More than 140 shareholders of listed companies reduced their holdings at a high level, and a number of private placements participated in the transfer of agreements at a high level

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Blue Whale News, October 10 (Reporter Wang Jianwen) Before and after the National Day holiday, the overall performance of A-shares picked up. From September 24 to October 9, the Shanghai Composite Index rose from 2,770.75 points to 3,258.86 points, a cumulative increase of 18.55%; The Shenzhen Component Index has risen by 30.61%.

With the recovery of listed companies' stock prices, the "tide of A-share reductions" has also followed. According to incomplete statistics from Blue Whale News, from September 24 to October 8, a total of 145 listed companies issued announcements on reducing their holdings, of which 56 companies officially announced shareholder reductions on October 8 alone. Among them, the more eye-catching is the household appliance leader Gree Electric (000651. SZ) announced that it will reduce its stake in Wingtech Technology (600745.SH).

During the same period from September 24 to October 8, in addition to the reduction of shareholdings, there are also more than 60 shareholders of listed companies planning to transfer shares through agreement transfer, some of which are in a state of restriction due to stock price breakage, dividend rate and other reasons. In this context, a number of small and medium-sized private equity companies participated in the transfer of the agreement and took over at a high level.

Gree Electric reduced its holdings in Wingtech Technology

With the overall recovery of A-shares, the share price of semiconductor leader Wingtech Technology has also risen rapidly. From September 24 to October 9, the share price of Wingtech Technology rose from 24.85 yuan / share to 34.53 yuan / share, with a cumulative increase of 38.95%, and the market value also increased from 30.9 billion yuan to 42.9 billion yuan.

The stock price has risen, and Wingtech Technology shareholders have begun to reduce their holdings. On the evening of September 30, the company announced that the company's shareholder Zhuhai Ronglin Equity Investment Partnership (Limited Partnership) (hereinafter referred to as "Zhuhai Ronglin") will reduce its holdings of no more than 1% of the company's shares. On the evening of October 8, Zhuhai Ronglin's concerted action Personality Electric Appliances also joined the reduction, and will also reduce its holdings of no more than 1% of the company's shares.

At present, Zhuhai Ronglin and Gree Electric Appliances hold 6.44% and 2.89% of the shares of Wingtech Technology respectively, and the total market value of the above shares is 4.001 billion yuan based on the closing price on October 9. Also according to the closing price on October 9, the two reduced their holdings by 1% respectively, and a total of 858 million yuan can be cashed out.

Gree Electric Appliances and Wingtech Technology are related to a large-scale acquisition by the latter in 2018.

At present, Wingtech Technology is mainly engaged in two major businesses, namely intelligent terminal ODM business and semiconductor business. The above two businesses are derived from acquisitions, of which the ODM business is the consolidated business of the company's predecessor Zhongyin Co., Ltd. after the acquisition of Wingtech Communications in 2015, and the semiconductor business is the business obtained by the company after the acquisition of Nexperia in 2019.

Gree Electric's shareholding in Wingtech Technology is related to the company's acquisition of Nexperia. In this transaction, Wingtech Technology spent more than 26 billion yuan to obtain 74.46% of the equity of Nexperia, in order to complete the transaction, Wingtech Technology introduced a number of investors to help, including Gree Electric Appliances. According to the announcement issued by Wingtech Technology in December 2018, Gree Electric increased its capital by 885 million yuan and 2.115 billion yuan to Hefei Zhongwen Jintai and Zhuhai Ronglin respectively, with a total capital increase of 3 billion yuan for the transfer of the upper equity and property share of Nexperia. After the completion of the transaction, Gree Electric acquired a 91.27% stake in Zhuhai Ronglin.

With the above-mentioned capital increase of 3 billion yuan, Gree Electric Appliances and Zhuhai Ronglin obtained 3.45% and 8.88% of the shares of Wingtech Technology at a consideration of 24.68 yuan per share, with a total shareholding ratio of 12.33%.

