Corn deep processing giant Dacheng defaulted on farmers' grain payments of 80 million near bankruptcy

recently, Asia's largest corn deep processing enterprise Dentons Biochemical Technology Group Co., Ltd(hereinafter referred to as "Dentons") defaulted on farmers' grain payments and negative news, there are reports that Dacheng has been deeply involved in the trouble of production stoppages, and even on the verge of bankruptcySeveral professionals believe that Dentons in recent years in their own business into the wrong way to make into the loss, stop production situationh2u
According to public information, Dentons is the largest private enterprise in Jilin Province, founded in 1996 and listed in Hong Kong on March 16, 2001Large adult corn processing capacity ranks first in Asia Pacific, third in the world, lysine production capacity is the world's first, but also the largest liquid glucose production enterprises in China, the annual output scale of about 1.2 million tonsh2u
As the main force in the corn acquisition in Changchun, many farmers are willing to sell their year-round corn harvest to DentonsHowever, according to several media reports, Dentons has owed farmers a total of RMB 80 million (6.3561, -0.0059, -0.09%) to farmers at the end of 2013Meanwhile, the China Business Daily reported last week that the big four banks (industry, agriculture, China and Construction) stopped lending new loans because of a large shutdown of production and operations funds, and Dentons was forced to formally submit a shutdown report to the Changchun municipal government on March 11, 2015h2u
Because the grain is in arrears, Dentons company every day at the door gathered people, involving farmers, suppliers, construction teams and other fields, the Financial Times quoted a farmer, he said he sold corn to Dentons biochemical technology, because the company promised a price higher than the market priceh2u
　　According to public information, Dentons promised to pay off its arrears at the beginning of this year, but by June it had not yet been paid On June 12, Dentons promised to pay off its arrears, and in its announcement, it clearly stated: "Keep the payment of 450,000 yuan per working day unchanged until the arrears are paid back in full." Guarantee that the arrears will be paid by 31 December 2015 "However, the repayments only last for a few tens of days On July 22, Dentons Industrial issued another announcement that the Group's funds temporarily had problems and the repayment stopped h2u
　　Over the past decade, the company has grown from a starch processing plant to a giant corn deep processing company But in just two years, it has fallen rapidly, going into a loss-making and shutdown situation h2u
　　In 2012, Xu Zhouwen, chairman of Dentons, died, and within three years Dentons had changed three general managers However, many analysts believe that the management changes have not made a rise in Dentons' operations, in recent years, its own business has gone into the wrong place h2u
　　In Dentons' business, the amino acid business accounts for more than 40%, and lysine is the most important However, lysine main industry expanded production too fast, is considered to be a major failure in Dentons operation h2u
　　In 2011, lysine prices soared to 20 yuan/kg, while 98.5% of lysine costs around 10-11 yuan Tasted the sweetness, Dentons, Plum Flowers, Chengfu and other enterprises into a crazy expansion stage Huitong data show that from 2006 to 2014, China's demand for lysine rose from 380,000 tons to 700,000 tons, while the national output has reached 1.1 million tons, the market is seriously surplus h2u
　　Especially after 2011, the economic crisis in Europe has spread, exports have been blocked and lysine prices have been depressed In Dentons's report, the most explained explanation for the decline in performance is a decline in feed production and poor demand for lysine In the past two years, the pig and poultry market has been experiencing various outbreaks, food safety incidents, and entered the stage of industrial restructuring, which has largely inhibited the demand for feed, even upstream raw materials and additives h2u
　　In addition, high raw material costs are seen as a drag on China's corn deep processing companies, and last week Dentons said in its in-time report that it had suspended production of the pig and chicken feed additive because of high state-mandated corn prices and a sharp drop in lysine sales prices The Financial Times said the shutdown was "another unintended consequence of Chinese's policy of driving up corn prices" h2u
　　According to the Financial Times, China has introduced a minimum price policy aimed at maintaining stable incomes for farmers and ensuring that farmers will grow corn even if corn prices fall to ensure the country's food security But high Chinese corn prices have distorted the market, causing the country's reserves to expand, while keeping corn deep-processing enterprises, feed enterprises and other private farmers who have a supporting role in the rural economy Despite this month's cut, the minimum purchase price is still well above the international market price h2u
　　Obviously, the huge enterprise did not grasp the market changes in time to make adjustments, but more and more deep h2u
　　In addition to the blind expansion of the main business, Dentons lacks argumentation for new projects and lacks constraints on investment, according to the China Business Daily "A lot of debt development, short-term debt, short-term borrowing as a long-term investment, failed to grasp the state support policy." On August 31, h2u , Dacheng announced the placement of 3.135 billion new shares, or 49% of the shares, to an independent third party, jilin Province Modern Agricultural Industry Investment Fund, for a total of HK$1.8 billion (7.75, 0.0003, 0.00%) But whether Dacheng's predicament can be solved is unanswered h2u
