Source: China News Network
China News Finance, January 28 (Gong Hongyu) Within five days, the actual controller of this company and the son of the "post-90s" were both investigated and placed under residential surveillance by the public security organs in a designated place of residence. Which company is this? Why was the mother and son duo, who have tens of billions of dollars, investigated?
Who is this mother and son?
On January 24, Huabao announced that Zhu Linyao, the actual controller of the company, filed an investigation for illegal issues. On the evening of January 26, Huabao announced the progress of the case, saying that the company learned from Zhu Linyao's family that Zhu Linyao had been placed under residential surveillance at a designated residence.
On the evening of January 27, Huabao co., Ltd. issued another announcement that the company received a notice of filing a case from the Hengyang County Supervision Commission on the afternoon of the same day, and director Lin Jiayu was investigated for illegal issues and is currently under residential surveillance in a designated place by the Changsha County Public Security Bureau.
Warburg Shares Announcement
Public information shows that Lin Jiayu is the son of Zhu Linyao (female), the actual controller of Huabao shares.
According to the information disclosed by Huabao Shares, Lin Jiayu is the chairman and legal representative of Huafeng International Investment Holdings (China) Co., Ltd. (hereinafter referred to as "Huafeng China"), the controlling shareholder of the Company, and its co-actor, Shanghai Xiangyue Technology Development Co., Ltd. (hereinafter referred to as "Xiangyue Technology"), and does not directly hold shares in the Company.
According to Huabao's 2020 annual report, Lin Jiayu, born in 1992, is a hong Kong national and educated in the United Kingdom and the United States. He has held director and senior management positions in companies in advertising media, e-commerce and other industries, and served as a director of a domestic non-profit foundation.
Zhu Linyao established Huabao Limited, the predecessor of Huabao Co., Ltd. in Shanghai in 1996. Since March 2004, he has served as Chairman of the Board, Chairman of the Nomination Committee and Chief Executive Officer of Warburg International. From November 2015 to September 24, 2017, he served as the Chairman of Huafeng China, which held 81.1% of the shares of Huabao Flavor Co., Ltd.
As the industry leader "at the helm", Zhu Linyao is "rich". On the 2021 Hurun Rich List, Zhu Linyao ranked 122nd with a wealth of 49 billion yuan, ranking 11th in the "2021 Hurun Female Entrepreneur List". But behind the tens of billions of dollars, the usually low-key Zhu Linyao is also known as the "queen of pumping", since 2006 she has repeatedly reduced her holdings and cashed out, and because of the high dividends caused market attention and controversy.
Screenshot of Huabao International's official website
Why was it investigated?
Warburg International previously stated that until the date of the announcement, the company had not been provided with any details about the nature of the alleged violations that Zhu Linyao was currently under investigation.
Judging from a number of media reports, Zhu Linyao was investigated or related to the anti-corruption storm of Hunan Tobacco. According to the Securities Times, some insiders said that the Zhu Linyao case was rumored in the industry, which was related to liu Jianfu, a member of the party group and deputy general manager of Hunan China Tobacco Industry Co., Ltd. last year.
On January 24, when Zhu Linyao was announced to file a case for investigation, according to the website of the Central Commission for Discipline Inspection and the State Supervision Commission, Zhou Tao, deputy secretary of the party group and general manager of Yunnan Tobacco, was suspected of serious violations of discipline and law and voluntarily surrendered. Previously, in 2021, a number of senior executives of Hunan China Tobacco Company had been investigated for suspected serious violations of discipline and law.
On the evening of the 27th, the anti-corruption feature film produced by the Hunan Provincial Discipline Inspection Commission supervision commission was broadcast in the golden file of Hunan Satellite TV, and LuPin, secretary of the party group and general manager of Hunan China Tobacco Industry Co., Ltd., who fell from power last year, appeared for the first time.
Checking public information found that Yunnan China Tobacco and Hunan China Tobacco Company were both huabao customers. According to the prospectus of Huabao Shares, from 2015 to 2017, Yunnan China Tobacco and Hunan China Tobacco were the company's first and second largest customers, respectively. In the past three years, the company's sales to Yunnan Tobacco accounted for about 25% of revenue, and sales to Hunan Tobacco accounted for about 15% of revenue.
Huabao's stock price plunged, saying it would not have a significant impact on operations
On the 27th, Huabao shares said that as of the disclosure date of this announcement, the company was not aware of Lin Jiayu's personal debt. Lin Jiayu's case filing and investigation and the execution of residential surveillance at a designated residence will not directly lead to significant uncertainty in the ownership of the company's equity, nor will it directly affect the stability of the company's control.
Huabao shares stock price chart
Previously, Huabao Shares and Huabao International also issued an announcement that Zhu Linyao did not hold any position in Huabao Shares, did not participate in the company's operation and management, and the above matters will not have a significant impact on the company's daily production and operation activities. The company has a continuous and improved governance structure and internal control mechanism. At present, the company's production and operation are normal.
Warburg International stock price chart
However, affected by the incident, as of the close of trading on January 27, The share price of Huabao shares fell for four consecutive days, and the market value evaporated by 8.585 billion yuan; the share price of Huabao International plunged by 65.98% in four trading days, and the market value evaporated by HK$47.9 billion (equivalent to 39.1 billion yuan according to the latest exchange rate). At the opening of the market on the 28th, Huabao International's stock price continued to fall sharply, falling nearly 20% at one point; Huabao shares fell by more than 2% at one point. (End)