Affected by factors such as the merger and acquisition of Nexperia, after 2019, the share price of Wingtech Technology began to grow significantly, and on August 3, 2020, the company's market value reached a new high of 191.1 billion yuan, and the market value of Gree Electric Appliances and Zhuhai Ronglin also exceeded 19.5 billion yuan, with a floating profit of more than 16.5 billion yuan.

In October 2022, the ban on the shares of Wingtech Technology held by Gree Electric Appliances was lifted, but as the share price of Wingtech Technology fell, the floating profits of Gree Electric Appliances and Zhuhai Ronglin also began to shrink. On April 19, 2023, Zhuhai Ronglin reduced its stake in Wingtech Technology for the first time through a block transaction. At that time, Zhuhai Ronglin's shareholding reduction ratio was 1%, and based on the company's closing price of 62.74 yuan per share on the same day, Zhuhai Ronglin cashed out about 778 million yuan.

On the same day, shareholders of more than 50 listed companies officially announced their reductions, and 145 shareholders of listed companies have recently reduced their holdings

Since the launch of the Japan round of market on September 24, a wave of A-share reductions has followed.

According to incomplete statistics from Blue Whale News, including Wingtech Technology, on October 8, 56 listed companies announced their reductions. Expanding the time range to September 24 to October 8, a total of 145 listed companies issued shareholding reduction announcements, with a total of 240 shareholding reduction entities, including controlling shareholders, actual controllers, company executives, etc.

Although the number of entities reducing their holdings is relatively large, the proportion of actual controllers and controlling shareholders is relatively low. Among the above-mentioned 240 shareholding reduction entities, only the controlling shareholders of 6 companies such as Baichuan Energy, Mingpu Optomagnetic, and Hangcha Group, as well as the actual controllers or actual controllers acting in concert with 20 companies such as Shenma Power and Zhangyue Technology announced the reduction of shareholdings.

Among the actual controllers and controlling shareholders who announced the reduction of shareholdings, Hangcha Holdings, the controlling shareholder of Hangcha Group, and Chen Xiaoqin, the actual controller of Shenma Power, and other entities have relatively large scale of reductions. According to the announcement, Hangcha Holdings plans to reduce its holdings of 2% of Hangcha Group's shares, and based on the company's closing price of 20.04 yuan per share on October 9, Hangcha Holdings will cash out about 262 million yuan. Also based on the closing price of 23.62 yuan per share on October 9, Chen Xiaoqin can cash out about 306 million yuan by reducing his holdings of no more than 3% of his shares.

From the perspective of the proportion of holdings, the main body of small- and medium-sized holdings in this round of "reduction tide" still accounts for the majority. Among the above-mentioned 240 entities, a total of 71 entities have reduced their holdings by more than 1%, and the remaining 169 entities have reduced their holdings by less than or equal to 1%, and the overall reduction range is conservative.

Among the 71 entities with the largest reduction in holdings, Jintong Anyi Phase II, a shareholder of Wanlang Magnetics, has the highest reduction ratio. According to the company's announcement on the evening of October 8, Jintong Anyi Phase II will reduce its holdings of 7.2 million shares of the company, accounting for 8.42% of the company's total share capital. On October 9, Wanlang Magnetic's share price fell sharply, with a share price decline of 8.29% and a closing price of 25.89 yuan per share. Based on the closing price of the day, Jintong Anyi Phase II will cash out 186 million yuan this reduction.

More than 60 listed companies agreed to transfer shares, and private placements entered the market at a high level

In addition to reducing their holdings through block transactions and centralized bidding, in recent years, shareholders of a number of listed companies have transferred their holdings through agreement transfer.

On May 24, the China Securities Regulatory Commission issued the "Interim Measures for the Administration of Shareholding Reduction by Shareholders of Listed Companies" (hereinafter referred to as the "Shareholding Reduction Management Measures"), the "Shareholding Reduction Management Measures" strictly regulate the reduction of major shareholders from many aspects, including clarifying that the controlling shareholder and the actual controller shall not reduce their holdings through centralized bidding or block trading in the case of breaking the net and failing to meet the dividend standard, except for the reduction of shares purchased by centralized bidding or the disclosure of shareholding reduction plans due to the absence of relevant circumstances. Optimize the circumstances under which major shareholders are prohibited from reducing their shareholdings, clarifying that controlling shareholders and actual controllers are not allowed to reduce their holdings in the case of violations of laws and regulations by listed companies and themselves, and general major shareholders are not allowed to reduce their holdings in cases of their own violations of laws and regulations.

