because of the relevant laws of "not understanding short-term trading", the chairman's wife successfully made a profit of 589800 yuan by buying and selling shares of her husband's company. However, before the money was hot, he was asked to return it to the company, and the 81-year-old chairman of the board was also placed on file for investigation.

On April 20, Zhongke Shuguang (603019.SH) announced that Chairman Li Guojie received the China Securities Regulatory Commission on April 19, 2024 for suspected short-term trading of Zhongke Shuguang stock . Notice of Filing a Case.

source: zhongke shuguang announcement

It is worth noting that in addition to being the chairman of the Shuguang of Zhongke, Li Guojie has also made considerable academic achievements. He is an academician of the Chinese Academy of Engineering, an academician of the Third World Academy of Sciences, a researcher and doctoral supervisor of the Institute of Computing Technology of the Chinese Academy of Sciences, and the Chinese Academy of Sciences. Dean of the School of Computer and Control. is also the first domestic author to publish a paper in AAAI (International Advanced Artificial Intelligence Association), known as "Chinese AI tycoon".

Is the chairman's husband profiting from his wife's account, or is it the wife's personal behavior?

Wife gains 590000, husband is filed

It is not uncommon for the chairman's relatives to conduct short-term transactions in violation of regulations. In April alone, there were already two listed companies, Star Technology (002132.SZ) and Leo (002131.SZ), because their parents illegally bought and sold their own stocks. As a result, the company's chairman was filed for investigation.

Now, there is another Zhongke Shuguang. on April 12, zhongke shuguang made a sudden announcement about short-term trading and apology by relatives of directors.

This happened a year ago. From March 3, 2023 to March 14, 2024, Zhang Tihua, the spouse of Li Guojie, the 81-year-old chairman of Zhongke Shuguang, bought and sold the company's shares through centralized bidding.

Over the course of the year, Zhang Tihua frequently bought and sold. A total of 3.34 million shares (141 transactions) of the company were bought, with a total transaction amount of 0.154 billion yuan. A total of 3.34 million shares (91 transactions) of the company were sold, with a total transaction amount of 0.154 billion yuan. After deducting taxes and fees such as transaction commission and stamp duty, Zhang Tihua's accumulated income was 589800 yuan.

judging from the stock price trend chart, March 2023, when Zhang Tihua started buying, was a starting point for the rise of Zhongke Shuguang's stock price. one month after Zhang Tihua's sale, Zhang Jianping, a well-known hot money, also bought Zhongke Shuguang for a huge amount.

On April 20, 2023, Zhongke Shuguang closed the board and the stock price hit a record high. The three-day dragon and tiger list after the market showed that one seat was bought by Guotai Junan Securities Co., Ltd. Shanghai Jiangsu Road Securities Business Department, with a total purchase of 2 billion yuan. The business department is a well-known hot money Zhang Jianping commonly used seats. The amount of buying capital is relatively rare in the-share list of dragons and tigers in recent years.

Source: Baidu Stock Exchange

In addition to Zhang Jianping, the famous Niu San Ge Weidong also entered the dawn of Zhongke during this period. according to the 2023 semi-annual report, the new shareholder of zhongke shuguang is ge weidong, holding 10.97 million shares, accounting for 0.75, jumping to the fifth largest shareholder.

by December 31, 2023, Ge Weidong had sold off and left the market, but in the shareholder list of Zhongke Shuguang, there are also two family members of Ge Weidong Ge Guilian and Ge Guilan, who hold 1.09 percent and 0.67 percent of the shares respectively, ranking third and eighth largest shareholders.

For Zhang Tihua's short-term trading situation, Zhongke Shuguang said, " Zhang Tihua failed to correctly understand the relevant laws and regulations of short-term trading, and there is no subjective intentional violation. He did not consult Li Guojie during his trading period, nor did he inform the above-mentioned trading behavior, which is an investment behavior made independently by an individual based on the information that has been made public in the securities market and based on his personal judgment."

Zhongke Shuguang also stressed that Li Guojie is not aware of the trading of its securities account, there is no situation of trading the company's stock because of knowing inside information, and there is no purpose of using inside information to seek benefits.

But just 7 days after the announcement was issued, On April 19, Li Guojie received the "China Securities Regulatory Commission Notice of Filing a Case". The reason was the suspected short-term trading of the Shuguang stock.

