Edited by: Cheng Peng, Gai Yuanyuan
Recently, the Beijing Securities Regulatory Bureau disclosed 8 decisions on administrative regulatory measures in one go, issuing fines to 6 institutions and 5 responsible persons, involving a securities company and two futures companies. , a private equity institution and an investment consulting company .
This disclosure brings the well-known Niu San, known as "China's Buffett", and the former richest man in Fujian, Chen Fashu, into people's view again.
Image source: Visual China
"Niu San" Chen Fashu and his wife and children were warned for illegally holding placards
Chen Fashu, a well-known "Niu San" and former richest man in Fujian, was punished by the Beijing Securities Regulatory Bureau for failing to make a timely announcement when holding placards. When Chen Fashu raised the Sente shares this time, not only his subsidiaries were mobilized, but also his family members, including his wife Lin Yuye and son Chen Yanhui.
The "Decision on Taking Measures to Issue Warning Letters to Xinhuadu Industrial Group Co., Ltd., Xinhuadu Industrial Group (Shanghai) Investment Co., Ltd., Chen Fashu, Lin Yuye, and Chen Yanhui" published on the website of the Beijing Securities Regulatory Bureau reveals the whole story.
After investigation, Xinhuadu Industrial Group Co., Ltd. , Xinhuadu Industrial Group (Shanghai) Investment Co., Ltd., Chen Fashu, Lin Yuye, Chen Yanhui and Xiamen Xinhuadu Investment Management Consulting Co., Ltd. are Sente Shixing Group Co., Ltd. The shareholders of the company (hereinafter referred to as Sente Shares) are persons acting in concert with each other.
Screenshot of the official website of the Beijing Securities Regulatory Bureau
On December 6, 2021, the securities account under Chen Fashu’s name successively bought 1.5 million shares of Sente shares. The total shareholding ratio of the above-mentioned concerted persons increased from 4.78% to 5.06%. The shareholding change information was not announced within 3 days, and was not announced until December 31, 2021; And from December 6 to December 29, 2021, the securities account under his name continued to trade Sente shares. keeps the shareholding ratio above 5%, up to 5.20%.
holding up the sign means acquisition. The Securities Law stipulates that when an investor holds 5% of the issued shares of a listed company, he shall make a written report to the securities regulatory authority of the State Council and the stock exchange within 3 days from the date of occurrence of this fact, notifying the investor. Listed companies shall make announcements and fulfill their obligations under relevant laws.
The Beijing Securities Regulatory Bureau believes that the above behavior violates the provisions of Article 13 of the " Management Measures for the Acquisition of Listed Companies " (CSRC Order No. 166). Article 75 stipulates that the Beijing Securities Regulatory Bureau decides to take administrative supervision measures by issuing warning letters.
Sente Co., Ltd. was listed on the Shanghai Stock Exchange in 2016. It is the first professional company in China to provide metal enclosure system solutions listed on the main board. In 2021, the solar technology company Longi Co., Ltd. invested in Sente Shares and became the second largest shareholder of Sente Shares.
"catching up" with the concept of photovoltaic building integration (BIPV), Sente's stock price has been rising all the way. 's cumulative increase in 2021 reached 469.3%, and it was dubbed the "Big Bull Stock".
Center shares weekly K-line chart.
Zijin Mining became famous in one battle
is known as the "Buffett of China"
In the Chinese capital market, Chen Fashu is known as the "Buffett of China", Zijin Mining, Tsingtao Beer , Yunnan Baiyao , Longi Group, China Duty Free He is behind many big bull stocks.
Public information shows that Chen Fashu was born in Fuyang Village, Xianghua Township, Anxi County, Fujian Province in 1961. When he was 16 years old, he started reselling wood from rural forest farms to Xiamen , and five years later he made his first pot of gold. Later, he ran daily groceries, opened a department store, and established Xinhuadu Industrial Group , and his business territory became larger and larger.
When undertaking engineering business, Chen Fashu met Chen Jinghe, the general manager of Zijin Mining (601899.SH) who was contracting at that time. This "golden partner" later helped him "become famous in one battle."
In Zijin Mining, Chen Fashu once made a lot of money.
Zijin Mining’s shareholding reform in 2000 encouraged employees of local state-owned enterprises and institutions to subscribe. The estimated value at that time was only less than 150 million yuan, and it was established at a ratio of 1.505:1. The number of shares was 95 million, but few people were interested.With precise vision and strong courage, Chen Fashu used three affiliated companies including Xinhuadu Group to invest a total of 33.59 million yuan, holding 20.19% of the shares. Among them, Xinhuadu Group alone held 17.29 million shares of Zijin Mining, accounting for 18.2%. .
In December 2003 and April 2008, Zijin Mining was listed in Hong Kong and A shares respectively, becoming the "first gold stock in China". Chen Fashu's net worth rose accordingly. In the 2009 Forbes China Rich List, 48-year-old Chen Fashu became the richest man in Fujian that year with a wealth of 21.85 billion yuan.
