AutoBeta(AutoBeta.net)08/04 Report--

Stop production, owe wages, be insolvent, make a false report. Huatai Motor, which has recently been plagued by negative news, has been criticized by the Shanghai Stock Exchange.

In view of Huatai Automobile's violations, it is pointed out in the "decision on continued punishment" that the disciplinary action will be notified to the China Securities Regulatory Commission and included in the integrity files of listed companies.

According to the data survey, dawning shares disclosed on March 1, 2017 on the change of control notice that its former controlling shareholder dawning Group and Huatai Motor signed the "Equity transfer Agreement" and "Voting entrustment Agreement". After the completion of the share transfer and the entrustment of voting rights, Huatai Motor will become the controlling shareholder of the company.

On May 19, 2017, dawning Group transferred 5.28% of its shares to Huatai Motor, and completed the above-mentioned share transfer on July 25, 2017. On November 23, 2017, dawning shares announced that Huatai Motor and dawning Group are expected to complete the transfer registration of the remaining 14.49% of their shares within 30 working days.

However, the equity deal between Huatai Motor and dawning did not go smoothly. Dawning shares issued four announcements on December 22, 2017, January 30, 2018, April 14, 2018 and June 23, 2018, respectively, saying that Huatai Automobile and Shuguang Group did not complete the equity transfer registration within the agreed time until September 27, 2018. The transfer registration of the above 14.49% shares was not completed until September 27, 2018.

In addition, the Shanghai Stock Exchange also pointed out that on March 7, 2018, 35.672 million shares of dawning shares held by Huatai Motor were judicially frozen by the Intermediate people's Court of Wuxi City, Jiangsu Province, accounting for 5.28% of the company's total share capital and 100% of Huatai Motor's shares. On April 13, the above judicial freeze was lifted. However, during this period, Huatai did not inform dawning shares of the above-mentioned freezing and thawing in time, resulting in the company not disclosing the above-mentioned share freezing and thawing information until August 30, 2018.

The Shanghai Stock Exchange determined that Huatai Automobile's information on the freezing and thawing of shares was not disclosed in a timely manner, there was an obvious lag, and the disclosure was overdue for more than five months, harming investors' right to know; the disclosure of information on equity transfer was not prudent, and the completion of share transfer and transfer was delayed many times, which may mislead investors and affect their reasonable expectations. In view of the above violations and circumstances, the Shanghai Stock Exchange decided to criticize Huatai Motor and record it in the integrity files of listed companies.

Huatai Motors also objected to the criticism of the announcement of the Shanghai Stock Exchange, saying that Huatai Motors delayed equity transfer registration many times in order to protect the interests of all shareholders of the company, based on the objective situation of the company at that time, the result agreed by all parties through consensus, rather than Huatai Motors' subjective intention not to fulfill its promise. However, Huatai Motors' statement was not accepted by the Shanghai Stock Exchange. The Shanghai Stock Exchange believes that it is not valid.

In response, dawning Group said that the company is an independent listed company, the Shanghai Stock Exchange criticized Huatai Automobile, which has nothing to do with dawning Group, so it will not be affected in any way.

Some industry insiders said that there may be two reasons for failing to complete the equity transfer on schedule, one is whether the regulators have completed the examination of the equity transfer, and the other is that there may be financial problems between the two sides. According to the current situation, it is very likely that the equity can not be transferred on time because of financial problems.

At the beginning of this year, internal employees issued a letter of help saying that Huatai Motor was not paid normally and more than 1000 employees were in arrears for more than four months. In addition, news of shutdowns has also been reported at Huatai's four major factories, mainly due to employees leaving their jobs due to lack of funds and unable to pay their salaries normally.

Internal employees revealed that the company's headquarters from more than 1000 employees, now there are only more than 300. Employees who left after June 20 this year have basically not been paid their wages and have now applied for labor arbitration.

Today, the automobile market is still cold, and Huatai's own business ability is not the top in China. It has successively exposed negative news such as wage arrears, false reports, and insolvency, which has now been criticized by the Shanghai Stock Exchange. it seems that Huatai's road has become narrower and narrower.

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