Some practical tools for due diligence on non-performing assets.

1. Information query related to enterprise entities

1. "National Enterprise Credit Information Disclosure System" of the State Administration for Industry and Commerce

Website: gsxt.saic.gov.cn /

Officially launched on March 1, 2014, it is now possible to query the basic industrial and commercial registration information of any company in the entire range, including company registration number, legal representative, type, registered capital, and date of establishment. , place of residence, business period, business scope, registration authority, business status, investor information, list of the company’s main registered executives, branches, liquidation information, administrative penalty information, etc.

2. Provincial and municipal credit networks

These websites are locally led and generally focus on promoting the construction of corporate credit systems.

For example, Beijing Enterprise Credit Information Network/publish/main/5/index.html

This website can query all information on receiving organized organization code certificates nationwide, displaying the same as The entity organization code certificate is completely consistent. This website can actually print a scanned copy of the organization code certificate.

4. Credit Vision

Website: www.x315.com/

Launched on March 15, 2014, one-stop summary of industrial and commercial registration, organization Corporate information such as organization code certificate, affiliated companies, litigation-related information, trademarks and patents, news and recruitment. The characteristic is that the value-added service covers accurate corporate affiliations and companies under the names of executives, as well as corporate financial data, court opening announcements and judgment documents, etc.;

What is worth recommending is its credit monitoring service, which automatically Pushing company news saves a lot of manual online search work; the website can also check foreign companies. If the assets involve foreign companies, you can check global corporate credit information. Currently, it supports real-time query of corporate information in 11 overseas countries, and other The country needs to be queried offline.

5. Xizhi.com

Website: www.xizhi.com/

Mainly provides Chinese company names, legal persons, contacts and contact information, addresses, Quick query and display services for product and service information. The special service is to provide enterprise data reports based on the enterprise information of the platform, which mainly conducts research and launches rankings on the number of enterprises and industrial development status in provinces, cities, counties and districts across the country. However, many small and medium-sized enterprise information covered by the platform has not been verified, and there are data inaccuracies.

6. Construction industry qualification inquiry

Website: mohurd.gov.cn/wbdt/dwzzcx/index.html

Official construction enterprise qualification display platform , you can query the qualification certificate information of relevant enterprises.

7. Websites of local housing security and real estate administration bureaus

2. Query of litigation-related information

1. The Supreme People’s Court’s “China Judgment Document Network” is limited to judgments Document

Website: www.court.gov.cn/zgcpwsw/

According to the "Regulations of the Supreme People's Court on the Publication of Judgment Documents by People's Courts on the Internet", since January 1, 2014 Starting from today, all court judgments shall be published on this website, except for judgments involving state secrets, personal privacy, juvenile crimes, and cases concluded through mediation. Because this website is a "judgment document website", it is only applicable to cases that have reached the judgment stage.

It is currently in trial operation, and only some provinces and cities (such as Beijing, Shanghai, Zhejiang, etc.) have achieved the goal of making all effective judgment documents of the three-level courts within their jurisdiction public since 2014.

2. Provincial high court websites

In addition to the Supreme People's Court's "China Judgments Network", where can I check previous judgments or unjudged ones? Yes Generally, provinces have their own websites. These websites can query some judgments, court hearing announcements, execution information, court hearing information, etc. before 2014.

For example:

①Beijing Court Network

Website: /

Because the Supreme People’s Court’s “China Judgment Documents Network” is limited to querying of judgment documents, and in 2014 It was only put into trial operation after January 1, 2018, and the data depends on local reports. However, local courts have been online for many years, and some court legal documents have been online for a long time. Therefore, if the national network cannot be found, the local courts may be able to find it.

There are court opening announcements, execution information, etc. This information may be the litigation-related information we need for investigation. Through this information, we may also be able to observe it, which will give us a clearer understanding.

3. The Supreme People's Court's "National Court Information Inquiry System for Persons Executed"

Website: /search/

This website can be queried on January 1, 2007 Information on persons subject to execution newly received in the future and previously unfinished execution cases. In actual inquiries, some local courts may delay reporting data, resulting in some inquiry information lagging behind.