"When the CSRC decides to file an investigation on an individual or company, it usually means that the regulatory authorities have initially mastered some suspicious evidence or clues, which is sufficient to prove that there may be violations. This evidence may come from internal reporting, market surveillance, audit findings or other regulatory cooperation. An investigation is a formal regulatory process, the purpose of which is to further verify the facts, collect evidence, and determine whether there is a violation. Therefore, the investigation usually shows that the CSRC has a certain degree of understanding and grasp of the relevant issues." Angel investor Guo Tao said.

affected by this incident, zhongke shuguang's share price fell 4.84 on April 22 to close at 42.51 yuan per share, with a total market value of 62.217 billion yuan. As of April 12, Zhang Tihua also holds 700 shares of Zhongke Shuguang.

Li Guojie served as chairman for 18 years, with an annual salary of 240000

Li Guojie, who was put on file for investigation, was born in 1943 and is now 81 years old. Although he has entered his old age, but Li Guojie has always been active in the front line of work and is now a well-known scholar in the field of artificial intelligence.

Li Guojie graduated from Peking University in 1968, graduated from the University of Science and Technology of China in 1981, and graduated from Purdue University in 1985 with a doctor's degree, engaged in research related to artificial intelligence.

During his PhD, Li Guojie presented a paper at the AAAI (International Association for Advanced Artificial Intelligence) conference and was one of the earliest Chinese scholars to publish a paper at AAAI.

In 1987, Li Guojie returned to China and joined the Institute of Computing Technology of the Chinese Academy of Sciences; in 1990, he was selected as the director of the National Intelligent Computer Research and Development Center. The research center has trained 3 academicians, as well as dawning, Haiguang, and Beijing Junzheng., Zhongke Xingtu, Hanwang and other presidents of more than a dozen high-tech companies.

In 1995, Li Guojie was elected as a member of the Chinese Academy of Engineering. Since March 2006, Li Guojie has been the chairman of Tianjin Shuguang Computer Industry Co., Ltd. (the predecessor of Zhongke Shuguang). Since January 2011, he has been the chairman of Zhongke Shuguang. Based on this calculation, Li Guojie has served as chairman of the company for 18 years.

in 2021, Li Guojie published an article on the science network "domestic AI research" can't hold the sky, can't fall to the ground ", it's time to think about it" , brushing the major platforms. Li Guojie is also known as "China's AI tycoon" because of his deep research in the field of artificial intelligence ".

Source: Canned Gallery

however, Li Guojie's salary is still not high. the annual salary in 2013 and 2014 was 200000 yuan and 260000 yuan respectively, and since 2015, it has been 240000 yuan.

Li Guojie's spouse Zhang dihua made a profit of 589800 yuan from stock trading , which is equivalent to Li Guojie's annual salary of two and a half years.

Li Jun, the current president of Shuguang Science and Technology, is also a student of Li Guojie. Li Guojie is Li Jun's mentor in the Chinese Academy of Sciences. Resume shows that Li Jun, like Li Guojie, entered the predecessor of Zhongke Shuguang in 2006 and is currently the director and president of Zhongke Shuguang. unlike Li Guojie, Li Jun's annual salary has risen rapidly, from 720000 yuan in 2014 to 4.9777 million yuan in 2023.

in addition, li jun also holds 42.1361 million shares in zhongke shuguang. based on the latest market value, the market value of li jun's shares reaches 1.664 billion yuan. The number of shares held by Li Guojie is 0.

The pillow man has been speculating in stocks for a year. Can Li Guojie really get rid of the relationship as chairman? "The purpose of restricting short-term trading is to prevent directors, senior supervisors and major shareholders from taking advantage of information or stock advantages, especially insider information, to make bilateral transactions that are beneficial to themselves and at the same time harmful to small and medium-sized investors, and to maintain the openness, fairness and justice of market transactions. Short-term is also prone to market volatility and market manipulation, exacerbating market instability and amplifying the investment risks of small and medium investors." Beijing Nanshan investment founder Zhou Yunnan said.

share price rose 186 in half a year. is AI a panacea?

the dawn of zhongke, which has been "fired" by Zhang tihua for a year, has really performed well in the past year thanks to the popularity of AI concept.

AI computing power, as the basis for AI development, refers to the computing power used to process AI tasks, including data processing, model training, and reasoning. It not only directly affects the training time and efficiency of AI models, but also is the engine that drives technological breakthroughs. the dawn of zhongke is the leading AI computing power stock.

Zhongke Shuguang is mainly engaged in the research and development and manufacturing of high-end computer, storage, security and data center products. Products include high-end computers, liquid-cooled computer room hardware equipment, distributed storage products, network security products, big data platforms, and cloud computing platforms. It has been widely used in operators, finance, energy, internet, education and other industries.

