Four years after taking control of Jiangsu Wanlin Modern Logistics Co., Ltd. (603117), majority shareholder Fan Jibo unexpectedly posted a public statement online, directly addressing former controller Huang Baozhong: "As the company's former helmsman, Mr. Huang Baozhong should take responsibility for the operational outcomes and resulting losses from that period, answer to the company and its investors, and fulfill past commitments."
Why take the dispute public? Fan explained that after becoming controlling shareholder in 2021, he discovered Huang had concealed critical asset information during the ownership transfer, causing severe discrepancies between the transaction value and actual company assets. "Huang initially promised compensation but failed to follow through," Fan stated.
The ongoing conflict has impacted Wanlin's banking credit lines, threatening future operations. Fan revealed being blocked by Huang, forcing him to air grievances publicly. At the core lies Wanlin's troubled 2016 African acquisition, which our investigation reveals has become a financial quagmire.
**The Problematic Acquisition** Under Huang's leadership in 2017, Wanlin completed a landmark 293 million yuan purchase of 55% stake in Yulin International Timber (Yulin), gaining control of four forestry companies in Gabon with logging rights to 1.07 million hectares. The deal closed within a month.
While Yulin met 2017-2019 performance targets, its finances collapsed post-commitment period, recording 69.8 million yuan losses in 2021 and 273 million in 2022. Fan assumed chairmanship in August 2020, discovering alarming financial issues: "Despite 2.7 billion yuan in receivables, collections were problematic with many debtors unresponsive."
**Operational Black Box** Fan criticized the lack of oversight: "Wanlin had minimal participation in Gabon operations while continuously advancing funds to Yulin without receiving dividends." Original shareholder Xu Jie maintained operational control and provided financial statements.
A 2022 memorandum showed Huang promised Xu would repay 70 million yuan annually starting 2022, but no payments materialized. By 2023, Fan's investment vehicle spent 51 million yuan to remove Yulin from Wanlin's books, followed by 94.5 million yuan in 2024 to resolve related liabilities, enabling Wanlin's financial recovery.
**Hidden Pre-Acquisition Transactions** Fan alleges financial engineering predating the acquisition. Since 2013, Wanlin subsidiary Shanghai Mailin provided financing and logistics services to Shanghai Fanchang Asset Management under agency agreements. A 2022 lawsuit revealed these contracts allegedly facilitated undocumented loans to Xu's companies during acquisition negotiations.
Huang's court testimony described these as temporary financing arrangements masked through third parties to avoid disclosure requirements. Wanlin claims 43.2 million yuan was improperly channeled, with 12.2 million still outstanding. "Huang authorized these irregular transactions without board approval and later helped debtors evade responsibility," Fan asserted.
**Unresolved Complications** Post-spinoff, Fan's attempts to regularize Yulin's ownership hit regulatory roadblocks. Authorities noted Xu's mainland Chinese residency made Overseas Direct Investment (ODI) procedures inapplicable, requiring alternative restructuring. Despite obtaining ODI certification in 2017, current transfers remain stalled with Xu retaining operational control in Gabon.
Fan disclosed ongoing operational interference: "Huang's unfulfilled commitments to resolve African operations continue harming stakeholders." He also cited retaliatory actions including share freezes and regulatory complaints disrupting Wanlin's banking relationships.
Multiple attempts to contact Huang for comment went unanswered as of publication.
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