news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

the 80-year-old capital tycoon lu keping has lost another son in the capital market.

on the evening of september 18, *st weichuang (002308.sz) (hereinafter referred to as "weichuang shares") issued an announcement that it had received a notice from the shenzhen stock exchange.decision on termination of listing of shares of vtron group co., ltd.according to relevant regulations, the shares of weichuang co., ltd. will not enter the delisting consolidation period due to the forced delisting of trading.the stock will be delisted within fifteen trading days after the decision to delist is made.

lu keping was once the head of the "sunshine group", which actually controlled four listed companies: sihuan biopharma (000518.sz), jiangsu sunshine (600220.sh), hairun photovoltaic (600401.sh), and weichuang holdings.in 2019, hairun photovoltaic delisted; in july 2024, jiangsu sunshine delisted; now after weichuang shares delisted, lu keping’s “sunshine group” only has one listed company left, namely sihuan bio.

at the same time as the delisting announcement was made, weichuang and sihuan biopharma also successively issued notices that lu keping, lu yu and his son had been subject to administrative penalties. according to the "administrative penalty advance notice" issued by the guangdong regulatory bureau of the china securities regulatory commission, due to suspected illegal and irregular information disclosure, the guangdong securities regulatory bureau decided to order lu keping to make corrections, give him a warning, and impose a fine of 22 million yuan.lifetime ban on lu keping from securities market; lu yu was given a warning and fined 6 million yuan, and was also banned from the securities market for 10 years.

sihuan bio stated that the matters involved in this illegal and irregular information disclosure have nothing to do with the company, and the company's production and operation are normal.

but it is worth noting thatduring the period when lu keping controlled sihuan bio, he was banned from the market for life by the china securities regulatory commission in may 2020 due to a series of violations.

li jian, a lawyer at zhejiang yufeng law firm, said that according to the penalty notice, *st weichuang and other companies are suspected of securities misrepresentation, and the injured shareholders can claim compensation according to law. according to the judicial interpretation, it is tentatively determined that the injured shareholders who bought *st weichuang stocks between june 26, 2023 and december 22, 2023 and still held the stocks at the close of december 22, 2023 can claim compensation. the conditions for the claim will ultimately be determined by the court.

the actual control of the listed company is kept secret

“capital tycoon” was fined!

along with the lu family, the actual controller of xiling energy, liu jun, was also fined. liu jun was ordered to make corrections, given a warning, and fined 7 million yuan.

the fuse of all this was that in december 2023, it was revealed that 1.33 billion yuan in the accounts of weichuang shares were transferred out of the company.

specifically,in the first half of 2023, lu keping controlled zhongshu weike to decide the nomination of more than half of the members of the board of directors of weichuang holdings, thereby gaining control of the board of directors of weichuang holdings.in august 2020, weichuang investment, the original controlling shareholder of weichuang holdings, transferred its 24.22% stake to zhongshu weike, which became the new controlling shareholder.however, the company has changed to have no actual controller。

in december 2020, the shareholder of taizhou monsas, a limited partner of zhongshu weike, changed from shanghai monsas (holding 99.93% of zhongshu weike's shares) to jiangsu sunshine group, and the legal representative of taizhou monsas was also changed to lu yu. lu yu was elected as general manager by the board of directors in october 2022, and also joined the board of directors as a non-independent director. in june 2023, he became the chairman of weichuang shares.

on september 20, 2023, jiangsu yangguang group, which actually controls weichuang shares, signed the "equity transfer cooperation framework agreement" with jiangxi xiling energy co., ltd. (hereinafter referred to as "xiling energy"). the agreement stipulates that xiling energy intends to obtain control of the controlling shareholder of weichuang shares through investment relations in the next 12 months. among them, the actual controller of the proposed acquirer xiling energy is liu jun.

according to the announcement of weichuang shares, from september 28 to october 27, 2023, liu jun transferred 1.33 billion yuan of the company's funds to a bank account controlled by him through a co-managed bank account, and returned the full amount to weichuang shares on october 31. however, starting from november 1, he transferred 1.33 billion yuan of the company's funds to a bank account controlled by him in two installments.this huge sum of money was transferred out of the company in batches and has not been returned yet.

