The past, present and future of the new snail bay international trade city

At zero hour on December 1, 2009, the Snail Bay Wholesale Market moved out of the old Snail Bay, and the new Snail Bay International Trade City officially set sail.

From 2014 to 2017, the Zhonghao Group operating crisis, the capital chain broke, the villagers can not return home, the public can not take over the house, the commercial tenants operating unsustainable, stability has become a major problem, the formation of serious systemic financial risks.

Before the reorganization, the basic situation of the group: 33.8 billion in total liabilities, of which: 17.6 billion in principal of financial institutions, 2.4 billion in arrears of interest, 5.2 billion yuan of principal and interest of the commission, 2.1 billion yuan of engineering, 620 million in fees, 5.2 billion yuan of rent in advance and the purchase of housing, Gourmet City back to the rent arrears of 100 million yuan, and other payments of 580 million yuan. The loss is 9.2 billion dollars.

(a) Social stability issues

Tami Village relocation housing can not be delivered, about 1,625 households of 4,500 people were demolished nine years failed to return to the move, the long time outside the drift, there have been nearly one hundred large-scale rights defense; You live in the city of 3,303 12,000 homeowners have not been able to go home for three years.

The vast majority of merchants in the International Commerce City do not have the heart to operate, once the bankruptcy of more than 100,000 merchants of all inputs will be gone, will form a large group of events.

(ii) systemic financial risk

As of December 31, 2017, the Chinese豪 Group owed financial institutions 17.6 billion yuan in principal, 2.8 billion yuan in interest, and 3.5 billion yuan in principal and interest of the bank entrusted with the loan, amounting to a total of 23.9 billion yuan.

All the market properties have been fully mortgaged, and some of them have entered the judicial auction program, some of them have entered the asset management company to prepare for the auction, and they are also involved in litigation cases. In the meantime, there are criminal cases such as Li Jinsong's fraud case, which involves an amount of 1.83 billion yuan, and a number of financial institutions are involved in financial risks. 35.6% of the seized shares of Zhonghao Real Estate can't be unblocked in time, and Zhonghao Group's debt risk can't be solved, which will form an exceptionally serious systemic financial risk to the financial market of Yunnan Province.

(3) Long-term delinquent taxes and fees

As of 2017, Zhonghao Group owed a cumulative total of approximately 500 million yuan in taxes and 620 million yuan in fees.

(D) litigation disputes

1. Among the legacy issues of the former Zhonghao, litigation disputes have always been the main problem hindering the normal development of restructuring work due to the large number of cases involved, the long time span, and the diversity of the cases, the total number of cases amounted to 2,395 cases, and the amount of money involved amounted to 4.35 billion yuan, which triggered a large number of social strife and intensified the Social conflicts.

2, creditors, financial institutions seized the first phase of the snail bay, the second phase, the Chinese herbal medicine market a total of 1.8 million square meters of stores, which has entered into the execution, auction procedures of more than 700,000 square meters of stores, has been on the market as a whole, the continued operation of the formation of a great risk. If not properly resolved in a timely manner, it will directly lead to the displacement of thousands of merchants and tens of thousands of employed people.

(5) The market is characterized by a poor operating environment, the suspension of ancillary facilities, and a loss of confidence among merchants

Due to the mismanagement of Zhonghao and the chaos of the order, the market has led to a poor environment and a loss of confidence among merchants. A large number of firefighting facilities can not be used, there is a major fire hazard; more than 300 toilets most of the water and electricity does not work, dirty, smelly, extremely poor business environment, the second and fourth phase of the business is particularly poor, the vacancy rate of up to 50%. The supporting facilities in the area are seriously lagging behind, and the public **** facilities are basically suspended, especially the lack of education resources.

Zhonghao Group's business crisis and broken capital chain have triggered a series of problems related to people's livelihood, social stability, financial risks, litigation risks and lack of supporting facilities in the area. Since 2015, a number of provincial and foreign enterprises have not been reorganized successfully, Zhonghao historical legacy problems need to be resolved.

Junfa in November 2017 to 45.2 billion debt-bearing acquisition of Zhonghao snail bay, as of September 30, 2020 has invested 14.6 billion of its own funds, to undertake the principal and interest of the bank loan 20.4 billion, 3.2 billion of commissioned loans.

Over the past three years, Junfa has made every effort to promote the effective resolution of the problems of people's livelihood, social stability, financial risk, litigation risk, poor operating environment and lack of supporting facilities in the area, and has achieved milestones.

