Reporter: Zhu Yueyi and Li Yunqi
Under the successive announcements of Liancheng CNC and LONGi Green Energy, they still did not escape the influence of Li Chunan's investigation.
On August 22, the stock prices of Liancheng CNC and LONGi Green Energy both fell. The largest intraday drop of LONGi Green Energy exceeded 6%, and the largest drop of Liancheng CNC was over 7.5%.
On August 19, a chairman of Liancheng CNC received an announcement of the notice, which pushed the company and the "photovoltaic Mao" LONGi Green Energy to the forefront.
Liancheng CNC said that the company's chairman Li Chunan was suspected of insider trading in the securities market, and the China Securities Regulatory Commission decided to file a case against him in accordance with the "Securities Law of the People's Republic of China", "The People's Republic of China Administrative Punishment Law" and other laws and regulations.
Li Chunan, chairman of Liancheng CNC, is also the actual controller of LONGi Green Energy and the concerted action of Li Zhenguo and Li Xiyan, the controlling shareholders.
On August 20, Li Chunan made an emergency appearance at an online investor exchange event in Liancheng CNC, saying that "the subject matter of the suspected insider trading does not involve the stocks of listed companies."
On the evening of August 21, LONGi Green Energy also issued an announcement stating that Li Chunan "is suspected of insider trading in this case, which is not the company's stock".
Shell Finance reporters noticed that while Li Chunan was under investigation, another NEEQ-listed company LONGi Electromagnetics held by him also issued an announcement on August 19, stating that Zhao Nengping, one of the actual controllers of the company, was also on August 19. Investigated by the Securities and Exchange Commission.
And Li Chunan is the third largest shareholder of LONGi Electromagnetics.
Li Chunan was investigated for 400 billion "photovoltaic Mao" two days, the market value has shrunk by 57 billion
On the evening of August 21, the listed company LONGi Green Energy issued an announcement clarifying that Li Chunan was investigated by the China Securities Regulatory Commission.
According to LONGi Green Energy, Li Chunan is not the actual controller and controlling shareholder of the company, but a concerted action person of Li Zhenguo and Li Xiyan, the actual controller and controlling shareholder of the company.
"As of June 30, 2022, Li Chunan held 160,143,858 shares of the company, accounting for 2.11% of the company's total share capital, and the shareholding ratio did not exceed 5%, which is a relatively low proportion."
Although the clarification announcement was issued, the stock price of LONGi Green Energy still fell at the opening of the market on August 22, with the largest intraday drop of more than 6%.
As of the close, LONGi Green Energy's share price was at 53.41 yuan per share, corresponding to a total market value of 404.9 billion yuan.
Data show that on August 19, LONGi Green Energy shares fell 7.89%.
As of the close of trading on August 18, the total market value of LONGi Green Energy corresponds to 461.9 billion yuan. Based on this calculation, the market value of LONGi Green Energy has shrunk by 57 billion yuan in two trading days.
LONGi Green Energy also stated that at present, Li Chunan does not hold any position in the company, including director, and does not participate in the daily operation and management of the company.
This filing matter has no material impact on the company's operations.
"It has been confirmed to Mr. Li Chunan that the subject of the alleged insider trading is not the company's stock, and does not involve the company's related matters."
The statement that "the subject of the suspected insider trading is not the company's stock" also appeared in the announcement of the listed company Liancheng CNC.
Liancheng CNC stated in the investor online exchange held on August 20 that the subject matter of the chairman's alleged insider trading does not involve the shares of listed companies, and the chairman will also actively cooperate with the relevant departments in the follow-up investigation. Other specific information is temporarily inconvenient to disclose. If there is relevant progress, the company will disclose it in a timely manner in the form of announcements.
Li Chunan himself also attended the above-mentioned online exchange.
Regarding the impact of Li Chunan's investigation on the company's operations and refinancing, Liancheng CNC replied that the investigation was only an investigation of the chairman of the board and would not affect the company's normal production and operation activities.
However, the urgent investor event held by Liancheng CNC did not cause the company's share price to rebound.
On August 22, Liancheng CNC's share price fell sharply, closing at 75.1 yuan per share, a decrease of 6.13%.
