Recently, the news of Shanghai Bank’s Shenzhen Branch suing Shenzhen Deepbay Logistics Group Co., Ltd. (referred to as “Deepbay Logistics”) to repay two loans totaling nearly 7.4 billion RMB plus associated fees has stirred widespread attention in the industry. This lawsuit also involves various parties including Yao Zhenhua, Baoneng Group, and others. As of now, Deepbay Logistics’ overdue loans and guarantees at Shanghai Bank total over 10 billion RMB.
Several mainland Chinese media outlets reported on September 29 that the two loans Shanghai Bank is suing to reclaim were both issued in 2018, with Baoneng Group and several related parties providing guarantees through pledge and mortgage. One of the loans, amounting to nearly 3.9 billion RMB, had Yao Zhenhua himself as one of the guarantors.
It is noteworthy that this is not the first time Shanghai Bank has taken legal action against Baoneng Holding Group and others. According to Shanghai Bank disclosure, in December 2020, their Shenzhen Branch granted a loan of 2.58 billion RMB to Shenzhen Tongji Technology Co., Ltd. (referred to as “Tongji”) for a period of three years, with a maturity date of December 24, 2023. Deepbay Logistics, Baoneng Group, Tongji Group, Yao Zhenhua, and another party provided joint liability guarantees. Deepbay Logistics and Tongji Group also signed real estate mortgage and loan pledge contracts with Shanghai Bank.
After the loan was issued, Tongji failed to repay the principal and interest as agreed, prompting the bank to demand early repayment and file a lawsuit against Tongji with the Shenzhen Intermediate People’s Court, seeking the immediate repayment of the principal amount of 2.58 billion RMB and related interest, with Deepbay Logistics, Yao Zhenhua, Baoneng Group, and others bearing joint and several liability and disposing of the real estate mortgaged by Deepbay Logistics.
Based on the above data, it is estimated that Deepbay Logistics’ overdue loans and guarantees at Shanghai Bank currently exceed 10 billion RMB.
Public records show that the top two shareholders of Shanghai Bank are Shanghai Lianhe Investment Co., Ltd. and Shanghai International Port Group, both subsidiaries of Shanghai State-owned Assets Supervision and Administration Commission.
Deepbay Logistics, sued by Shanghai Bank, was once one of the earliest companies in China to provide modern logistics services and also one of the largest integrated logistics companies in Shenzhen. As an important company under the Baoneng Group, Deepbay Logistics has long been burdened with debt.
According to Shanghai Bank, both loans to Deepbay Logistics have corresponding pledged collateral. However, the bank did not disclose the specific assets such as real estate and equity pledged in the announcement.
Upon the outbreak of Baoneng Group’s debt crisis, Deepbay Logistics also found itself deeply mired in debt. The semi-annual report for last year showed that as of the end of June 2023, Deepbay Logistics’ total assets were 85.86 billion RMB, total liabilities were 57.06 billion RMB, and net assets were 28.79 billion RMB. In recent years, Deepbay Logistics has continued to incur losses, with the amount increasing.
After the “Battle of Baomang,” Yao Zhenhua, as one of the guarantors for Deepbay Logistics’ loans, gained significant attention in the capital market, and his personal wealth grew rapidly. In the 2016 Hurun Rich List, Yao Zhenhua ranked fourth with a wealth scale of 115 billion RMB.
Following the debt crisis, besides real estate assets, the Baoneng Group has gradually lost control of several companies. Yao Zhenhua himself has also been named as a judgment debtor multiple times. According to Tianyancha information as of September 28, Yao Zhenhua has a total of 8 judgment debtor entries, with a total amount of 6.796 billion RMB, in addition to 5 other execution records totaling 4.418 billion RMB, and has been restricted from high consumption 59 times.
Furthermore, Enterprise Check data shows that as of September 26, Yao Zhenhua has a total of 46 judgment debtor entries, with a total amount of 43.92 billion RMB; restricted from high consumption 264 times, with a total amount involved of 30.32 billion RMB.