Yang Huaijin, the godfather of Chinas photovoltaic industry, was sentenced for two years and 10 months

 Yang Huaijin, the godfather of Chinas photovoltaic industry, was sentenced for two years and 10 months

Zhou Yike, former vice president and chief financial officer of Hai Run photovoltaic Co., Ltd., was sentenced to 2 years and 8 months imprisonment, suspended for 3 years and fined 1 million yuan; Chen Hao, former vice president and Secretary of the board of directors, was sentenced to 2 years and 8 months imprisonment, suspended for 3 years and fined 5 million yuan.

Participated in the establishment of four photovoltaic listed enterprises, known as godfather of Chinas photovoltaic

According to public data, Yang Huaijin, who was born in Zhenjiang Yangzhong, Jiangsu Province in September 1963, received a bachelors degree in economics from Shanghai University of Finance and economics in 1985, and a masters degree in economics from Macquarie University in Australia in 1994, and then naturalized in Australia.

Around 2000, Yang Huaijin returned to China for financing and participated in the establishment of Wuxi Suntech Solar Power Co., Ltd., the earliest benchmark enterprise in Chinas solar photovoltaic industry. In December 2005, Wuxi Suntech was listed on the New York Stock Exchange, becoming the first Chinese private enterprise to land on the New York Stock Exchange.

In 2004, Yang Huaijin also participated in the establishment of CLP (Nanjing) photovoltaic Co., Ltd., which was also listed on the New York Stock Exchange in 2007.

At that time, Shi Zhengrong, the chairman of Wuxi Suntech, and Zhao Jianhua, the general manager of China Electric (Nanjing) photovoltaic Co., Ltd., were all from Yangzhong, and they had studied in Australia. Together with Yang Huaijin, they were known as the three heroes of Yangzhong in the industry.

In 2005, Yang Huaijin participated in the establishment of Hebei Jingao solar energy company. In February 2007, the company also listed on NASDAQ.

At the end of 2009, Yang Huaijin participated in the reorganization of Hairun photovoltaic company, and successively served as the CEO, President, director and chairman of the company. This is known as his fourth venture.

In 2011, Hairun photovoltaic Co., Ltd. * ST Shenlong (600401. SH), was approved by the CSRC with conditions.

Because of his four successes in the operation and listing of solar photovoltaic enterprises, Yang Huaijin was also praised by many media as the godfather of Chinas photovoltaic industry.

High transfer plan issued under huge losses

After backdoor A-share listing, the performance of Hairun photovoltaic has always been poor. In 2012, the operating income decreased by 30.37% year-on-year; the net profit was RMB 02 million, down 99.48%; the net profit after deducting the non recurring profit and loss was RMB 400 million. In 2013, the net profit decreased by RMB 2.04 billion.

At the end of November and early December 2014, Yang Huaijin, then chairman of the board of Hurun photovoltaic, discussed and communicated with Zhou Yike, Zhang Yongxin, the director and executive vice president, and other senior executives and financial personnel of Hairun company on the performance of 2014, and reached a consensus: when the company can not achieve profit in 2014, it is necessary to confirm more losses within the financial scope and try to minimize the confirmed losses Loss and impairment are placed in that year, laying a solid foundation for the future development of the company.

At the beginning of November 2014, Hairun photovoltaic began to calculate the profit of 2014 performance. The calculation results showed that from the meager profit calculated on November 4, 2014, after several adjustments, the loss was 469 million yuan by December 22, 2014, and finally by January 28, 2015, the calculation result was a loss of 799 million yuan.

As the chairman of Hai Run photovoltaic, Yang Huaijin communicated with Jiangyin Jiurun Management Co., Ltd. (hereinafter referred to as Jiurun management) and Jiangsu Zijin Electronics Group Co., Ltd. (hereinafter referred to as Zijin Electronics) on the information of the companys performance pre loss in 2014, and proposed to the top two shareholders to release the information that was inconsistent with the fundamentals of Hairun PV before using insider information to reduce their holdings The pre disclosure announcement of the transmission plan.

On January 22, 2015, Hairun photovoltaic released the announcement on the pre disclosure of 2014 annual profit distribution plan, saying that it would increase 20 shares per 10 shares to all shareholders with capital reserve fund.

On the evening of January 30, 2015, Hairun photovoltaic released the performance pre loss announcement, saying that the net profit attributable to shareholders of listed companies is expected to be about RMB - 800 million in 2014. The market is in uproar.

Before the disclosure of inside information, Yang Huaijin and others reduced their holdings on a large scale

According to the CSRC, the formation date of the insider information of the performance pre loss of Hai Run photovoltaic in 2014 is no later than December 22, 2014, and will be disclosed on January 31, 2015. However, before the release of the expected huge loss information, Yang Huaijin and others took the lead in reducing their shares on a large scale.

On December 24, 2014, Zhang Yongxin reduced 784000 shares of Hairun PV through block trading, with a reduction amount of 5.6291 million yuan.

According to the CSRC, the above-mentioned acts of Yang Huaijin, Zhou Yike and Zhang Yongxin violate the provisions of paragraph 1 of Article 76 of the Securities Law (that is, insiders of inside information of securities trading and persons who illegally obtain inside information shall not buy or sell the securities of the company, or disclose such information, or suggest others to buy or sell the securities before the inside information is disclosed), It constitutes an illegal insider trading act mentioned in article 202 of the securities law.

On January 20, 2017, the China Securities Regulatory Commission (CSRC) made a punishment decision, imposing an administrative penalty of 600000 yuan on Yang Huaijin, and taking five-year market ban measures on Yang Huaijin. During the period of prohibition, Yang Huaijin is not allowed to engage in securities business or serve as a director, supervisor or senior manager of a listed company. Zhou Yike and Zhang Yongxin were banned from entering the market for three years and fined 600000 yuan respectively.

Jiurun Management Co., the second largest shareholder of Hairun photovoltaic, also reduced its holdings of 157 million shares of Hairun photovoltaic after knowing the inside information and before the disclosure of inside information, and the actual amount of reduction was as high as 1.313 billion yuan, avoiding a loss of 61.9407 million yuan.

Hai Run photovoltaic delisted Yang Huaijin in prison

The disaster of Hai Run photovoltaic is far from over.

On April 30, 2019, Hairun photovoltaic disclosed its annual report in 2018. As of the end of 2018, the company had a loss of 3.737 billion yuan and net assets of - 2.541 billion yuan.

This annual report is still issued by the accounting firm can not express the audit report..

Hailun PV was forced to withdraw from the stock exchange. During the delisting and consolidation period, its stock price fell to 0.12 yuan at the lowest level, and finally closed at 0.15 yuan, which is the lowest price share of a shares so far.

According to wind data, as of the end of March 2019, the total number of shareholders of Hai Run PV was 241900.

The result of judicial accountability also came in the summer of the following year.

In July 2020, the first instance of Nanjing Intermediate Court sentenced Yang Huaijin to two years and 10 months imprisonment and a fine of 1 million yuan. He did not appeal.

It is worth noting that Chen Hao, who once served as vice president and Secretary of the board of directors of Hairun photovoltaic, did not appear in the punishment documents of the CSRC; however, Zhang Yongxin and Ren Xiangdong, who were made administrative punishment decisions by the CSRC, were not prosecuted by the Nanjing Intermediate Peoples court.

Li Weiao, reporter of Economic Observer