Zhongzhi Enterprise Group was established in 1995. It started with timber business, and now its main business covers investment, mergers and acquisitions, asset management and industrial funds. It owns a number of wholly-owned and holding subsidiaries and shares in 18 listed companies, with total assets exceeding 1 trillion yuan.
In February this year, Xie Zhikun filed a complaint against the executives of XIOGROUP who accompanied a European inspection last year, accusing the executives of this company of obtaining secret profits through fraudulent means. According to the complaint, Xie Zhikun claimed that in 20 14, he invested 5.8 billion yuan (then $940 million) to help establish XIO and help XIO acquire two foreign enterprises. However, it didn't take long for Xie Zhikun to claim that he didn't know what the investment of 5.8 billion yuan was, and neither did he. XIO didn't return his phone calls or provide relevant information and documents.
Therefore, a representative of Xie Zhikun wrote to XIO in London twice to inquire about the whereabouts of the funds. Strangely, however, XIOGROUP denied taking Xie Zhikun's $940 million investment, saying that there was no such thing. In the end, the two sides failed to reach an agreement. In February this year, Xie Zhikun filed a lawsuit in the Cayman Islands court, accusing XIO executives of conspiring to defraud money. After this incident was reported by the Wall Street Journal, it quickly spread to social media. On March 2 1 day, XIOGroup issued the Clarification Statement on False Reports, claiming that there were many false reports about XIOGroup and its management team in the report of The Wall Street Journal, which had a serious adverse impact on XIOGroup and damaged its good reputation.
As for what are false reports, the statement did not point out. Interestingly, if Xie Zhikun did invest $940 million in XIOGroup in 20 14, then the deal would be too valuable. At that time, the exchange rate of RMB against the US dollar was at a high point. Today, the money is equivalent to RMB 6.47 10 billion yuan, and only at the exchange rate, it earned a net profit of 600 million yuan in three years. However, in 20 14, due to the large increase in foreign exchange reserves, it was not as difficult as it is now. It is still a mystery whether there is any loss of this $940 million. Neither side disclosed more, but it is understood that this dispute directly led to the failure of Zhikun's subsequent capital operation plan in A shares.