Under the strict constraints of the new regulations on shareholding reduction, a number of listed companies have recently transferred their shares.

According to incomplete statistics from Blue Whale News, from September 24 to October 9, a total of 61 listed companies issued equity transfer announcements, including Luoxin Pharmaceutical, Mingdiao Co., Ltd., Huayang International, Oriental Group, Shanzi Hi-Tech, Saiwei Times, etc. Among them, a total of 28 listed companies involved the controlling shareholders of the company.

It is worth noting that among the transferees of the above-mentioned equity transfers, in addition to natural persons and state-owned legal persons, there are also many private equity funds. Among the 61 listed companies, a total of 17 shareholders of Huayang International, Chengbang Co., Ltd., Voge Optoelectronics, Sanfu Xinke, Aipeng Medical, and Aike Co., Ltd. have transferred their equity to private equity funds. Among them, there are 9 companies with an equity transfer scale of more than 100 million yuan.

For example, Sanfu Xinke announced on the evening of September 30 that Qu Chenghong, the actual controller of the company, and Shangguan Wenlong, the controlling shareholder and actual controller, plan to transfer a total of 5% of the equity to Juntang Assets through agreement transfer, with a transfer price of 26.00 yuan per share and a total consideration of 121 million yuan.

As for the reason for the shareholders' transfer of equity to the private placement, a number of listed companies said in the announcement that it was mainly due to the capital needs of the transferor, or because of the investor's recognition of the value of the listed company. As Aike said, the purpose of the company's shareholder equity transfer is for shareholders to reduce their holdings of the company's shares based on their own capital needs, and at the same time to introduce investors who recognize the company's long-term value and are optimistic about future development.

Aipeng Medical said in the announcement that the transfer of equity by the company's controlling shareholder agreement aims to introduce long-term partners who recognize the company's intrinsic value and are optimistic about the company's future development, and synergize superior resources to promote the strategic development of listed companies. At the same time, this equity transfer can effectively improve the financial structure of the actual controller, reduce the pledge risk, and ensure the steady and sustainable development of the company.

It is worth noting that due to the breakage of the stock price of Aipeng Medical and the cumulative dividend ratio (including repurchased shares) in the past three years is only 26.28%, less than 30%, the controlling shareholder is currently in a state of restriction on reducing holdings. The object of the transfer of equity by the company's controlling shareholder agreement is Beijing Zhanghong Private Equity Fund Management Co., Ltd. (hereinafter referred to as "Zhanghong Private Equity"), which was established in 2022 and the shareholders are Wang Zhen and Cheng Xin. According to the official website of the Asset Management Association, the private placement has a management scale of 0-500 million yuan, and it is a small private placement.

The price of the equity transfer from the controlling shareholder of Aipeng Medical to Zhang Hong is 10.80 yuan/share, which is lower than the closing price of 13.95 yuan/share on September 30, but not much discount from the closing price of 11.06 yuan/share on September 23, before this round of market.

According to the data of Flush iFind, in addition to Aipeng Medical, among the 17 listed companies whose shareholders transferred equity to private placement, there are also 4 listed companies, Huafu Fashion, Kanglongda, Wenfeng Shares, and Chengbang Shares, which are also in a state of restricted reduction, and the equity transferor involves controlling shareholders. The five private placements that received the shares of the above four listed companies are also small and medium-sized private placements, and the management scale of Jiahong private equity, which only transfers the shares of the controlling shareholders of Wenfeng shares, is between 2 billion yuan and 5 billion yuan. The remaining private placements, including the term investment of Fang Liqiang, the actual controller of Chengbang shares, Xingjian private equity of Huafu Holdings, the controlling shareholder of Huafu Fashion, and the Helin Fund and Juyin Fund, which acquired the shares of Dongda Knitting, the controlling shareholder of Kanglongda, all have a management scale of less than 1 billion yuan.