the administrative penalty advance notice shows thatthe net transfer of 1.327 billion yuan was used by liu jun to repay personal debts, which constituted the occupation of non-operating funds by related parties, accounting for 67.24% of the audited net assets of weichuang shares in the latest period. however, weichuang shares did not disclose the above matters in a timely manner as required.

in addition,lu keping became the actual controller of weichuang shares no later than june 19, 2023, but he did not inform weichuang shares of the relevant situation. the listed company failed to disclose the change of the actual controller of the company in a timely manner as required. weichuang shares' 2023 semi-annual report disclosed that "the actual controller of the company has not changed during the reporting period" and "the ultimate controller of this enterprise is no actual controller", which is a false record.

the guangdong securities regulatory bureau stated in the "administrative penalty advance notice" that upon investigation, the facts that weichuang, liu jun and lu keping were suspected of violating laws and regulations in information disclosure are as follows:

1. lu keping failed to inform weichuang of the change in the actual controller, resulting in the company's failure to disclose relevant information in a timely manner as required, and false records in the 2023 semi-annual report;

2. liu jun failed to fulfill his obligation to report the acquisition in the agreement in a timely manner as required, and lu keping failed to inform weichuang that the company's situation had changed significantly, resulting in the company's failure to disclose information in a timely manner as required;

3. weichuang shares failed to disclose the non-operating capital occupation of related parties in a timely manner as required;

4. weichuang co., ltd. failed to disclose the non-operating financial transactions between the company and its related parties in a timely manner as required, and the company’s 2023 third quarter report contained false statements.

the wool spinning giant has repeatedly violated regulations

lu keping was originally a tycoon who started out in industry, but ever since he started “chasing the light”, he has been constantly issued fines by regulators.

the industry once commented on his career as: started at jiangsu sunshine, flourished at hairun photovoltaic, and ended at sihuan biopharmaceuticals.

lu keping was born in jiangyin, an important textile industry city in china. he started from the grassroots level when he was young and became the director of jiangyin fine wool spinning factory at the age of 42.it was the first to introduce equipment and assembly lines from abroad, and also created its own brand and technical system, allowing jiangsu sunshine to stand out and become the largest fine wool spinning manufacturer in china.

in 2005, lu keping made his first appearance on the hurun rich list with a net worth of 1.4 billion., ranked 124th on the list, and is hailed as a "wool spinning giant" in the industry.

after accumulating wealth, lu keping began to covet the photovoltaic industry. however, under the impact of the global photovoltaic industry's cold winter, ningxia sunshine and hairun photovoltaic, which lu keping established and acquired, soon suffered one death and one injury.

in 2013, jiangsu sunshineningxia sunshinethe company was warned by the china securities regulatory commission for violating regulations in information disclosure and decision-making procedures on suspension of production and bankruptcy.harun photovoltaiczijin electronics was warned and fined 400,000 yuan for misleading statements in its high dividend and bonus distribution plan.this marked the beginning of lu keping's violations.

in 2014, lu keping set his sights on sihuan biopharmaceuticals. over a period of four years, he brought along his wife, son, and a group of former employees who had held senior positions at sunshine group to buy a total of 4.321 billion yuan worth of sihuan biopharmaceuticals shares, at one point bringing his and his associates’ shareholdings to more than 30%.

source: canned food gallery

in the past four years, lu kepinghe has been in power secretly.he would stamp and sign documents of listed companies, attend shareholders' meetings and vote, and even had related transactions with sunshine group's subsidiary sunshine real estate. however, when faced with regulatory questions, sihuan bio insisted that the company had no actual controller. even though the csrc had issued a fine, lu keping still argued that sihuan bio had nothing to do with him.and the investment in sihuan biopharma lost nearly 1 billion, and there is no intention to violate the law.

but no matter how lu keping defends himself, it is an established fact that every listed company he has taken over has committed violations.

