Strong policy
After a lapse of more than 5 months, the incident where Gao Lin Capital reduced its holdings of Longji Green Energy through a bypass route ushered in new developments.
Today, Longji Green Energy announced that the company's equity will change. Shareholder Gao Lin's HLR will increase its holdings of 1,281,300 shares through centralized bidding transactions, increasing the shareholding ratio from 4.98% to 5%.
According to the announcement,HHLR promises to take the initiative to continue to increase its holdings of Longji Green Energy shares with self-financing and complete the repurchase of all reduced holdings within the next month. If this portion of the shares are repurchased, the proceeds involved in the repurchase will belong to the listed company.
Looking back, on December 19, 2020, HHLR signed a share transfer agreement with Li Chunan, shareholder of Longji Green Energy, and obtained 226 million shares of Longji Green Energy, accounting for 6% of its total share capital.
According to the 2021 quarterly report, due to the conversion of convertible bonds into shares, the total share capital of Longji Green Energy changed, and the number of shares held by HHLR was still 226 million shares. However, the shareholding ratio changed to 5.85%.
In the second quarter of 2021 and the second quarter of 2022, after HHLR increased its holdings of Longji Green Energy twice, the number of shares held became 443 million shares, and the shareholding ratio is still 5.85%.
On March 20, 2023, HHLR lent out some of its shares in Longji Green Energy through a finance transfer business. The shareholding ratio was reduced from 5.85% to 4.85%, and they are no longer shareholders holding 5% or more of the listed company's shares.
As of the third quarter of 2023, after the loaned shares were returned at maturity, HHLR's shareholding ratio changed from 5.85% to 4.98%.
Throughout the process, HHLR took advantage of rule loopholes to quietly reduce its shareholding in Longji Green Energy by 0.87% in the second and third quarters of 2023.
On November 8, 2023, Gao Lin Capital was sued by the China Securities Regulatory Commission for allegedly transferring Longji Green Energy shares in violation of restrictive regulations.
Currently, the number of HHLR shares has returned to 378,902,285, and it is still necessary to increase its holdings of Longji Green Energy by 64.66 million shares in the next month.
Since the beginning of 2023, Longji Green Energy's stock price has dropped sharply. There is a large price difference between the HHLR sale price and the repurchase price. This portion of the proceeds will go to Longji Green Energy.
Furthermore,HHLR Management Co., Ltd., a subsidiary of Gao Lin, has raised a secondary market investment fund of about 6 billion dollars, increased China's asset allocation ratio, and continued to invest in the A-share market.
Market participants believe that under the current circumstances, Gao Lin's increase in A-shares not only shows Gao Lin's determination to continue investing in China, but also helps to revitalize the market and boosts investor confidence.