Original Title: Lost Nearly 500 Million Large Orders Caused Limitation, Huazi Technology Was Questioned
The termination of a large order of nearly 500 million yuan between Huazi Technology (300490) and Ningde Times caused heated discussions in the market. On September 16, the company’s share price “one” fell to a limit. Regarding matters related to order cancellation, the Shenzhen Stock Exchange hurriedly issued a letter of concern to Huazi Technology in the early morning of September 16, and issued three “soul questions.” Is the information disclosed in a timely manner? Whether to speculate on the company’s stock price and cooperate with shareholders to reduce their holdings? Is there any insider information leakage and insider trading? These are all questions that Huazi Technology needs to answer.
Is the information disclosed in a timely manner
On the evening of September 15, Huazi Technology issued an announcement stating that the company’s subsidiary Shenzhen Jingshi Electromechanical Technology Co., Ltd. (hereinafter referred to as “Jingshi Electromechanical”) and Ningde Times signed an “Order Change Agreement”. Due to changes in conditions and the production schedule of Jingshi Electromechanical, two orders of 231 million yuan and 251 million yuan for Jingshi Electromechanical and CATL were terminated.
In response to this matter, the Shenzhen Stock Exchange issued a letter of concern to Huazi Technology in the early morning of September 16. Affected by the cancellation of the order and the letter of concern, Huazi Technology was hit by a “20cm” limit in early trading on September 16. As of the noon closing of the day, Huazi Technology reported a limit price of 26.19 yuan per share, a decrease of 20.01%.
In the letter of concern, the Shenzhen Stock Exchange first questioned whether Huazi’s information disclosure was timely.
It is understood that the “2021 Semi-Annual Report” disclosed by Huazi Technology on August 27 shows that the conditions for the fulfillment of orders signed by the company and CATL have not undergone major changes, and there is no major risk of failure to fulfill the contract. However, only half a month has passed since the semi-annual report was disclosed, and the above-mentioned contract has undergone changes in project implementation sites and technical conditions. In addition, a reporter from Beijing Commercial Daily looked through the semi-annual report and found that for the two cancelled orders this time, neither the current sales revenue nor the advance payment were received when the semi-annual report was disclosed.
In this regard, the Shenzhen Stock Exchange required Huazi Technology to explain the specific time when the order fulfillment conditions were significantly changed; explain the specific process and situation of Jingshi Electromechanical’s communication and negotiation with the customer on the termination of this order, and the drafting and signing of the “Order Change Agreement” During the process, the company and any of its directors, supervisors and senior staff knew or should have known the specific time of the termination of the order. In combination with the above-mentioned reply, it shall be verified whether the disclosure of the company’s contract progress information is timely, and whether the relevant information in the semi-annual report is accurate and complete.
Whether to speculate on the stock price
Whether there is any speculation in stock prices is the second question issued by the Shenzhen Stock Exchange.
Because of the ride of the Ningde era, Huazi Technology can be said to be a big bull stock this year. The trading market shows that according to the post-recovery form, from January 4th to September 15th, the stock price of Huazi Technology increased significantly, with a cumulative increase of 183.36%.
It is understood that since December last year, Huazi Technology has repeatedly disclosed the announcement of the signing of production and operation contracts, including multiple order contracts with CATL. In this regard, the Shenzhen Stock Exchange requires the company to verify whether the above-mentioned contract meets the mandatory disclosure standards, and explain the reasons and standards for disclosing related companies.
In addition, since July, Huazi Technology’s controlling shareholder and some shareholders, directors, and senior managers of more than 5% have disclosed their shareholding reduction plan. For example, on July 2nd, Huazi Technology disclosed an announcement that the company’s controlling shareholder, Changsha Huaneng Automation Group Co., Ltd. (hereinafter referred to as “Huaneng Automation”), planned to reduce its holdings of the company’s shares through block transactions or centralized bidding, and the total amount of reductions would not exceed 3,152,100 shares (1.23% of the company’s total share capital); On July 5, Huazi Technology disclosed an announcement that Guangzhou Chengxin Venture Capital Co., Ltd., a director of Guangzhou Chengxin Venture Capital Co., Ltd., director Miao Honglei, and deputy general manager Tang Kai, who hold more than 5% of the shares The reduction of Huazi Technology’s shares shall not exceed 1.94%, 0.044%, and 0.0098% of the company’s total share capital. In this regard, the Shenzhen Stock Exchange questioned whether there is a situation in which Huazi Technology has issued a favorable speculation stock price and cooperated with shareholders to reduce their holdings.
Whether there is inside information leakage
In response to the above situation, the Shenzhen Stock Exchange also questioned whether Huazi Technology has insider information leakage and insider trading.
The Shenzhen Stock Exchange requires Huazi Technology to disclose the progress of the above-mentioned shareholders’ share reduction, and verify whether the relevant shareholders of the share reduction are insiders of the above-mentioned order termination matters, and whether there is an insider trading situation. In addition, the Shenzhen Stock Exchange requires Huazi Technology to report the process of signing, progress and termination of this terminated order and insiders with insider information, and verify to all insiders with insider information whether there is insider information leakage, insider trading, etc. .
It is worth mentioning that the Beijing Commercial Daily reporter noticed that due to violations in the reduction of holdings, Huazi Technology’s controlling shareholder Huaneng Controls received a warning letter from the Hunan Securities Regulatory Bureau on September 8. Specifically, Huaneng Automation bought 26,000 shares of the company during the process of reducing its holdings of Huazi Technology’s stock on July 26. From February 5th to July 26th, Huaneng Automation and acting in concert, Changsha Huazi Investment Management Co., Ltd., as a shareholder of Huazi Technology holding more than 5% of the shares, did not stop trading when the total reduction of shares reached 5% Huazi Technology Stock.
In an interview with a reporter from Beijing Business Daily, Liu Siqi, a PhD in Accounting and Finance from the University of Manchester, said that Huazi Technology’s series of actions since March have easily raised doubts among regulators and the public. As ordinary investors, they need to be more cautious about investment risks. To prevent excessive optimism.
In response to company-related issues, a reporter from Beijing Commercial Daily called the Office of the Secretary of the Board of Directors of Huazi Technology for an interview, but no one answered the call.
Beijing Commercial Daily reporter Dong Liang Ding Ning