moreover, judging from the sihuan biopharmaceuticals case alone, lu keping can be said to have "lost both his wife and his army." not only did he suffer heavy losses, he was also banned from the market for life by the china securities regulatory commission and fined 27.34 million yuan.

until 2022, jiangsu sunshine will continue to be named and warned by regulators for inaccurate financial disclosure and irregular accounting. it is no wonder that some investors are calling for "he (lu keping) to be investigated 20 years ago."

the repeated violations have made the situation of lu keping and the "sunshine faction" increasingly difficult.

now with weichuang shares delisted, sihuan bio is the only one left in the “sunshine group”.

the son born in the 1970s took over

jiangsu sunshine's delisting ends

due to poor capital operation, the current operating situation of the "sunshine group" is not optimistic.

sihuan bio, which specializes in medical diagnostic reagents, has seen its revenue decline continuously since 2021 and has found it difficult to turn a profit.

since 2019, the revenue of weichuang co., ltd., a provider of digital splicing wall system services, has also entered a downward channel. in the first three quarters of 2023, the company's revenue decreased by 15.68% year-on-year, and its net profit decreased by 82.36% year-on-year. it clearly stated in the reasons for the difficulty in the annual report that there were many major and important internal control deficiencies identified in 2023, covering many important links in business management, which had a significant and extensive impact on the company, and the rectification plan was progressing slowly.

source: wind data

in comparison, jiangsu sunshine, which still has an annual income of 1.7 billion yuan in 2022, is already considered a high-quality asset.

in the performance forecast given by jiangsu sunshine at the beginning of the year, although the net profit dropped sharply, it still maintained profitability; but when the annual report was released in april, jiangsu sunshine appearedperformance changes, the net loss in 2023 was nearly 100 million yuan, which was also the company's first annual loss in nearly a decade.

behind this is jiangsu sunshinethe repayments of its two related parties, sunshine fashion and sunshine group, fell short of expectations, and the listed company had to make provisions for higher bad debts and credit impairment losses.

sunshine group also appearednon-operational use of jiangsu sunshine's funds of rmb 170 millionin addition, as of may 8, the cumulative pledged shares of listed companies by yango group accounted for 97.47% of its total holdings; the combined pledged shares of yango group and its persons acting in concert accounted for 95.09% of the total number of listed company shares held.

repayment expectations are lowered, funds are occupied, high proportions of pledges are used...various signs indicate that sunshine group's liquidity is under great pressure.

on the evening of may 15, three independent directors of jiangsu sunshine wrote a joint letter urging the listed company to take measures to solve the problem as soon as possible. under the drag of sunshine group, jiangsu sunshine is facing a great risk of delisting.

it is worth mentioning that before this,lu keping has done a lot of handovers with his son lu yu, mainly focusing on the position and control of jiangsu sunshine.

lu yu was born in 1975, is a hong kong resident, and has a bachelor's degree. since 2011, lu yu has served as the general manager of jiangsu sunshine ecological park technology co., ltd.; in 2017, he joined the board of directors of jiangsu sunshine; in 2022, he was elected as the general manager and director of weichuang co., ltd.

in march 2023, lu yu replaced miao feng as the new chairman of jiangsu sunshine; in june, lu keping's family began to transfer equity. according to the original plan, after the equity transfer is completed, lu yu and his concerted action parties will hold 26.92% of the listed company's shares, and he will officially become the new actual controller of jiangsu sunshine.

source: canned food gallery

the equity transaction between the father and son was valued at 363 million yuan, and the "detailed equity change report" was released when jiangsu sunshine's stock price was at its lowest point in a year. even if calculated based on the stock price on that day, the offer was still 30% off the market price.

however, since a large proportion of lu keping's shares were pledged, the transfer of shares was restricted.to date, the planned handover between father and son has not been completed.

perhaps in order to make another preparation, in july 2023, lu yu invested 310 million yuan to increase the capital of sunshine holdings, the major shareholder of sunshine group. but at least for now, the actual controller of jiangsu sunshine is still lu keping.

however, in july this year, jiangsu sunshine's journey in the capital market came to an end and it was eventually delisted.