Author | Deepwater Finance Agency
(Data picture)
Just 10 days after the most stringent "new regulations on reducing holdings" in history was issued, the major shareholder of Nanjing Wole Home Appliances (603326) made an illegal clearance type reduction and announced that the CSRC would file a case for investigation the next day, which shows that the CSRC was angry about this matter.
Recalling the company's announcement, on the evening of September 6, we LeHome received the supervision letter of Shanghai Stock Exchange due to "shareholders suspected of illegal share reduction". (For details, please refer to the report of Jiangsu financial circle, "The Big Devil Stock" My Home Furnishing Accident, These Big Shareholders Sell Out Without a Word "); At noon on September 7, the major shareholder of LeHome was investigated by the CSRC. At the same time, the shareholder promised to buy back the shares that had been illegally and excessively reduced, and the proceeds would belong to the listed company.
Financial cockroaches believe that Yu Fanyi and his wife, the major shareholders of "habitual criminals", illegally reduced their holdings by 350 million yuan. How can they just apologize and buy back the excessive part to muddle through?
01
Large shareholders' illegal share reduction was registered, and "demon shares" fell by the limit
A supervision letter from the Shanghai Stock Exchange still failed to quell the "evil spirit" of Lejia.
On the morning of September 7, Wole Home Appliances, whose stock price is 8 boards, was once again close to the trading limit and hit a record high.
At noon on the same day, we made a sudden announcement that, due to the suspected over proportion reduction, the shareholder Yu Fanyi and his person acting in concert Liu Fujuan received the notice of filing issued by the CSRC on the same day.
According to the announcement, Yu Fanyi and Liu Fujuan are husband and wife, and Ivey Management, venture capital and commerce are all enterprises controlled by the couple.
Source: simplified equity change report of Wolejia
At the close of the day, the "big demon stock" that was suddenly investigated was smashed down to 14.52 yuan/share, with a market value of 4.581 billion yuan. However, for Fan Yi and his wife, the stock price limit has nothing to do with it. They have already "successfully fled".
The recent daily K-line trend chart of Wole Home
Under the pressure of supervision, the couple Yu Fanyi finally apologized and promised to buy back the excess shares as soon as possible.
According to the announcement, the reduction of shares by the Fan Yi couple was concentrated on September 5 and 6, that is, the seventh and eighth trading limit periods.
Specifically, on September 5, Yu Fan Yi reduced his holdings of 2.9079 million shares, accounting for 0.9216% of the total share capital, which did not touch the credit obligations; On September 6, Fan Yi, Liu Fujuan, Evey Management, Evey Venture Capital and Evey Trading reduced their holdings of 9.0534 million shares, 1.7857 million shares, 1.2003 million shares, 301400 shares and 527000 shares respectively, with the cumulative change amount reaching 5% of the total share capital.
Source: simplified equity change report of Wolejia
According to the calculation of financial cockroaches, Mr. and Mrs. Yu Fanyi and the persons acting in concert reduced their holdings and cashed out more than 350 million yuan in two days. Specifically, from the average price of Wole Home on the trading day, on September 5, 14.66 yuan/share was cashed out to 42.63 million yuan; On September 6, 15.96 yuan/share, realized 312 million yuan.
One of the reasons why the Yu Fanyi and his wife violated the rule of "clearing position" reduction may be that the company's share price has doubled in 8 days recently, but the fundamentals have not changed dramatically.
"Yu Fanyi and the persons acting in concert expressed their sincere apologies for this illegal share reduction." In our reply to the regulatory letter of the Shanghai Stock Exchange, LeHome said that the shareholders promised to buy back the illegal shares of excess reduction as soon as possible. If this part of the shares were repurchased, all the earnings involved would belong to the listed company.
So, how many shares should we buy back?
It is estimated that the share reduction ratio of Yu Fanyi and his wife this time is 7.11%, while the total share capital of Oule Home is 315.5 million shares, which should be reported and announced when the shareholding change reaches 5% according to relevant regulations. Therefore, the share reduction ratio of illegal and over limit is 2.11%, which is 6.6571 million shares.
It is estimated that if we buy back at the latest price of 14.52 yuan/share, the price difference from the illegal and over limit selling on September 6 is about 1.44 yuan/share, and the income of 6.6571 million shares is nearly 9.6 million yuan.
This is equivalent to 16% of the net profit of the listed company in the first half of this year, which means that LeHome has made a windfall by accident.
02
How can we apologize for the illegal cash out of 350 million yuan?
The reduction of shareholding is justifiable, which is the legitimate right of shareholders, but the exercise of the right should be carried out within the scope permitted by laws and regulations.
On the evening of August 27, the CSRC issued policy adjustments to further regulate the behavior of share reduction, which was regarded as the most stringent "new rules on share reduction" in history. The notice requires that the controlling shareholders and actual controllers shall not reduce their shares through the secondary market if the listed company has broken its hair or net worth, or has not paid cash dividends in the past three years, and the accumulated cash dividends are less than 30% of the average annual net profit in the past three years.
However, this new regulation does not impose additional restrictions on non controlling shareholders. The shareholder who violated this rule of our LeHome is not the controlling shareholder, and its violation is mainly due to its failure to fulfill the obligation of information disclosure. However, as a shareholder of more than 5%, it can sell out all of its shares, not knowing that it will disclose in advance, but with the intention of creating established facts, even if it is a penalty? His "chicken thief" mentality is clear.
We LeHome became the first listed company involved in illegal share reduction of shareholders and was investigated after the "new regulations on share reduction". Despite repeated orders from the regulatory authorities, why are the major shareholders of A-share listed companies repeatedly prohibited from reducing their holdings in violation of regulations and the trend is getting worse?
From the results of the illegal share reduction of Dongfang Fashion, the financial cockroaches found that the illegal share reduction before was "punished by three cups of alcohol". Now they only give a warning, and then ask the shareholders to buy back the shares sold beyond the limit, and the profit will be given to the listed company.
This is just a drop in the bucket for major shareholders who illegally cash out several "small targets".
However, there is a precedent for shareholders to be severely fined for illegal shareholding reduction. In May 2022, WuXi AppTec (603259) shareholders were fined 200 million yuan due to illegal share reduction, which became the first case since the implementation of the new securities law, and the amount of punishment also broke the record of fines for illegal share reduction in A-share history.
More importantly, Yu Fanyi and his wife are not "the first offenders". As early as 2021, it was noticed and warned by the Shanghai Stock Exchange and Jiangsu Securities Regulatory Bureau due to its illegal license raising.
"How can a major shareholder of LeHome Appliances make an apology and buy back the part beyond the limit just to muddle through the illegal reduction of 350 million yuan?" A small financial power appeals to the regulatory authorities to crack down on illegal reduction, especially the "habitual criminals" who commit crimes against the wind. Those who violate the rules will be confiscated and severely punished. These major shareholders of listed companies cannot treat the rules as a joke.
(Released exclusively by Deepwater Finance Agency, a global market value research institution. Please indicate the source for reprinting and quoting)
