① The investigation of this case was about Wang Xiangrong and Wang Zhuangli's mother Yan Suyun trading the company's shares; ② Wang Xiangrong and Wang Zhuangli are the company's first and second largest shareholders. Last year, they received a regulatory letter from the Shenzhen Stock Exchange and a warning letter from the Zhejiang Regulatory Authority due to this short-term transaction; ③ Leo Co., Ltd. announced an investment of 50 million US dollars to participate in SpaceX in 2021, which was returned a week later.
Finance Association, April 17 (Reporter Chen Kang) Wang Xiangrong, chairman of Leo (002131.SZ), and Wang Zhuangli, vice chairman, received separate “Notice of Case Filing” issued by the China Securities Regulatory Commission today due to suspected short-term transactions. Wang Xiangrong and Wang Zhuangli have a brotherly relationship. The protagonist of this investigation is Yan Suyun, the brothers' mother.
According to the announcement, on March 22, 2023 and March 24, 2023, Yan Suyun successively bought 484,200 shares with a total transaction amount of 1,237,200 yuan, and sold the shares on May 30, 2023, for a total transaction amount of 1,113,700 yuan. Yan Suyun's above transaction constituted a short-term transaction, with a total loss of 123,500 yuan.
Currently, Wang Xiangrong is the largest shareholder and actual controller of Leo shares, holding 9.42% of the shares. Wang Zhuangli is the second largest shareholder, with a shareholding ratio of 7.45%.
In June of last year, Leo Co., Ltd. received a regulatory letter from the Shenzhen Stock Exchange. The supervisory letter stated, “(Wang Brothers), as the chairman and vice chairman of Leo Co., Ltd., failed to urge relatives to trade stocks in compliance, in violation of the provisions of section 1.4, section 3.4.1, and section 3.4.11 of the firm's “Stock Listing Rules (2023 Revision)”.
Later, on August 24, the Zhejiang Regulatory Bureau issued the “Decision on Measures to Issue Warning Letters against Wang Xiangrong and Wang Zhuangli”, which mentioned that the above situation violated the provisions of Section 44 of the Securities Law. The Zhejiang Securities Regulatory Bureau decided to take supervisory and administrative measures to issue warning letters against Wang Xiangrong and Wang Zhuangli, and record them in the securities and futures market integrity file.
Wang Xiangrong, chairman of Leo Co., Ltd., is an engineer. He started his career through self-developed pump products. After going public, Wang Xiangrong carried out a series of investment actions, including cross-border digital marketing, semiconductors, healthcare, and new energy tracks. He also received a letter of concern from the exchange due to high-premium acquisitions.
Among them, the most prominent one was that Leo shares announced an investment of 50 million US dollars (about RMB 319 million at the time) to invest in SpaceX. A week later, the 50 million US dollar investment was returned by the partnership that planned to participate. Leo shares claimed that the reason was that the other party could not accept the company's LP share.
According to the 2023 annual results forecast issued by Leo Co., Ltd., net profit attributable to shareholders of listed companies was 1.9 billion yuan to 2.1 billion yuan, reversing losses from the previous year; after deducting non-net profit of 40 million yuan to 60 million yuan, a year-on-year decrease of 57.21% — 71.47%. The main reason for turning a loss into a profit is that the total confirmed profit and loss amount of Ideal Auto (LI.US) shares held by the company and some Ideal Auto shares disposed of during the reporting period was about 2,342 billion yuan. The impact of this portion of profit and loss on net profit attributable to shareholders of listed companies was about 1,757 billion yuan, which is included in non-recurring profit and loss.