Shell Finance reporters noticed that Liancheng CNC announced a fixed increase plan of 1.36 billion yuan in July this year, and plans to use the raised funds for projects such as monocrystalline furnace expansion, photovoltaic cell and photovoltaic module equipment, and supplementary working capital.
Liancheng CNC stated in the draft that the fixed increase will focus on the company's main business field of photovoltaic and semiconductor equipment industry, and further promote the company to expand its industrial layout, in-depth layout of the photovoltaic core auxiliary materials industry, and optimize the company's main business product structure.
Li Chunan's investigation means that the listed company's fixed increase will be postponed.
Liancheng CNC said that in terms of refinancing, due to the fact that the company does not meet the requirements for stock issuance for the time being, the refinancing plan will be postponed, but it will not affect the actual development of the company's fundraising and investment projects. The company has used its own funds and self-raised Funds are invested in advance.
"At present, the company has sufficient orders in hand, and will implement the expansion plan in an orderly manner. If necessary, the chairman will also provide financial support to the company for free."
Li Chunan's capital map: the actual control of Liancheng CNC is closely related to the "Longji system"
In addition to LONGi Green Energy, Liancheng CNC (835368.BJ) is another business center of Li Chunan. Li Chunan and Zhong Baoshen, chairman of LONGi Green Energy, are the actual controllers of the company.
Established in 2007, Liancheng CNC is a photovoltaic equipment manufacturer specializing in single crystal furnace and cutting equipment business.
LONGi Green Energy has been the main customer of Liancheng CNC all the year round.
In 2021, Liancheng CNC will sell wire cutting equipment, single crystal furnaces, wire cutting equipment and other products to related parties such as LONGi Green Energy and its subsidiaries, achieving an operating income of 1.477 billion yuan, accounting for 72.42% of the total operating income for the year.
The high degree of "binding" with LONGi is a long-term concern of Liancheng CNC investors.
In this regard, Li Chunan said in an interview with the Securities Times in 2020 that LONGi ranked first in the financial health index among solar module manufacturers and was financially stable.
For such a high-quality company, it is very logical for Liancheng to develop and serve LONGi as a strategic customer.
Li Chunan said that for the progress and development of modern large-scale production, especially the industrial system with high technology content, it is an effective way to achieve industrial strategic synergy, integration of technology and technology, and market rhythm. Cooperate.
He also pointed out that the equity of Liancheng CNC and LONGi Green Energy are relatively scattered, and the ownership and management rights are properly separated. When making decisions, related shareholders and related directors avoid voting. The management negotiates on market principles around their respective corporate stakeholders, and both parties compare their internal control systems. Perfect, we have to go through the process.
In addition, both parties are public companies, and they must fully disclose information. All cross-linked transaction orders, including future related-party transactions, related-party transactions that have occurred, and major contracts must be announced in a timely manner.
The founders of LONGi, Li Zhenguo, Zhong Baoshen and Li Chunan are all classmates of Lanzhou University.
Alumni interviews of Lanzhou University in 2017 show that in 1993, Zhong Baoshen founded his first company in Fushun, dedicated to the research and development and expansion of the application field of magnetic materials.
Later, Li Chunan received an invitation from Zhong Baoshen and rushed from Lanzhou to Fushun, where the two started a business together.
In 1996, the company registered a trademark and took the name of "Longji" to commemorate Jiang Longji, the old principal of Landa, on the one hand, and to take the meaning of "long prosperity and long-lasting foundation" on the other hand.
In 2000, Li Zhenguo founded Xi'an LONGi Silicon Material Co., Ltd. In 2006, Zhong Baoshen and Li Chunan left Shenyang and joined Xi'an LONGi. In 2007, Zhong Baoshen and Li Chunan invested in the establishment of Dalian Liancheng CNC Machine Co., Ltd.
In 2012, LONGi was listed on the Shanghai Stock Exchange.
At that time, the prospectus of LONGi Green Energy disclosed that Li Chunan was a classmate of Li Zhenguo and one of the main sponsors of LONGi. He had served as a director of LONGi and participated in the production and operation of the company.
At the beginning of the listing, Li Chunan once held more shares than Li Zhenguo and became the largest shareholder of LONGi.
