Some media reported on April 21 that Zhong Baoshen, chairman of Longi Green Energy Technology Co.Ltd(601012) board of directors and non independent director, quietly reduced his 19.6 million shares of the company. He filled in afterwards on the website of Shanghai Stock Exchange on April 8, but did not disclose it. In this regard, Longi Green Energy Technology Co.Ltd(601012) Secretary replied to the reporter that the report was untrue. The chairman of the company handled non transaction transfer rather than reduction. According to the provisions of the Shanghai Stock Exchange, the company only needs to record on the website of the Shanghai Stock Exchange. The company has completed all the procedures, let alone the possibility of facing regulatory sanctions. The subsequent company will announce this
Longi Green Energy Technology Co.Ltd(601012) chairman of the board of directors did not make an announcement on the substantial reduction of holdings or faced regulatory sanctions
On April 6, Longi Green Energy Technology Co.Ltd(601012) chairman Zhong Baoshen, a non independent director, quietly reduced his 19.6 million shares of the company and made a post filing on the website of Shanghai Stock Exchange on April 8, but did not disclose it.
A senior partner of a law firm in Beijing told Xinhua Finance that according to the regulations, listed companies should disclose through the website of the stock exchange within two trading days of the change in the company’s shares held by directors, that is, the company needs to make an announcement.
It is reported that this is Zhong Baoshen’s first reduction since Longi Green Energy Technology Co.Ltd(601012) listing. The reduction occurred after Longi Green Energy Technology Co.Ltd(601012) may be subject to the investigation and sanctions of American photovoltaic, the cancellation of preferential electricity price by Yunnan Province, the fire of subsidiaries and other events. The reduction method is not the conventional centralized bidding, block trading, agreement transfer and other methods.
Xinhua Finance and economics dialed the landline number shown in Longi Green Energy Technology Co.Ltd(601012) public information on the issues related to the reduction. After connecting, the other party said that it was the securities department and asked to call 4008 Longi Green Energy Technology Co.Ltd(601012) to transfer to the manual department and then to the brand department. However, the 400 phone did not transfer to the manual channel, and it was informed that there was no manual service according to the voice prompt.
chairman’s unconventional reduction
Longi Green Energy Technology Co.Ltd(601012) last year’s third quarterly report showed that Zhong Baoshen held 89.856 million shares, accounting for 1.66% of the total circulating share capital. This reduction of 19.6 million shares accounted for 21.8% of his shareholding.
According to the website of Shanghai Stock Exchange, the change date of this reduction is April 6, 2022, and the filling date is April 8. The customer service of the investor service hotline of Shanghai Stock Exchange said that the change belongs to the enterprise to fill in by itself.
Generally speaking, the reduction methods of shareholders of listed companies include centralized bidding, block trading, agreement transfer, etc., but the website of Shanghai Stock Exchange shows that the transaction method of Zhong Baoshen’s reduction is “other”, which is not the “secondary market trading” shown by general centralized bidding trading. According to the block trading data of Xinhua Finance, there was only one block trading of Longi Green Energy Technology Co.Ltd(601012) in April, 70000 shares on April 11, which was inconsistent with the time and quantity of Zhong Baoshen’s reduction.
Meanwhile, according to the data of zhongdeng company, the number and proportion of shares pledged by Longi Green Energy Technology Co.Ltd(601012) have not changed since January 14 to April 15 this year. The share transfer agreement of listed companies on the Shanghai stock exchange requires that the transfer proportion of a single transferee shall not be less than 5% of the total share capital of listed companies, and Zhong Baoshen’s shareholding proportion and reduction proportion are not satisfied.
In addition, the time node of Zhong Baoshen’s reduction is also more sensitive.
On March 29, some media reported that the US Department of Commerce would launch an investigation, which may impose tariffs on Cecep Solar Energy Co.Ltd(000591) panels from four Southeast Asian countries, and pointed out that the photovoltaic companies operated by these four Southeast Asian countries are subsidiaries of large Chinese manufacturers, and the relevant Chinese photovoltaic enterprises include Longi Green Energy Technology Co.Ltd(601012) .
On April 1, Longi Green Energy Technology Co.Ltd(601012) received a letter from Yunnan Provincial Development and Reform Commission on electricity price, cancelled the preferential tariff policies and measures Longi Green Energy Technology Co.Ltd(601012) enjoyed in Yunnan Province, and since September 1, 2021, all electricity prices have been formed through electricity market-oriented transactions and settled directly with power grid enterprises. By the end of 2021, Longi Green Energy Technology Co.Ltd(601012) the chip production capacity put into operation in Yunnan accounted for about 54% of the total production capacity of the company, and the electricity charge accounted for about 15% of the whole process processing cost of silicon wafer; At the same time, the unfinished part of the company’s investment project in Yunnan also has the risk of change.
On April 4, Longi Green Energy Technology Co.Ltd(601012) subsidiary Ningxia Longji science and technology Leye Co., Ltd. was located in Yinchuan economic and Technological Development Zone, Ningxia. The fire caused damage to some battery plant equipment. Ningxia Leye has two projects as the main body of implementation. One is the annual output of 3gw single crystal battery project, which is under construction and is expected to be put into operation in 2022; Second, the project with an annual output of 5GW single crystal high efficiency battery (3gw in phase I) is still under preparation.
Zhong Baoshen may face regulatory sanctions
A senior partner of a law firm in Beijing told Xinhua Finance and economics that according to Article 11 of the rules for the management of shares and changes in shares held by directors, supervisors and senior managers of listed companies (revised 2022) and Article 9 of the guidelines for self discipline supervision of listed companies on Shanghai Stock Exchange No. 8 – management of changes in shares, a listed company shall, within 2 trading days of changes in shares held by directors, Disclosure through the website of the stock exchange, that is, the reduction of directors’ holdings needs to be announced.
Longi Green Energy Technology Co.Ltd(601012) did not disclose the reduction of Zhong Baoshen’s holdings. As mentioned above, it only filled in the change afterwards.
Liu Jipeng, President of the Capital Finance Research Institute of China University of political science and law, told Xinhua Finance that strictly speaking, as a key group and information sensitive group in the operation of listed companies, the reduction of shares should be strictly reported and disclosed in a specific window period and subject to strong constraints.
The above-mentioned partners said that according to Article 26 of the guidelines on self discipline supervision of listed companies of Shanghai Stock Exchange No. 8 – management of share changes, if the shareholders and directors of listed companies violate the provisions of the guidelines, the Shanghai Stock Exchange will take regulatory measures or disciplinary measures in accordance with the relevant provisions of the stock listing rules and the measures for the implementation of disciplinary and regulatory measures of Shanghai Stock Exchange.
As of the closing on April 20, Longi Green Energy Technology Co.Ltd(601012) share price was 66.8 yuan, down 22.51% year to date, and the market value evaporated about 105 billion yuan. The average value of PE TTM of 35 stocks in the whole photovoltaic industry is 22.5, Longi Green Energy Technology Co.Ltd(601012) is 37.08 In addition, Longi Green Energy Technology Co.Ltd(601012) has been reduced by the Shanghai Stock connect for three consecutive days. In the last three trading days, it has been reduced by 4.9788 million shares, 2.9869 million shares and 2.45 million shares respectively, with a total of 104157 million shares. (source: Xinhua Finance and Economics)
