Former chairman fined 33.2 million yuan, failed to report and transferred within the restricted period

After more than a year and a half, the investigation into the former chairman of Lingda Group by regulators has finally come to fruition.

Recently, a new administrative penalty decision was posted on the official website of the China Securities Regulatory Commission, which showed that Wang Zhengyu, the former actual controller and chairman of Lingda Shares, was heavily fined 33.2 million yuan due to issues related to illegal investment, transfer within the restricted period, and short-term trading. Among them, the penalty amount for transferring securities during the restricted period reaches 30 million yuan.

It is understood that Wang Zhengyu and Wang Miaoqi, father and daughter, achieved indirect control over Lingda Shares in July 2020 and officially took over. From this administrative penalty, it can be seen that Wang Zhengyu used multiple accounts to buy and sell "Lingda Shares" and reached the listing line, which was clearly earlier than when he obtained control of Lingda Shares, but the relevant information was not disclosed.

But in January 2022, Lingda Shares disclosed that its actual controller Wang Zhengyu received a notice from the China Securities Regulatory Commission, suspected of illegal and irregular insider trading of Lingda Shares. Wang Zhengyu resigned from his positions as chairman, director, president, and member of the special committee of the board of directors. In August of that year, he transferred control of Lingda shares by transferring his partnership shares.

Take a look at the details——

Control 15 accounts for continuous buying and selling

Not disclosed after reaching the card raising line

Firstly, in this administrative penalty, it is pointed out that Wang Zhengyu has committed illegal and irregular acts:

After investigation, Wang Zhengyu began buying and holding "Lingda Shares" through his "Wang Zhengyu" account and "Wang Mourong" account in 2016. But in addition to these two accounts, Wang Zhengyu also directly controls three other accounts and buys "Lingda Shares" through 10 accounts funded by others.

After buying heavily through 15 accounts, on April 1, 2020, Wang Zhengyu's controlling account group's holdings of "Lingda Shares" had already exceeded the listing line, reaching 5.1% of the total share capital.

The China Securities Regulatory Commission pointed out that within three days from the date of the occurrence of the above facts, Wang Zhengyu did not make a written report to the securities regulatory authority of the State Council or the stock exchange, did not notify Lingda Shares, and did not make a public announcement.

Afterwards, Wang Zhengyu continued to trade, and for every 1% increase or decrease in his shareholding, he did not notify Lingda Shares the next day or make any public announcements. In addition to not believing and continuing to trade after holding 5% of the shares, Wang Zhengyu also engaged in the transfer of shares within 18 months after the completion of the acquisition.

In July 2020, Wang Zhengyu became the owner of Lingda Shares and disclosed the Detailed Equity Change Report. Among them, only the disclosure was made about the trading of "Lingda Shares" held by oneself and "Wang Mourong" account, and the situation of other accounts was not mentioned. In this situation, the information disclosed by Wang Zhengyu contains misleading statements.

Finally, as a shareholder holding more than 5% of Lingda's shares, Wang Zhengyu's continuous buying and selling also constitutes short-term trading. According to regulatory investigations, Wang Zhengyu purchased RMB 178 million and sold RMB 172 million from April to July 2020; From July 2020 to August 2021, I bought 52.6934 million yuan and sold 165 million yuan.

A total of 33.2 million yuan was fined

Formerly referred to as "experiencing significant impact"

Unlike the insider trading cases that have been frequently investigated and dealt with by previous regulators, the China Securities Regulatory Commission did not punish Wang Zhengyu for manipulating the market this time. The main focus was on illegal information disclosure, transfer during restricted periods, short-term trading, and other behaviors.

Specifically, the China Securities Regulatory Commission has decided to order Wang Zhengyu to rectify his illegal disclosure of information, issue a warning, and impose a fine of 3 million yuan; Order Wang Zhengyu to correct his transfer of securities during the restricted transfer period, issue a warning, and impose a fine of 30 million yuan; Give a warning and impose a fine of 200000 yuan on Wang Zhengyu's short-term trading behavior; The total amount of three penalties reached 33.2 million yuan.

According to public information, Wang Zhengyu was born in 1964 and is a Hong Kong resident. He has served as the Chairman of Xiamen Mudanlou Hotel Co., Ltd., Director of Tianjin Pancheng Real Estate Development Co., Ltd., and Executive Partner of Hangzhou Guanghengyu Enterprise Management Partnership.

In July 2020, Hangzhou Guanghengyu, the former controlling shareholder of Lingda Group, and Xiamen Zhuri Investment, a partner of Hangzhou Guanghengyu, Xiamen Xiwang Development, and Liu Zhendong, the actual controllers, signed a Partnership Share Transfer Agreement with Wang Zhengyu and Wang Miaoqi. Wang Zhengyu and Wang Miaoqi indirectly controlled Lingda Group by acquiring all of Hangzhou Guanghengyu's partnership shares, becoming the actual controllers of the company.

After acquiring Lingda Shares, Wang Zhengyu quickly led the company to exit diversified businesses such as commercial factoring and naked eye 3D, and turned to the new energy field. For example, he acquired Jiayue New Energy in September 2020 and achieved 100% control in June of the following year; In March 2021, a strategic cooperation agreement was signed with GCL Holdings to conduct strategic cooperation in the photovoltaic field.

However, the good times did not last long. In January 2022, Lingda Shares disclosed that the actual controller received a notice from the China Securities Regulatory Commission, suspected of illegal and irregular insider trading of Lingda Shares. At the same time, Wang Zhengyu resigned from his positions as chairman, director, president, and member of a special committee of the board of directors, and was replaced by his queen Miaoqi as chairman.

In May 2022, Wang Zhengyu and Wang Miaoqi plan to withdraw from Lingda Shares and prepare to transfer their shares to Hangzhou Birhan Asset Management Co., Ltd. After the miscarriage of the plan, in August of the same year, Wang Zhengyu and Wang Miaoqi transferred their shares to Haiboris Green Energy Technology Co., Ltd. and Jinzhai Huacheng Future New Energy Technology Partnership Enterprise, and their actual controllers Huang Shuang became the new actual controllers of Lingda Shares.

Regarding the plan to transfer control rights within less than two years of becoming the actual controller, Wang Zhengyu stated in his response to the inquiry letter from the Shenzhen Stock Exchange that as the actual controller, he still firmly believes that Lingda Shares have long-term investment value. But after nearly two years of hands-on efforts, I feel that my energy is unable to cope with the heavy affairs of the listed company. The hotel business that I have been operating under for many years has been greatly affected by the epidemic, especially since I was investigated. I deeply feel the serious lack of understanding of securities laws and regulations and the actual operating rules of the capital market.