On November 25th, Nanjing Jingsheng Equipment Co., Ltd. (Jingsheng Stock) announced that its chairman, Lu Zufei, transferred his shares worth 289 million yuan to his daughter, Lu Yu. This news has sparked widespread attention and discussion in the market.
The “Nanjing Jingsheng Equipment Co., Ltd. Simplified Equity Change Report” released by Jingsheng Stock on November 25th showed that Lu Zufei signed a “Share Transfer Agreement” with Lu Yu on November 22, 2024. Through the agreement, he transferred a total of 9,009,719 shares of unrestricted tradable stocks in the company to Lu Yu at a price of 32.07 yuan per share, totaling 288,941,688.33 yuan. This share transfer accounts for 6.51% of the total share capital of the company.
The announcement stated that the transfer agreement between Mr. Lu Zufei and Ms. Lu Yu is a family relationship, as they are acting in concert. The transfer is an internal equity adjustment within the family and does not involve external transfers. This transfer agreement will not result in any changes to the company’s controlling shareholder or actual controller.
According to financial news from “Qianhai Times” on November 25th, the transfer price for the shares was 32.07 yuan per share, representing a premium of 2.85% compared to the closing price of 31.18 yuan on Friday, November 22nd.
Analysts at “Qianhai Times” suggest that this premium may reflect Lu Yu’s confidence in the future development of Jingsheng Stock; however, there are also doubts questioning whether this financial transaction by the Lu family serves a specific purpose.
Firstly, certain practices of the Lu family during the share transfer process have raised concerns and suspicions in the market. Questions have been raised regarding the reasonableness of the premium on the transfer price and the possibility of any benefit leakage.
Additionally, some controversies and negative news surrounding the Lu family in their business activities have brought negative impacts to Jingsheng Stock. These controversies and negative news not only tarnish the company’s image and reputation but may also affect its business development and market expansion.
Furthermore, following the news of the share transfer, speculations about tax avoidance and future divestment have emerged in the market. Some views suggest that the Lu family may be leveraging this share transfer for tax avoidance purposes or preparing for future divestments. While these speculations lack firm evidence, they further exacerbate market concerns and uncertainty.
According to the official website of Jingsheng Stock, Nanjing Jingsheng Equipment Co., Ltd. was established in February 2012, specializing in the development of high-tech equipment and processes for semiconductor materials such as 8-12 inch semiconductor-grade monocrystalline silicon furnaces, 6-8 inch silicon carbide, and gallium arsenide. In 2023, the company went public for the first time and listed on the Shanghai Stock Exchange’s Sci-Tech Innovation Board.
In addition, as reported by “Daily Economic News” on November 25th, Lu Zufei and his family members are associated with multiple companies. According to the prospectus, there are a total of 19 companies related to them.
Moreover, Lu Zufei and Jiang Hongtao also have a listed company: Nanjing Surveying and Mapping Research Institute Co., Ltd., which was listed on the GEM board of the Shenzhen Stock Exchange in April 2020.
As of November 26th, Beijing time, the stock price of Jingsheng Stock is 31.93 yuan per share, down 0.44%, with a total market value of 4.418 billion yuan.