Rare, Niu San dismissed the chairman! The annual "palace drama" of Langke Technology was staged
Since the end of October, the share price of Langke Technology has been rising, and there are obviously people buying.
Author | Nan Joe
Edit | Xiaobai
Recently, Langke Technology (300042. SZ) sent the listed company to the hot search.
It is said that the shareholder couriered a temporary proposal to "remove the current chairman Zhou Fuchi" to the company, and finally passed by the board of directors with "6 votes in favor and 2 votes against" and submitted to the extraordinary general meeting of shareholders for deliberation.
Since the end of October, the stock price of Langke Technology has been rising, which inevitably makes people wonder: is there any connection between this?
(Source: Market Value APP)
With many questions, Fengyunjun decided to take a look with everyone.
forced the palace drama, and retail investors successfully overthrew the chairman of the listed company
The "Niu San" of Langke Technology is named Zhu Pingbo.
As of the latest data on November 21, 2023, it holds 7.3 million shares of Longke Technology, accounting for 3.64% of the total share capital, and the market value is 285 million according to the closing price of 39 yuan per share on November 30.
01
Niu San successfully removed the chairman
Zhu Pingbo first appeared in the list of the top ten shareholders of Langke Technology in the 2023 semi-annual report, when the number of shares held was 3.1 million shares, with a shareholding ratio of 1.55%.
In the third quarter of this year (July-September), Zhu Pingbo continued to increase his position in Langke Technology by about 4.235 million shares to 7.335 million shares, and the shareholding ratio increased to 3.66%, ranking the third largest shareholder, before Chairman Zhou Fuchi.
(Source: 2023 Third Quarter Report)
Zhu Pingbo proposed to remove Zhou Fuchi as chairman this time, using the identity of "shareholder with a shareholding ratio of more than 3%".
As for the reason for the recall, it said that Longke Technology is now controlled by state-owned assets, and the chairman is appointed by the State-owned Assets Supervision and Administration Commission to better protect the rights of small and medium-sized shareholders, and the delay in the change of the board of directors is a dereliction of duty of the current chairman.
(Source: Company Announcement 20231121)
Yingke Law Firm, which the company consulted, said that the dismissal of the chairman of the board of directors was a "removal without cause", which violated the Articles of Association.
The lawyer of the current controlling shareholder, Chengtou Group, believes that there is no provision in the Company Law that "no unreasonable recall" is allowed, and agrees to submit the proposal to the general meeting of shareholders for deliberation.
(Source: Company Announcement 20231121)
The shareholders' meeting was successfully held on the afternoon of November 29, and the proposal to remove Zhou Fuchi as a director was finally passed with a proportion of 99.67%, and the goal of Niu San was achieved.
(Source: Company Announcement 20231129)
02
Zhou Fuchi was nominated as the original largest shareholder
At that time, the six directors who voted in favor were Xu Lisong, Li Zemei, Yu Yana, Lei Qunan and Zhong Gangqiang, and Zhou Fuchi and Yu Bo voted against.
Among them, Zhong Gangqiang was nominated by Deng Guoshun, the founder and second largest shareholder of Langke Technology, and the other 5 were nominated by Shaoguan Urban Investment.
Zhou Fuchi and Yu Bo, who voted against it, were the people nominated by Shaolong Technology (formerly known as "Shanghai Yili Enterprise Development Co., Ltd."), the former largest shareholder of Langke Technology.
(Tabulation: Market Cap APP)
Behind the matter, there is a competition between the former largest shareholder and the current largest shareholder.
Due to the arrears of equity transfer and pledge financing, all the shares originally held by Shaolong Technology were frozen by the judiciary. In April 2022, Shaoguan Urban Investment won 49.875 million shares (accounting for 99.81% of Shaolong Technology's original holdings) for 1.034 billion yuan through auction, becoming the largest shareholder, and the stock transfer was completed in June 2022.
(Source: Company announcement)
Langke Technology ended the state of no actual controller, Shaoguan Urban Investment became the controlling shareholder, and the actual controller after penetration is the Shaoguan State-owned Assets Supervision and Administration Commission.
