Three insiders involved in Wanxiang Qianchao's insider trading were fined and confiscated a total of 20.56 million. The general manager and secretary of the board leaked confidential information.

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China Economic Net, Beijing, March 30 — On March 25, the Hunan Securities Regulatory Bureau issued an administrative penalty decision (〔2026〕1-3). The Hunan Securities Regulatory Bureau conducted a filing investigation into the stock trading of Wanxiang Qianchao Co., Ltd. (hereinafter: Wanxiang Qianchao, 000559.SZ) by Jin Guanmu, Fu Guowei, and Lu Shijun for insider trading, and, in accordance with law, notified the parties concerned of the facts, reasons, basis for the administrative penalty, and the rights they enjoy under law. At the request of the parties concerned, a hearing was held to hear statements and defenses from Jin Guanmu and his representative.

On April 17, 2024, the company disclosed the “Suspension Announcement Regarding the Planning of Matters Concerning the Issuance of Shares to Purchase Assets,” stating that the company planned to acquire 100% of the equity of WanxiangAmericaCorp. controlled by Wanxiang Group Co., Ltd., the company’s controlling shareholder, by issuing shares and paying cash, and to raise supporting funds through share placements. This transaction is expected to constitute a major asset restructuring.

The above major asset restructuring matters comply with the provisions of Item 7 of Paragraph 2 of Article 22 of the CSRC’s “Measures for the Administration of Information Disclosure by Listed Companies” (CSRC Order No. 182). They fall under the major events stipulated in Item 12 of Paragraph 2 of Article 80 of the Securities Law, and, before being disclosed, constitute inside information under Paragraph 2 of Article 52 of the Securities Law.

Inside information was formed no later than March 10, 2024 and was made public on April 17, 2024. The general manager of Wanxiang Qianchao, Li Mouyi, and the secretary of the board of directors, Wen Mou, both participated in this major asset restructuring project. They are insider information knowers as stipulated in Item 4 of Article 51 of the Securities Law, and both of them became aware of the information no later than March 10, 2024.

Before retiring, Jin Guanmu was an employee of Wanxiang Qianchao. At 07:49 on April 15, 2024, Jin Guanmu had a phone call with Li Mouyi, the general manager of Wanxiang Qianchao. The call duration was 1 minute and 29 seconds. During the sensitive period of inside information, Jin Guanmu controlled the “Zhong Moumei” Guotai Junan Securities account and the “Jin Guanmu” Guotai Junan Securities account (hereinafter referred to as the account group) and made a unilateral purchase of 2,152,800 shares of Wanxiang Qianchao, with a total purchase amount of 11,376,769 yuan. After the announcement, all shares were sold, with a total sale amount of 10,830,539 yuan. The total loss was 454,722.89 yuan. Jin Guanmu’s control of the account group’s trading of Wanxiang Qianchao shares showed clearly abnormal securities trading activities, highly consistent with the inside information, and the parties concerned had no reasonable explanation. When accepting the investigation by the Hunan Securities Regulatory Bureau, Jin Guanmu actively cooperated and proactively provided equipment such as his mobile phone, and provided relevant document materials, etc.

The Hunan Securities Regulatory Bureau held that Jin Guanmu’s conduct violated the provisions of Articles 50 and 53, Paragraph 1 of the Securities Law, and constituted insider trading as described in Article 191, Paragraph 1 of the Securities Law. Based on the facts, nature, circumstances, and degree of social harm of the parties’ illegal conduct, and considering the parties’ cooperation with the Hunan Securities Regulatory Bureau’s investigation work, pursuant to Article 191, Paragraph 1 of the Securities Law, the Hunan Securities Regulatory Bureau decided: to impose a fine of 1.5 million yuan on Jin Guanmu.

Fu Guowei worked for a subsidiary of Wanxiang Qianchao. Fu Guowei and Wen Mou have known each other for many years; they are middle school classmates. From April 3 to April 9, 2024, there were 6 call records between them. The trading situation of Wanxiang Qianchao shares during the sensitive period of inside information was: from April 12 to April 16, 2024, a unilateral purchase of 284,900 shares, with a total purchase amount of 1,480,882.40 yuan. After the announcement, all shares were sold, earning 87,413.57 yuan. Fu Guowei controlled the “Sun Moujia” Ping An Securities account to trade Wanxiang Qianchao shares. The securities trading activities were clearly abnormal, highly consistent with the inside information, and the party had no reasonable explanation. When accepting the investigation by the Hunan Securities Regulatory Bureau, Fu Guowei actively cooperated, proactively provided equipment such as his mobile phone, and provided relevant document materials, etc.

The Hunan Securities Regulatory Bureau held that the above conduct of Fu Guowei violated the provisions of Articles 50 and 53, Paragraph 1 of the Securities Law, and constituted insider trading as described in Article 191, Paragraph 1 of the Securities Law. Based on the facts, nature, circumstances, and degree of social harm of the parties’ illegal conduct, and considering the parties’ cooperation with the Hunan Securities Regulatory Bureau’s investigation work, pursuant to Article 191, Paragraph 1 of the Securities Law, the Hunan Securities Regulatory Bureau decided: to confiscate the illegal gains of 87,413.57 yuan from Fu Guowei and impose a fine of 500,000 yuan.

