(Yicai Global) Dec. 31 -- China's Xiwang Group, a privately owned steel and corn oil processor, has missed another CNY500 million (USD71.6 million) bond repayment, increasing the defaulted debt to CNY2.3 billion (USD329.6 million).

 Xiwang has not paid its interest on debt due yesterday, the Shanghai Clearing House said in a statement.

Things are not looking up as two more bonds will mature soon. One on Jan. 13, and another on Feb. 8, each tallying CNY500 million. But the coffers should not be empty. Xinwang's total assets are worth CNY50 billion (USD7.2 billion). However, the company's headcount is large at 16,000.

Problems surfaced in October when Shandong province-based Xiwang failed to pay back CNY1 billion in bonds. Earlier this month, it missed paying CNY800 million.

The root goes deep into the soil of eastern Shandong. In 2017, aluminum smelter Qixing Group failed to repay CNY6.2 billion in bonds, prompting Xiwang to provide a CNY2.9 billion debt guarantee to the local peer. Since then, Xiwang's competitiveness has deteriorated.

The shares of Xiwang's three listed units have fared on different tracks today. Xiwang Property Holdings [HK: 2088] jumped by 8.24 percent to 18 Hong Kong cents (2 US cents) by noon. Xiwang Foodstuffs [SHE: 000639] rose 0.22 percent to CNY4.51 (65 US cents). Xiwang Special Steel [HK: 1266] climbed 2.08 percent to 49 Hong Kong cents.

Editor: Emmi Laine