03 Behind the postponement of the board of directors is the nomination game?
Under normal circumstances, Zhou Fuchi's term of office expires in July 2023, but the term of office has been postponed on the grounds that "the nomination of candidates for the new board of directors and board of supervisors has not yet been completed".
(Source: Company announcement 20230912)
At the same time, according to the Articles of Association, the term of office of the directors was not re-elected in time, and the former chairman continued to perform his duties as a director, so Zhou Fuchi has been in office until now.
(Source: Company Announcement 20231121)
Therefore, there is no shortage of speculation in the outside world that the postponement of the re-election is a deliberate delay in the tenure of the current team, and then there is a scene of "Niu San proposes to remove the chairman".
There are even rumors in the market that Zhu Pingbo's move was meant by Shaoguan Chengtou, but it is just a rumor and has not been confirmed.
The industry market has a broad space, but it is currently in a downward cycle
The main products include SSD solid state drives, DDR memory modules, storage bars, mobile storage products, etc., which have the characteristics of small system and fast storage speed, which is a typical traditional industry.
(Source: company's official website)
At present, the explosion of data volume makes the storage industry market space broad, the country is planning to build a computing hub node, in the Guangdong-Hong Kong-Macao Greater Bay Area, the only data cluster is in Shaoguan, Guangdong, where the factory of Langke Technology is located.
In recent years, it has expanded new business to the upstream and downstream of the industrial chain, and the chip packaging and testing factory in Shaoguan City has been put into operation, and the Shaoguan data center cluster has completed three batches of data center project signing.
(Source: Company Announcement 20230602)
However, these businesses have not yet been reflected in the performance, from the perspective of product composition, the revenue of Langke Technology still relies on flash memory application products, flash memory control chips and other two parts, with a total revenue of 1.696 billion yuan in 2022, accounting for more than 95% in total.
(Source: 2022 Annual Report)
At present, Langke Technology is still facing performance difficulties.
From the perspective of revenue, starting in 2022, its revenue has changed its previous growth trend. Among them, in 2022, it will achieve 1.772 billion, a year-on-year decrease of 7.37%, and the revenue in the first three quarters of 2023 will be 1.034 billion, a year-on-year decrease of 19.28%.
(Chart: Market Cap APP)
Net profit shows its predicament, and 2017-2022 is basically standing still. Among them, the net profit attributable to the parent company in 2022 will be 62 million, which is less than the level of 4 years ago (2018).
In the first three quarters of 2023, the non-net profit will turn from profit to loss, which is the first time since listing, achieving -45 million.
(Chart: Market Cap APP)
Among the companies in the same industry, BIWIN Storage (688525. SH), Longsys (301308. SZ) and Demingli (001309.SZ) net profit also fell sharply, and the overall prosperity of the storage industry is not high.
(Tabulation: Market Cap APP)
Affected by this, in the first three quarters of 2023, the gross profit margin of Longke Technology fell to 6.02%, a year-on-year decrease of 2.8 percentage points and a record low.
(Chart: Market Cap APP)
In recent years, the decrease in revenue has also lowered the overall gross profit margin to a certain extent.
(Tabulation: Market Cap APP)
In the first three quarters of 2023, the expense ratio increased by 4.53 percentage points year-on-year, further eroding net profit.
(Indicator: Market Cap APP)
The advantage is that the funds on the books of Longke Technology are relatively sufficient, with monetary funds and transactional financial assets of 620 million at the end of September 2023, no interest-bearing liabilities such as long-term and short-term loans, and an asset-liability ratio of less than 15%.
(Chart: Market Cap APP)
It is hoped that after Shaoguan State-owned Assets takes over the management rights, the company's internal governance can be stabilized and the business will be carried out conscientiously.
Disclaimer: This report (article) is based on the public company nature of the listed company, based on the listed company's public company attributes, based on the listed company's public disclosure in accordance with its legal obligations (including but not limited to temporary announcements, periodic reports and official interactive platforms, etc.) as the core basis; The information or opinions expressed in this report (article) do not constitute any investment advice, and Market Value Storm does not assume any responsibility for any actions taken as a result of the use of this report.
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