For two consecutive years, cooperation with the One Foundation and donation of "materials" instead of cash are justifiable. What really makes netizens question is whether the materials donated by Hongxingerke are worth 10 million yuan.
Recently, Hongxingerke became "the light of domestic goods" for a while because it announced to donate 50 million yuan of materials to Henan.
Red Star Capital Bureau noticed that when Hongxing Erke was "promoted to the altar", there were also doubts.
On July 24, a netizen questioned the authenticity of Hongxingerke's donation of 50 million yuan. On social networking sites such as Douban, some netizens also raised questions about Hongxingerke's donation.
Subsequently, One Foundation and Zhengzhou Charity Federation issued statements one after another to respond to the donation of Hongxingerke.
In addition, some netizens suggested that Hongxingerke was a wholly foreign-owned enterprise and was on the verge of bankruptcy.
What is the truth? Red Star Capital Bureau launched an investigation on this.
Hongxing Erke announced to donate 50 million materials
"Only 200000 bottles of mineral water were donated"
"The Hongxing Erke store was crowded with customers at more than 10 a.m.," Wang Xing, who is engaged in the sports goods sales industry, told the Red Star Capital Bureau.
In the video sent by Wang Xing, we can see that Hongxing Erke's stores are full of customers, who come here to buy. Not only is offline sales hot, but Hongxingerke has achieved more than 77 million yuan in sales in the past week (July 17-23) in the live broadcast of Tiaoyin alone.
At the moment when Hongxingerke was "held on the altar", there was also a voice of doubt.
On July 24, a netizen published the article "How can Hong Xingerke donate 50 million materials when he has donated 200000 bottles of ice dew mineral water?", and raised a question mark about the 50 million materials donated by Hong Xingerke.
The above article said: "Since July 21, when it announced that it would donate 50 million yuan of materials, by 16:00 p.m. on July 23, through publicly available data, Hung Sing Erke has only donated 200000 bottles of ice-cream mineral water through the One Foundation.", "The average price of Taobao is about one bottle of one yuan, and this time the value of the materials is about 200000 yuan."
Red Star Capital Bureau noticed that in the WeChat article released by One Foundation on July 24, it was indeed mentioned that the 50000 bottled water donated by Hongxingerke had arrived in Zhengzhou on July 23, and nearly 150000 bottled water would be sent to more disaster stricken communities in Henan in the next two days.
In addition, the above article also listed two donation announcements of Zhengzhou Charity Federation, saying that Hong Xingerke's name was not found in them, "that is to say, according to publicly available information, Hong Xingerke has only donated 200000 bottles of ice cream spring water, which is far from the 50 million yuan sought after by the whole network due to the explosive search."
We media issues a question about Hongxing Erke
During the epidemic, "donated 10 million"?
One Foundation didn't respond positively
Subject to official announcement
On social platforms such as Douban, many netizens also raised questions about Hongxing Erke. A netizen posted that Hongxing Erke has cooperated with "One Foundation" for two consecutive years, and donated "materials" instead of cash every time.
Red Star Capital Bureau found on Hongxingerke's official microblog that when the COVID-19 epidemic broke out last year, Hongxingerke said on January 30, 2020 that it would donate 10 million yuan of materials together with One Foundation, including cold clothing, disinfectant and masks. Hongxingerke also donated 50 million yuan of materials through One Foundation and Zhengzhou Charity Federation for the flood disaster in Zhengzhou, Henan.
Hongxing Erke announced to donate 10 million yuan of materials during the COVID-19 epidemic
Donation income and expenditure for fighting COVID-19 released by One Foundation on February 26, 2020
For two consecutive years, cooperation with the One Foundation and donation of "materials" instead of cash are justifiable. What really makes netizens question is whether the materials donated by Hongxingerke are worth 10 million yuan. According to the "phased donation income and pointed out special audit report of the project to fight against COVID-19 epidemic" issued by One Foundation, Hong Xingerke's name was not found in the list of top ten donation income from January 22 to December 31, 2020.
It can be seen that among the top ten enterprises, there are both donations and materials, with the amount between 2 million yuan and 15 million yuan, but Hung Sing Erke claimed that the donated materials of 10 million yuan did not appear in the top ten list.
Special report on fighting pneumonia issued by One Foundation on 21.3.29
On July 25, Red Star Capital Bureau interviewed One Foundation. As for the donation of materials by Hongxingerke to the disaster areas in Henan, the relevant staff said: "At present, we are communicating with enterprises and will make truthful publicity and disclosure as soon as possible."
