Home Business Capital News | Baotou Iron & Steel Co., Ltd. is “hard-mouthed” and does not admit to leaking inside information: the price increase came out ahead of time, and the institution “fleeed” accurately.

Capital News | Baotou Iron & Steel Co., Ltd. is “hard-mouthed” and does not admit to leaking inside information: the price increase came out ahead of time, and the institution “fleeed” accurately.

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Capital News | Baotou Iron & Steel Co., Ltd. is “hard-mouthed” and does not admit to leaking inside information: the price increase came out ahead of time, and the institution “fleeed” accurately.

Caijing Network Capital Market News After the stock price “taken off” ahead of schedule and was questioned by the stock exchange for leaking inside information, Baotou Steel Co., Ltd. (600010.SH) insisted: “I’m not, I don’t.”

On June 26, Baotou Steel Co., Ltd. and Northern Rare Earth (6000111.SH) successively replied to the inquiry letter from the Shanghai Stock Exchange, stating that they had not found any insider information leaking.

However, neither of the two companies gave an explanation as to why the market leaked the news of price increases in advance, and why the institutions “fleeed” from the northern rare earths.

Shares take off ahead of positive announcement

In the past month, Baotou Steel’s share price has been flat. The daily price of 2.1 yuan on June 20 was only two cents away from the daily limit price of 2.09 yuan on May 23. The trading volume of the stock on that day was 4.1033 million lots, and the turnover was 867 million yuan.

However, on June 21, Baotou Steel, which was still calm in early trading, suddenly flooded in in the afternoon, and hit the daily limit within 15 minutes, closing at 2.23 yuan per share, up 6.19%. On that day, Baotou Steel’s trading volume was 18.6084 million lots, with a turnover of 4.149 billion yuan. The trading volume and turnover were 4.5 times and 4.78 times that of the previous trading day, respectively.

On June 22, Baotou Steel Co., Ltd. closed the price of the daily limit. The turnover rate on that day was 7.33%, setting a new high in the month, and the turnover reached 5.514 billion yuan.

Image source: Straight Flush iFinD

At the same time, the “brother” company of Baotou Steel Co., Ltd. unexpectedly fell, evaporating about 18 billion yuan in market value in two days.

On June 21, Northern Rare Earth fell by 8.26%, with a turnover of 8.004 billion yuan, 2.48 times that of the previous trading day. According to the Dragon Tiger List, the four institutional seats sold for a total of 1.482 billion yuan on the same day, and Guotai Junan Securities Yaan Chaoyang Street sold 228 million yuan.

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On June 22, the mystery of the “weird” share price trend of Baotou Steel and Northern Rare Earth was suspected to be revealed: market rumors said that Baotou Iron and Steel planned to raise the price of rare earth concentrate sold by Northern Rare Earth to 40,000 yuan/ton, an increase of about 49%. %.

This means that the procurement cost of northern rare earths has further increased, and at the same time, the profit level of Baotou Steel Co., Ltd. has been increased. In response, Northern Rare Earth responded that “the news of the price increase on the Internet is inaccurate, and the company is also verifying it internally.”

As a result, on the evening of June 22, Baotou Steel Co., Ltd. announced that it would raise the price of rare earth concentrates sold to Northern Rare Earth to 39,200 yuan / ton, an increase of 46%, which is almost in line with the previous price and increase.

After receiving a question from the Shanghai Stock Exchange on whether the company had leaked inside information in this transaction, on June 26, Baotou Steel Co., Ltd. and Northern Rare Earth both responded that the company strictly controlled the scope of insiders, and no insiders were found to have leaked inside information. information situation.

According to this statement, why did the market know the news of the company’s price increase in advance, and the price increase was so close?

Some investors also asked the stock bar: “The announcement of the increase on the 23rd, the agency sweeps the goods in two days on the 21st and 22nd. Is there such an accurate prediction analysis in the world?”

