Wantong science and Technology Board of supervisors “release” recall motion

Wantong technology announced after hours on October 15 that the fifth meeting of the Fifth Board of supervisors of the company was held in the meeting room of the company on the same day, and the proposal on holding the company’s second extraordinary general meeting in 2020 was deliberated and passed. With the passage of the two motions, Wantong technology plans to hold the second extraordinary general meeting of shareholders in 2020 on November 20 to consider the motion on the removal of four directors including Li Zhen. < / P > < p > it is worth noting that the shareholders Yi Zenghui and Nanfang Yingu earlier proposed to hold a general meeting of shareholders at the board level, which was approved by the board of supervisors. Huang Lin (pseudonym), a person close to the southern Silver Valley, told China Securities News that he was rather surprised. He originally planned to call an interim shareholders’ meeting on his own after being rejected by the board of supervisors. He speculated that the current situation of Wantong technology has attracted the attention of the regulatory authorities, so the board of supervisors chose to “release”. However, Hu Zhihong, an insider (pseudonym) of Wantong technology, denied the above statement. He said that it was not affected by other factors. The company supported the corresponding rights of shareholders and agreed to hold a general meeting of shareholders. Yi Zenghui frankly said that there is still a month or so away from the general meeting of shareholders, and the next “scramble for chips” among shareholders will be the main play. < p > < p > on September 27, Yi Zenghui, together with Nanfang Yingu, the largest shareholder of Wantong technology, as a shareholder holding more than 10% of the shares of Wantong technology, proposed to hold an interim general meeting of shareholders on October 15 to consider the removal of four directors, including Li Zhen, Liao Kai, Wang Hui and Zhen Feng. However, Wantong technology held the 11th meeting of the 5th board of directors on October 6, and the proposal was not passed by 1 vote in favor and 7 votes against it. < p > < p > Yi Zenghui and Nanfang Silver Valley subsequently changed to the supervisory board level. According to the announcement, on October 12, the board of supervisors of the company received a letter in written form from Yi Zenghui, a shareholder holding 17.21% of the company’s shares, and Nanfang Yingu, which involved Yi Zenghui, founder of saiying technology, a subsidiary of Wantong science and Technology Co., Ltd., to recall Li Zhen, Liao Kai, Zhen Feng and Wang Hui, four directors. The board of supervisors of Wantong technology held that the proposer qualification and proposal procedures of Yi Zenghui and Nanfang Silver Valley were in accordance with the articles of association and relevant laws and regulations. < / P > < p > “we didn’t expect this to go so well.” Huang Lin told China Securities News that in April this year, southern Silver Valley contacted the board of supervisors to call for a general meeting of shareholders, but the members of the board of supervisors were shut down and could not get in touch. The board of supervisors obviously would not favor Nanfang Silver Valley and Yi Zenghui. He speculated that Wantong technology had attracted the attention of the regulatory authorities because of the current situation, so the board of supervisors chose to “release”. However, Hu Zhihong denied the above statement, saying that it was not affected by other factors, and the company supported the corresponding rights of shareholders and agreed to hold a general meeting of shareholders. < p > < p > Wantong technology disclosed that on September 23, the company made the shareholders’ decision of Chengdu Saiying Technology Co., Ltd. in accordance with the provisions of the company law, the management system of the holding subsidiary of Anhui Wantong Technology Co., Ltd., the management system of the dispatched directors and supervisors of Anhui Wantong Technology Co., Ltd., and the chapter of Chengdu Saiying Technology Co., Ltd., the company made the decision on shareholders of Chengdu Saiying Technology Co., Ltd., which was exempted from Yi Zenghui, Mr Yao Zongcheng and Tang Shirong, three directors of saiying technology, re elected Liu Jinggang, Zhang Hongbo and Shuai Hongmei as directors of saiying technology. After deliberation and approval at the fourth meeting of the first board of directors of saiying technology held on the same day, Liu Jinggang was elected as the chairman of saiying technology. On the other hand, Yi Zenghui issued a statement of saiying technology, saying that the company arranged for unknown personnel to replace and take over the current core operation and management team of saiying technology