2024.05. eighteen
Number of words in this article: 2393, reading time: about 4 minutes
Introduction : The "post-95" billionaires were fined 133 million yuan!
Source| Official website of CSRC, Time Finance, WeChat official account of CNNC
The letter of decision on administrative punishment recently released on the official website of the CSRC shows that Wang Zelong, the actual controller of CNNC Titanium Dioxide, his friend Hong Haowei, Han Yuchen, the former director secretary of CNNC Titanium Dioxide, CITIC Securities, Haitong Securities and CITIC Securities were fined and confiscated a total of 235 million yuan due to illegal acts such as the transfer of CNNC Titanium Dioxide (002145 SZ)'s non-public offering of shares in 2023 in violation of restrictive regulations and illegal information disclosure, Wang Zelong was fined 133 million yuan.
Actual controller Only 28 years old
CNNC Titanium Dioxide, formerly known as the Titanium Dioxide Branch of the 404 Plant of China National Nuclear Corporation, was listed on the Shenzhen Stock Exchange in 2007. It is mainly engaged in the research, development, production and sales of titanium dioxide, a chemical product. Its annual output can reach 550000 tons, and its production capacity ranks second in China and fifth in the world.
Wang Zelong, the actual controller of CNNC Titanium Dioxide, was born in July 1996 at the age of 28. As of March 31, 2024, Wang Zelong held nearly 1.295 billion shares of CNNC Titanium White, accounting for 33.45%, and was the largest shareholder and actual controller of the company. Based on the closing price of 4.30 on April 1, 2024, Wang Zelong's total shareholding amount is nearly 5.6 billion yuan.
In addition, Longbai Group (002601. SZ), another titanium dioxide company in which Wang Zelong has a stake, ranks first in China in terms of its titanium dioxide output. According to the annual report, its annual output of titanium dioxide can reach 1.5 million tons, and its net profit attributable to the parent company also decreased by nearly half in the semi annual report of 23 years, reaching 46%.
In the exclusive interview with Wang Zelong by Forbes China, he revealed that he had participated in the merger and reorganization project of Billion Union on Longmang Titanium Industry (i.e. Longbai Group) under the guidance of his father as early as 2015, and became one of the major shareholders of the listed company through fixed increase.
Implement fixed increase arbitrage, Carry out OTC derivatives transactions
In July 2022, CNNC Titanium White's application for non-public issuance of A-shares was reviewed and approved by the Development and Examination Commission of the CSRC. From July to August 2022, CITIC and CSI will recommend the plan of fixed increase and long vacancy to Wang Zelong, the actual controller of CNNC Titanium Dioxide. According to the scheme, "customers can directly realize fixed increase and short arbitrage through OTC derivatives trading desks, and settle income in advance, without waiting for a six-month lock up period. Usually, funds and income can be withdrawn in more than one month".
In September 2022, Wang Zelong decided to implement fixed increase arbitrage, to lend securities to targeted sources through CNNC Titanium Dioxide employee stock ownership plan, and to carry out OTC derivatives transactions with CITIC Securities in the name of an investment development limited company (hereinafter referred to as an investment company). Han Yuchen specifically implemented the arbitrage scheme and was responsible for docking with CITIC Securities and CITIC Securities.
From September 2022 to February 2023, Wang Zelong, Han Yuchen, together with CITIC Securities and CITIC Securities, agreed to increase and loan arbitrage business, and agreed that 88 million shares of "CNNC Titanium Dioxide" would be loaned through the refinancing of the CNNC Titanium Dioxide employee stock ownership plan. CITIC Securities designated four private fund product accounts to conduct "CNNC Titanium Dioxide" stock lending hedging transactions, and CITIC Securities formulated a securities lending plan.
In November 2022, CITIC China Securities initially communicated with Haitong Securities on the income swap business linked to the non-public offering of shares of "CNNC Titanium Dioxide".
In December 2022, the CITIC Securities Compliance Department and the Risk Management Committee reviewed and approved the OTC derivatives trading application linked to about 88 million non-public shares of "CNNC Titanium Dioxide". In the same month, the "Request for Instructions on an Investment Company and CSIC Capital to Carry out RMB 600 million Nominal Principal of OTC Option of CNNC Titanium Dioxide Restricted Shares" was submitted to CITIC Securities Risk Management Department and Risk Management Committee for deliberation and approval.
In February 2023, due to the insufficient subscription funds of an investment company, in order to fully use the securities lending quota, Wang Zelong suggested his friend Hong Haowei to participate in the arbitrage transaction of fixed increase securities lending of China Nuclear Titanium White. Hong Haowei participated in and carried out OTC derivatives transactions with CITIC Securities in the name of a No. 1 private securities investment fund (hereinafter referred to as No. 1 Fund).
From February 8 to February 10, 2023, the Derivative Products and Trading Department of Haitong Securities, upon the internal approval of the department, included the shares of "CNNC Titanium Dioxide" in the alternative database of derivatives business and performed the approval process of the company seal for the non-public offering of subscription documents of CNNC Titanium Dioxide. On February 10, 2023, Haitong Securities will participate in the first round of private offering of CNNC Titanium White according to the order price and subscription amount of CITIC China Securities, and the issue price is determined to be 5.92 yuan/share on that day.
