Executives Frequently Invest In &Nbsp At Low Prices, And Interest Chains Are Hidden Behind Multiple IPO Projects.

Listed company

Hongli optoelectronics is the leading white LED packaging enterprise in China. Its products have been used in the opening ceremony of the Beijing Olympic Games, such as "starlight" and "Olympic five rings".

From 2008 to 2010, the annual compound growth rate of operating income and net profit of the company reached 37.28% and 62.58% respectively, showing a good growth.

Among them, 2010 achieved operating income of 440 million yuan, an increase of 70.5% over the same period, and net profit of 63 million 245 thousand yuan, an increase of 133% over the same period last year.

What is more noteworthy is that Chen Yansheng, who shares shares with GF and Sindh, has subscribed for 9 million 173 thousand and 300 shares for 28 million 986 thousand yuan, and has become the third largest shareholder of Hongli optoelectronics at 10% stake.

Statistics show that Chen Yansheng is chairman and general manager of Xing Hui car model. After its listing in January 20th last year, its stock market value is about 1 billion 140 million yuan.

From the earnings report, Hongli photoelectric earnings per share in 2010 amounted to 0.716 yuan, which means that the share price of GF, Sindh and Chen Yansheng was only 4.4 times earnings.

Under the background of the Pre-IPO project being chased, such a shareholding cost can be described as "super low price".

If Hongli optoelectronics succeeds in landing the gem, the benefits will be self-evident.

A similar plot also appeared on the starlight model.

At the end of 2007, Chen Chaodian, chairman and general manager of the Oriental zirconium industry, invested 4 million 800 thousand yuan to participate in the increase of starfair car models and got 3 million 168 thousand shares, becoming the third largest shareholder of starlight car models.

In the mid 2010, "10 to 5", Chen Chaodian's shareholding cost was diluted to 1 yuan / share, compared with the latest stock price of starlight car model, Chen Chaodian's book return was 36 times.

The listed company's business is entangled, but it can "idle" to invest in the high quality Pre-IPO project. What is the place of the listed company?

A careful analysis of this "serial investment" case is that its "joint point" is the co sponsor of 3 companies, GF Securities.

It is obvious that there is a hidden interest chain hidden between sponsors and executives at low prices. The goal is to win mutual benefit between the three parties of securities companies, companies and executives.

As a matter of fact, cases of listed companies' executives investing in Pre-IPO projects and realizing wealth appreciation are common.

Such as Xin Fu pharmaceutical [20.76 0.78% shares] the chairman has invested in Xin Fu new material [22.50 -3.56% shares] and has invested 3 yuan in profits over the past 3 years. Zhao Dongming, the chairman of the company, has invested 10 million 190 thousand yuan to hold 10 million 190 thousand yuan shares of Chun Xing Seiko [20.50 -3.62% shares and about 6 times the book return. Zhejiang medicine [35.80 -1.30% stock bar] Yu Zhujun has invested 2 million 350 thousand yuan to hold the Yongqiang [33.26 [33.26 stock of the Yangtze River in Japan. The market value is over 55 million yuan. Now the market value is more than 55 million yuan. The former director Yang Fujin paid 3 million 388 thousand yuan to get the gold and solid shares.

The analysis of executives' successful stake in the proposed IPO project is summed up in three ways: first, the executives of listed companies are familiar with the actual controllers of the investment companies, and are engaged in private relationships; two, they are "pulling strings" through intermediaries such as brokerages and venture capitalists, and lurk in Pre-IPO projects. Three, investment opportunities are brought about by the upstream and downstream partnership.