At the same time, many case inquiries show that the results are closed. This may be a technical result of the local court to complete the case assessment. In fact, the cases marked as "closed" may only be the end of the procedure or may not be completed at all. in execution.

4. The Supreme People’s Court’s “Information Inquiry System for the List of Dishonest Persons Subject to Execution in National Courts”

Website: /

For non-performance or failure to fully perform the obligations subject to execution Starting from October 24, 2013, the person subject to execution can query the performance status of the person subject to execution of dishonesty, the execution court, the documents based on execution and the specific circumstances of the behavior of the person subject to execution of dishonesty, etc. However, we cannot be completely convinced, because in practice, some courts will still upload data based on the application of the parties, or the upload will be delayed.

5. "Announcement Inquiry" on China Court Website

URL: /zljsfl/

This website does not require registration, except for basic patent information (such as inventor/designer) , patent holder, publication date, etc.), you can also check the legal status of each patent, patent certificate issuance, annual fee calculation, and the directory of patent agencies in most provinces and cities across the country.

3. "China Trademark Network" of the Trademark Office of the State Administration for Industry and Commerce

Website: www.saic.gov.cn/sbw1/sbcx/sbcx.html

According to the query prompts, the product category for which the trademark is to be queried can be determined. For details, please check the registered trademark information and applied trademark information. "Trademark registration information inquiry" is divided into three categories: trademark identical or similar information inquiry, trademark comprehensive information inquiry and trademark examination status information inquiry.

It should be noted that the Trademark Office has made it clear that the query content on this website is for reference only. The specific trademark registration information should also be based on the "Trademark Announcement" edited and published by the Trademark Office of the State Administration for Industry and Commerce.

4. China Copyright Protection Center

Website: www.ccopyright.com.cn/cpcc/index.jsp

State Administration of Press, Publication, Radio, Film and Television (National Copyright It is a public institution directly under the Bureau) and a national copyright registration agency. It is currently the only computer software copyright registration and copyright pledge registration agency in my country.

5. People's Court Litigation Assets Network

Website: www.rmfysszc.gov.cn/

You can check the status of assets being auctioned by courts across the country , through this website you can learn about some information about the parties involved in the lawsuit.

6. Taobao Judicial Auction

Website: /zhongdeng/index.shtml

IV. Investment and Financing Information

1. China Securities Regulatory Commission The information disclosure website "Cninfo.com" will be designated.

Website: www.cninfo.com.cn/

Only applicable to public companies listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange. The website does not require registration and provides a rich range of content, including the company's announcements on major matters, dividends, financial indicators, company annual reports, etc.

2. Shanghai Stock Exchange

Website: www.sse.com.cn/

The information on these websites overlaps with that of Juchao Information Network. But the focus is slightly different.

3. Shenzhen Stock Exchange

Website: www.szse.cn/

The information on these websites overlaps with that of Juchao Information Network, but the side information The emphasis is slightly different.

4. National Equities Exchange and Quotations

Website: /

5. China Money Network

Website: www.chinamoney. com.cn/index.html

6. China Bond Information Network

Website: www.chinabond.com.cn/d2s/index.html

7 , National Association of Financial Market Institutional Investors

Website: www.nafmii.org.cn/

8. Hexun.com

Website: www.hexun.com /

These websites and the websites of local equity trading centers, such as Zhejiang Equity Trading Center, Zhejiang Equity Trading Center, after all, not many companies are listed, but in order to raise funds in the securities market, they still seek other ways such as issuing bonds, short-term Financing is carried out through non-financial enterprise debt financing instruments such as financing bonds, medium-term notes, collective notes, etc. Therefore, some enterprise information and operating conditions, financing methods, financing scale, etc. can also be disclosed.

The non-performing asset ratio is also called the non-performing asset ratio. By definition, it represents the ratio of all non-performing assets to all assets. The calculation formula is:

Non-performing asset ratio = non-performing assets Closing balance/Total assets Closing balance*100.

