On May 18, 2022, Ningbo Water Meter (Group) Co.Ltd(603700) issued the suggestive announcement on the reduction of shares held by controlling shareholders and persons acting in concert and the internal transfer plan between persons acting in concert and other announcements. According to the announcement, the main content of this reduction plan is that Zhang Shihao, Wang Zonghui, Xu Yun, Wang Kaifa, Zhang Lin, Zhang Lei and Wang tuying plan to reduce the company’s shares by means of centralized bidding and block trading, with a total of no more than 12194520 shares and no more than 6.00% of the company’s total share capital.
According to the announcement, in the reduction plan of Zhang Shihao, one of the controlling shareholders, the part to be reduced through block trading is the transfer between persons acting in concert. The controlling shareholder of the company will sign a supplementary agreement with “Shanghai lanmo Investment Management Co., Ltd. – lanmo private No. 7 private securities investment fund” (hereinafter referred to as “lanmo No. 7”) 100% held by Ms. Zhang Lin and Ms. Zhang Lei, Mr. Zhang Shihao’s daughter, on the basis of the original unanimous action agreement, adding lanmo No. 7 as the person acting in concert; Mr. Zhang Shihao will transfer a total of no more than 4120042 shares (including this number) to lanmo No. 7 through block trading. This matter belongs to the concerted action of the company, and the membership or composition has changed, which does not involve the reduction of holdings to the market.
It can be seen that Ningbo Water Meter (Group) Co.Ltd(603700) this reduction plan is based on the optimization of shareholder structure, which can be seen as a “inheritance” of the company’s new and old chairman to the cause. According to statistics, the listed companies involved in family inheritance in China’s securities market are close to 30% of the total number of listed companies. Listed companies can achieve a high level of corporate governance as long as they train talents properly, respect corporate governance and select and employ excellent professionals. For investors, under the constraints of good corporate governance, the value of such listed companies is reflected in inheritance, which is also supported by the empirical evidence of modern corporate governance.
Ningbo Water Meter (Group) Co.Ltd(603700) has been deeply engaged in the field of water supply measurement and measurement for more than 60 years, and has formed its own unique outstanding advantages and core competitiveness not only in brand effect, marketing service, technological R & D innovation and production control. Since the company entered the A-share capital market on January 22, 2019, all directors of the company have seriously attended the meetings of the board of directors and the general meeting of shareholders and considered various proposals, understood the rights, obligations and responsibilities of directors, and ensured the efficient operation and scientific decision-making of the board of directors. The company has also established fair and transparent performance evaluation standards and incentive and restraint mechanisms for senior managers.
On April 29, 2022, Ningbo Water Meter (Group) Co.Ltd(603700) issued the announcement on the appointment of senior managers of the company. Among the senior managers appointed by the company, general manager Wang Zonghui is the second largest shareholder of the company, has always been the core management of the company and a professional in the industry for many years; In addition, Chen Wei, deputy general manager, was born in 1973 and Wang Zhebin, chief financial officer, was born in 1989. It can be seen that the management of the company is also constantly integrating fresh blood and doing a good job in inheritance.
