source: china securities

another a-share company chairmanhe was detained and an investigation was initiated.

industry insiders said that the chairman's investigation may lead to a vacancy in the company's decision-making level, which will affect decision-making efficiency and daily operations, and may also cause market concerns about the company's governance structure and operating conditions, leading to a decline in investor confidence, which in turn affects the company's stock price. according to statistics, from the cases of chairman detention this year, the stock price has changed significantly the day after the announcement was made. for example, the day after the announcement of weston, the stock price fell by 20cm, and the next day, laimu shares and dashengda also closed at a 10% limit.

chairman of naike equipment detained

naike equipment announced on the evening of august 30 that the family of huang mingjiu, one of the company's actual controllers, chairman and legal representative, received a "notice of detention" and a "notice of case filing" issued by the tongling city tongguan district supervisory committee on august 29. huang mingjiu was detained and a case was filed for investigation.

naike equipment stated that as of now, the company's control has not changed, the board of directors is operating normally, and the production and operation management are normal. this matter will not have a significant impact on the company's normal production and operation.

according to the annual report, huang mingjiu was born in 1962, has chinese nationality, and does not have permanent residence abroad. he majored in tool and mold design and manufacturing, and later obtained a master's degree in business administration. he is an engineer and is fully responsible for the company's research and development work. as the main inventor, he applied for and obtained many patents.

huang mingjiu is an outstanding young entrepreneur in anhui province. he has served as a director of the china mold industry association, the president (chairman) of the anhui mold industry association, the deputy director of the plastic doors and windows committee of the china metal structure association, and the vice chairman of the packaging branch of the china semiconductor association. he has participated in the compilation of the college textbook "mold design and manufacturing" (xidian university press, 1995), and was responsible for the compilation of the chapter "die-casting mold and integrated circuit plastic packaging mold design".

currently, huang mingjiu serves as the chairman of naike equipment company, the executive director and general manager of nice technology, the director of songbao intelligent, the director of yaofeng radar, and the director of leikunda electronics. he received a remuneration of 804,800 yuan from the company in 2023. as of the end of the second quarter, huang mingjiu held 3.897 million shares of the company. the company's equity is relatively dispersed. there is currently no controlling shareholder. the actual controller of the company is a concerted action composed of huang mingjiu, zheng tianqin, wu chengsheng, xu jinfeng, and hu huogen, who directly hold a total of 29.05% of the company's shares.

securities times and china securities journal reporters found that at the semi-annual performance briefing held on august 23, huang mingjiu also said: "from the current market situation, orders are sufficient and no major changes have occurred. the company will strive to achieve the goals set at the beginning of the year by optimizing resource allocation, improving production management, and ensuring product delivery."

the next day, most stock prices plummeted

according to information, naike equipment was established in october 2005 and is mainly engaged in the research, development, production and sales of intelligent manufacturing equipment used in the fields of plastic extrusion molding and semiconductor packaging. its main products are plastic extrusion molding molds, extrusion molding devices and downstream equipment, semiconductor packaging equipment and molds.

in terms of stock price, naike equipment hit an all-time high of 53.59 yuan per share on the first day of its listing in 2022, and then fell immediately. as of the close on august 30, 2024, it was 25.96 yuan, with a market value of 2.1 billion yuan, and a year-to-date decline of about 26%.

on august 17, naike equipment disclosed its 2024 semi-annual report: in the first half of the year, the company achieved total operating revenue of 108 million yuan, a year-on-year increase of 20.43%; net profit attributable to shareholders of the parent was 33.1161 million yuan, a year-on-year increase of 43.79%.

the so-called detention, according to article 22 of the supervision law, means that if the person under investigation is suspected of serious duty violations or duty crimes such as embezzlement, bribery, dereliction of duty, etc., and the supervisory authority has already grasped some of his illegal and criminal facts and evidence, and there are still important issues that need further investigation, and there is one of the circumstances of "the case is serious and complicated; he may escape or commit suicide; he may collude with others to give false testimony or forge, conceal or destroy evidence; he may engage in other acts that hinder the investigation", he may be detained in a specific place after approval by the supervisory authority in accordance with the law; the supervisory authority may also take detention measures in accordance with the above provisions for persons involved in suspected bribery crimes or joint duty crimes.

just in august, the chairmen of laimu co., ltd. and dashengda co., ltd. were detained. according to statistics, more than 30 a-share companies have disclosed the detention of senior executives this year. among them, deng guanhua, chairman and general manager of yangpu medical, was detained twice and investigated; guo baichun, chairman of asia potassium international, and ma yingjun, general manager, were both detained and investigated.

according to institutional analysts, the investigation of the chairman may lead to a vacancy in the company's decision-making level, which will affect decision-making efficiency and daily operations. some companies will need other senior executives to perform their duties on their behalf. at the same time, it may also cause market concerns about the company's governance structure and operating conditions, leading to a decline in investor confidence, which in turn affects the company's stock price.

judging from the cases of chairman being detained this year, the stock price fluctuated significantly on the day after the announcement was disclosed. for example, the stock price fell by 20cm on the day after weston made the announcement, and laimu co., ltd. and dashengda co., ltd. both closed at the limit down by 10% the next day.

the implementation of the new "nine national regulations" has entered a deep water zone

over the past few months, many executives of listed companies who have crossed the red line have been investigated, which is also a manifestation of the implementation of the new "nine national regulations" entering deep waters.

the new "nine national regulations" clearly strengthen transaction supervision and improve the regulatory standards for abnormal transactions and market manipulation. issue program trading supervision regulations and strengthen supervision of high-frequency quantitative transactions. formulate operating rules for private equity funds. strengthen bottom-line thinking and improve response measures for extreme situations. seriously investigate and punish illegal and irregular behaviors such as market manipulation and malicious short selling, and strengthen deterrence warnings.

"this article specifically proposes to strengthen bottom-line thinking and improve response measures for extreme situations. this is a clear signal to curb the intervention of abnormal factors in the capital market and the influence of the stock market trend. by severely investigating and punishing illegal and irregular activities such as market manipulation and malicious short selling, we will strengthen deterrence and warnings and promote the positive and steady development of the capital market and high-quality and sustainable development." song xiangqing, vice president of the china society of business economics, said.

in the view of tian xuan, vice president of tsinghua university pbc school of finance, the fact that a large number of listed companies or actual controllers are currently under investigation or detained is a concentrated reflection of the strict supervision of my country's capital market. under the new "nine national regulations", it is required not only to strengthen the review of companies to be listed, but also to strictly and continuously supervise listed companies, especially to strengthen information disclosure requirements and increase regulatory penalties. in this context, audit institutions should strengthen investigations into the operating conditions and internal control conditions of listed companies. more listed companies and senior executives have been issued non-standard opinions, received regulatory inquiries, and even filed for investigation due to information disclosure violations, financial fraud, and shareholder capital occupation. this is closely related to the current strict supervision of listed companies, especially the close attention and severe punishment of the "chief culprits" of listed companies.

editor: li dan

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