Several senior executives of Hengrui pharmaceutical resigned: is it a normal alternation or to prepare for the reduction and arbitrage?

category:Finance
 Several senior executives of Hengrui pharmaceutical resigned: is it a normal alternation or to prepare for the reduction and arbitrage?


It is worth noting that the term of office of Jiang Xinhua, sun Hui, Liu Jiang and Li Kejian ends on January 15, 2023. According to the public information, Jiang Xinhua served as the vice chairman of Hengrui pharmaceutical from 2003 to January 2020, and has been the deputy general manager since January 2020; sun Hui has been the deputy general manager since 2007; Liu Jiang and Li Kejian have been the deputy general managers since 2003.

The announcement specifically pointed out that the four senior executives all resigned due to their age. According to the public information, the four senior executives are indeed older. Jiang Xinhua, sun Hui, Liu Jiang and Li Kejian are 56, 59, 55 and 57 years old respectively. The resignation or replacement is normal.

An industry source pointed out that the four senior executives who resigned this time have been in the senior management team for a long time together with sun piaoyang, the former chairman who retired to the second tier at the beginning of the year. Therefore, the collective resignation is more likely to be the personnel reorganization after the change of the chairman of the listed company, which is regarded as the alternation of the new and the old in the company.

However, there are also views that the collective resignation of Hengrui pharmaceutical executives may be just to prepare for the reduction of holding and cash arbitrage.

The reporter noted that before resigning from the post of deputy general manager, Jiang Xinhua, sun Hui, Liu Jiang and Li Kejian all held shares of Hengrui pharmaceutical. According to the data disclosed in Hengrui pharmaceuticals 2019 annual report, as of December 31, 2019, Jiang Xinhua held 1391200 shares; sun Hui held 1505100 shares of Hengrui pharmaceutical; Liu Jiang held 1268300 shares and Li Kejian held 1201800 shares.

According to the latest (July 27) closing price calculation, Hengrui pharmaceutical newspaper shares 95.39 yuan, the total market value of the above four shares is 554 million yuan. The total market value of Hengrui pharmaceutical is as high as 506.2 billion yuan.

Some people speculate that the collective resignation of Hengrui pharmaceutical executives is to facilitate the reduction of holding and cash out, because the CSRC has strict restrictions on the sale period and the proportion of shares to be reduced for the directors, supervisors and senior executives of listed companies. However, this restriction will be greatly relaxed after leaving the company.

However, the provisions on the reduction of shares held by shareholders and directors, supervisors and senior executives of listed companies issued by the CSRC on May 27, 2017 further restricts the reduction of shares held by directors, supervisors and senior executives.

According to the regulations, even if the directors, supervisors and senior executives resign before the expiration of their term of office, they still need to apply the requirements of reduction proportion stipulated in the company law during the term of office and within 6 months after the expiration of their term of office, that is: (1) the shares transferred annually shall not exceed 25% of the total number of shares held by them; (2) they shall not transfer their shares within half a year after their resignation; (3) laws and administrative laws The regulations, departmental rules, normative documents and other provisions of the exchanges business rules on the share transfer of directors, supervisors and senior executives can prevent the situation that directors, supervisors and senior executives evade the restrictions of reducing shares by resigning in practice. This also means that after six months of resignation, the reduction of the above-mentioned four senior executives of Hengrui pharmaceutical will no longer be restricted by the new rules, which may provide convenience for the reduction in practice. In response to the above speculation, the reporter called the Board Secretary Office of Hengrui Pharmaceutical Co., Ltd. to inquire about the situation, the companys board secretary office replied: the four senior executives all applied for resignation due to their age, there are no more other reasons. In addition, we will not comment on other voices in the market, everything will be subject to the companys announcement. Source: editor in charge of economic report in the 21st century: Zhong Qiming_ NF5619

According to the regulations, even if the directors, supervisors and senior executives resign before the expiration of their term of office, they still need to apply the requirements of reduction proportion stipulated in the company law during the term of office and within 6 months after the expiration of their term of office, that is: (1) the shares transferred annually shall not exceed 25% of the total number of shares held by them; (2) they shall not transfer their shares within half a year after their resignation; (3) laws and administrative laws The regulations, departmental rules, normative documents and other provisions of the exchanges business rules on the share transfer of directors, supervisors and senior executives can prevent the situation that directors, supervisors and senior executives evade the restrictions of reducing shares by resigning in practice.

In response to the above speculation, the reporter called the Board Secretary Office of Hengrui Pharmaceutical Co., Ltd. to inquire about the situation, the companys board secretary office replied: the four senior executives all applied for resignation due to their age, there are no more other reasons. In addition, we will not comment on other voices in the market, everything will be subject to the companys announcement.