According to wind information data, as of June 30, 2020, Guan Jianzhong was the fourth largest shareholder of Jiahua energy, with a shareholding ratio of 1.41%, and a market value of 176 million yuan. At the same time, Guan Jianzhong was also the actual controller and chairman of Sanjiang Chemical (02198. HK).
First finance reporter also noted that on July 13, the China Securities Regulatory Commission (CSRC) issued a written decision on administrative punishment, which showed that the previous acquisition of Jiahua energy with a total of 2.7 billion yuan was involved in insider trading, and Guan Jianzhong was also involved.
Zeng assists old friend insider trading
On the evening of August 7, Jiahua energy disclosed that it had received a notice from Guan Jianzhong, the companys actual controller and chairman, and received the Notice of investigation issued by the CSRC on August 6. As it was suspected of manipulating the securities market, the CSRC decided to put Guan Jianzhong on file for investigation.
As soon as the above announcement was disclosed, investors finally found out the reason why Jiahua energy and Hong Kong shares of China Sanjiang Chemical Co., Ltd. fell sharply. On August 6 and 7, Jiahua energys share price fell for two consecutive days, and finally closed at 11.22 yuan; China Sanjiang Chemical Industry Co., Ltd. fell sharply by 28.88% to HK $1.97 on August 7.
The market has a very sensitive sense of smell. Before Jiahua energy disclosed that the actual controller and the chairman of the board were suspected of manipulating the market, the funds had already started to flee.
On August 6, Shanghai Stock connect sold the most, reaching 185 million yuan, and Huaxi Securities sold 53.1 million yuan of Hangzhou Xueyuan Road business department seats on August 6. On August 7, CITIC Securities sold a seat at Yanan Road, Hangzhou, with a sales amount of 192 million yuan.
In fact, the market for Jiahua energy bearish is not groundless. In the first half of this year, the companys profitability showed an obvious downward trend.
At the same time, Guan Jianzhong, then the actual controller of the company, was also negatively involved. According to the announcement, Guan Jianzhong plans to install Zhejiang Meifu Petrochemical Co., Ltd. (hereinafter referred to as Meifu petrochemical) under his actual control into Jiahua energy in 2016. Until January 25, 2018, Jiahua energy released the plan for major asset purchase and related party transactions, which disclosed the specific plan for Jiahua energy to acquire 100% equity of Meifu petrochemical, with a transaction price of 2.69 billion yuan.
During the information sensitive period before the release of the trading plan, Yin Zhangwei, then the supervisor of Meifu petrochemical, contacted Guan Jianzhong through wechat voice communication for many times. According to the announcement, on September 20 and October 20, 2017, Yin Zhangwei purchased 44100 shares and 410000 shares of Jiahua energy through his own securities account, with transaction amount of 392500 yuan and 3810900 yuan respectively. As of the investigation date of the CSRC, Yin Zhangwei actually sold 200 shares with a transaction amount of 1638 yuan, and the rest of the shares were not sold.
According to the administrative punishment decision, Yin Zhangwei and Guan Jianzhong have been old friends for many years and have a close relationship. They often contact each other through meetings, phone calls and wechat voice. The time point of Yin Zhangweis transaction of Jiahua energy was highly consistent with the communication time of the two people.
In addition, the special on-site inspection of Zhejiang Securities Regulatory Bureau found that there were information disclosure problems in the reorganization plan of Jiahua energys acquisition of Meifu petrochemical, including the inaccurate disclosure of sales concentration in the top five customers of Meifu petrochemical and the risk warning; the disclosure information about related parties and related transactions in the plan was not complete and sufficient. Finally, Jiahua energy terminated the restructuring program.
According to Tianyan survey, Jiahua energys main business is to provide steam and production, and sell basic chemical raw materials such as fatty alcohol (acid), chlor alkali and sulfuric acid. The downstream application fields of the products include plastics, washing products, food, etc. Among them, cogeneration is the business core device of Jiahua energy, and steam is one of the main products of Jiahua energy.
In recent years, Jiahua energy has deployed photovoltaic power generation, port and other businesses, but has made little contribution to the companys performance. According to the annual report of 2019, the chemical industry, energy, port business and photovoltaic power generation of Jiahua energy accounted for 71.51%, 24.13%, 2.58% and 0.79% of the revenue respectively.
Affected by macroeconomic, industrial policies, environmental protection and other factors, Jiahua energy, which is located in the chemical raw material industry, has been challenged in recent years.
On August 6, Jiahua energy disclosed the semi annual report that the companys operating revenue in the first half of the year was 2.512 billion yuan, a year-on-year decrease of 8.4%; and the net profit attributable to the parent company was 554 million yuan, a year-on-year decrease of 14.8%.
In 2019, the performance of Jiahua energy has been declining. In that year, the companys operating income decreased by 4.19% year on year.
In order to improve its profitability, Jiahua energy intends to issue convertible bonds to raise no more than 1.8 billion yuan, which will be used for the construction of 300000 tons of functional polymer materials project and 300000 tons / year dichloroethane and vinyl chloride projects of the company, so as to extend the existing chlor alkali business.