Sudden!The chairman was made by the CSRC and was suspected of insider trading!Listed company responded rapidly: not involved in the company's stock

On August 19, Li Chunan, the actual controller and chairman of the Liancheng CNC, listed by the Beijing Stock Exchange, received a notice from the China Securities Regulatory Commission for suspected inside story transactions of the securities market.

In the response to the inquiry letter of the Bei Stock Exchange, Liancheng Digital Control stated that it was confirmed to Li Chunan that the suspected insider trading target was not the company's stock, nor did it involve other companies in the Beijing Stock Exchange.

According to the annual report of many companies, in addition to the holding of the shareholding of Liancheng and serving as an executive, Li Chunan also holds the new third board listed company Longji Electromagnetic (17.12%of the shares), the new third board listed company Longji instrument (14.46%) and the Shanghai Stock Exchange Listed companies Longji Green Energy (2.11%of the shares) and other public companies shares and have served as executives in it. Li Chunan is also the consistent actor of the actual controller of the photovoltaic giant Longji Green Energy (original securities abbreviation: Longji shares). It was once the largest shareholder of Longji Green Energy.

Image source: Liancheng CNC Announcement

Liancheng CNC response: No involved in the stock of the Beijing Stock Exchange

Liancheng CNC announced on the evening of August 19 that the investigation of this case was only an investigation of Li Chunan's individual. At present, it will not affect the company's daily business management activities, nor will it affect the normal performance of individuals. At present, it will not adversely affect the company's financial conditions.

Subsequently, the management department of the listed company of the Bei Stock Exchange issued a question letter under the control of Liancheng, asking the company to explain: Li Chunan's suspected insider trading target is the company's stock and other companies of the Beijing Stock Exchange; verify the company's knowledge of the aforementioned matters, explain the explanation Whether there is no timely performance of information disclosure and disclosure of inside information; Li Chunan is investigated whether it affects his normal performance in the company. Prompt the relevant risks; Li Chunan, chairman of the company, is filed for investigation whether it will affect the normal advancement of the company's stock issuance. Please explain the source and plan of financing; further remind the relevant risks in combination with the response to the aforementioned issues.

Picture source: Bei Stock Exchange website

On the evening of August 19, Liancheng CNC replied to the Beijing Stock Exchange inquiry that the company received a notice from Li Chunan on August 19 and learned that it received a notice from the China Securities Regulatory Commission. It was confirmed to Li Chunan that the suspected insider trading target was not the company's shares, nor did it involve other companies in the Beijing Stock Exchange.

Liancheng CNC stated that Li Chunan is currently the company's actual controller and serves as the chairman of the company. At present, it has not affected his normal performance in the company. The company's daily operation and management is responsible for the company's executive team. At present, the company's production and operation work order is normal, and various businesses have been steadily promoted. This time, Li Chunan's investigation will not have a significant impact on the company's production and operation, standardized operations, and decision -making of major issues.

Image source: Liancheng CNC Announcement

Regarding the issuance of stocks to specific objects, Liancheng CNC stated that because Li Chunan was investigated by the China Securities Regulatory Commission, the company did not meet the conditions for the issuance of shares issued to specific objects. The company is actively exploring relevant plans to eliminate the impact of the aforementioned matters on the issuance of the company's stock. At the same time, the company will also determine the relevant arrangements of the issue of stock issuance based on the subsequent processing progress of the matter.

In addition, at present, Liancheng CNC stock issuance projects involved in the funding project are being carried out normally according to the actual progress. The progress of project construction is not affected. At the same time, Li Chunan also made it clear that if the company's production and operation exists in relevant capital needs, the individual will provide financial funding for the company in an interest -free loan.

Li Chunan holds a number of public companies shares

According to the annual report of many companies, in addition to the holdings of Liancheng and served as executives, Li Chunan also holds public enterprise shares such as the New Third Board Listing Electromagnetic Electromagnetic, the New Third Board listed enterprise Longji Instrument, and the listed company of the Shanghai Stock Exchange.