Realize 671 million yuan in nine days
On February 16, 2023, Haitong Securities signed a share subscription agreement for the non-public offering of shares of China Nuclear Titanium White, and reached a multi income swap with CITIC Securities, whose target is "China Nuclear Titanium White" shares. The nominal principal is 532 million yuan, and the corresponding number of shares is 89.8649 million shares. CITIC Securities will provide full margin. On the same day, an investment company entered into a vanilla option portfolio contract with CITIC Securities. The underlying stock was "CNNC Titanium Dioxide", with a nominal principal of RMB 426 million and a corresponding number of shares of 71.9595 million; Fund 1 reached a vanilla option portfolio contract with CITIC Zhongzheng, with the target linked to "Zhonghe Titanium White" shares, the nominal principal of 89.0398 million yuan, and the corresponding number of shares of 15.0405 million shares.
From February 6 to February 20, 2023, an investment company and CITIC Securities reached a short return swap with the target of "CNNC Titanium Dioxide" shares. The total number of open shares is 71.9595 million, and the corresponding nominal principal is 548 million yuan.
From February 10 to February 20, 2023, Fund 1 and CITIC Securities reached multiple short return swaps, with a total of 15.0405 million shares opened, and the corresponding nominal principal of 114 million yuan.
From February 6 to February 14, 2023, 88 million shares of "CNNC Titanium Dioxide" held in the employee stock ownership plan of CNNC Titanium Dioxide were allocated to four private fund product accounts in accordance with the path designated by CITIC China Securities, and the lending period was extended to September 2023 through extension and borrowing and returning the old.
From February 13 to February 21, 2023, 88 million shares of "CNNC Titanium Dioxide" will be sold through securities lending in four private fund product accounts, with an average selling price of about 7.63 yuan/share and a transaction amount of about 671 million yuan.
Transaction arrangement Inform the listed company
Wang Zelong did not inform the listed company of his actual participation in the non-public offering through the above trading arrangements. On February 24 and March 3, 2023, CNNC Titanium Dioxide announced the issuance report related to the non-public issuance of A-shares, stating that there was no situation where the actual controller of the issuer participated in the subscription of this issuance through direct or indirect means.
On March 9, 2023, CNNC Titanium Dioxide announced the listing of this non-public offering of shares, with the restricted period of shares from March 9 to September 8, 2023. From March 17 to April 6, 2023, an investment company and Fund 1 applied to CITIC China Securities for early termination of all long vanilla option contracts and short income swap contracts, and CITIC China Securities settled the corresponding positions and settled them.
Finally, Wang Zelong made an actual profit of 58161993.37 yuan through an investment company, Hong Haowei and Wang Zelong made an actual profit of 14193879.43 yuan and 2475961 yuan respectively through Fund 1. CITIC Securities did not make an actual profit. The income from the securities lending business of CITIC Securities was 1910680.83 yuan, and the income swap business of Haitong Securities was 789445.21 yuan.
Total fines and confiscations: 235 million yuan
After investigation, the CSRC believed that Wang Zelong and Hong Haowei had substantially participated in the non-public offering through derivatives trading arrangements, and sold securities at market prices, locking in the price differential income between the discount price of the non-public offering shares in advance, and in a disguised way avoiding the restrictions on sales period. Violation of the Securities Law and other provisions constitutes an illegal situation described in the Securities Law.
CITIC China Securities formulates arbitrage plans, builds trading structures, and provides leverage fund support for Wang Zelong and Hong Haowei's transfer of shares in violation of restrictive regulations; CITIC Securities knows that the purpose of securities lending is to increase arbitrage and cooperate with customers to provide securities lending services; Haitong Securities subscribes the non-public offering shares of China Nuclear Titanium White in its own name in accordance with the quotation instructions of CITIC Securities, which objectively helps CITIC Securities and its customers to obtain stock returns, so that the arbitrage behavior of fixed increase can be realized; Han Yuchen came forward to implement the fixed increase arbitrage scheme for Wang Zelong and others. The above-mentioned acts of CITIC Securities, CITIC Securities, Haitong Securities and Han Yuchen, together with Wang Zelong and Hong Haowei, constitute the illegal situation described in the Securities Law.
In the process of Hong Haowei's transfer of shares in violation of the restrictive provisions, Wang Zelong participated in the negotiation of the arbitrage scheme for increasing and lending securities, contacted Hong Haowei and suggested him to join the arbitrage, which together constituted the illegal situation described in the Securities Law.
Wang Zelong, as the actual controller of CNNC Titanium White, concealed his actual participation in the non-public offering through a series of trading arrangements in the process of CNNC Titanium White's non-public offering of shares in 2023, resulting in false records in the report on the issuance of the non-public offering of A-shares by CNNC Titanium White, in violation of the Securities Law, the Administrative Measures for Information Disclosure of Listed Companies and other provisions, It constitutes an illegal situation described in the Securities Law.
In addition, according to the Securities Law, Wang Zelong was fined 2 million yuan for his illegal information disclosure.
Finally, the total amount of fines and confiscations was 235 million yuan, including 133 million yuan of Wang Zelong's fines and confiscations.
CNNC statement Medium nuclear titanium dioxide No affiliation or equity relationship
It is worth mentioning that on April 14, CNNC Group released a message through its WeChat official account that it noted that CNNC Titanium Dioxide was investigated and declared that CNNC Titanium Dioxide does not have any affiliation or equity relationship with CNNC Group, nor does it have any investment, cooperation, business or other relationship, and all its actions have nothing to do with CNNC Group, CNNC Group shall not assume any obligation or responsibility for any of its acts according to law.
WeChat editor | Ziang
