Shenzhen Techwinsemi Technology Co. Ltd.Impact on stocks 2
Shenzhen Techwinsemi Technology Co. Ltd.
Huatai Securities Co LtdStorage chip leader Deming Li has publicly addressed rumors of a margin call involving its fifth-largest shareholder, Li Donglin. The company stated on an investor interaction platform that the disposal of personal shares and financing matters by shareholders holding less than 5% are their own affairs and do not fall within the company’s statutory disclosure obligations. It added that it will prudently evaluate any share buyback plans. Earlier, the company disclosed estimated first-half revenue of 16 to 18 billion yuan and net profit attributable to the parent of 5.7 to 6.5 billion yuan, but second-quarter figures declined sequentially. The stock hit consecutive daily limit-downs starting July 15 and continued to slide, closing at 349 yuan on August 3 with a market capitalization of 79.2 billion yuan. Market attention has focused on Li Donglin, who became the fifth-largest shareholder in the first quarter, holding 3.2487 million shares, of which 3.221 million were held in a Huatai Securities margin account—almost entirely financed positions—fueling speculation of a forced liquidation due to a margin call. At the end of June, the company’s margin balance approached 13 billion yuan, dropping to 5.678 billion yuan by July 30, with over 7 billion yuan in leveraged funds exiting within a single month.
Shenzhen Techwinsemi Technology Co. Ltd.
Huatai Securities Co Ltd