Journalist | Editor Chen Qixin | 1
On the evening of October 9, Dawning Shares (600303.SH) announced that recently, the company received the “Notice of Judicial Freezing and Transfer of Equity Rights of China Settlement Shanghai Branch” and “Notice of Assistance from Beijing Second Intermediate People’s Court” forwarded by the Shanghai Stock Exchange, and learned that all shares of Huatai Automobile, the company’s major shareholder, had been judicially frozen.
Up to the announcement date, the majority shareholder Huatai Automobile Holdings Company’s 134 million shares, accounting for 19.77% of the company’s total share capital, has been frozen. Dawning said that the freeze will not affect the company’s control rights and production and operation. The company will closely monitor the freeze and its impact on Huatai Automobile Holdings and timely fulfill the obligation of information disclosure.
Shuguang Stock Co., Ltd. is a cross-regional enterprise group whose main business is vehicle, axle and spare parts. In September 2018, Dawn shares transferred 97.89 million shares (14.49% of the company’s total equity) to Huatai Automobile, and the transfer registration formalities were completed. Since then, Huatai Automobile has directly held 134 million shares of Dawning Stock (19.77% of the company’s total equity).
Since then, the shares of listed companies held by Huatai Automobile have been frozen by the judiciary for many times. In December 2018, Dawning announced that in the case of Buick Battery Company and Huatai Automobile Company, 134 million shares of Huatai Automobile Company were judicially frozen. The frozen date was November 29, 2018, accounting for 100% of the shares held by Huatai Automobile Company.
In May 2019, the Rongcheng People’s Court, on the basis of the property preservation application filed by the applicant, Rongcheng Forging Machine Tool Co., Ltd. and relevant laws, decided to freeze the 20 million yuan of the shares of the listed company held by Huatai Automobile Co., Ltd. for three years.
In August 2019, Jiuzhou Securities and Leadership Capital Management applied to freeze all shares of Huatai Automobile Company on a waiting basis. The freezing date is August 28, 2019, and the freezing period is three years. In September, Changjiang Securities (Shanghai) Asset Management Co., Ltd. applied for a rotation freeze on all shares of Huatai Automobile Company due to a bond transaction dispute. The freezing date was September 26, 2019, and the freezing period was three years.
According to media reports, Huatai Motor previously had a debt of 29.4 billion yuan, with only 130,000 yuan on its books. It is understood that most of Huatai’s subsidiary shares have been used for financing pledge, the shares of its listed companies have been frozen, Huatai Automobile and several subsidiaries have been listed as the list of discredited executors, and recently encountered employee salary calls.
Major shareholders are trapped by many problems, and Dawning shares are also concerned about their own performance problems. After the publication of the semi-annual report of 2019, Dawning received a letter of inquiry from the Shanghai Stock Exchange. It was mentioned in the inquiry that the growth rate of vehicle sales in Dawning Stock Report Period was lower than that of the industry as a whole, the growth rate of vehicle bridge sales was higher than that of the company’s vehicle business, and the company’s net profit after non-deduction was negative for seven consecutive years, and the cumulative loss amount of net profit after non-deduction was 1.317 billion yuan.
In the letter of inquiry, Dawning shares were asked to explain the reasons why the growth rate of vehicle sales was lower than the overall level of the industry during the reporting period, the business development situation of each branch of the company and the focus of follow-up development, to quantitatively analyze the specific causes of the company’s large losses during the reporting period, to supplement and disclose the specific reasons for the company’s net profit loss after deducting non-profits for many years, and to explain the main measures taken by the company to improve its profitability of its main business The situation of application and so on.
On the other hand, the shares of listed companies owned by Huatai Automobile are all pledged, and the related issues of judicial freezing and waiting freezing are also concerned. The Shanghai Stock Exchange requires Dawning Shares to explain the specific impact of controlling shareholders’operation and financial situation on the company’s production and operation in the light of the assets and liabilities, liquidity, credit, operation and litigation of controlling shareholders, and to verify whether there is any inclination of interest in providing guarantees and guarantees to controlling shareholders and their affiliates.
Up to press release, Dawning shares have not responded to the above inquiry letter, interface news will continue to pay attention to this matter.
Journalist | Editor Chen Qixin | 1