Due to the wrong understanding of the short-term trading rules of convertible bonds, Qin Yinglin, the actual controller and chairman of Muyuan Foods Co.Ltd(002714) ( Muyuan Foods Co.Ltd(002714) ), known as “Zhumao”, had to turn over the income of 868881 million yuan to the company. On April 7, Muyuan Foods Co.Ltd(002714) an announcement aroused great concern in the market. Qin Yinglin, chairman of the company, turned over all the income of 868881 million yuan to the company due to the short-term transaction caused by the reduction of convertible bonds. In addition, the reduction of convertible bonds held by senior manager Xu shaotao also constituted a short-term transaction, and all the proceeds of 69200 yuan were turned over to the company. The reason for the short-term transaction caused by the reduction of convertible bonds is that Qin Yinglin and Xu shaotao misunderstood the relevant rules. In fact, in recent years, there have been some short-term trading of convertible bonds by the board of directors, supervisors and senior executives of some listed companies. During the year, the listed companies Hangcha Group Co.Ltd(603298) , Ningbo Kbe Electrical Technology Co.Ltd(300863) also issued announcements on short-term trading of convertible bonds by relevant personnel.
all income turned over to the company
On April 7, Muyuan Foods Co.Ltd(002714) announced that Qin Yinglin, chairman of the company, reduced his holdings of some convertible bonds in February this year, forming a short-term transaction, and has handed over all the proceeds of 868881 million yuan to the company.
Muyuan Foods Co.Ltd(002714) said that Chairman Qin Yinglin and senior management Xu shaotao sold some or all of the convertible corporate bonds held by them on February 17 and February 15 respectively, and the above transactions constituted short-term transactions. Qin Yinglin’s income from this short-term transaction is 868881 million yuan, and Qin Yinglin has handed over all the income to the company; Xu shaotao’s income from this short-term transaction is 69200 yuan, and Xu shaotao has handed over all the income to the company.
According to the basic situation of this short-term transaction, Qin Yinglin bought 378557 million muyuan convertible bonds on August 25, 2021, with an average transaction price of 100 yuan / piece and a transaction amount of about 3.786 billion yuan; On February 17 this year, 5.7944 million muyuan convertible bonds were sold, with an average transaction price of 115 yuan / piece and a transaction amount of about 666 million yuan.
Xu shaotao bought 1798 muyuan convertible bonds on August 25, 2021, with an average transaction price of 100 yuan / piece and a transaction amount of about 179800 yuan; On February 15 this year, all 1798 muyuan convertible bonds were sold, with an average transaction price of 138.6 yuan / piece and a transaction amount of about 249200 yuan.
As for the reasons for short-term trading, Muyuan Foods Co.Ltd(002714) said that Qin Yinglin and Xu shaotao did not have the subjective intention of short-term trading, and there was no purpose of using short-term trading to seek benefits.
It is understood that the notice on the application of relevant provisions on short-term trading of convertible corporate bonds issued by Shenzhen Stock Exchange on February 25, 2021 stipulates that “II. The buying (including subscription) and selling of convertible corporate bonds occur after the implementation of the measures for the administration of convertible corporate bonds and are included in the scope of short-term trading regulation”.
Muyuan Foods Co.Ltd(002714) said that Qin Yinglin understood the above rules as that the first day of muyuan’s convertible bond issuance, the date of subscription, the date of priority placement and payment by the original shareholders, the start date of duration and the start date of interest calculation were all August 16, 2021, and the bondholders had obtained the relevant rights and interests of convertible bonds since August 16, 2021. It is estimated that six months from August 16, 2021, i.e. August 16, 2021 to February 15, 2022, will be the prohibition period of short-term trading. Therefore, the sale of convertible bonds after February 16, 2022 (including that day) does not constitute the short-term trading referred to in the above regulations. Based on the above judgment, Qin Yinglin sold muyuan convertible bonds through block trading on February 17, 2022.
Xu Xiaoheng, an investment and financing expert, told the Beijing Business Daily that convertible bonds belong to other securities with equity nature stipulated in the securities law. Whether they enter the stock conversion period or not, the relevant provisions on short-term trading are applicable.
The equity relationship shows that Qin Yinglin is not only the chairman of Muyuan Foods Co.Ltd(002714) but also the actual controller of the company.
listed companies are the few profitable pig enterprises in 2021
Affected by the decline of pig prices, many listed pig enterprises operated poorly in 2021, and Muyuan Foods Co.Ltd(002714) is one of the few profitable pig enterprises.