Source: Canned Gallery

in 2023, zhongke shuguang won the bid for China mobile's new intelligent computing center, south China university of technology liquid-cooled storage and other projects, providing a full flash storage platform for AI large models in many industries in China, and joining hands with China mobile to successfully build the industry's first intelligent scheduling platform. The company has a high market share in AI chips and cloud computing.

according to CCID consultant's "2023 China liquid cooling application market research report", dawning, a subsidiary of dawning, ranks first in China's liquid cooling data center infrastructure market with an average market share of 58.8 in the past three years.

thanks to the massive release of AI market demand, in 2023, zhongke shuguang realized operating income of 14.353 billion yuan, up 10.34 year on year. Net profit attributable to the parent was 1.836 billion yuan, up 18.88 year on year.

the share price of zhongke shuguang also rose from 21.37 yuan/share on December 23, 2022 to 61.12 yuan/share on June 19, 2023. The six-month increase was 186.01 per cent.

Source: Oriental Wealth Net

behind the amazing increase, besides zhongke shuguang itself is the leading AI computing power stock, there are also many contributions from haiguang information (688041.SH).

In December 2018, Zhongke Shuguang acquired a total of 10.92 shares of Haiguang Information in the hands of Chengdu Industrial Investment Group Co., Ltd. and Chengdu High-tech Investment Group Co., Ltd. through auction, plus its own 25.52, the shareholding ratio reached 36.44, becoming the largest shareholder.

In August 2022, Haiguang Information was successfully listed. Haiguang Information is mainly engaged in research and development, design and sales of high-end processors used in computing and storage devices such as servers and workstations.

the products with the most "gold content" are Haiguang CPU and Haiguang DCU series products, which can fully assist AI in the large-scale application of smart cities, biomedicine, industrial manufacturing, scientific computing and other fields, and promote the landing of "AI +" industry.

up to now, zhongke shuguang holds a total of 27.96 shares in haiguang information, with a market value of 53.831 billion yuan. Li Jun, president of Zhongke Shuguang, also serves as a director of Haiguang Information.

However, Zhongke Shuguang has not been smooth sailing, and the stock price fluctuates greatly in the secondary market. In the second half of 2023, Zhongke Shuguang's share price fell back, from the price of 60 yuan/share to the 20 yuan/share range again. Now it has gradually recovered to 42.51 yuan/share.

Source: Oriental Wealth Net

if the rise in the share price of zhongke dawning is supported by the heat of AI concept, then the fall in the share price has an inseparable relationship with its own fundamentals.

First, The current dynamic P/E ratio of Zhongke Shuguang is 33.89 times. P/E ratio, also known as P/E ratio, = total market capitalization/net profit (TTM), is one of the most commonly used indicators to assess whether the stock price level is reasonable. It is generally believed that the higher the P/E ratio, the more overvalued the stock price. In general, a P/E ratio of 0-13 is undervalued, 14-20 is normal, 21-28 is overvalued, and 28 + reflects a speculative bubble in the market.

Second, the financial report shows that high-performance computers, which account for 79.28 percent of Zhongke Shuguang's operating income in 2021, have a gross profit margin of only 16.2 percent. The gross profit margin for 2022 and 2023 is not disclosed. At the same time, Zhongke Shuguang is also subject to greater customer constraints. In 2020-2023, its net cash flows from operating activities were-$44200, $86500 and $244500, respectively.

Finally, Zhongke Shuguang still has a hidden "thunder". From 2020 to 2023, its research and development expenditures are 1.534 billion yuan, 2.472 billion yuan and 2.444 billion yuan respectively. although the amount is large, but the proportion of "capitalization" is large . capitalization refers to the conversion of expenditures that should have been included in current expenses into the cost of related assets, which are 0.696 billion yuan, 1.52 billion yuan and 1.302 billion yuan respectively, 45.39, 61.51, and 53.28 percent of total R & D spending.

" The recognition of capitalization treatment is highly subjective in practice, with too much room for flexibility, which seriously interferes with the company's actual profits and can lead to a loss of comparability between the company's financial statements. From the perspective of beautifying the financial report, I conclude that there are three beauties to 'capitalizing R & D expenses': one beautifying profits, two beautifying assets, and three beautifying cash flow. For example, 0.1 billion research and development expenditure, entering the current expenses is to reduce the profits of the 0.1 billion, but if transferred to intangible assets, first," out of thin air "more 0.1 billion profits ; Second, the total assets increased by 0.1 billion. Third, the cash outflow of capitalized R & D investment will not be recorded in the operating cash outflow, which will make the cash flow of the company's operating activities inflated and 0.1 billion." Finance and taxation expert Ma Jinghao said.

LeTV, which is famous for its financial fraud in the capital market, has continuously capitalized about 60% of its research and development expenses for a long time.