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Image source: Oriental Fortune Network

Related party transactionsfirstNot reviewed at the general meeting of shareholders

Baotou Iron and Steel Co., Ltd. and Northern Rare Earth are both controlled by Baotou Iron and Steel Group, which owns the exclusive mining rights of the world‘s largest rare earth mine, the Bayan Obo Mine, and the exclusive rights to rare earth products in Inner Mongolia.

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Among them, Baotou Steel Co., Ltd. is the largest rare earth concentrate producer in China, and Northern Rare Earth is the largest rare earth separation enterprise at home and abroad. The vast majority of rare earth concentrates from Northern Rare Earth are purchased from Baotou Steel Co., Ltd., and Baotou Iron and Steel Co., Ltd. is a major customer of each other.

According to the statistics of Caijing.com, since 2017, Baotou Steel Co., Ltd. has issued a total of 8 announcements on the signing of a rare earth concentrate related transaction agreement with Northern Rare Earth. Except this year, only in 2017, Baotou Steel Co., Ltd. re-signed a supply contract with Northern Rare Earth in October of that year, raising the purchase price excluding tax from 9,250 yuan/ton to 14,000 yuan/ton, and negotiating prices every other year. .

In addition, because the purchase and sale between Baotou Iron and Steel Co., Ltd. and Northern Rare Earth constitutes a connected transaction, in the annual announcement, Baotou Iron and Steel Co., Ltd. emphasizes in the announcement.“Related transactions still need to be reviewed and approved by the company’s general meeting of shareholders”

However, in the announcement issued by Baotou Steel Co., Ltd. on June 22, it stated that“This connected transaction does not need to be submitted to the general meeting of shareholders for deliberation”

The reason is that “The Proposal on Renewing the Related-Party Transaction Agreement of Rare Earth Concentrates with Northern Rare Earth, which was reviewed and approved by the first extraordinary general meeting of shareholders in 2022, has agreed to the general meeting of shareholders to authorize the board of directors and persons authorized by the board of directors.According to the “Rare Earth Concentrate Supply Contract” pricing mechanismDaily negotiation and renewal of rare earth concentrate supply contracts with Northern Rare Earth on rare earth concentrate transaction prices. “

Caijing.com checked the announcement and found that the announcement issued by Baotou Steel Co., Ltd. on January 7 showed that the company and Northern Rare Earth intend to adjust the sales price of rare earth concentrates from January 1, 2022 to 26,887.20 yuan/ton (dry amount, excluding tax) REO=51%), for every 1% increase or decrease in REO, the price excluding tax will increase or decrease by 527.2 yuan/ton (dry quantity).

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At the same time, the announcement mentioned that “the company proposes to the general meeting of shareholders to authorize the board of directors and the authorized persons of the board of directors.Handle with full discretion according to the above pricing mechanismDaily negotiation and renewal of rare earth concentrate supply contracts with Northern Rare Earth on rare earth concentrate transaction prices. “

Then, in the circumstance that the pricing mechanism has undergone major changes, is it reasonable that the board of directors and the authorized persons of the board of directors still avoid the shareholders’ meeting to set prices on their own?

In addition, Caijing.com noticed that in the announcement of Baotou Steel Co., Ltd. to disclose related transactions with Northern Rare Earth in March 2021, there were also “the company requested the general meeting of shareholders to authorize the board of directors and the authorized persons of the board of directors.Handle with full discretion according to the above pricing mechanismDaily negotiation with Northern Rare Earth on rare earth concentrate transaction price and renewal of rare earth concentrate supply contract”.

However, when the “Rare Earth Concentrate Supply Contract” was renewed in January this year, the related party transactions between the two parties still need to be submitted to the company’s general meeting of shareholders for consideration and approval.

In addition, in 2017, when the price was adjusted twice, when Baotou Steel Co., Ltd. signed the contract with Northern Rare Earth, it was also reviewed by the general meeting of shareholders.

The strange thing is that this time the price increase, why did Baotou Iron and Steel Co., Ltd. break the routine and avoid the deliberation process of the general meeting of shareholders? Is there a connection between this and the news of the price increase in advance?

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