① In response to investors' analysis and evidence about “the Ministry of Investment and Finance suppressing the company's stock price,” Gehua Cable responded at the performance conference today that there was no deliberate suppression of stock prices, nor were there any undisclosed matters that should be disclosed. ② Furthermore, in response to changes in management, Gehua Cable stated that the relevant leaders were all transferred to normal jobs or retired at an old age, and that the relevant positions were not vacant for a long time, but were hosted and handled by other personnel.
Financial News Agency, December 12 (Reporter Cui Ming) The website of the Inner Mongolia Securities Regulatory Bureau recently disclosed a piece of administrative penalty information. Zhao Yongfang, then deputy director of the Party and Mass Affairs Department of Gehua Cable, was fined over 800,000 yuan due to insider trading in Gehua Cable (600037.SH). The matter attracted investors' attention. At the performance briefing held today, Gehua Cable responded that the company will continue to strengthen insider information management, improve the registration management system for insider information, strictly keep insider information confidential, and prevent illegal securities violations such as insider trading.
According to Gehua Cable's previous statement on the investor interactive platform, Zhao Yongfang is not a company director, supervisor, or executive. The company has criticized and educated him, and treated him both within the party and administrative positions.
According to reports, Zhao Yongfang's administrative penalty involved important arrangements such as funding methods and proportions for Gehua Group's participation in the establishment of China Radio and Television in 2020. According to Gehua Cable's semi-annual report for 2023, China Radio and Television Network Co., Ltd. is the company's largest shareholder, with a shareholding ratio of 19.09%.
“Also, according to netizens' analysis, the company's investment and financing department carried out majority shareholder transfer vouchers for the next board of directors to carry out the backdoor restructuring of China Radio and Television at a lower price, and continued to suppress the company's stock price by continuously releasing news such as the departure of directors and supervisors.” Some investors sought evidence at the performance meeting whether this analysis was true.
Gehua Cable stated in this regard that the radio and television restructuring was led by China Radio and Television. Gehua Cable, as a cable TV operator in the Beijing region, is mainly responsible for the development, operation, management, and maintenance of cable television in the Beijing region. The production and operation of the company is normal, and the relevant leaders are all transferred to normal jobs or retired at an old age. There are no cases where stock prices are deliberately suppressed, and there are no undisclosed matters that should be disclosed. “For information on all aspects of the company, please refer to the official announcement. Don't take unfounded speculations or rumors on the Internet lightly.”
In the second half of this year, Gehua Cable's management changed frequently. In July, it was announced that Ma Jian, director and vice chairman of the company, and Tang Wenwei, deputy general manager, resigned. In November, it was also announced that Han Jikai, the current director, deputy general manager and director of the company, resigned as deputy general manager and director secretary. Gehua Cable further stated that the relevant positions are not vacant for a long time, but are hosted and handled by other personnel.
Returning to the main business, the cable television industry has been in a period of decline in recent years, and the company is facing difficulties such as loss of users and reduction in gross margin. Gehua Cable blamed the decline in revenue from its main business on the overall trend of the industry. That is, IPTV, OTT, and online video showed a continuous growth trend, and the viewing habits of large-screen users continued to shift to mobile devices.
In order to rectify the chaos and standardize the development of the industry, the State Administration of Radio, Film, and Television recently carried out complex management of television “doll” charges and operations. Gehua Cable passed the inspection as the first batch of pilots. According to the company, this has further improved the viewing experience of cable TV users in Beijing. “Currently, cable TV users in Beijing have stopped falling and stabilized.”
Furthermore, with regard to the goal of “striving to develop 20 new central enterprises and central ministry customers in 2023” proposed by Gehua Cable's 2022 Annual General Meeting of Shareholders, the company stated at the performance meeting that it has completed the annual target tasks.