[The Epoch Times, November 24, 2022](Comprehensive report by Epoch Times reporter Li Jing) Enjie Co., Ltd., a leading company in China’s new energy lithium-ion battery diaphragm, announced on Monday (21st) that the company’s chairman Li Xiaoming and vice chairman Li Xiaohua was placed under residential surveillance at a designated location by the police for related matters. Affected by this news, the market value of Enjie shares evaporated by about 13.9 billion yuan the next day.
According to the information of senior executives of Enjie, Li Xiaoming was born in 1958, American nationality, has the right of residence abroad, and is currently the chairman of Enjie; .
According to public reports, the two are brothers. In 1996, the two returned to China to start a business. In 2016, Innovation Shares, a company mainly engaged in packaging and printing, landed on the A-share market. In 2018, Innovation Co., Ltd. acquired Shanghai Enjie, and the company changed its name to Enjie.
On September 14 last year, the market value of Enjie shares reached a historical peak of 284.548 billion yuan. At the close of trading on November 22 this year, the market value was 125.089 billion yuan, with nearly 160 billion yuan evaporated.
In the 2022 Hurun Report, the Li Xiaoming family of Enjie shares ranked first among Yunnan entrepreneurs with a wealth of 44 billion yuan, and the Li Xiaohua family of Enjie shares ranked second among Yunnan entrepreneurs with a wealth of 32.5 billion yuan.
According to a report from China Business News, the investigation of the Li brothers stems from the acquisition of a lithium battery separator company in Jiangxi four years ago – Jiangxi Tongrui New Energy Technology Development Co., Ltd. (hereinafter referred to as “Jiangxi Tongrui”).
In November 2018, Enjie acquired 100% equity of Jiangxi Tongrui, located in Gao’an City, Jiangxi Province, at a consideration of 200 million yuan. When it was acquired, Jiangxi Tongrui was established for just over a year.
Enjie shares are the shares of Jiangxi Tongrui acquired from two private companies. It is understood that the real behind-the-scenes counterparty of Enjie shares is a businessman surnamed Peng. Before being acquired by Enjie, Gao’an City used government subsidies and guaranteed loans to obtain more than one billion yuan in funds for the company, and sold more than 300 acres of industrial land in Gao’an to Jiangxi Tongrui at a “symbolic consideration”.
However, when Enjie acquired Jiangxi Tongrui, the latter’s net assets were only 130 million yuan. Where did the more than one billion yuan in financial aid and bank loans not reflected in the financial statements go, and why the project was changed hands for 200 million yuan before construction, which has become a big “suspense”.
When Enjie acquired Jiangxi Tongrui, Yuan Hegeng was serving as the secretary of the Gaoan Municipal Party Committee. According to public information, since 2012, Yuan Hegeng has served as the deputy secretary and mayor of the Gaoan Municipal Party Committee. In 2016, he was promoted to the secretary of the Gaoan Municipal Party Committee.
According to the official notification, Yuan Hegeng interfered in government procurement and judicial activities in violation of regulations; took advantage of his position to make profits for others in project undertaking, project settlement, business operation, etc., and illegally accepted huge bribes alone or with his relatives.
In addition, apart from being suspected of corruption, Yuan Hegeng also participated in the CCP’s persecution of Falun Gong, a belief group. According to a Minghui report, during Yuan Hegeng’s tenure as the mayor and secretary of the Municipal Party Committee of Gao’an City, he had unshirkable leadership responsibility for the kidnapping, detention, and sentencing of Falun Gong practitioners in Gao’an City. (Link)
Responsible editor: Sun Yun#