2. What are non-performing assets?

Non-performing assets are assets that cannot participate in the normal capital turnover of the enterprise, such as long-term arrears of receivables from debt units, and sluggish purchases or production of enterprises. Backlog of supplies and bad investments, etc. For enterprises, non-performing assets mainly refer to assets that have been written off from the company's books and various assets that have not been written off but have been provided for impairment, mainly including physical, debt and equity non-performing assets; for As for banks, in China, the non-performing assets of commercial banks are also non-performing loans, but abroad, banks also hold other assets, so the scope of non-performing assets is wider than in China.

1. The total amount of non-performing assets at the end of the year refers to the part of the enterprise's assets that has problems and is difficult to participate in normal production and operation. It mainly includes accounts receivable for more than three years, other receivables and prepaid accounts, and the backlog Book balances of inventory, idle fixed assets and non-performing investments, net losses on pending current assets and fixed assets, as well as potential loss accounts and operating loss accounts, etc.

2. The total assets at the end of the year refer to the year-end number of the total assets of the enterprise. Data values ??are taken from "Balance Sheet".

3. An enterprise's non-performing assets refer to the enterprise's unsolved net asset losses and potential losses (funds), as well as various problematic assets for which asset impairment provisions have not been made according to the financial accounting system. Estimated amount of loss.

4. The non-performing assets of banks mainly refer to non-performing loans, commonly known as bad and bad debts. In other words, the loan issued by the bank cannot recover the principal and interest according to the pre-agreed term and interest rate. Non-performing assets mainly refer to non-performing loans, including overdue loans (loans that have not been repaid until the end of the loan period), sluggish loans (loans that are overdue for more than two years) and bad debt loans (unrecoverable loans that need to be written off). Others include real estate portfolios such as real estate.

5. After 1998, my country classified assets into "normal", "concern", "substandard", "suspicious" and "loss", which is the "five-level classification". In July 1999, the central bank issued the "Notice of the People's Bank of China on the Comprehensive Implementation of Five-Level Loan Classification" and the "Guiding Principles for Loan Risk Classification (Trial)". According to the regulations of the People's Bank of China, the ratio of special reserves usually withdrawn is: 2 for special mention, 25 for substandard, 50 for doubtful, and 100 for losses. The last three categories are non-performing assets.

3. Disposal of non-performing assets

1. Litigation recovery

Judicial litigation is the last barrier for financial asset management companies to safeguard the country’s financial claims, and it is also an important tool for economic activities. The most common means of recovering debts. Some companies have operating difficulties, but this does not mean that they have lost complete repayment ability. Some companies rely on their own operating income and have certain sources of debt repayment. However, some companies ignore credit, use various excuses to delay repayment, and use various means to escape debt. Recovering debts through litigation can increase the intensity of debtor performance, and can also avoid the cumbersome approval procedures that state-owned institutions need to complete when disposing of non-performing assets.

2. Asset restructuring

Asset restructuring includes debt restructuring, corporate restructuring, asset conversion and mergers and acquisitions, etc. Debt restructuring includes debt repayment with assets, debt renewal, asset replacement, commercialization, etc. Debt-for-equity swap, discount realization and agreement transfer, etc. Its essence is to rearrange debts of debtor enterprises, some extend the repayment period, some make new arrangements on interest rates, some may make discounts on interest receivable, and some may also Make appropriate discounts on the principal. Restructuring the assets and debts of debtors is a method widely used by asset management companies in the disposal of non-performing assets.

3. Debt-to-equity swap

Debt-to-equity swap refers to the transfer of the bank’s claims on the enterprise to the asset management company after independent review by the asset management company and approval by the relevant state departments. It is converted into an asset management company's equity in the enterprise, and the asset management company holds the shares in stages and operates and manages the equity held.

4. Diversified sales

(1) Public auction

Public auction, also known as public bidding, is a form of public bidding through special intermediaries. , the buying and selling methods and trading activities that transfer the rights of specific items or property to the highest bidder. Non-performing assets are disposed of through public auctions, which have high market transparency, comply with the market transaction rules of openness, fairness, fairness and good faith, and can reflect the principles of marketization. It is currently used by banks and asset management companies to dispose of mortgage assets. Way. This disposal method is mainly suitable for non-performing assets with high target value, large market demand, and strong versatility, such as land, real estate, machinery and equipment, vehicles, materials, etc.

