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Shen Yourong, reporter of Yangtze Business Daily Pentium News

China Electric Motor (603988.SH), a company that once became famous because its general manager Wang Jianyu climbed over the wall to enter a competitor's factory without permission to take pictures, is planning to change its owner again.

On the evening of July 23, China Electric Motor issued a suspension announcement stating that the controlling shareholder was planning a major event, saying that the company's controlling shareholder Ningbo Juntuo Enterprise Management Co., Ltd. (hereinafter referred to as "Ningbo Juntuo") and major shareholders Wang Jianyu and Wang Jiankai were planning a major event involving share transfers, which may lead to a change in the company's control. The company's stock will be suspended from July 24, and the suspension is expected to last no more than two trading days.

This is not the first time that the major shareholder of China Electric Motor has planned to change its ownership. In 2014, China Electric Motor was listed on the A-share market, with brothers Wang Jianyu and Wang Jiankai as the actual controllers.

In 2018, Wang Jianyu, Wang Jiankai, Wang Panrong and other former controlling shareholders and actual controllers of China Electric Motor chose to withdraw. The three transferred their 21.47% shares of China Electric Motor to Ningbo Juntuo. Wang Jianyu gave up the voting rights corresponding to some of the listed company shares he held. Since January 11, 2019, the controlling shareholder of China Electric Motor has been changed to Ningbo Juntuo. On September 18, 2020, Ningbo Juntuo acquired 4.704 million shares of China Electric Motor through a block transaction with Wang Jiankai. At present, Ningbo Juntuo holds 23.47% of the shares of China Electric Motor.

In 2021, the Wang brothers planned to change ownership again. In March of that year, China Electric Motor disclosed a major asset replacement and issuance of shares to purchase assets and raise supporting funds and related transactions, including asset replacement, issuance of shares to purchase assets, share transfer and raising supporting funds. China Electric Motor intends to exchange all or part of its assets and liabilities with an equivalent portion of the equity of Tianjin Beiqing Electric Smart Energy Co., Ltd. (referred to as "Beiqing Smart"). In addition, China Electric Motor intends to purchase the difference between the transaction price of the assets to be placed in and the transaction price of the assets to be placed out from all shareholders of Beiqing Smart by issuing shares.

This is actually a shell sale and restructuring, with the target company, Beijing Qingzhihui, being valued at 12.2 billion yuan. This restructuring has attracted great attention from the market. After the transaction is completed, the actual controller of the company becomes the Beijing State-owned Assets Supervision and Administration Commission.

However, because the transaction involved the spin-off of Beijing Enterprises Clean Energy Group, a company listed on the Hong Kong Stock Exchange, the spin-off failed to obtain approval from the Hong Kong Stock Exchange, resulting in the inability to carry out the restructuring.

This plan is the third plan to change the owner of China Electric Motor.

What is highly questionable is that on the eve of this suspension, that is, on July 23, China Electric Motor suddenly and unexpectedly hit the daily limit.

The main business of China Electric Motor is the research and development, production and sales of complete sets of equipment such as large and medium-sized DC motors, medium and high voltage AC motors, generators, motor test station power supply systems and switch test station power supply systems. The company's marketing network covers all parts of the country and has a group of stable customers and partners at home and abroad.

However, the company's operating performance has been poor in recent years. In 2020, the company's net profit attributable to shareholders of the parent company (hereinafter referred to as "net profit") was 171 million yuan. By 2023, the net profit was only 43.207 million yuan.

On July 11, the performance forecast released by China Electric Motor showed that in the first half of this year, the company expected a net loss of 21.6 million yuan. This is also the first time that China Electric Motor has suffered a half-year loss since it went public in 2014.

Whether the change of ownership will be smooth and whether China Electric Motor can use it to reverse the unfavorable situation has attracted much attention from the market.