However, as to whether the 10 million yuan donated by Hongxing Erke during the COVID-19 epidemic is true, One Foundation did not respond positively, but responded to Red Star Capital Bureau: "Everything is subject to the official publicity of One Foundation, and One Foundation must be open and transparent."
Hongxing Erke is not a "domestic product"?
Its operating company is wholly owned by foreign legal person
In addition to questioning the materials donated by Hongxingerke, some netizens put forward that "Hongxingerke marketing itself is patriotic Chinese goods, but it was found to be a wholly foreign-owned enterprise by a foreign legal person".
Tianyan APP shows that the full name of Hongxingerke's operating company is Fujian Hongxingerke Sports Goods Co., Ltd. (hereinafter referred to as "Fujian Hongxingerke"), which was registered in Quanzhou Administration for Industry and Commerce of Fujian Province on June 8, 2000, and its legal representative is Wu Rongzhao.
Red Star Capital Bureau found that on the national enterprise credit information publicity system, Fujian Hongxingerke Sports Goods Co., Ltd. was solely owned by a foreign legal person.
In fact, on December 31, 2013, the shareholder of Fujian Hongxingerke changed to 100% of Guanji Investment Co., Ltd. According to Tianyancha APP, Guanji Investment Co., Ltd. is registered in the British Virgin Islands.
However, Hongxingerke (Xiamen) Investment Management Co., Ltd. and Hongxingerke (Xiamen) Business Co., Ltd. are all wholly owned by domestic natural persons, and Wu Rongzhao holds 100% of the shares.
Mao Wei, director of the Capital Market Legal Affairs Department of Jingshi Law Firm, analyzed Red Star Capital Bureau, and found that there are generally two situations for companies to be registered in Virgin Islands, Cayman Islands and other places: one is to be tax-free, and the other is to register the parent company in Virgin Islands to facilitate overseas listing. It is also a common practice to build a VIE architecture and control domestic entities in the form of protocols.
Is it on the verge of bankruptcy?
Top 100 private enterprises in Fujian last year
Annual revenue over 2 billion
In recent years, Hongxingerke has faded out of public view, and many netizens even think that Hongxingerke is going "bankrupt".
On July 25, Wu Rongzhao, Chairman of Hon Sing Erke, said on his personal microblog that the company has made some profits after adjustment in recent years, and the transformation process is still difficult, but it is not "on the verge of bankruptcy".
On November 14, 2005, Hongxingerke was listed on the Singapore Stock Exchange, becoming the first clothing brand in the industry to be listed overseas, ahead of Anta and Tebu.
In February 2011, Hongxing Sports was accused of having problems with its financial report in 2010. Its financial statements included 1.417 billion yuan in cash and bank deposits, but the audit found only 263 million yuan, with the false increase of cash and bank deposits reaching 1.154 billion yuan. Afterwards, Hongxing Sports was suspended.
According to the search of Red Star Capital Bureau, according to the WeChat official account of Jinjiang Economic Daily, Hongxingerke was listed in the top 100 private enterprises in Fujian in 2019, ranking 81, and announced its operating income of 2227.39 million yuan. In 2020, Hon Sing Erke was again listed in Fujian's Top 100 Private Enterprises, ranking 82nd, with an operating income of 2843.34 million yuan. As for Hongxingerke's specific profit figures and more detailed financial situation, there is no official data.
The picture is from the WeChat official account of Jinjiang Economic Daily
Compared with Anta, Li Ning, Tebu International and 361 degrees, this revenue is still far from good. In 2020, Anta, Li Ning, Tebu International and 361 degrees will have annual revenue of 35.51 billion yuan, 14.457 billion yuan, 8.172 billion yuan and 5.127 billion yuan respectively. It seems that Hongxing Erke is not as good as one tenth of Anta and one fifth of Li Ning.
At the brand strategy cloud conference held by Hon Sing Erke this year, the relevant person in charge said that Hon Sing Erke would strengthen the market layout at the prefecture and county levels. On June 11, Hon Sing Erke announced on its official official account that around the Dragon Boat Festival, nearly 200 new stores of Hon Sing Erke will meet with consumers in all provinces and cities. The stores opened this time are all over 28 provinces in China.
Erke:
The donation is divided into two parts, and details will be responded later
In the midst of all kinds of questions, the comment that "Hongxing Erke's marketing has been overshadowed" began to appear.
A netizen commented on Weibo that the company was suggested to make a detailed list of materials worth 50 million yuan. Wu Rongzhao, president of Hongxingerke, responded, "Please rest assured that this is not the first time we have done such a thing."
