Wu Jun, a reporter from China** Daily, also saw that the controlling shareholder of the listed company transferred the shares to the private placement. According to the latest announcement issued by Shenchi Electromechanical, the company's controlling shareholders, actual controllers and persons acting in concert intend to hold 10.5 million shares of the company to 15The total transfer price of the ** agreement of 29 yuan shares to ** Wenchu Investment (on behalf of Wenchu Phase 1 Private Placement **Investment**) is 16.1 billion yuan. However, **Jun found that the management scale of this private equity institution is only 0-500 million yuan, why a small private equity investment of 1600 million to take over more than 5% of the shares of a listed companyLet's take a look. The controlling shareholder intends to transfer 10.5 million shares to the private placementThe total price involved reached 16.1 billion yuan. On the evening of January 8, Shenchi Electromechanical issued a number of announcements, saying that the company's controlling shareholder, actual controller and its persons acting in concert signed the "Share Transfer Agreement" with **Wenchu Investment**Management *** on behalf of Wenchu Phase 1 Private Placement **Investment**), and intends to transfer 10.5 million shares of the company (accounting for 5% of the company's total share capital) held by it by way of agreement transfer03%) to 15The ** of 29 yuan shares was transferred to the first phase of the private placement ** investment of Wenchu. 
*Jun calculated, this agreement transfer ** compared to the ** price on January 8 ** 1606 yuan shares, and 4Around 8% discount;The total price to be paid to the actual controller and controlling shareholder of the listed company for the transfer of private placement** under this agreement is 16.1 billion yuan. Let's take a look at the changes before and after the equity transfer, as of the disclosure date of the announcement, Ai Chun, the actual controller of Shenchi Electromechanical, and its concerted actors, Chongqing Shenchi Investment, Chongqing Shenchi Industrial Group, and Aili hold 1 shares of the company3.6 billion shares, accounting for 65% of the company's total share capital02%；However, if the share transfer is completed, the number of shares held will be reduced to 12.5 billion shares, accounting for 5999%。At the same time, **Wenchu Investment**Management*** represents Wenchu Phase 1 Private Placement**Investment**) from not holding shares of Shenchi Electromechanical to holding 10.5 million shares, accounting for 5% of the company's total share capital03%。In the future, after the completion of the transfer registration, this private placement** will become the non-largest shareholder of the listed company holding more than 5% of the shares. 
Shenchi Electromechanical said that the transfer of this agreement does not involve a tender offer, will not lead to a change in the company's controlling shareholder and actual controller, and will not have an impact on the company's business activities. However, the transfer of this agreement still needs to be applied to the Shanghai ** Exchange and the Shanghai Branch of China ** Depository and Clearing Co., Ltd., and there is still uncertainty about whether the implementation can be finally completed. In addition, the announcement also stated that in addition to this change in equity, Wenchu Phase 1 Private Placement** has no plans to increase or decrease its shares in the listed company in the next 12 months. The scale of private equity institutions is 0-500 million yuanLet's take a look at what the private equity **investment** manager of Shenchi Electromechanical shares is like. **Industry Association** information shows that **Wenchu Investment** Management *** was established in December 2015 with a registered capital of 12.08 million yuan, and the office is located in Yubei District, Chongqing (PS: Shenchi Electromechanical is also a company in Chongqing), the company currently has 9 full-time employees, the number of private placements for the record is 23, and the management scale range is 0-500 million yuan. 
The "Wenchu Phase 1 Private Placement **Investment**" was established in September 2016. **The industry association specially reminds that according to the latest information submitted by the manager, the scale of this ** is less than 5 million yuan (quarterly update information in the third quarter of 2023). 
So, why would a private equity institution with a scale of less than 500 million spend 1600 million yuan to acquire more than 5% of the shares of a listed companyIn fact, before the transfer of shares, **Wenchu Investment also bought Shenchi Electromechanical**, but later sold. The "Simplified Equity Change Report" also shows that the first phase of the private placement investment and other **products managed by Wenchu Investment have been through centralized bidding in the 6 months prior to the date of this report**214220,000 shares, but also sold 214220,000 shares. As of the date of signing this report, the company's **products no longer hold Shenchi Electromechanical**. According to the announcement issued by Shenchi Electromechanical, the information disclosure obligor intends to transfer the shares of the listed company through agreement transfer based on the recognition of the company's future development prospects and investment value. Shenchi Electromechanical's net profit in the first three quarters of last year increased by 32%.According to public information, Shenchi Electromechanical is mainly engaged in the research and development, manufacturing and sales of small generators, general-purpose gasoline engines and terminal products. Small generators and general-purpose gasoline engines are mainly used for supporting terminal products. The terminal products are mainly general gasoline generator sets, digital inverter generator sets, high-pressure cleaners, etc., and the company is one of the few domestic manufacturers that has formed a complete industrial chain from core components to terminal products. According to the financial report, from January to September 2023, Shenchi Electromechanical achieved an operating income of 206.8 billion yuan, a slight increase of 1 year-on-year39%；Net profit attributable to the parent company 18.5 billion yuan, a year-on-year increase of 3229%；Basic earnings per share was 08913 yuan, weighted average return on equity 1062%。Judging from the stock price performance in the past year, Shenchi Electromechanical once rose to 19 in the middle of last yearThe high level of 16 yuan shares, since then** fluctuations are very violent, once fell to around 14 yuan, late October, November **, but in December continued to be wide**;In the first few trading days of this year, the share price of Shenchi Electromechanical fell slightly, as of January 8, ** reported 1606 yuan shares, the latest total market value is only about 3.4 billion yuan. 
Edit: Captain's Review: Muyu.