It is understood that Muyuan Foods Co.Ltd(002714) 2014 landed in the A-share market. The company’s main business is pig breeding and sales. After nearly 30 years of development, it has formed an industrial chain integrating feed processing, breeding pigs, breeding pigs, commercial pig breeding and slaughtering meat.
Up to now, Muyuan Foods Co.Ltd(002714) has not disclosed the performance of 2021. However, on January 19 this year, the company disclosed the performance forecast. It is estimated that the annual operating revenue will be about 77-80 billion yuan and the attributable net profit will be about 6.5-8 billion yuan, a decrease of 70.86% – 76.32% over the same period of last year; It is estimated that the attributable net profit after deducting non profits will be about 7-8.5 billion yuan, a decrease of 71.9% – 76.86% over the same period of last year.
As for the reasons for the performance changes, Muyuan Foods Co.Ltd(002714) said that during the reporting period, the number of pigs sold by the company increased significantly compared with the same period last year. However, due to the gradual recovery of China’s pig production capacity, the pig price in 2021 decreased significantly compared with the same period last year, resulting in a significant decrease in the company’s operating performance in 2021 compared with the same period last year. In response to relevant questions, the reporter of Beijing Business Daily called Muyuan Foods Co.Ltd(002714) Secretary Office for an interview, but no one answered.
Although the net profit fell year-on-year, compared with other pig enterprises, Muyuan Foods Co.Ltd(002714) performance has been good.
According to the incomplete statistics of the reporter of the Beijing business newspaper, after the incomplete statistics of the reporter of the Beijing business newspaper, from the incomplete statistics of the reporter of the Beijing business newspaper, the market has a total of 28 shares on the market, including 28 shares on the market, including 28 shares on the market, including 28 shares on the market, including 28 shares on the market, such as the Wens Foodstuff Group Co.Ltd(300498) however, most companies are at a loss.
Taking Wens Foodstuff Group Co.Ltd(300498) as an example, the performance express disclosed on February 23 showed that the operating revenue of the company in 2021 was about 64.963 billion yuan, a year-on-year decrease of 13.31%; The corresponding realized attributable net profit loss is about 13.337 billion yuan.
these two related persons also trade convertible bonds in the short term
In addition to Muyuan Foods Co.Ltd(002714) , Hangcha Group Co.Ltd(603298) , Ningbo Kbe Electrical Technology Co.Ltd(300863) and Ningbo Kbe Electrical Technology Co.Ltd(300863) have also issued announcements on short-term trading of convertible bonds by relevant personnel since this year.
On January 5 this year, Hangcha Group Co.Ltd(603298) disclosed an “announcement on the short-term transaction and apology caused by misoperation when senior managers of the company traded the company’s convertible bonds”. The company’s chief designer Jin Zhihao sold 160 Hangcha convertible bonds bought due to misoperation on January 4, 2022, which constituted a short-term transaction.
Hangcha Group Co.Ltd(603298) said that Jinzhi’s purchase of hangfork convertible bonds was caused by misoperation and did not have subjective intention. The income of 27.2 yuan from this short-term transaction has been fully handed over to the company.
In addition, on March 23 this year, Ningbo Kbe Electrical Technology Co.Ltd(300863) also issued an “apology announcement on the short-term trading of the company’s convertible bonds by the directors”. The company’s director Jiang Zhenhua bought 3221 pieces of the company’s convertible bonds through the preferential placement of the original shareholders on January 5, 2022 and sold the company’s convertible bonds held on March 22, 2022. The Transaction constituted a short-term trading behavior. Jiang Zhenhua has handed over the total income of 698745 yuan to the company.
Song Yixin, a lawyer from Shanghai hanlian law firm, told the Beijing Business Daily that the treatment of the income from the short-term exchange of convertible bonds is expressly stipulated in the securities law. “Shareholders, directors, supervisors and senior managers of listed companies and companies whose shares are traded on other national securities exchanges approved by the State Council who hold more than 5% of the shares sell their shares or other equity securities of the company within six months after they buy them, or buy them again within six months after they sell them. The proceeds from this shall belong to the company, and the board of directors of the company shall recover their income Benefit. ” Song Yixin said.
Wang Chikun, an independent economist, also said that listed companies should strengthen the actual controllers, directors, supervisors, senior managers and relevant staff to learn relevant laws, regulations and normative documents such as the securities law and the notice on the relevant provisions on the application of short-term trading of convertible corporate bonds, and urge relevant personnel to strictly regulate the trading of company shares and other equity securities.
