A famous paper mill in Guangdong is being auctioned, with a starting bid of 187 million!
The relevant assets of Jiangmen Changxing Paper Co., Ltd. and its affiliated company Jiangmen Jinhui Paper Products Co., Ltd. are scheduled to be auctioned from 10:00 AM on October 29 to 10:00 AM on October 30, with a total starting price of 187 million yuan. In August last year, both companies attracted widespread attention and discussion in the industry due to a series of negative news.
The relevant assets are being auctioned with a total starting price of 187 million yuan.
According to the auction announcement, the starting price of the land use rights and above-ground buildings (structures) under Jiangmen Changxing Paper Co., Ltd., located in Shazui Village, Meige, Shaduizhen, Xinhui District, Jiangmen, is 117 million yuan, with an appraised value of 167 million yuan.
This asset includes an industrial land parcel covering 152,145 square meters, with a remaining usage period of 29.4 years; 11 certified buildings with a total area of 45,085 square meters; and 132 uncertified above-ground structures, with a surveyed area within the red line of 76,798 square meters. The scope of this auction is limited to the aforementioned real estate and does not include machinery, production lines, vehicles, or other assets.In addition, this auction is a lease-included auction, with the lease term ending on January 12, 2031, during which no rent will be charged. The leased area covers approximately 16,000 square meters of land use rights. During the lease period, ownership of buildings, structures, and equipment facilities invested in, constructed, or operated by the lessee belongs to the lessee, and ownership will be transferred to the lessor upon expiration of the lease term.
Jiangmen Jinhui Paper Products Co., Ltd. has listed assets for auction, which include the land use rights and above-ground buildings (or structures) under its name located in Meige Village, Shadui Town, Xinhui District, Jiangmen City, specifically the land along the north and south sides of Baishuidai, Baishuidai, and south of Baishuidai. The starting auction price is 69.5389 million yuan, while the appraised value is 99.3413 million yuan.
These assets mainly involve an industrial land parcel with an area of 82,042 square meters and 46 above-ground buildings, including office buildings, factories, ancillary facilities, and metal sheds, with a total area of 27,648.53 square meters. This auction is limited to real estate only and does not include any movable property within the real estate scope (such as machinery, production lines, vehicles, and other assets).
Once Sparked Widespread Discussion in the IndustryIt is reported that in 2004, the boss, Mr. Zeng, founded Jiangmen Changxing Paper Co., Ltd., and in 2013, he established Jiangmen Jinhui Paper Products Co., Ltd. The total registered capital of the two companies exceeds 100 million yuan, with a total of over 300 employees. Since the second half of 2023, due to rising raw material costs and falling product prices, the company's operations have been severely affected.In August 2024, Jiangmen Changxing Paper Co., Ltd. was exposed for delaying employees' wages for several months, prompting employees to urgently report the situation to local government authorities. Meanwhile, the Xinhui District Human Resources and Social Security Bureau issued a labor protection supervision rectification notice, demanding that Jiangmen Changxing Paper Co., Ltd. pay full salaries and announcing an investigation into the responsible parties for handling the wage arrears case.Additionally, according to a civil ruling issued by the Xinhui Court on August 17, 2024, the court froze approximately 910,000 yuan in the account of Jiangmen Changxing Paper Co., Ltd. and seized a batch of machinery, equipment, and raw materials. On August 20 of the same year, local media reported that the factory workshop had been sealed, and a law firm had also posted a legal notice.
Overall, the difficulties faced by the two companies were mainly due to changes in the industry environment-the mismatch between costs and selling prices led to cash flow problems, ultimately causing a series of issues such as wage arrears, bank loans, payments to suppliers, as well as frozen deposits and seized assets by the court. This also reflects the huge challenges the paper industry faced in the past couple of years.But who would have thought that the paper industry now seems to be gradually recovering? Major paper mills have been raising prices successively since the end of July, with cumulative increases of over 20%. If Jiangmen Changxing Paper Co., Ltd. had managed to persist until now, its situation might have been completely different.