Hong Kong-listed China Shanshui Cement Group Ltd. said in a statement Tuesday night that it has made a report to the Hong Kong police concerning possible theft, with the company claiming data, documents, and the company chop?a stamp used to sign all legal documents?may have been stolen from its offices.
Shanshui said it failed to locate some of its data, including books, records and important documents, in addition to relevant company stamps and seal and was unable to retrieve electronic data from the company's computers in its Hong Kong office.
Shanshui removed eight directors earlier in the month in a bitter power struggle after Tianrui Group gained control of Shanshui's board.
The company said it made inquiries with each of the removed directors over the issue but "has not received a positive response" from any of them. The company didn't elaborate. The removed directors include Zhang Bin, formerly Shanshui's chairman and general manager, and the son of Shanshui's founder Zhang Caikui.
The Hong Kong police said they don't comment on individual cases. Tianrui Group hasn't replied to emails or returned calls seeking comment. The Zhang family couldn't be reached for comment.
The struggle started when Tianrui Group?also the largest shareholder of another Hong Kong-listed company, China Tiranrui Group Cement Co. Ltd.?gained control of Shanshui by successfully buying a stake even larger than the Zhang family.
Tianrui, with its 28.16% stake, took control of the Shanshui board at an extraordinary general meeting on Dec. 1. It immediately ousted eight directors who were mainly representatives from the second-largest shareholder, the Zhang family.
Two days later, Shanshui said it had given instructions to its legal adviser to start proceedings against Zhang Caikui and Zhang Bin in connection with "alleged unlawful course of conduct and breach of fiduciary duties," but it didn't disclose details.
Although Tianrui Group has gained control of Shanshui's board, it faces other major hurdles. A person speaking for Shanshui said Wednesday that some departments of its major operating unit, Shandong Shanshui Cement Group, were still "illegally occupied" by former management.
Moreover, the cement unit has issued what the person speaking for the company described as an "unauthorized" notice of default of certain bonds. Shandong Shanshui Cement Group, which earlier defaulted payment on a 2 billion yuan ($308 million) onshore bond on Nov. 12, warned Tuesday night that it may default on the onshore bond due in 2016 as some of its bank accounts and assets were frozen due to lawsuits against the company, according to a statement posted on Chinabond, one of China's main bond clearinghouses.
But the person speaking for Shanshui said that statement wasn't authorized.
"We haven't authorized the issuance of the statement," the person said, adding that all the company's formal statements were issued via the Hong Kong stock exchange.
The person speaking for Shanshui said that the company has "adequate funding" for interest payments of all its outstanding debts, include both onshore and offshore. But it couldn't pay them immediately due to "technical reasons" as the company's new board and management is unable to locate certain books, records and important documents at this stage?the items it says may be stolen.
The person said Shanshui is still in talks with creditors regarding debt restructuring and stressed that Tianrui Group has kept its promise to help in providing funding for the company, including the buyback of the $500 million offshore bonds due in 2020.
Shanshui's total liabilities amounted to 25.6 billion yuan as of June 30, 2015, according to its interim report.
Write to Carol Chan at Carol.Chan@wsj.com