(2) Transfer by Agreement

Transfer by Agreement refers to the process of searching for buyers through multiple channels through public inquiry in the market, but it is impossible to find more than two bidders, especially when there are only two bidders. In the case of a buyer, the transfer price of the non-performing assets is determined through negotiation between the two parties. It is mainly applicable to situations where the target market demand is seriously insufficient, there are very few suitable buyers, there are no competitors, and comparison and selection cannot be made.

(3) Bidding transfer

Bidding transfer refers to the public disclosure of transfer information and bidding rules to the public, investors use sealed bidding, and the bid evaluation committee conducts bid opening and bidding at an agreed time. Evaluate the bids and select the disposal method of the transferee with the highest bid and the lowest risk of cash recovery. Specifically, there are two types of transfers: public bidding transfer and invitation bidding transfer. This disposal method is suitable for situations where the target value is large, the versatility is poor, and there are limited potential customers with bidding power in the market. However, after public inquiry through certain channels, at least three or more investors can be found.

(4) Bidding transfer

Bidding transfer refers to the public release of transfer information through certain channels. The reserve price is determined based on the bidder's intended quotation. After a certain amount of deposit is paid, the transfer is completed at the agreed time and The bidder and bank draft shall be submitted to the transferor, and the transferor shall open the envelope in public, and determine the transferee's disposal method according to the principle of the highest bidder. This disposal method is suitable for the transfer and sale of various assets, including debts, equity, and debt-retired physical assets, that have poor market demand for assets, have few bidders, have poor auction results or cannot be auctioned according to law, and are not suitable for bidding and transfer.

(5) Package disposal

Package disposal is based on market demand and in accordance with specific standards (such as region, industry, group, etc.) to combine a certain amount of debt, equity and Physical assets and other assets are combined to form an asset package with certain characteristics, and then the asset package is disposed of through debt restructuring, transfer, bidding, auction, replacement and other means. It is suitable for assets that are difficult to dispose of and have long disposal cycles. Package disposals are divided into two major categories: First, debt restructuring package disposals. The second is open market package disposal.

(6) Subcontracting

Subcontracting means that a financial asset management company entrusts part of its assets to a contractor in the form of a subcontract, and the contractor An act of being responsible for operating a business or collecting debts on your behalf. Financial asset management companies receive a huge amount of non-performing assets, and their non-performing loan customers are scattered across the country. It is difficult for financial asset management companies to dispose of all non-performing assets in a timely manner with the limited manpower. In order to reduce disposal costs and speed up the disposal of non-performing assets, financial asset management companies need to rely on the power of society and adopt subcontracting methods to implement rapid and effective disposal of non-performing assets.

5. Asset swap

Asset swap refers to the signing of a swap agreement between two market entities based on the evaluation of assets through legal evaluation procedures for their respective business needs. Agreement, thereby realizing the exchange of intangible or tangible assets between the two parties or the exchange of claims for physical assets and equity. At present, asset swaps mostly occur between listed companies and unlisted companies. Unlisted companies achieve the purpose of indirect listing through asset swaps with listed companies, and achieve their own development through the continuous financing channels of listed companies. .

6. Leasing

Leasing means that the property leased by the lessor in the form of a contract is handed over to the lessee for possession according to certain conditions and period under the premise that the ownership remains unchanged. , control and use the lessee to pay rent to the lessor. At the end of the lease, the lessee returns the property intact to the lessor. The ultimate goal of financial asset management companies in disposing of non-performing assets is to recover cash, but during the actual disposal process, some non-cash assets are often recovered, including production factors such as machinery and equipment, and ownership of the enterprise may also be obtained.

7. Bankruptcy repayment

Bankruptcy repayment refers to the repayment received by the financial asset management company in accordance with the order of repayment after the debtor becomes bankrupt in accordance with the law and the debtor's assets are liquidated and sold. Corporate bankruptcy is an inevitable product of market economy. Some enterprises are insolvent due to poor management or their inability to adapt to the needs of industrial structure and product structure adjustment. They are unable to pay their due debts and have no hope of continuing to operate. Bankruptcy of such enterprises is conducive to improving the efficiency of resource allocation in the entire society. However, for financial asset management companies, bankruptcy liquidation is a last resort.