This is not the only thing that made Chen Fashu "famous". In the third quarter of 2018, Chen Fashu opened a position in Longi shares and has continued to increase his position since then. The stock price of LONGi has risen from the low in the third quarter of 2018 to the stage high in January 2020, with a cumulative increase of 201%, and Chen Fashu has also made "a lot of money" from this.
In the first quarter of 2020, China Duty Free's share price plummeted, and Chen Fashu entered the market. After the fourth quarter of 2020, he reduced his holdings at high levels several times. During its holding period, China Duty Free's stock price rose by more than 420% at its highest range. "Cash-out + floating profit made Chen Fashu earn more than 2 billion yuan." There were media reports.
Thanks to this series of operations, Chen Fashu ranked 212th on the 2021 Hurun Global Rich List with 71 billion yuan.
Ten years of tug-of-war to acquire Yunnan Baiyao
On September 10, 2009, Chen Fashu signed a "Share Transfer Agreement" with Hongta Group , and planned to acquire 65.81 million shares of Yunnan Baiyao (000538.SZ) at a transfer price of 33.543 yuan per share. The price is 2.2 billion yuan. If the transfer is successful, Chen Fashu will become the second shareholder of Yunnan Baiyao.
However, the counterparty Yunnan Hongta Group failed to submit the Yunnan Baiyao equity transfer application as agreed, causing the equity transfer to be delayed for two years. Therefore, in December 2011, Chen Fashu sued Yunnan Hongta Group to the Yunnan Provincial High Court.
On January 17, 2012, China Tobacco Corporation finally rejected the share transfer transaction on the grounds that "in order to ensure the maintenance and appreciation of state-owned assets and prevent the loss of state-owned assets, it does not agree with this share transfer."
On the evening of July 25, 2014, Yunnan Baiyao announced that the equity transfer dispute between the company's second largest shareholder Yunnan Hongta Group and Chen Fashu had been finalized. According to the judgment of the Supreme People's Court, Hongta Group will return 2.2076 billion yuan in principal and interest to Chen Fashu within 10 days from the date of the judgment. Hongta Group still holds 12.32% of Yunnan Baiyao's equity. At this point, the equity transfer dispute that lasted for nearly three and a half years finally ended with Chen Fashu losing the case.
The failure of Yunnan Baiyao did not deter Chen Fashu. In 2015, he bought it from the secondary market in the name of the company and an individual and became the eighth and fourth largest shareholder of Yunnan Baiyao.
In 2016, the wave of mixed-ownership reform of state-owned enterprises launched from the central to local governments brought about a turning point. In July 2016, Yunnan Baiyao announced the suspension of and , saying that it had received notice from its controlling shareholder, Baiyao Holdings, that the Yunnan Provincial State-owned Assets Supervision and Administration Commission was planning to promote the mixed ownership reform of Baiyao Holdings. Five months later, according to the mixed reform plan of Baiyao Holdings disclosed by Yunnan Baiyao, Xinhuadu Group will obtain 50% of the shares of the listed company's controlling shareholder. Chen Fashu finally returned victorious, and the price of victory was 25.37 billion yuan.
On June 11, 2018, Baiyao Holdings made industrial and commercial changes, and Chen Fashu officially became the chairman of the company.
In 2019, at the suggestion of Chen Fashu, Yunnan Baiyao merged with its shareholder Baiyao Holdings through reverse absorption. After that, Wang Minghui remained the chairman of Yunnan Baiyao, and Chen Fashu served as co-chairman. Due to the merger, Yunnan Baiyao's book capital soared by tens of billions. Coupled with Chen Fashu's blessing, Yunnan Baiyao became increasingly active in the investment field.
But the "stock god" also has his moments of failure. Yunnan Baiyao's financial report showed that its net profit in the third quarter of 2021 was 649 million, a year-on-year decrease of 63.94%. The main reason for the decline in performance was the increase in floating losses from the company's stock trading. According to disclosures, Yunnan Baiyao’s investment income in the third quarter of 2021 was a loss of 472 million yuan, and the cumulative investment loss in the first three quarters was 1.1 billion yuan.
Yunnan Baiyao Weekly K-line Chart
Chen Fashu's net worth has also shrunk significantly. On the recently announced 2022 Hurun Global Rich List, Chen Fashu ranked 356th, with a wealth of 51 billion yuan, a decrease of 20 billion yuan from 2021.
Currently, Chen Fashu, who is keen on investing, is still active in the secondary market.
According to the third quarter report of 2021, Chen Fashu appears among the top ten shareholders of many listed companies, among which Leiden Micropower (301050.SZ) holds a shareholding ratio of 8.99%, Bichuang Technology (300667.SZ) holds a shareholding ratio of 8.15%, Longi's shareholding ratio is 2.25%, Jiuri New Materials (688199.SH)'s shareholding ratio is 0.80%, and China Free's shareholding ratio is 0.45%.
(Statement: The content and data of the article are for reference only and do not constitute investment advice. Investors operate at their own risk.)
Editor | Cheng Penggai Yuanyuan Du Hengfeng
Proofreading | Lu Xiangyong
Cover image source: Visual China
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