On the evening of April 15, Shangwei shares (603333. SH) announced that on April 14, 2024, the company received the Criminal Judgment (2023) Zhe 05 Xingchu No. 7 from the Intermediate People's Court of Huzhou City, Zhejiang Province, delivered by Li Guangsheng, the controlling shareholder and actual controller of the company. Defendant Li Guangsheng was sentenced to three years and ten months imprisonment and a fine of 7 million yuan for the crime of manipulating the securities market.
In addition, the defendant Jiang Xiangdong (then secretary of the board of directors) committed the crime of manipulating the securities market and was sentenced to three years' imprisonment, suspended for four years, and fined 100,000 yuan. The illegal gains returned by defendant Li Guangsheng are to be confiscated and turned over to the state treasury, and the illegal gains of defendant Li Guangsheng are to be recovered and turned over to the state treasury.
The chairman of the board of directors is suspected of manipulating the securities and futures markets
His brother had previously been sentenced
It is reported that Shangwei Co., Ltd. is a national high-tech enterprise integrating R&D, production, sales and service of high-end special cable products, and the company's main products are widely used in nuclear power, rail transit, State Grid electric power, optoelectronics, wind power, chemical industry, petroleum and petrochemical and many other fields.
Previously, Shangwei received a notice from the family of Li Guangsheng, the controlling shareholder and actual controller of the company, on June 6, 2022, that Li Guangsheng was taken into criminal detention by the Huzhou Municipal Public Security Bureau on suspicion of manipulating the securities and futures markets.
According to the announcement of Shangwei shares at that time, because Chairman Li Guangsheng was temporarily unable to perform his duties normally, according to relevant regulations, more than half of the company's directors were elected, and during the period when Li Guangsheng could not perform his duties as chairman normally, Fang Yong, the director of the company, temporarily performed the duties of the chairman of the board. The company has made proper arrangements for related matters, and the company's production and operation are not affected, and all work is carried out in an orderly manner. The board of directors and management of the company will strengthen the operation and management to ensure the normal operation of the company's business activities.
On June 8, 2022, Shangwei Co., Ltd. responded to the criminal detention of the actual controller during the institutional investigation, saying that the company's production and operation and customer orders have not been affected at present. This matter has little impact on the company's future development, and the company has a complete internal governance system, which can ensure the normal development of the company's production and operation. In addition, the company said that based on the orders that have been executed so far, the company's second-quarter performance has increased significantly compared with last year.
Li Guangsheng Image source: Shangwei official website
According to public information, Li Guangsheng is 51 years old and is the chairman, general manager, legal representative and non-independent director of Shangwei Co., Ltd. As of September 30, 2023, Li Guangsheng directly held 87,721,600 shares of Shangwei, accounting for 14.11% of the company's total share capital.
On June 17, 2022, Shangwei Co., Ltd. received a notice from Li Guangsheng that he received the "Decision on Release on Bail Pending Trial" issued by the Huzhou Municipal Public Security Bureau, and decided to release him on bail pending trial in accordance with the relevant provisions of the Criminal Procedure Law of the People's Republic of China.
As early as 2016, Li Guangyuan, the actual controller of the company, was sentenced to 11 years in prison on suspicion of bribery, bribery and false issuance of special VAT invoices, and is still serving his sentence. During this period, Star Cable quickly removed Li Guangyuan from relevant positions, and Li Guangyuan's brother Li Guangsheng took on the important responsibility and succeeded Li Guangyuan as the company's new actual controller. Later, the company also changed its name to Shangwei shares.
As of the close, Shangwei shares fell 7.73% to 4.3 yuan per share, with a market value of 2.673 billion yuan.
Tried to premium 28 times
Acquired 40% equity of Luo Yonghao Live Company
On the evening of December 3, 2020, Shangwei Co., Ltd. issued an announcement to terminate the acquisition of 40.27% of the shares of Xingkong Yewang, the main operating entity of Luo Yonghao's live broadcast e-commerce business.
The "abortion" of the acquisition plan may be related to the changes in the development environment of live broadcast e-commerce. Shangwei Co., Ltd. said that after the signing of the relevant agreement on the cash acquisition, in the process of carrying out due diligence, auditing, evaluation and other related work on the target company, the State Administration for Market Regulation issued the "Guiding Opinions on Strengthening the Supervision of Online Live Marketing Activities", the State Administration of Radio and Television's "Notice on Strengthening the Management of Online Show Live Broadcast and E-commerce Live Broadcast" and the State Network Information Office issued the "Internet Live Marketing Information Content Service Management Provisions (Draft for Comments)" (hereinafter referred to as the "New Regulations"), from the legal record, Marketing catalogs, the protection of minors, and other aspects regulate the live streaming marketing industry.
"If the new regulations are officially implemented, it will have a greater impact on the development of the live broadcast industry where the target company is located. Considering the above factors, the listed company and the shareholders of the target company re-examined the core terms of the transaction, such as valuation and pricing, profit forecast and VAM, and finally failed to reach an agreement after repeated and careful discussions. Shangwei shares said.
Image source: Photo by reporter Xu Shuai
Previously, Shangwei Co., Ltd. announced on the evening of November 8, 2020 that it planned to acquire 40.27% of the shares of Xingkong Yewang with its own and self-raised funds of no more than 589 million yuan. At the same time, Li Guangyuan, a shareholder of the listed company, transferred 25,995,300 shares of the listed company to Li Jun, Longquan Qianxiu Internet Partnership (Limited Partnership) and Kong Jianping respectively through an agreement transfer. The above cash acquisition is conditional on the transfer by agreement. According to Xinhua News Agency, cover news, etc., at that time, Xingkong Yewang was the main body of Luo Yonghao's e-commerce live broadcast company, which was established less than a year ago, and Luo Yonghao was the most important anchor of Xingkong Yewang's cooperation.
As soon as the news was released, keywords such as "Luo Yonghao" and "live streaming" quickly ignited the market's enthusiasm for Shangwei shares. From November 9 to November 11 of that year, Shangwei shares harvested three consecutive price limits.
However, this cross-border acquisition with a premium rate of more than 28 times has attracted the attention of the Shanghai Stock Exchange. On November 8 of that year, the Shanghai Stock Exchange quickly issued a letter of inquiry, requiring Shangwei to explain whether the acquisition at a high premium was reasonable, whether the underlying profit was sustainable, and whether it was harmful to the interests of investors. On November 10, the Shanghai Stock Exchange issued a working letter again, requiring Shangwei to explain the strategic considerations of cross-border acquisition, the source of transaction funds, and whether there was a disguised benefit transfer to Li Guangyuan.
However, in the face of inquiries, Shangwei shares committed "procrastination" and postponed the reply to the inquiry of the Shanghai Stock Exchange three times. On December 4, 2020, Shangwei Co., Ltd. issued a reply to the Shanghai Stock Exchange, only answering questions such as the compliance of the suspension, information disclosure and corporate control, and at the same time, issued an announcement on the termination of the acquisition. As for the core questions related to the transaction raised by the Shanghai Stock Exchange, Shangwei shares did not have a clear reply.
Source: National Business Daily