(a) Solve the problem of livelihood and stability

You live in the city in October 2018 officially handed over, 3303 12,000 owners formally go home; Tami village back to the house in December 2019 official delivery, about 1625 households back to the end of up to nine years of drifting.

Accumulated payment of 2.1 billion yuan owed to nearly 400 construction units in the previous period.

(2) How to resolve systemic financial risks

After the reorganization, Junfa reached a consensus on debt restructuring with 21 financial institutions, including Minsheng Bank, Cinda Asset, and Industrial and Commercial Bank of China (ICBC), and signed relevant agreements. As of September 2020, the cumulative payment of 5.9 billion yuan of principal, 2.4 billion yuan of interest in arrears, and 2.5 billion yuan of normal interest on financial institutions' borrowings totaled 10.8 billion yuan.

As of October 31, 2020, there was a remaining borrowing balance of $13.8 billion, with $7.1 billion of principal and interest to be repaid in 2021, $4.4 billion of principal and interest to be repaid in 2022, and $2.3 billion of principal and interest to be repaid in 2023.

(C) Solve the problem of long-term delinquent taxes, fees and charges

Since the reorganization, no new delinquent taxes have arisen, and as of September 2020, the delinquent taxes of 500 million yuan have been fully paid.

The original owed 620 million yuan of fees, has been strictly in accordance with the requirements of the reorganization meeting of the municipal government, paid 418 million yuan.

(D) Handling of litigation disputes

Since 2017, when Junfa Group set up Junao Company to carry out the reorganization of Zhonghao Group, it has always been committed to solving the problem of litigation disputes left behind by the original Zhonghao; as of October 2020, there were 2,395 litigation disputes caused by the original Zhonghao, with an amount of about 4.35 billion yuan involved in the lawsuits, Junfa Group As of October 2020, Junfa Group has resolved 1,781 litigation disputes in a positive and appropriate manner, with the amount of 4.182 billion yuan involved in the closed cases, and 614 cases are under continuous coordination and processing, with the amount of 168 million yuan involved in the cases.

(E) to solve the market operating environment is poor, supporting facilities lagging behind

After the reorganization, Junfa invested 126 million yuan, the facilities for the overall upgrading and renovation of the market environment and area facilities have been greatly improved. Among them, spent 25 million to complete the first phase of the market fire facilities and bathroom upgrades; invested 40 million to renovate the first phase of the market A-D area of the fourth floor; invested 61 million for the atrium remodeling, and will be invested in the first phase of the market 80 million to transform the market fa?ade, outside the square.

After the reorganization of Junfa, it quickly pushed forward the resumption of school construction, investing nearly 200 million yuan in the construction and delivery of Beijing Eighty Middle School, and at the same time, investing 350 million yuan to accelerate the construction of the primary school attached to the Teacher's College and delivering it. In the future, two elementary school, four kindergartens, a three-A hospital and other supporting facilities will also be built.

Since the reorganization of Zhonghao in November 2017, Junfa has invested a lot of financial and material resources and manpower, and through painstaking efforts, it has been able to solve the problems of livelihood, stability, finance, litigation, business environment of merchants, and supporting facilities in Snail Bay, and present a brand new scene.

Junfa has the confidence, determination and ability to rely on the digital + Internet trading platform, with the city's living facilities, the new snail Bay International Trade City will be built into a set of modern wholesale, new retail, shopping parks as one of the international level of the city complex project, while creating a Dianshang, Yunnan-Vietnam Railway, the Ancient Tea and Horse Trail historical and cultural exhibition area.

(a) National market procurement trade mode pilot, help the national goods abroad

Yunnan is located in the core area of the radiation center for South Asia Southeast Asia, has become the ASEAN "capital", as a strategic point of the core, will become South Asia, Southeast Asia, and even the world's focal point, linking the ASEAN and China's import and export exchanges.

Data show that Yunnan Junfa new snail Bay International Trade City merchants have long had trade transactions with many South and Southeast Asian countries. In order to further accelerate the pace of its foreign sales expansion, Junfa will vigorously develop a digital network trading platform to help merchants and these countries more convenient and efficient trade development.

On September 15, 2020, seven ministries and commissions jointly issued a document entitled "Letter from the Ministry of Commerce, Development and Reform Commission, Ministry of Finance, General Administration of Customs, General Administration of Taxation, General Administration of Market Supervision and Foreign Exchange on Accelerating the Pilot Work of the Market Purchase Trade Model" [Business Letter (2020) No. 425], formally approving the Kunming Junfa - New Spiral Bay International Trade City as the fifth batch of pilot projects for the market purchase trade model in the country. On October 29th, Kunming Junfa - New Snail Bay International Trade City completed the "first single" first test for the fifth batch of 17 market procurement trade pilot cities in the country, "the first ticket" customs clearance export business. The first time I saw this, I was able to see the new model of export facilitation in Kunming.

