Shandong Qixing Group Co., Ltd. is a private Chinese business group whose subsidiaries are engaged in the smelting of aluminum. At one point the company owned an array of other businesses including property development, power cables and ceramics and a five-star hotel before shedding businesses as part of a restructuring plan from heavy debt accumulated during its rapid expansion. It is one of the main industrial groups in Zouping County , one of the richest counties in the country.
17-446: The company's rapid growth has depended on generous availability of corporate debt. Through heavy borrowing the company was able to expand its aluminum production operations and enter other lines of business. By 2012, Qixing would reach its apex. The group company was then made up of 15 operating companies and seven subsidiaries with revenue 15 billion RMB ($ 2.3 billion) and had 12,000 employees. These businesses included Qixing Iron Tower ,
34-576: A Shenzhen Stock Exchange listed subsidiary, that manufactured transmission towers. Years later Zeng Libin, the president of the China Aluminum Association, would say "Qixing expanded blindly" during this period of easy credit and expansion. From its peak, the company would have to sell assets to repay debt as its financial situation deteriorated. The company's interest in Qixing Iron Tower (later renamed Northcom Group)
51-431: A 130,000 metric tons per year aluminum smelter and 500,000 metric tons per year alumina refinery. Qixing Iron Tower Northcom Group Co., Ltd. (formerly known as Shandong Qixing Iron Tower Co., Ltd. ) is a Chinese company with two main lines of business in the manufacturing towers for power transmission and communications and other industrial products and the provision of wireless broadband services. The company
68-713: A 3.07% share. The company attempted to move into mining in a takeover bid extending from 2013-14. Qixing Iron Tower made a preliminary offer in May 2013 for Australian-based Stonewall Resources , an Australian Securities Exchange listed miner with assets in Australia and South Africa. After due diligence was completed, the sale of Stonewall Resources was announced in November 2013. The proposed transaction required necessary approvals in China, South Africa, and Australia, prolonging
85-468: A private offering, mostly to a small number of chosen investors . Generally, these investors include friends and family, accredited investors, and institutional investors. PIPE (Private Investment in Public Equity) deals are one type of private placement. SEDA (Standby Equity Distribution Agreement) is also a form of private placement. They are considered to present lower transaction costs for
102-518: A repayment of seven billion RMB triggering fears of reverberations in the local financial system. However, the repayment was made a few days after the default, restoring calm in the market. As part of a local government orchestrated restructuring plan, the Xiwang Group took over the company and guaranteed its debts in April 2017. The company's core business it the production of aluminum. It operates
119-557: The Securities Act of 1933 allow an unlimited number of accredited investors to purchase securities in an offering. Generally, accredited investors are those with a net worth in excess of $ 1 million or annual income exceeding $ 200,000 or $ 300,000 combined with a spouse. Under these exemptions, no more than 35 non-accredited investors may participate in a private placement. In most cases, all investors must have sufficient financial knowledge and experience to be capable of evaluating
136-600: The Rules known as Regulation D . Different rules under Regulation D provide stipulations for offering a Private Placement, such as required financial criteria for investors or solicitation allowances. Private placements may typically consist of offers of common stock or preferred stock or other forms of membership interests, warrants or promissory notes (including convertible promissory notes), bonds , and purchasers are often institutional investors such as banks , insurance companies or pension funds . Common exemptions from
153-460: The acquisition via a private placement worth 6.3 billion RMB with the amount raised going towards the purchase consideration and an expansion of Beixun's wireless broadband data network in nines cities. After the acquisition the company changed its name to Northcom. The company is involved in providing wireless broadband services and manufactures a range of steel products including communications and power transmission towers. Its primary clients in
170-460: The administration. Although these placements are subject to the Securities Act of 1933 , the securities offered do not have to be registered with the Securities and Exchange Commission if the issuance of the securities conforms to an exemption from registrations as set forth in the Securities Act of 1933 and the associated SEC rules put into effect. Most private placements are offered under
187-437: The duration of the deal process. The parties worked throughout 2014 to obtain the approvals to close the deal. However, the deal was terminated by Qixing Iron Tower in November 2014, 10 days before the deadline for completion. After the purchase by Longyue Investment, the company was the vehicle for the 3.55 billion RMB acquisition in 2015 of Beixun Telecom, provider of wireless broadband services. The company raised funds for
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#1732772199183204-542: The intragroup lending activity. The securities regulator found the company had violated its disclosure obligations and imposed penalties. Amid the financial troubles, the Qixing Group would sell almost its entire stake in Qixing Iron Tower to Longyue Investment in December 2014. After the sale, Longyue Investment became the controlling shareholder of Qixing Iron Tower was a 31.87% share and Qixing Group only retained
221-451: The issuer than public offerings. Since private placements are not offered to the general public, they are prospectus exempt. Instead, they are issued through Offering Memorandum . Private placements come with a great deal of administration and have normally been sold through financial institutions such as investment banks. New FinTech companies now offer an automated, online process making it easier to reach potential investors and reduce
238-425: The manufacturing segment are utilities and telecom companies including the two major Chinese utilities China State Grid and China Southern Power Grid , Reliance Group of India and ZTE . The company is the major Chinese exporter of towers. Private placement Private placement (or non-public offering) is a funding round of securities which are sold not through a public offering , but rather through
255-608: The president of the China Aluminum Association would say "Qixing expanded blindly". Throughout 2014, the parent company and its subsidiary Qixing Iron Tower engaged in intracompany lending transactions that were not adequately disclosed according to the listing rules of the Shenzhen Stock Exchange. The Shandong provincial bureau of the China Securities Regulatory Commission launched an investigation into Qixing Iron Tower into
272-695: Was founded in 2002 as a part of the Qixing Group , a private industrial group based in Shandong with diversified holdings. In February 2010, the company became listed on the Shenzhen Stock Exchange . The parent company, Qixing Group, experienced financial difficulties due to overborrowing and rapid expansion in the 2010s. At the peak of its expansion in 2012, the parent company had added capacity to its core business of aluminum production and entered into new lines of business. Years later
289-605: Was sold to the Longyue Group in December 2014. The Qixing Group was at the center of a local financial crisis in Shandong in 2017 based on a web of cross guarantees between the company and other local companies in Zouping County . A total of 10 billion RMB in loans had been advanced to the company and other local companies with the borrowers guaranteeing the debt of the others. In April 2017 the company defaulted on
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