On April 19, LONGi Green Energy announced that HHLR, the shareholder of the company, issued the "Simplified Equity Change Report", increased its holdings of LONGi Green Energy's shares, and promised to repurchase all the reduced shares of the target within one month. On the day of the announcement, HHLR completed its first buyback, increasing its shareholding from 4.98% to 5%.
Image source: Company announcement
HHLR pledged to voluntarily repurchase the shares of LONGi
HHLR stated in the "Simplified Report on Changes in Equity" that since receiving the notice of filing, the company has actively cooperated with the investigation of the China Securities Regulatory Commission. In accordance with the spirit of supervision, it is committed to actively increase its holdings of LONGi Green Energy shares with self-raised funds, and complete the repurchase of all the shares of the target within the next one month, and if this part of the share repurchase involves the proceeds, it will be owned by the listed company. HHLR will continue to strengthen the study of laws, regulations and normative documents to serve the high-quality development of China's capital market.
Image source: Short Form Report on Changes in Equity
According to market news, as Hillhouse's independent US dollar secondary market investment management platform, HHLR has raised a new fund with a scale of about 6 billion yuan, increased the proportion of China's asset allocation, and continued to invest in the A-share market. Market participants believe that under the current circumstances, Hillhouse has increased its position in A-shares, which not only reflects its determination to continue to invest in China, but also helps to activate the market and boost investor confidence.
Previously, the SFC filed a case against HHLR
According to the data, in December 2020, HHLR, a subsidiary of Hillhouse, acquired 6% of the shares of Li Chunan, a shareholder of LONGi Green Energy, at a transfer price of 70 yuan per share, with a total transaction consideration of about 15.84 billion yuan. HHLR entered the top 10 shareholders of the company in the first quarter of 2021, holding 5.85% of the shares.
The third quarter report disclosed by LONGi Green Energy shows that by the end of the third quarter, HHLR held 4.98% of the shares (377.621 million shares). As of the end of the Reporting Period, all the shares lent by HHLR Management Co., Ltd. - China Value Fund (Exchange) through refinancing have been returned at maturity. HHLR's shareholding decreased at the end of the third quarter compared to its previous shareholding of 5.85%.
As a shareholder holding more than 5% of the shares, it lent shares through refinancing, reduced its shareholding ratio to less than 5%, and reduced its shareholding during the lending period, which sparked market discussions due to the lack of announcement.
On the evening of November 8, 2023, LONGi Green Energy issued an announcement on the receipt of the notice of filing by the China Securities Regulatory Commission from shareholders. According to the announcement, LONGi Green Energy learned that the shareholder HHLR received a notice of filing a case issued by the China Securities Regulatory Commission on November 8, 2023, and the China Securities Regulatory Commission decided to file a case against HHLR on suspicion of transferring LONGi Green Energy shares in violation of restrictive regulations, in accordance with the Securities Law of the People's Republic of China, the Administrative Punishment Law of the People's Republic of China and other laws and regulations.
Image source: Company announcement
LONGi Green Energy said that the case was filed against the company's shareholder HHLR, and the company's production and operation activities would not be affected. During the investigation, shareholders will actively cooperate with the investigation of the CSRC and fulfill their information disclosure obligations in strict accordance with relevant laws, regulations and regulatory requirements.
Reviewer: Dong Fengbin Editor: Zhang Diange Proofreader: Zhang Lijing Producer: Li Ruoyu Signed: Fei Yangsheng