Increasing the holdings of their own shares by important shareholders of listed companies is considered to be a conventional operation of “protecting the market”, and the final increase result has also attracted much attention. Beijing Business Daily reporter found through data statistics that, as of December 23, a total of 254 companies in the year, with a total of 552 shareholders or senior executives, had plans to increase their holdings, of which more than 60% have fulfilled their commitments. However, there are also cases of increasing holdings of “picture cakes”. At present, the increase of 7 shares has become a “bad check”. The shareholders of Landocean Energy Services Co.Ltd(300157) and other companies have not bought one share. The reasons behind these “reneging” behaviors are also diverse. The reporter combed and found that they involve money shortage, pot throwing and so on.
7 shares increased into “bad checks”
According to statistics, among A-share listed companies, as of December 23, a total of 254 listed companies with a total of 552 shareholders or senior executives had plans to increase their shares in the company.
Judging from the overall progress, most of the company’s shareholders or executives have fulfilled their commitments. According to statistics, as of December 23, a total of 346 shareholders or senior executives of the company had completed the commitment to increase their holdings, accounting for about 62.68% of the number of shareholders or senior executives during the year.
In addition, the share increase plans of shareholders or senior executives of some companies are in progress, involving companies such as Nanjing Iron & Steel Co.Ltd(600282) , Zhejiang Garden Bio-Chemical High-Tech Co.Ltd(300401) , Zhejiang Weiming Environment Protection Co.Ltd(603568) , Hangzhou Gaoxin Rubber & Plastic Materials Co.Ltd(300478) . It is understood that Nanjing Iron & Steel Co.Ltd(600282) received the notification letter from the controlling shareholder Nanjing Nangang iron and Steel United Co., Ltd. (hereinafter referred to as “Nanjing Iron and Steel Union”) on November 18, 2021. Nanjing Iron and Steel Union plans to increase its A-share holdings of the company with its own funds within 12 months from the date of disclosure of the share increase plan, and the cumulative total amount of increased holdings is no less than RMB 100 million and no more than RMB 200 million. From November 25, 2021 to December 10, 2021, Nanjing Steel Union increased its holdings of 14364043 shares by means of centralized bidding trading through the trading system of Shanghai Stock Exchange, accounting for 0.23% of the total issued shares of the company, and the total amount paid is about 51.9816 million yuan (excluding transaction expenses).
In contrast, the increased holdings of many company shareholders or executives have become a “bad check”. Taking Landocean Energy Services Co.Ltd(300157) as an example, the company disclosed the announcement on receiving the notification letter of shanneng power generation’s share increase plan on June 7, 2021. The related party Shanxi shanneng Power Generation Co., Ltd. (hereinafter referred to as “shanneng power generation”) plans to increase its shares in the company through centralized bidding or other methods recognized by laws and regulations based on its confidence in the future development of the company and the recognition of the company’s value, The increase amount is no less than RMB 150 million and no more than RMB 300 million. There is no price range for this increase. The increase plan will be implemented at an appropriate time according to the fluctuation of the company’s stock price and the overall trend of the secondary market, and will be completed within 6 months from the date of disclosure of the announcement. The above shareholding increase plan expires on December 6, 2021. Shanneng power generation increased its shareholding of 0 shares within the commitment period, and failed to complete this shareholding increase commitment.
This is not an isolated case. On January 14 this year, Fujian Start Group Co.Ltd(600734) disclosed the announcement of Fujian Start Group Co.Ltd(600734) on the share increase plan of related parties of shareholders holding more than 5%. The related party of Beijing angzhan Technology Development Co., Ltd., the company’s shareholder holding more than 5%, plans to increase its shares by no less than 1% and no more than 2% of the total issued shares of Shida group through the trading system of Shanghai Stock Exchange, The term is no more than 6 months from January 13, 2021. As of July 13 this year, Shida information had not increased its shares in the company and failed to complete the increase plan.
According to statistics, in addition to Landocean Energy Services Co.Ltd(300157) , Fujian Start Group Co.Ltd(600734) , Zhejiang Meorient Commerce & Exhibition Inc(300795) , Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) , Shangying Global Co.Ltd(600146) , Yoozoo Interactive Co.Ltd(002174) , Caissa Tosun Development Co.Ltd(000796) , the shareholders or executives of six companies also failed to complete the increase plan during the commitment period.
there are various reasons for “painting cakes”
These shareholders or executives give a variety of reasons for the “loss of promise” behavior. The reporter of Beijing Business Daily found that the types of “breaking promises” include lack of money, throwing pot and so on.
The first is the lack of money. For reasons of not buying a share, The reason given by shanneng power generation is “Due to the needs of its own business development, the company has increased its investment in clean energy power generation projects, resulting in capital pressure and limited financing channels. As of the announcement date, the company has not implemented the shareholding increase plan. During this period, the company has been assisting the controlling shareholder Shanxi Energy Corporation to deal with the historical debts listed as dishonest Executees by the court. Due to the long time and large number of residual debts , which makes it more difficult to deal with, and also causes a certain amount of capital pressure, which affects the shareholding increase plan “.
There are many cases of throwing pot type. According to the announcement released by Fujian Start Group Co.Ltd(600734) at that time, after the issuance of the increase plan, Shida information actively raised funds. However, due to frequent fluctuations in the share price of Shida group during the implementation of the increase plan, Shida group’s 2020 annual report and the first quarterly report of 2021 were disclosed on April 30, 2021, and the related party of Shida information, Beijing angzhan, passively reduced its holdings. To sum up, Shida information did not increase its shares in the company and failed to complete the increase plan.
Caissa Tosun Development Co.Ltd(000796) and Fujian Start Group Co.Ltd(600734) have similar statements. Public information shows that on January 11 this year, at that time Caissa Tosun Development Co.Ltd(000796) announced that “Liu Jiangtao, chairman of the company, plans to increase his holdings of the company’s shares through centralized bidding transactions in the next six months, with an increase of no less than 500000 shares and no more than 1 million shares”. But as of July 10, Liu Jiangtao failed to fulfill his promise. The announcement of Caissa Tosun Development Co.Ltd(000796) shows that “during the implementation period of the shareholding increase plan promised by Liu Jiangtao, the company failed to implement the shareholding increase as planned due to the impact of the company’s regular report on the sensitive period and the sensitive period of major events”.
Shen Meng, director of Xiangsong capital, said in an interview with the Beijing Business Daily that the major shareholders or executives of listed companies put forward the shareholding increase plan mainly because they believe that the share price in the secondary market is low in order to boost investor confidence. Therefore, when the stock price returns to a relatively stable and reasonable price range, the purpose of the shareholding increase plan has been achieved, the demand for the actual shareholding increase is reduced, and there may be the result that the shareholding increase is not on schedule. If the stock price rebound is affected by the market environment or the performance of the sector, investors will not care too much even if they do not increase their holdings. However, if the stock price rebound is driven by the news of increasing their holdings, if they do not increase their holdings, the stock price may still fall due to the lack of follow-up support actions, which has a great impact on investors and is easy to cause investor dissatisfaction.
In the opinion of Xu Xiaoheng, an investment and financing expert, overweight is a sharp tool to stabilize the stock price. Shareholders or senior executives want to express the company’s management’s optimism about the company’s future development, show confidence and set an example. Therefore, the market is very concerned about the information of listed companies, company executives and shareholders buying and increasing their own shares. However, the behavior of “breaking promises” will also hurt the company’s credibility and investors’ confidence in the enterprise.
(Beijing business daily)