Perhaps in response to public doubts, Hongxingerke announced the details of its donation at 3:25 this morning: "The 30 million yuan materials donated by Hongxingerke through Zhengzhou Charity Federation and the 20 million yuan materials donated by One Foundation are being transported and distributed in a tight manner!".
That is to say, the 50 million yuan of materials Hongxingerke promised to donate are divided into two parts, of which 30 million yuan is donated to Zhengzhou Charity Federation, and the other 20 million yuan is donated through One Foundation. As for the progress of donation, Hongxingerke also mentioned that "it is currently in the process of transportation and distribution". As can be seen from the microblog picture, donated materials, including mineral water and instant noodles, have been delivered to the Fenghuangtai Taxation Bureau and Wenhua Road Sub district Office in Jinshui District, Zhengzhou City.
At noon on July 25, Red Star Capital Bureau contacted the Fujian Federation of Young Fujian Merchants headed by Wu Rongzhao. The secretary-general of the federation said that Wu Rongzhao was busy commanding the allocation of disaster relief materials in the morning, and was in a meeting at nearly noon. Later, Hongxing Erke would give an official response.
Later, Wu Rongzhao also responded in his personal video number that Hongxingerke would fulfill its donation commitments according to the needs of the two charities. "We are just doing what we can with our original intention. Please don't deify the stars."
Zhengzhou Charity Federation:
Donated 29 million materials and 1 million donations have been received
On the morning of July 25, the Red Star Capital Bureau called the Zhengzhou Charity Federation. When referring to the materials donated by Hongxingerke, the staff of the other party said: "Too many people called to ask about Hongxingerke's donation. At present, we have a special person to connect with Hongxingerke".
According to the tips of Zhengzhou Charity Federation, Red Star Capital Bureau interviewed Director Wang of the three fundraising departments responsible for Hongxingerke's donation.
"On July 21, Xiamen Zhanle E-Commerce, a subsidiary of Hongxing Erke, signed an agreement with Zhengzhou Charity Federation on 29 million yuan of goods and 1 million yuan of donations. Now 1 million yuan of donations has arrived, and 29 million yuan of goods are delivered in batches," Wang said to Hongxing Capital Bureau.
Tianyan APP shows that the above Xiamen Zhanle E-commerce Co., Ltd. is indeed a subsidiary of Hongxingerke, and Hongxingerke (Xiamen) Industrial Co., Ltd. is a major shareholder holding 90% of the shares.
As for the reason why the 29 million yuan of materials should be delivered in batches, Chief Minister Wang also specifically explained: "It is difficult to digest so many materials at once because Zhengzhou's power and communication are not smooth, because we have to call next to inquire about the demand, so (Hongxing Erke) signed the agreement that so many materials should not be delivered at one time."
According to Minister Wang, the donation agreement also stated: "Since Zhengzhou Charity Federation cannot accept so many materials at one time, both parties negotiate to donate in batches. After arranging the storage place or receiving place, Hongxing Erke will distribute the donated materials in batches within 15 days from the date of receiving the notice."
Minister Wang told the Red Star Capital Bureau that after receiving Hongxingerke's donation, he would gradually make it public: "We really publicized it in batches. If the disaster situation really stabilized in the past, let's make a general statistics. If there is no Hongxingerke on the list, it is fraud, and we can sue him."
One Foundation:
Including 2 million cash and 18 million materials
In addition to the Zhengzhou Charity Federation, at 11:00 am on the 25th, the One Foundation also released a "statement on Hongxingerke's donation of 20 million yuan of materials".
It is mentioned in the note that on July 21, Hongxingerke signed a donation framework agreement with One Foundation, and both parties agreed to donate cash and materials to One Foundation from July 20, with a total value of no more than 20 million yuan, including 2 million yuan in cash donation and 18 million yuan in material donation.
As for the progress of Hongxingerke's donation, One Foundation said: "The above 2 million yuan emergency fund has been allocated by Hongxingerke Company and will be received in the coming days. Other related materials will be received and distributed by One Foundation in batches according to the arrival of materials and the needs of the disaster area."
Previously, One Foundation mentioned in its WeChat official account: "The first batch of bottled drinking water, more than 50000 bottles of water, supported by Hongxingerke through One Foundation, arrived in Zhengzhou on the 23rd. Nearly 150000 bottles of water will be sent to more disaster stricken communities in Henan in the next two days." One Foundation also responded to the 200000 bottles of water, saying that as of 22:00 on the 24th, The first batch of supplies of more than 200000 bottled water were delivered to the disaster area.
Red Star Journalist Lu Yanfei Qiang Yaxian
Edit Yang Cheng