In the Beixi Exchange, Mr. Zhong Baoshen, the Chairman of the prominent $20 billion solar industry leader, Longi Green Energy, has made headlines by acquiring a substantial stake in the publicly traded company Audiwei at a premium of 15.53%. The move, which happened on September 1st, is the first-ever instance of an individual acquiring a stake in the history of the Beixi Exchange.
Surprising Block Trade
On September 4th, Audiwei, a company listed on the Beixi Exchange, disclosed that it had received notification from its shareholders regarding a transaction involving the transfer of 6,555,500 shares to Mr. Zhong Baoshen.
These shares were transferred by Tianjin Dachen Chuangshi Equity Investment Partnership Enterprise, known as “Dachen Chuangshi,” and its associated entity, Tianjin Dachen Shengshi Equity Investment Partnership Enterprise, or “Dachen Shengshi,” through a block trade.
Zhong Baoshen Boosts Shares
Prior to this transaction, Dachen Chuangshi held 7,283,160 shares of Audiwei, constituting a 5.1595% stake, while Dachen Shengshi held 6,330,240 shares, representing a 4.4845% stake. Together, they held a combined total of 13,613,400 shares, equivalent to a 9.6440% stake, whereas Mr. Zhong Baoshen possessed a 1.419% stake with 2,003,000 shares.
Following this shift in ownership, Dachen Chuangshi now holds 3,827,660 shares of Audiwei, constituting a 2.7116% stake, and Dachen Shengshi holds 3,230,240 shares, representing a 2.2884% stake. Collectively, they retain a 5% holding, while Mr. Zhong Baoshen’s direct ownership now amounts to 6.063% of the company’s shares.
New Record for Beixi Exchange
Mr. Zhong Baoshen expressed in the announcement that this adjustment in equity reflects his confidence in the company’s future prospects and investment potential. He intends to evaluate market conditions and his personal financial plans over the next 12 . Only then will he decide on any further increases in his stake in the listed company.
Beixi Exchange expert and Managing Director of Power Capital, Mr. Zhu Weiye, remarked to reporters that this represents the first-ever instance of an individual acquiring a stake in the history of the Beixi Exchange.
According to available data, on September 1st, two block trades involving Audiwei were executed, totaling 6,555,500 shares with a transaction value of ¥799.77 million and an average transaction price of ¥12.2 per share.
The closing price for that day stood at ¥10.56, reflecting a 3.02% increase, with a total transaction value of ¥898.04 million. Block trades accounted for 89.06% of the day’s trading volume, accompanied by a 15.53% premium.
Quick Backgrond on Mr. Zhong Baoshen
Public records reveal that, in addition to his role as a director of Audiwei, Mr. Zhong Baoshen also serves as the Chairman of Longi Green Energy, a prominent player in the domestic solar industry, and is a major shareholder in the Beixi Exchange-listed company Liancheng Numerical Control.
Despite a recent decline in Liancheng Numerical Control’s stock price, the company maintains an approximate market capitalization of ¥10 billion. Notably, Mr. Zhong Baoshen had previously participated in Audiwei’s private placement in 2015 when the issue price was ¥14 per share.
About Audiwei
Audiwei is a leading domestic ultrasonic sensor company, and Desay SV, another A-share listed company, is also among its shareholders.
As per research findings from Open Source Securities, Audiwei achieved an operating income of ¥378 million in 2022, with a net profit attributable to the parent company of ¥52.97 million, indicating some financial pressure.
During the first half of 2023, the company witnessed a 16% increase in revenue and a remarkable 50% growth in net profit, suggesting an overall improvement in performance. Additionally, from 2019 to the first half of 2023, the company’s gross profit margin surged from 24% to 39%, illustrating consistent profit optimization.
On September 4th, Audiwei’s stock opened more than 8% higher and ultimately closed with a substantial gain of 9.85%, currently boasting a market capitalization of ¥1.637 billion.
