Economic Observation Network reporter Zhang Xiaohui fell from 83 yuan to early 60 yuan, in just one month, China's photovoltaic giant - LONGi Green Energy Technology Co., Ltd. (601012. SH, hereinafter referred to as "LONGi shares"), fell 27%, and the market value evaporated by more than 100 billion yuan.
On the evening of April 21, LONGi shares hung out a "clarification announcement on media reports", saying that the media report that "the company's chairman Zhong Baoshen quietly reduced his holding of 19.6 million shares of the company's shares on April 6" is not true, the real situation is: Zhong Baoshen's shareholding change is due to non-transaction transfer, not selling transaction.
On April 22, LONGi opened at 61 yuan per share, down 2.52%, and hit a new intraday low of 12 months - 60.80 yuan per share.
Chairman Zhong Baoshen's shareholding changes
On the evening of April 21, some investors asked LONGi shares through SSE e-interaction: "Is there any special reason for Zhong Baoshen, chairman of the company and non-independent director, to quietly reduce the company's shares through non-transaction transfers?" ”
LONGi shares did not return the name of investor, but explained the issue through an announcement in the evening.
LONGi said that Zhong Baoshen handled the non-trading securities transfer business at the Shanghai branch of China Securities Depository and Clearing Co., Ltd. on April 6, 2022 due to the division of family property, and overselled 19,600,000 shares of the company's shares, and after this change, Zhong Baoshen held 70,255,990 shares of the company's shares. The reason for the change in shareholding is a non-transaction transfer, not a sell transaction. Zhong Baoshen's shareholding change behavior complies with the requirements of relevant laws and regulations, and there is no violation of the window period and information disclosure.
Chairman Zhong Baoshen, 55, has served as the chairman of LONGi since 2 July 2018, and received an annual salary of 2.84 million yuan in LONGi in 2020.
According to the third quarterly report of 2021, Zhong Baoshen holds 89,855,990 shares and 1.66% of the shares, ranking seventh among the top ten shareholders of LONGi shares.
In March 2022, Zhong Baoshen was selected into the Hurun Global Rich List with a value of 9.5 billion yuan.
In the 2022 New Year message, Zhong Baoshen said that looking back on this year, the photovoltaic industry is surging. The repeated outbreak of new crown pneumonia, the price fluctuations of the supply chain, the escalation of international trade frictions... It has brought pressure and challenges to the industry. It was also this year that LONGi people cut through thorns and made steel, and delivered the most photovoltaic products for global customers.
The actual controllers of LONGi shares are Li Zhenguo and Li Xiyan, and Li Zhenguo is currently the director and general manager of LONGi shares.
Frequently disappointed
After entering 2022, LONGi shares have frequently encountered bearishness, and the stock price has been 40% off from the peak of 100 yuan last year.
According to the announcement on April 6, 2022, LONGi's 67GW of la crystal production capacity and 57GW of sliced production capacity in Yunnan are being affected by the adjustment of the electricity price policy.
Previously, LONGi shares' investment in Yunnan enjoyed preferential electricity price policies, but on April 1, 2022, LONGi shares received a notice from the Yunnan Provincial Development and Reform Commission that the electricity price concessions enjoyed by LONGi shares in Yunnan were cancelled, and from September 1, 2021, the company's total electricity price was formed through electricity market-oriented trading and settled directly with power grid enterprises.
LONGi estimates that the proportion of electricity costs to the whole processing cost of silicon wafers is about 15%, and the cancellation of electricity preferential charges will have a certain adverse impact on the company's profits.
The slice production capacity of LONGi in Yunnan accounts for about 54% of the company's total production capacity. Lijiang Phase III annual output of 10GW monocrystalline silicon rod construction project, Qujing Phase II annual output of 20GW monocrystalline silicon rod and 30GW monocrystalline wafer project, Qujing annual output of 30GW monocrystalline cell project has not yet started or put into production.
Earlier, on March 7, LONGi disclosed a number of lawsuits against the company by South Korean photovoltaic giant HANWHA SOLUTIONS CORPORATON in the United States, Australia, Germany, France and other places. Hanwha claims that some of the products sold by LONGi infringe Hanwha's patent rights.
In October 2021, the Dutch court issued an interim injunction ruling restricting the sale of LONGi's Hi-M03, Hi-M03m, Hi-M04, Hi-M04m, Hi-M05, Hi-M05 and Hi-M05m component products in 11 countries including Belgium, Bulgaria, Germany, France, Hungary, Liechtenstein, Austria, Portugal, Spain, the United Kingdom and Switzerland.
LONGi believes that the judgment rendered by the Dutch court lacks legal basis and factual basis, and will immediately appeal in accordance with the relevant laws to strive for the lifting of the temporary cross-border injunction as soon as possible.
LONGi shares said that since the subject of this temporary ban is only for the subsidiaries of LONGi in the Netherlands, the behavior and customers of other companies other than LONGi are not subject to any restrictions on the ban. In addition, the Company has stockpiled and produced new technology products and has reached an agreement with Hanwha on alternative technology solutions to meet customer needs through other means or by replacing other new technology alternative products that are not related to the patent in question. Therefore, this judgment will not have a material impact on the company's operations.
LONGi's share price rebounded slightly at the end of March 2022, soaring to 83.59 yuan per share, but since April, its share price is accelerating its decline.
On April 22, LONGi's share price hit a new intraday low of 60.8 yuan, which has caused its second-largest shareholder, Hillhouse Investment Management Co., Ltd. to lose 2 billion yuan.
In December 2021, Hillhouse took 6% of the equity of LONGi shares from the second shareholder Li Chunan at an agreed price of 70 yuan per share, with a total amount of 15.8 billion yuan, when Hillhouse expressed optimism about the photovoltaic new energy industry, and Li Chunan was the consistent actor of Li Zhenguo, Li Xiyan, the actual controller of LONGi shares.
In SSE e-Interactive, an investor asked: "Hello Board Secretary!" How much of the company's sales revenue in Europe accounted for 21% of the total operating income? Recently due to the escalation of the situation in Russia and Ukraine, the next European countries (especially Germany) will inevitably increase the construction of renewable energy, is the company ready to seize the opportunity to quickly open the European market? ”
LONGi shares replied that the European market belongs to one of the main markets of global photovoltaic demand, the company attaches great importance to customer demand and development in the European market, in 2020, the company's Sales Revenue in Europe accounted for about 9% of the company's total revenue in the current period, 2021 related data Please wait and pay attention to the company's 2021 annual report.
On April 22, 2022, the share price of LONGi shares closed at 62 yuan, with a total market value of about 335.6 billion yuan.
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