China Zhongwang Holdings Limited (China Zhongwang), the second largest aluminum manufacturer in the world, has declared bankruptcy. In less than 30 years, this $100 billion enterprise, that was raised from scratch, has fallen.
On Sept. 20, China Zhongwang, a listed company, started bankruptcy reorganization proceedings. The company announced that day, on the Hong Kong Stock Exchange (HKSE) to protect the rights of creditors, that the Shenyang Intermediate Court of Liaoning Province of China had ordered the company and its subsidiaries to consolidate and reorganize.
The Shenyang Intermediate Court cited an audit report by Mazars & Co. of Hong Kong, a leading tax and accounting firm, stating that China Zhongwang is now clearly insolvent, its subsidiaries’ liabilities amount to RMB 459.8 billion (about $64 billion) as of the end of March 2022, while its total assets amount to only RMB 202 billion (about $28 billion). China Zhongwang is Asia’s largest, and the world’s second-largest, manufacturer of industrial aluminum extrusion products that are used in construction, transportation, mechanical equipment, and power engineering. It is also the main supplier of aluminum extrusion materials for high-speed trains in China….