On February 16, Shandong Daye Co.Ltd(603278) (603278, SH) announced that two directors of the company illegally reduced their shares, constituting a short-term transaction. The announcement shows that the board of directors of the company will deal with the income obtained in accordance with relevant regulations.
Wang Jinwu and Dou Wanming, the directors of the company, were the two persons involved in illegal transactions. Statistics show that before the reduction, Wang Jinwu held 573100 shares, including 273100 shares before IPO and 300000 shares in other ways; Dou Wanming holds 249300 shares, including 199300 shares before IPO and 50000 shares in other ways.
Other means refer to the company’s restricted stock incentive plan. On July 27, 2021, Shandong Daye Co.Ltd(603278) shareholders’ meeting deliberated and approved the 2021 restricted stock incentive plan. Based on this plan, Wang Jinwu and Dou Wanming were granted 300000 shares and 50000 shares respectively, and the registration date of granting restricted shares was September 24, 2021.
The planned reduction was disclosed on November 16, 2021. At that time, the announcement showed that directors Wang Jinwu and Dou Wanming planned to reduce no more than 68300 shares and 49800 shares of the company through centralized bidding due to personal capital needs. On December 10 of that year, the two reduced 68200 shares and 49800 shares respectively through centralized bidding. On November 16, 2021, the announcement issued by the company showed that the sources of the shares to be reduced by the two parties were “the shares held by the company before its initial public offering and listing and the shares obtained after the implementation of the conversion of the company’s capital reserve into share capital”.
Although the two directors said that the reduced shares came from before the IPO, they also violated the relevant regulations due to the “reduction of shares within six months after the company granted its restricted shares”. According to the relevant provisions of the securities law, the board of directors of the company will return the short-term trading income of 466500 yuan and 340100 yuan to the company.
The reporter of the daily economic news noted that in 2019 Shandong Daye Co.Ltd(603278) there were also cases of executives trading stocks in violation of regulations. It is reported that on January 2 and 4, 2019, Dou Baosen, the actual controller and then director, bought 188000 shares of the company. On the 8th of the same month, the company disclosed the announcement of pre increase of annual performance in 2018. The Shanghai Stock Exchange believes that Dou Baosen’s behavior of increasing his holdings of the company’s shares within 10 days before the announcement of the company’s performance forecast constitutes an illegal behavior of buying and selling the company’s shares in the window period, and the number of shares illegally increased is large, and the circumstances are more serious. According to relevant regulations, the Shanghai Stock Exchange decided to circulate a notice of criticism to it, notify the CSRC and record it in the integrity archives of listed companies.
According to the 2020 annual report, the company’s main business is metal wire rope products, metal surface spraying and auto parts processing and manufacturing. As of the closing on February 16, Shandong Daye Co.Ltd(603278) was reported at 10.27 yuan / share, up 1.99%.
