortcomings.
At the social level, it is necessary to strengthen the supervision of enterprises, improve market rules, and crack down on illegal activities such as asset fraud.
At the same time, it is also necessary to strengthen education for the public and raise the public's awareness of creditworthiness and the rule of law.
At the economic level, it is necessary to deepen reforms, optimize the structure, and improve the overall efficiency of the economy.
At the same time, it is also necessary to strengthen the prevention of financial risks and prevent the formation of asset bubbles.
Zhengwei Group's asset fraud incident is a wake-up call.
We must learn lessons, strengthen supervision, improve systems, and jointly safeguard market order and social integrity. Zhengwei Group