According to the 2012 interim report, Li Chunan held 18.04% of the shares at that time, exceeding Li Zhenguo's 17.6%.
In the first quarter of 2014, the number of shares held by Li Chunan fell behind that of Li Zhenguo, who continued to increase his holdings.
In the following years, Li Chunan maintained the position of the second largest shareholder of LONGi Green Energy until the third quarter of 2020.
Wind data shows that on May 19, 2015, Li Chunan had a large proportion of his holdings. At that time, Li Chunan reduced his holdings by 4.43%, and his shareholding ratio dropped to 12.35%.
In recent years, with the reduction of holdings, Li Chunan's role in LONGi has been weakened.
Li Chunan's capital map does not stop there, and his holding companies are basically closely related to the "LONGi series", including LONGi Instruments, LONGi Electromagnetics and other companies.
According to the 2022 semi-annual report released by LONGi Instruments, a company listed on the New Third Board, the actual controllers of the company are Zhong Baoshen and Zhao Sihai.
As of the end of June, Li Chunan held 16.796 million shares of LONGi Instrument, with a shareholding ratio of 14.46%.
In addition, the fourth and fifth largest shareholders of LONGi Instrument are Zhang Chengchen and Zhao Nengping, who hold 7.22% and 5.99% of the equity of LONGi Instrument respectively.
It has reduced its holdings of LONGi Green Energy several times, and has cashed out 19 billion in blood transfusions in two months. LONGi Electromagnetic has nearly 4 billion
Behind the free financial support for Liancheng CNC, Li Chunan has cashed out over 19 billion yuan from October to December 2020 in the process of reducing his holdings of LONGi Green Energy.
In October 2020, LONGi Green Energy announced that due to "personal capital needs", Li Chunan planned to reduce his holdings of the company's unrestricted tradable shares by no more than 37.7176 million shares through centralized bidding, and the proposed reduction should not exceed 1% of the company's total share capital. %.
At the end of 2020, Li Chunan completed the reduction, with a total reduction of 3.43 billion yuan.
In December 2020, Li Chunan also reached an equity transfer agreement with Hillhouse Capital, transferring 226 million shares of LONGi Green Energy to the latter, accounting for 6% of the company's total share capital.
It is disclosed that Li Chunan's reduction of holdings is due to his own financial arrangements. The transfer price per share of the transaction is 70 yuan, and the total transaction consideration is 15.841 billion yuan.
According to the latest quarterly report of LONGi Green Energy in 2022, as of the end of the period, Li Chunan held 2.11% of the shares of the listed company, ranking the seventh largest shareholder.
Wind data shows that the reference market value of Li Chunan's shares as of the end of the first quarter was 8.258 billion yuan.
The Shell Finance reporter also noticed that after the continuous reduction of holdings, Li Chunan was still identified as able to exert a significant influence on LONGi Green Energy and its subsidiaries for a long time.
According to the 2021 annual report released by LONGi Electromagnetics in March 2022, when introducing the relationship between LONGi Green Energy and its subsidiaries, it stated that "Li Chunan exerts significant influence and Zhong Baoshen serves as chairman".
It is worth mentioning that after the intensive reduction in 2020, the flow of funds obtained by Li Chunan for reduction of holdings has also been concerned by the market.
So, where did so much money end up going?
A reporter from Shell Finance found that in the first half of 2021, Li Chunan had a large amount of money flowing to LONGi Electromagnetics, a company listed on the New Third Board.
From February to May 2021, Zhang Chengchen and Zhao Nengping, the actual controllers of the company, respectively received a large amount of funds transferred from Li Chunan (and his spouse Weng E, classmate Zhao Xinmao, and subordinate Huizhi Investment employee Liu Ximei) to 1.959 billion yuan and 1.937 billion yuan. .
Li Chunan's funds came from the transfer of LONGi shares he held.
The founding of LONGi Electromagnetic also has a story.
LONGi Electromagnetic announced that the company was founded by five alumni of Lanzhou University in the early days of its establishment. During the development of the company, their respective shareholding ratios and business focus have changed. Zhong Baoshen's business areas mainly focus on the listed company LONGi, Li Chunan and Wang Xuewei's The business areas are mainly in Liancheng CNC, and the business areas of Zhang Chengchen and Zhao Nengping are mainly in LONGi Electromagnetics.
