Recently, the Anhui Securities Regulatory Bureau announced that it would take administrative supervision measures against Guoxuan Hi-Tech (hereinafter referred to as Guoxuan Hi-Tech), Chairman Li Jin, and Secretary of the Board of Directors Pan Wang.
Source: Anhui Securities Regulatory Bureau.
About Gotion Hi-Tech
Founded in May 2006, Gotion Hi-Tech is headquartered in Baohe District, Hefei City, and its legal representative is Li Jin. The company is the first private enterprise in China's power battery industry to enter the capital market, and was successfully listed in May 2015.
It has business segments such as power lithium batteries, energy storage, power transmission and distribution equipment for new energy vehicles, and has established an independent and mature R&D, procurement, production and sales system.
Why are you being penalized?
On September 7, 2023, Gotion Hi-Tech entered into a REV subsidy agreement with the City of Illinois**, USA, and failed to disclose the material transaction in a timely manner, violating Article 24 of the Administrative Measures for Information Disclosure of Listed Companies (No. 182).
In accordance with the relevant regulations, the Anhui Securities Regulatory Commission gave a warning letter to Guoxuan Hi-Tech, and included it in the market credit record, and at the same time gave Li Zhen and Pan Wang administrative penalties for regulatory talks.
It is reported that Li Jin, chairman of Guoxuan Hi-Tech, was directly involved in the relevant work of signing the agreement with the state of Illinois, while Pan Wang, the secretary of the board of directors, was the specific person in charge of the company's information disclosure, and both of them failed to perform their duty of diligence and diligence in accordance with Article 4 of the Administrative Measures for Information Disclosure of Listed Companies (Decree No. 182 of the CSRC), and were primarily responsible for the company's related violations.
What is a REV incentive plan
The REIMAGINING Energy and Vehicles program is part of the Illinois Energy and Vehicle Reinvention Act, which aims to support the development of green manufacturing in Illinois and attract local investment from electric vehicle and renewable energy companies.
The main content of the agreement is that the state of Illinois will provide tax subsidies for the project based on the REV subsidy bill passed by the state, which specifically subsidizes new energy and trolley companies. The final investment amount and subsidy amount will be subject to the actual investment situation. As of October 12, Gotion has completed the signing of the purchase agreement for the land, plant and other real estate assets of the project.
On December 20, 2021, the company announced that its wholly-owned overseas subsidiary, Gotion (hereinafter referred to as "Gotion"), has signed a strategic supply and localization cooperation agreement with a U.S. auto giant, and the company plans to purchase lithium iron phosphate (LFP) batteries from Gotion Hi-Tech from 2023 to 2028, and intends to carry out production capacity and supply in the United States, and ** the feasibility of establishing a joint venture in the future.
On July 28, 2022, Shenzhen Stock Exchange and SIX Swiss Stock Exchange held the first phase of the China-Swiss Stock Connect GDR listing ceremony in the form of ** connection, and Gotion Hi-Tech's Global Depositary Receipts (GDRs) were successfully listed on the SIX Swiss Exchange.
Slowing growth: Revenue growth slowed in the third quarter
Gotion Hi-Tech's main business covers three major sectors: power lithium battery system, energy storage battery system and power transmission and distribution equipment. The third quarter report of 2023 shows that the company's revenue growth slowed down in the third quarter.
Gotion Hi-Tech's operating income in the third quarter was 65400 million yuan, a year-on-year increase of 1298%, compared to 7642 per cent, which has slowed down. On a monthly basis, the company's revenue in the third quarter was down compared to the second quarter.
During the same period, the operating income of CATL, EVE and Sunwoda in the same industry has increased significantly. In terms of profit, Gotion Hi-Tech achieved a net profit attributable to the parent company of 08.3 billion yuan, down 282%。
Finally
After the investigation and handling of this incident by the Anhui Securities Regulatory Bureau, it once again reminds us of the importance that China's leading market regulators attach to violations of laws and regulations.
Timely, accurate and complete information disclosure is one of the important obligations of listed companies, and it is also an important basis for investors to make investment decisions.
As a listed company, Gotion Hi-Tech should have strictly complied with relevant laws, regulations and regulatory requirements and disclosed material information in a timely manner. The incident exposed the company's omissions and problems in information disclosure, reflecting its internal management and risk control deficiencies.