According to the annual report of Longji Electromagnetic 2021, Li Chunan holds 17.12%of Longji Electromagnetic, and is the third largest shareholder; it was a company director and has left office.

Photo source: Longji Electromagnetic 2021 Annual Report

On the evening of August 19, Longji Electromagnetic announced that the company's 22.78%of the actual controller, director, and general manager Zhao Nengping received a notice from the China Securities Regulatory Commission for illegal acts such as the inside trading of the securities market.

Image source: Longji Electromagnetic Announcement

Longji Electromagnetic stated that the investigation of this case was only a personal investigation of Zhao Nengping. At present, it will not affect the company's daily business management activities, nor will it affect the normal performance of individuals.

According to the annual report of Longji instrument 2021, Li Chunan held 14.46%of Longji instrument, as the third largest shareholder; Li Chunan was a director of the company and has left the job. In addition, Zhao Nengping also held 5.99%of the shares in the Longji instrument.

Image source: Longji Instrument 2021 Annual Report

Li Chunan Ren Longji Green Energy Director

According to Liancheng CNC Annual Report, the actual controller of Liancheng CNC is Zhong Baoshen and Li Chunan, and the two are unanimously acting. Zhong Baoshen was born in December 1967 and graduated from Lanzhou University in July 1990. He is currently the chairman of Longji Green Energy. He applied for resignation on December 23, 2020 to resign as a director of CNC in Liancheng. Effective. Li Chunan was born in October 1968 and graduated from Lanzhou University in July 1990. In July 2008, Li Chunan served as a director of Xi'an Longji Silicon Material Co., Ltd. (currently the current Longji Green Energy); since September 2007, he has been the chairman of Liancheng CNC. According to the annual report of Longji Green Energy 2021, Zhong Bao Shen is currently the chairman of Longji Green Energy, and is the eighth largest shareholder holding 1.66%of the shareholders; The 7th largest shareholder holding a company with a shareholding of 2.11%.

Picture source: Longji Green Energy 2021 Annual Report

Public information shows that Li Zhenguo, Zhong Baoshen, and Li Chunan are classmates who graduated from Lanzhou University. The three were hailed as "Longji Three Swordsmen" for cooperating to help Longji Green Energy as a leading enterprise in the photovoltaic industry. As of the close of August 19, the total market value of Longji Green Energy was 425.48 billion yuan. After continuous accumulation and development, Longji Green Energy has now become the world's largest solar single crystal silicon manufacturer.

The prospectus before Longji Green Energy was listed, and Li Zhenguo, Li Xiyan and Li Chunan were the main promoters of Longji Green Energy. In 2003, through the capital increase of Longji Green Energy, "Xi'an New League Electronic Technology Co., Ltd.", Li Chunan became the largest shareholder holding 44%of the shares; at that time, Li Zhenguo and Li Xiyan were the second and third largest shareholders. , Total 55%of the shares. Since then, after many capital increase and equity transfer, Li Chunan still maintains its largest shareholder status. On July 27, 2011, Li Chunan's written commitment to maintain a consistent relationship with Li Zhenguo and Li Xiyan. Before Longji Green was launched in April 2012, Li Zhenguo and Li Xiyan held a total of 32.30%of the company's controlling shareholder and actual controller of the company; Li Chunan was the largest shareholder of about 24.08%of the company.

After listing, Li Chunan gradually reduced its shareholding ratio in Longji Green Energy through reducing holdings and equity transfer. On December 19, 2020, Li Chunan and Hillhouse Capital Management Pte. LTD., referred to The transfer method is about 226 million shares of the unlimited shares of Longji Green, which transferred to Gaoma Capital. The registration procedures for transferring shares for this agreement have been completed on February 4, 2021. After the transfer is completed, Gaoyao Capital holds 5.85%of Longji Green Energy, and Li Chunan holds 2.11%of Longji Green Energy.

Responsible editor: Wang Shidan | Audit: Li Zhen | Director: Wan Junwei

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