[Direct Report Network BeijingDecember 21st] (Internet Financial News Center)Chen Huan, the chairman of Wanjiale (000533), who has been missing for two months, finally got new news. On the evening of December 19, Wanjiale issued a notice saying that the public security organs had clearly informed him that Chen Huan had been arrested. Subsequently, lawyer Wan Jiale contacted Chen Huan's lawyer, who also informed him that "Chen Huan has been arrested".

At the same time, Wan Jiale found that the basic bank account of Zhoushan Hansheng Pioneer Industrial Co., Ltd., a wholly-owned subsidiary of Zhejiang Hansheng, was frozen through online bank inquiries. According to Wan Jiale disclosure, Zhejiang Hansheng and its subsidiaries were frozen three bank accounts, a total of 10.2 million yuan frozen.

Wan Jiale also said that the current management of the company has been paying close attention to the guarantee of Zhejiang Hansheng's loan to Guangda Xinglong Trust Co., Ltd. (hereinafter referred to as "Guangda Trust") of 21.6 million yuan (after the transfer of creditor's rights to Maike Futures Co., Ltd.), strictly controlling the risk, carrying out due diligence verification of the incident, and has sent company personnel and Maike Futures Co., Ltd. Company Limited (referred to as "Myco Futures") related personnel contacted to understand the specific circumstances of the incident.

Wan Jiale said that it was difficult to understand the "righteous" behavior of Maike futures to take over the Everbright Trust creditor's rights after the seizure of Hansheng in Zhejiang Province, and there were many doubts about the use of guarantee funds. The company has hired lawyers to intervene in the incident and is discussing the next steps.

It is understood that on the evening of October 22, Wanjiale announced that the office space and some articles of Zhejiang Hansheng Pioneer Industrial Co., Ltd. (Zhejiang Hansheng), the company's holding subsidiary, had been sealed up by the Public Security Bureau on October 19, and that Zhejiang Hansheng had been unable to carry out normal business activities and the recovery time could not be determined.

Earlier, Wan Jiale received a report from the relevant personnel of Zhejiang Hansheng, a holding subsidiary company, that on October 19, 2018, Zhejiang Hansheng received a "decision on seizure" issued by Yuhang Branch of Hangzhou Public Security Bureau, which mentioned that the Yuhang Branch of Hangzhou Public Security Bureau found some property and documents held by Zhejiang Hansheng in the investigation of suspected cases of illegal absorption of public deposits by Jin Zhongkai and others to prove the criminal. The suspect is guilty or innocent.

It is understood that Chen Huan is also the chairman of Zhejiang Hansheng. In fact, in an announcement issued on October 22, Wankale said that it could not contact Chen Huan, the chairman of the company. "The company will pay close attention to the relevant information of the incident. If there is the latest progress, it will fulfill the obligation of information disclosure in accordance with the relevant provisions in a timely manner."

According to the Internet Financial News Center, Chen Huan replaced Jinzhongkawa as legal representative and executive director and general manager in March 2015, and then retired in December 2016. Jinzhongkai is the legal representative and controlling shareholder of grassroots holding company. Sun Jianrong, the real controller of Wanjiale, was the chief legal officer of grassroots investment.

On October 19, the Yuhang District Public Security Branch of Hangzhou Public Security Bureau announced that Jin Zhongkai, the legal representative of "grassroots investment", had come to the branch to submit his case. After preliminary investigation, the public security organs shall investigate the case of illegal absorption of public deposits by grass-roots investment, and take criminal compulsory measures against Jin Zhongkai and related personnel according to law.

Industry and commerce information shows that grassroots investment parent company, grassroots holding company (hereinafter referred to as "grassroots holding"), was once the only shareholder of Zhejiang Hansheng, Wanjiale Holdings subsidiary company, with an investment of 50 million yuan, and its share-holding ratio was 100%. That is to say, Wanjiale and Grassroots Holdings are "stepfather" and "father" of Zhejiang Hansheng respectively.

In addition, the partner of Zhejiang Tuoyuan Law Firm, which cooperates with grassroots investment, is also Chen Huan and serves as the legal director of Grassroots Holdings Limited. In an interview in 2014, Chen Huan said that all legal affairs of the whole grassroots holding company were entrusted to Tuoyuan. "Tuoyuan appoints lawyers to participate in witnessing and supervising the formation of each claim. After witnessing, legal opinions on the authenticity, legality and validity of the creditor's rights shall be issued.