*ST Gaosheng (000971): Part Of The Shareholding Of Major Shareholders Is Expected To Be Auctioned Above The Market Price.

*ST Gao Sheng June 17th noon announcement, the company recently learned that the second intermediate people's Court of Beijing is scheduled to open from July 15, 2019 10 to July 16, 2019 10 (except for time lapse), and publicly auction 22 million 650 thousand shares of restricted stock of Beijing Yu Chi Reed Investment Limited (hereinafter referred to as "Yu Chi Reed") on the Alibaba judicial auction network platform.

Yu Chi Reed is the controlling shareholder of *ST Gaosheng, holding 159 million shares, accounting for 14.57% of the total share capital. Yu Chi Reed's concerted man Ting Ding Industrial (Hubei) Co., Ltd. (hereinafter referred to as "blue tripod industry") holds 146 million shares, accounting for 13.37% of the total share capital. Yu Chi Reed and LAN Ding are all enterprises under the family of Wechsler, and have already fallen into debt crisis. The Wechsler family occupied a lot of *ST funds and used the latter's name to violate the external guarantee. The securities times e company had made a detailed report before, and the Shenzhen Stock Exchange also carried out disciplinary action on the relevant subjects. In addition, *ST has been investigated by the CSRC because the company is suspected of disclosing illegal and illegal information.

According to *ST Gao Sheng announcement, according to the relevant proof materials provided by Yu Chi Reed, Yu Chi Reed signed a stock pledge contract with the China financial trust company and the spanfer and buyback contract of the stock proceeds right, pledged 11 million 325 thousand stock restricted stock shares to the China financial trust, and agreed to spanfer the proceeds of the stock to the China financial trust. The two sides had gone through the registration of equity pledge in November 6, 2015. In April 24, 2018, after the implementation of the *ST annual interest distribution scheme in 2017, the shares of the above pledge to the China Trust Trust Company were spanformed into 22 million 650 thousand shares.

This part of the stock assessment price of 89 million 241 thousand yuan, the starting price of 62 million 468 thousand and 700 yuan, participants need to pay 6 million 250 thousand yuan deposit. At the starting price, the unit price per share is 2.758 yuan, which is higher than the closing price of *ST 2.08 yuan / share today (June 17th).

From this perspective, it is speculated that the auction will be more likely.

The starting price is higher than the two class market price. The main reason is that the assessment report is based on November 19, 2018, and the closing price of *ST is 3.94 yuan / share on that day. At the beginning of this year, *ST rose with the concept of marginal computing. The stock price once reached 6.67 yuan / share, but then continued to plunge, the lowest time was less than 2 yuan / share.

This will be auctioned 22 million 650 thousand shares, accounting for 2.08% of the total share capital, was acquired by Yu Chi Reed in 2015 through the *ST high rise major asset reorganization private placement way, originally scheduled to be available for circulation in November 4, 2018. Up to now, Yu Chi Reed has not submitted to *ST Gaosheng relevant applications for lifting the restricted shares of his shares.

Up to now, Yu Chi Reed holds *ST up 159 million shares, all of which are restricted to sell shares, accounting for 14.57% of the total share capital of the company. Almost all of them are in the state of judicial freeze and waiting for freezing, and 157 million shares are in pledge. Yu Chi Reed's situation is similar, the two and the Wei family are deeply involved in debt litigation.

If the auction is finally concluded, Yu Chi Reed's shareholding will be reduced to 136 million shares, lower than the blue tripod industry. *ST Gao Sheng said that Yu Chi Reed and Yu Chi Reed were controlled by the same real controller Wei Zhenyu. Therefore, the auction items will not cause changes in the company's actual control rights, and will not affect the production and operation of the company. The company will continue to pay attention to the progress and carry out the obligation of information disclosure in accordance with relevant regulations.