　　Recently, Asia's largest corn deep processing enterprise Dentons Biochemical Technology Group Co., Ltd (hereinafter referred to as "Dentons") defaulted on farmers' grain payments and negative news, there are reports that Dacheng has been deeply involved in the situation of production stoppage, or even on the verge of bankruptcy Several professionals believe that Dentons in recent years in their own business into the wrong way to make into the loss, stop production situation h2u
　　According to public information, Dentons is the largest private enterprise in Jilin Province, founded in 1996 and listed in Hong Kong on March 16, 2001 Large adult corn processing capacity ranks first in Asia Pacific, third in the world, lysine production capacity is the world's first, but also the largest liquid glucose production enterprises in China, the annual output scale of about 1.2 million tons h2u
　　As the main force in the corn acquisition in Changchun, many farmers are willing to sell their year-round corn harvest to Dentons However, according to several media reports, Dentons has owed farmers a total of RMB 80 million (6.3561, -0.0059, -0.09%) to farmers at the end of 2013 Meanwhile, the China Business Daily reported last week that the big four banks (industry, agriculture, China and Construction) stopped lending new loans because of a large shutdown of production and operations funds, and Dentons was forced to formally submit a shutdown report to the Changchun municipal government on March 11, 2015 h2u
　　Because the grain is in arrears, Dentons company every day at the door gathered people, involving farmers, suppliers, construction teams and other fields, the Financial Times quoted a farmer, he said he sold corn to Dentons biochemical technology, because the company promised a price higher than the market price h2u
　　According to public information, Dentons promised to pay off its arrears at the beginning of this year, but by June it had not yet been paid On June 12, Dentons promised to pay off its arrears, and in its announcement, it clearly stated: "Keep the payment of 450,000 yuan per working day unchanged until the arrears are paid back in full." Guarantee that the arrears will be paid by 31 December 2015 "However, the repayments only last for a few tens of days On July 22, Dentons Industrial issued another announcement that the Group's funds temporarily had problems and the repayment stopped h2u
　　Over the past decade, the company has grown from a starch processing plant to a giant corn deep processing company But in just two years, it has fallen rapidly, going into a loss-making and shutdown situation h2u
　　In 2012, Xu Zhouwen, chairman of Dentons, died, and within three years Dentons had changed three general managers However, many analysts believe that the management changes have not made a rise in Dentons' operations, in recent years, its own business has gone into the wrong place h2u
　　In Dentons' business, the amino acid business accounts for more than 40%, and lysine is the most important However, lysine main industry expanded production too fast, is considered to be a major failure in Dentons operation h2u
　　In 2011, lysine prices soared to 20 yuan/kg, while 98.5% of lysine costs around 10-11 yuan Tasted the sweetness, Dentons, Plum Flowers, Chengfu and other enterprises into a crazy expansion stage Huitong data show that from 2006 to 2014, China's demand for lysine rose from 380,000 tons to 700,000 tons, while the national output has reached 1.1 million tons, the market is seriously surplus h2u
　　Especially after 2011, the economic crisis in Europe has spread, exports have been blocked and lysine prices have been depressed In Dentons's report, the most explained explanation for the decline in performance is a decline in feed production and poor demand for lysine In the past two years, the pig and poultry market has been experiencing various outbreaks, food safety incidents, and entered the stage of industrial restructuring, which has largely inhibited the demand for feed, even upstream raw materials and additives h2u
　　In addition, high raw material costs are seen as a drag on China's corn deep processing companies, and last week Dentons said in its in-time report that it had suspended production of the pig and chicken feed additive because of high state-mandated corn prices and a sharp drop in lysine sales prices The Financial Times said the shutdown was "another unintended consequence of Chinese's policy of driving up corn prices" h2u
　　According to the Financial Times, China has introduced a minimum price policy aimed at maintaining stable incomes for farmers and ensuring that farmers will grow corn even if corn prices fall to ensure the country's food security But high Chinese corn prices have distorted the market, causing the country's reserves to expand, while keeping corn deep-processing enterprises, feed enterprises and other private farmers who have a supporting role in the rural economy Despite this month's cut, the minimum purchase price is still well above the international market price h2u
　　Obviously, the huge enterprise did not grasp the market changes in time to make adjustments, but more and more deep h2u
　　In addition to the blind expansion of the main business, Dentons lacks argumentation for new projects and lacks constraints on investment, according to the China Business Daily "A lot of debt development, short-term debt, short-term borrowing as a long-term investment, failed to grasp the state support policy." On August 31, h2u , Dacheng announced the placement of 3.135 billion new shares, or 49% of the shares, to an independent third party, jilin Province Modern Agricultural Industry Investment Fund, for a total of HK$1.8 billion (7.75, 0.0003, 0.00%) But whether Dacheng's predicament can be solved is unanswered h2u
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