without any reason, and saiying technology’s senior management team refused to hand it over without ensuring that military production would not be affected and the risk of state secrets being leaked. On October 4, the board of directors of Wantong Technology Co., Ltd. said that the company may lose control of its wholly-owned subsidiary saiying technology. It is worth noting that Wantong technology announced the performance forecast for the first three quarters on the evening of October 14. It is estimated that the net profit attributable to shareholders of Listed Companies in the first three quarters will be 40.273 million yuan – 48.3276 million yuan, 40% – 50% lower than the same period of last year; the net profit attributable to shareholders of Listed Companies in the third quarter is expected to be 18.9285 million yuan – 26.9831 million yuan, down 5.40% – 33.64% compared with the same period of last year. Wantong technology said that saiying’s out of control may affect the accuracy of the performance forecast. However, Yi Zenghui, a senior executive of saiying technology, said that saiying technology submitted financial data to listed companies on a monthly and quarterly basis, and the company was operating normally and there was no out of control situation mentioned by listed companies. As for the “out of control” dispute of saiying technology, Shenzhen Stock Exchange issued a concern letter to Wantong technology on October 13, asking Wantong technology and Yi Zenghui to explain relevant matters. < / P > < p > since March this year, Wantong technology has been in a “palace fight” over the right of control. Southern Silver Valley has been defeated in the battle with the relevant shareholders represented by Tibet Jingyuan, the second largest shareholder of Wantong technology. With the entry of Wang Sheng, a natural person shareholder, Yi Zenghui formed an alliance with southern Silver Valley, and Wantong’s competition for control of science and technology entered a new stage. < p > < p > the reporter of China Securities News noted that there are nine seats on the board of directors of Wantong technology. This time, Yi Zenghui proposed to remove four directors. If the removal is approved by the general meeting of shareholders, the operation of the board of directors of Wantong technology will be affected. Huang Lin pointed out that, drawing on the relevant experience submitted to the general meeting of shareholders in April this year, Nanfang Silver Valley will not increase the number of directors to be nominated in the shareholders’ meeting, but will depend on the results of the shareholders’ meeting at that time. If the recall is successful, a by election proposal will be submitted. Yi Zenghui said it was not easy to judge for the time being. The success or failure of the recall motion depends on the “chips” of shareholders. With the addition of Wang Sheng, a natural person shareholder, Yi Zenghui and southern Silver Valley gained advantages in the first temporary shareholders’ meeting of Wantong technology held on September 16. At the meeting, the number of affirmative votes ranged from 110762870 shares to 111135170 shares, of which the number of dissenting votes for the first three motions ranged from 131885733 shares to 132087913 shares. The number of affirmative votes came from Tibet Jingyuan and other shareholders, while the negative votes mainly came from southern Silver Valley, Yi Zenghui and Wang Sheng. The above-mentioned difference accounted for about 5% of the total equity of Wantong technology. In view of the low participation of small and medium-sized investors in previous shareholders’ meetings, the above-mentioned vote gap can reflect the shareholding pattern of both sides. It should be pointed out that Wang Sheng directly holds 34.9794 million shares of Wantong technology, accounting for 8.49% of the total share capital of the company. Wang Sheng has not yet signed a concerted action agreement with other shareholders, but according to Wang Sheng’s statement in the recent reply from Wantong technology to Shenzhen Stock Exchange, it seems that Wang Sheng is inclined to the camp of Southern Silver Valley and Yi Zenghui. If Wang Sheng’s support is obtained, the southern Silver Valley camp, which was originally not dominant in equity, will lead the Jingyuan camp in Tibet. Bai Jun (pseudonym), a person who has been following Wantong technology for a long time, told the China Securities News that the total shares of the two camps have reached nearly 60%. Both sides are expected to continue to scramble for control, but the difficulty is that there are not many chips left for both sides to buy. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website releases information 24 hours a day, which is an important window for China to carry out international communication and information exchange.