In 2019, LONGi Electromagnetic decided to list on the New Third Board.
In January 2021, Li Chunan, who was then a director of LONGi Electromagnetics, also resigned from the directorship of LONGi Electromagnetics because he was the chairman of Liancheng CNC.
Then in September 2021, LONGi Electromagnetics submitted a listing application for the selection layer.
Two months after submitting the listing selection layer, the large amount of capital transactions between Li Chunan, Zhang Chengchen and Zhao Nengping was also inquired by the stock transfer system, and LONGi Electromagnetics was asked to clarify whether there were any other exchanges between Zhang Chengchen, Zhao Nengping and Li Chunan. Agreement arrangements, whether there is equity holding or other benefit arrangements, and whether there is benefit transfer.
At that time, LONGi Electromagnetics failed to respond.
After the projects under review listed on the selection layer were moved to the Beijing Stock Exchange for review, in December 2021, LONGi Electromagnetics suspended the review due to the imminent expiration of the financial report, and resumed the review in March 2022.
On July 14, 2022, LONGi Electromagnetics suddenly announced that it would withdraw its listing application on the Beijing Stock Exchange based on future strategic adjustments.
【Who is insider trading? The actual controller of LONGi Electromagnetics was also investigated, and Li Chunan was the third largest shareholder]
Just over a month after LONGi Electromagnetics announced that it had withdrawn its listing application on the Beijing Stock Exchange, Zhao Nengping, the chairman of LONGi Electromagnetics and one of its actual controllers, received a notice of investigation from the China Securities Regulatory Commission on the same day as Li Chunan.
According to the announcement of LONGi Electromagnetics on August 19, Zhao Nengping was suspected of insider trading in the securities market and other violations of laws and regulations, and the China Securities Regulatory Commission decided to file a case against him in accordance with the "Securities Law of the People's Republic of China", "Administrative Punishment Law of the People's Republic of China" and other laws and regulations .
Behind the announcements made by Liancheng CNC and LONGi Electromagnetics clearly stated that Li Chunan "suspected that the target of insider trading is not the company's stock",
In the announcement of LONGi Electromagnetics, it did not mention whether the subject of Zhao Nengping's alleged insider trading was LONGi Electromagnetics, but only stated in the announcement, "This case is only an investigation of Mr. Zhao Nengping's personal investigation, and will not affect the company's daily operations. Operation and management activities will not affect the normal performance of individual duties.”
The data shows that the actual controllers of LONGi Electromagnetic are Zhang Chengchen and Zhao Nengping, who hold 33.46% and 22.78% of the equity of LONGi Electromagnetics respectively.
In addition to Li Chunan being the third largest shareholder of LONGi Electromagnetics, Zhong Baoshen also holds a 5.74% stake in LONGi Electromagnetics and is the company's fourth largest shareholder.
It was introduced in the LONGi Electromagnetic Announcement that both Zhang Chengchen and Zhao Nengping once held positions in LONGi Co., Ltd.
It is worth mentioning that in 2020, Zhao Nengping was also issued a warning letter for trading Liancheng CNC shares.
According to the announcement of LONGi Electromagnetics, Zhao Nengping and Wang Xiaoping (husband and wife relationship) were taken self-regulatory measures to issue a warning letter on December 24, 2020 due to the transaction of Liancheng CNC shares.
In addition, Shijin Technology is a company in which Zhao Nengping holds 1.56% of the shares. Zhao Nengping was also requested by the Liaoning Securities Regulatory Bureau to assist in the investigation of Shijin Technology’s secondary market transactions.
Shijin Technology here is a listed company on the New Third Board and is also closely related to Li Chunan.
In October 2021, Shijin Technology, a company listed on the New Third Board, completed an additional issuance of shares, of which the investor was Liancheng CNC, the shareholder who already held Shijin Technology.
After the completion of the additional issuance, Liancheng CNC's shares in Shijin Technology increased to 17.6667 million shares, accounting for 21.07% of the company's total shares.
In addition, Li Chunan and Zhao Nengping also hold shares in Shenyang Tongxiang Biopesticide Co., Ltd., of which Li Chunan holds 18.64% and Zhao Nengping 13.66%.
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