Kunming market procurement trade mode pilot "first single" first trial success, the realization of the key areas of international trade and key aspects of the early and pilot, as foreign trade new forms, new models of the important carrier, the new snail Bay International Trade City relying on the market procurement trade pilot with merchants out of the country to take advantage of the FTZ wind to help the cloud, the national goods to the world.

(2) "Internet + commercial trade" composite business model, helping the cloud products out of Yunnan

Yunnan as a national strategy of the hub city, the main "green food, green energy, healthy living destination" three business cards. Currently, the herbal medicine market in New Snail Bay Phase III has long been the largest herbal medicine market in Yunnan, and its market is full of valuable herbs and local specialties from all over the province.

Under the policy support of Yunpin out of Yunnan, Junfa plans to adjust the existing traditional wholesale market into a modern business complex in steps to adapt to the new retail model as the core of the development of the future market direction, to build a new composite business model of "Internet + business trade", to help farmers or merchants to promote the merchandise of each merchant to the Internet platform, to realize the merchant trading volume of multiples of the level of enhancement, so that the merchant can enjoy the high-speed development of Internet trade brings. Merchants to enjoy the market dividends brought about by the rapid development of Internet trade, but also to establish the Internet transaction settlement platform, the construction of cross-border e-commerce industry incubation system, cross-border O2O bonded display and self-pickup mode, cross-border e-commerce O2O new retail and other services, to promote the cloud products out of Dian, to the country, to the world.

(C) lead the investment of 100 million to set up Junfa new snail Bay dual-creation fund, help entrepreneurship and innovation

In order to support the building of a moderately affluent society in a comprehensive manner, the victory of poverty eradication, and support for the "mass entrepreneurship and innovation", Junfa Group, with the guidance of the thought of socialism with Chinese characteristics in the new era, thoroughly implement the strategic deployment of the construction of the Pilot Free Trade Zone, with systemic innovation, to promote the development of the new business model, to promote the development of the new business model. With the guidance of socialist thought with Chinese characteristics in the new era, Junfa Group y implements the strategic plan on the construction of Pilot Free Trade Zone, taking system innovation as the core and replicability as the basic requirement, boldly tries, boldly breaks through, and independently reforms, to build a first-class market business environment with marketization, rule of law, and internationalization, and focuses on building new service industries and cutting-edge consumption industry clusters, to accelerate the formation of new kinetic energy and enhance new competitive advantages.

Junfa Group will join hands with financial institutions and lead the investment of 100 million yuan to set up Junfa New Spiral Bay Double Creation Fund. It is planned to invest and incubate a large number of modern service industry and supply chain upgrading and other smart transaction-related enterprises in five years, and help the new snail bay to build a smart transaction ecosystem. Focusing on the layout of modern service industry and supply chain upgrading, intelligent transactions, Internet of Things and other related industries venture capital and equity investment.

In addition to the fund, there are also multi-directional efforts in the shareholding cooperation, **** camp incubator and so on. Entrepreneurs in BI transaction-related fields are expected to receive start-up financial support, and product design and R&D guidance, strategy formulation and operational counseling, technology platforms and other start-up back-up services provided by Junfa Group.

Through the establishment of the fund, efforts will be made to reduce the cost of entrepreneurship and enterprise development, optimize the policy and financial service environment for innovation and entrepreneurs, provide a development platform, and make every effort to promote scientific and technological innovation and the development of the real economy.

(4) Spending 800 million to build a giant urban complex, shaping the city's business card

Chunfa will also open a new 160,000 commercial clusters, create a people's park belonging to the citizens of the city of Spring, the style of the shopping street, upgrading and remodeling plans to invest 800 million, will be snail Bay into a shining business card of Southwest China.

Through the overall transformation of the area, to fill the new snail Bay before the blank of no shopping, entertainment, hotels, business functions, and at the same time to realize the Yunnan-Vietnam Railway, Dianshang, as well as the historical recreation of the Ancient Tea Horse Trail, the new snail Bay into a set of eating, drinking, entertainment, shopping, and high-end hotels for the integration of the international level of urban complex.

The future of Junfa New Conch Bay International Trade City will be based on the national strategic advantages of Yunnan, highlighting the project's unique trade power in Yunnan, the region and the country, and establishing an absolute market position for the international community. Junfa will make the new snail bay "the new snail bay of the world".