Lu Shijun is acquainted with Li Mouyi, the general manager of Wanxiang Qianchao. They had 6 communications during the sensitive period of inside information. During the sensitive period, Lu Shijun controlled the “Zhang Moujiao” Caitong Securities account, the “Lu Mouquan” Guotai Junan Securities account, the “Lu Shijun” Caitong Securities account, and the “Lu Shijun” Macao Securities account (hereinafter referred to as the account group). He made a unilateral purchase of 2,847,200 shares of Wanxiang Qianchao, with a total unilateral purchase amount of 14,804,259 yuan. After the announcement, all shares were sold, earning total gains of 4,493,192.69 yuan. Lu Shijun’s trading of Wanxiang Qianchao shares through the account group showed clearly abnormal securities trading activities, highly consistent with inside information, and the party had no reasonable explanation.

After learning of the inside information, Lu Shijun advised Gao Mouhui to buy Wanxiang Qianchao shares. Gao Mouhui controlled the Wumining Securities account in his own name. On April 12, 2024, he unilaterally bought 173,000 shares of Wanxiang Qianchao, with a total purchase amount of 891,820 yuan. After the announcement, all shares were sold, resulting in a loss of 17,330.29 yuan. Lu Shijun constituted advising others to buy and sell stocks.

When accepting the investigation by the Hunan Securities Regulatory Bureau, Lu Shijun actively cooperated, proactively provided equipment such as his mobile phone, and provided relevant document materials, etc.

The Hunan Securities Regulatory Bureau held that Lu Shijun’s above conduct violated the provisions of Articles 50 and 53, Paragraph 1 of the Securities Law, and constituted the illegal conduct as described in Article 191, Paragraph 1 of the Securities Law. Based on the facts, nature, circumstances, and degree of social harm of the parties’ illegal conduct, and considering the parties’ cooperation with the Hunan Securities Regulatory Bureau’s investigation work, pursuant to Article 191, Paragraph 1 of the Securities Law, the Hunan Securities Regulatory Bureau decided: 1. For Lu Shijun’s insider trading of Wanxiang Qianchao shares, confiscate the illegal gains of 4,493,192.69 yuan and impose a fine of 13,479,578.07 yuan. 2. For Lu Shijun’s conduct of advising others to buy and sell stocks, impose a fine of 500,000 yuan.

The Hunan Securities Regulatory Bureau, for the three persons Jin Guanmu, Fu Guowei, and Lu Shijun, in total confiscated illegal gains of 4.5806 million yuan, imposed total fines of 15.9796 million yuan, and the total amount of confiscation and fines was 20.5602 million yuan.

Public information disclosed by Wanxiang Qianchao shows: Li Pingyi — Male, born in October 1967, bachelor’s degree, senior economist. Currently serves as the company’s finance负责人. Previous positions include: general manager of the company (2013 to 2025), director of organizational resources, general manager of the Wanxiang Group Enterprise Development Co., Ltd., general manager of the real estate business department of Wanxiang Group Co., Ltd., general manager of Wanxiang Nade Co., Ltd., deputy general manager of the development department of Wanxiang Group Co., Ltd., deputy general manager of Wanxiang Qianchao Co., Ltd., executive director of Wanxiang Electric Vehicles Co., Ltd., and director of Wanxiang Qianchao Co., Ltd.’s eighth session, etc.

Wen Chao — Male, born in May 1985, bachelor’s degree, engineer. Currently serves as the company’s secretary of the board of directors and Wanxiang Qianchao’s marketing director. Previous positions include market department manager of the constant velocity drive shaft plant of Wanxiang Qianchao Co., Ltd., etc.; he has worked in product design, project management, and other work at Zhejiang Wanxiang Precision Industrial Co., Ltd.

On October 13, 2020, Wanxiang Qianchao released the report on the issuance of non-publicly offered shares and the listing announcement. The additional shares issued in this non-public offering—550,631,890 shares—were listed on the Shenzhen Stock Exchange on October 15, 2020. The issue price was 5.12 yuan per share. The sponsor (lead underwriter) was Citic Securities Co., Ltd., and the sponsor representatives were Hu Xuan and Sun Pengfei.

The total amount of募集资金 raised in this offering was 2,819,235,276.80 yuan. After deducting发行费用 totaling 9,344,399.24 yuan (excluding tax), the actual net amount of募集资金 was RMB 2,809,890,877.56 yuan. The specific targets of this non-public offering were Wanxiang Group Co., Ltd. Wanxiang Group Co., Ltd. subscribed for all the shares of this non-public offering in cash. After deducting issuance fees, the募集资金 from this non-public offering will all be used to补充流动资金.

Tianyancha data on Wanxiang Qianchao Co., Ltd. (formerly known as: Wanxiang Qianchao Co., Ltd.) shows that it was established in 1994, located in Hangzhou, Zhejiang Province, and is an enterprise mainly engaged in automobile manufacturing. The company’s registered capital is 331,535.8444 million yuan RMB, and paid-in capital is 331,535.8444 million yuan RMB.

(Editor: Xu Zili)

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