Corn deep processing giant Dentons biochemical systre on the brink of bankruptcy Jilin government takeover

Asia's largest corn deep processing company on the verge of bankruptcy by the Jilin provincial government took over the world's third largest corn deep processing giant, Dacheng Biochemical cause of failure to grasp the market changes in time to make adjustments, and eventually on the verge of bankruptcy when the government took overeGH
After six months of shutdown, Dentons Biochemical Technology Group Co., Ltd., the world's third-largest corn refiner on the brink of bankruptcy, was taken over by the Jilin provincial governmenteGH
Dentons announced at a special general meeting of shareholders on October 8th that it would transfer its controlling interest in the Group to the Jilin Agricultural Industry Investment Fund (Jilin Agricultural Fund), a key state-owned enterprise held by the Jilin provincial government, through the issuance of shares and convertible bonds at a total cost of RMB1.5 billionAt the same time, the Jilin Agricultural Fund has also been conditionally agreed to subscribe to the Group's convertible bondsAfter converting into group shares, Jilin Agricultural Fund will hold about 70.66 per cent of Dentons' enlarged sharesAs a result, Dacheng's owners became Jilin provincial governmenteGH
Jilin is China's largest corn province, and over the past decade, the Jilin provincial government has encouraged the rapid development of companies that process corn into feed, starch, corn syrup and biofuels to create an industrial base for the province's predominantly rural economyeGH
Dentons is the largest private enterprise in Jilin Province, founded in 1996 and listed in Hong Kong in March 2001The company's annual corn processing capacity ranked first in Asia, the third in the world, lysine production capacity is the world's first, but also the largest liquid glucose production enterprises in China, the annual production scale of about 1.2 million tons eGH
　　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 A number of industry insiders believe that Dentons in recent years because of its own business mistakes is the main reason for its entry into the loss, production stoppage situation 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 eGH
　　In addition, high raw material costs are seen as a drag on China's corn deep processing companies, after Dentons said in its in-part report that it had suspended the production of the pig and chicken feed additive because of high state-mandated corn prices and a sharp drop in lysine sales prices eGH
　　The Financial Times said the shutdown was "another unintended consequence of Chinese's policy of driving up corn prices" China has introduced a minimum price policy aimed at maintaining stable incomes for farmers and ensuring that farmers 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 eGH
　　And this corn deep processing giant enterprises can not grasp the market changes in time to make adjustments, but more and more deep eGH
　　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 80 million yuan in grain arrears since the end of 2013 At the same time, due to the basic interruption of production and operation funds, the big four banks (industry, agriculture, china, construction) stopped new loans, Dentons was forced to formally submit a shutdown report to the Changchun municipal government on March 11, 2015 eGH
　　Dentons's takeover by the Jilin provincial government also reflects the Chinese government's attitude that it will not let local leading companies fail in a period of slowing economic growth eGH
　　"Debt-ridden companies risk a ripple effect at the local level When local governments decide whether to bail out troubled businesses, they will consider the future prospects of the industry and the need for restructuring Huang Weiping, a professor of economics at Chinese Min University, said eGH
　　From steel to solar energy, provincial governments have stepped in to save businesses The Financial Times commented that the move averted a potential default, but added to concerns about the quality of debt held by Chinese banks and the drag on the economy by unprofitable companies eGH
　　Asia's largest corn deep processing enterprise sewage dating enterprises on the verge of bankruptcy by the Jilin provincial government took over the world's third largest corn deep processing giant, Dacheng Biochemical cause of failure to grasp the market changes in time to adjust, and finally on the verge of bankruptcy when the government took over eGH
　　After six months of shutdown, Dentons Biochemical Technology Group Co., Ltd., the world's third-largest corn refiner on the brink of bankruptcy, was taken over by the Jilin provincial government eGH
　　Dentons announced at a special general meeting of shareholders on October 8th that it would transfer its controlling interest in the Group to the Jilin Agricultural Industry Investment Fund (Jilin Agricultural Fund), a key state-owned enterprise held by the Jilin provincial government, through the issuance of shares and convertible bonds at a total cost of RMB1.5 billion At the same time, the Jilin Agricultural Fund has also been conditionally agreed to subscribe to the Group's convertible bonds After converting into group shares, Jilin Agricultural Fund will hold about 70.66 per cent of Dentons' enlarged shares As a result, Dacheng's owners became Jilin provincial government eGH
　　Jilin is China's largest corn province, and over the past decade, the Jilin provincial government has encouraged the rapid development of companies that process corn into feed, starch, corn syrup and biofuels to create an industrial base for the province's predominantly rural economy eGH
　　Dentons is the largest private enterprise in Jilin Province, founded in 1996 and listed in Hong Kong in March 2001 The company's annual corn processing capacity ranked first in Asia, the third in the world, lysine production capacity is the world's first, but also the largest liquid glucose production enterprises in China, the annual production scale of about 1.2 million tons eGH
　　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 A number of industry insiders believe that Dentons in recent years because of its own business mistakes is the main reason for its entry into the loss, production stoppage situation 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 eGH
　　In addition, high raw material costs are seen as a drag on China's corn deep processing companies, after Dentons said in its in-part report that it had suspended the production of the pig and chicken feed additive because of high state-mandated corn prices and a sharp drop in lysine sales prices eGH
　　The Financial Times said the shutdown was "another unintended consequence of Chinese's policy of driving up corn prices" China has introduced a minimum price policy aimed at maintaining stable incomes for farmers and ensuring that farmers 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 eGH
　　And this corn deep processing giant enterprises can not grasp the market changes in time to make adjustments, but more and more deep eGH
　　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 80 million yuan in grain arrears since the end of 2013 At the same time, due to the basic interruption of production and operation funds, the big four banks (industry, agriculture, china, construction) stopped new loans, Dentons was forced to formally submit a shutdown report to the Changchun municipal government on March 11, 2015 eGH
　　Dentons's takeover by the Jilin provincial government also reflects the Chinese government's attitude that it will not let local leading companies fail in a period of slowing economic growth eGH
　　"Debt-ridden companies risk a ripple effect at the local level When local governments decide whether to bail out troubled businesses, they will consider the future prospects of the industry and the need for restructuring Huang Weiping, a professor of economics at Chinese Min University, said eGH
　　From steel to solar energy, provincial governments have stepped in to save businesses The Financial Times commented that the move averted a potential default, but added to concerns about the quality of debt held by Chinese banks and the drag on the economy by unprofitable companies eGH
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