Founder, Ex-GM of NEV Maker Yinlong May Have Swiped Over USD208 Million(Yicai Global) April 25 -- The founder and a former general manager of Yinlong New Energy, a Chinese new energy vehicle and battery maker, are suspected of encroaching on the firm's interests by more than CNY1.4 billion (USD208 million), including fraudulently obtaining government subsidies of CNY110 million in 2013.
Founder Wei Yincang, who is also a major shareholder in Yinlong New Energy, is currently in the United States, while Sun Guohua is under criminal detention, the Zhuhai-based company said in a statement.
Yinlong New Energy was set up in 2008 and came to public attention in 2016 when Dong Mingzhu, the chairwoman of Zhuhai-based white goods giant Gree Electric Appliances, tried to acquire it for CNY13 billion. The bid failed as minority shareholders opposed it.
Yinlong today published more details of the Wei and Sun cases on its WeChat account. The document shows the pair and others face seven lawsuits for allegedly encroaching on the company's interests, including inflating equipment purchase fees by CNY260 million and fabricating construction contracts of CNY170 million.
The above cases were filed last November. Wei left for the US via Hong Kong in December, while Sun was subject to restrictions over any departure from China. Zhuhai-based Yinlong Investment Holding Group, wholly owned by Wei, has a 26 percent stake in Yinlong New Energy, the latter said in January.
The cases are progressing and three defendants will come up for trial soon. Six people, including Sun, have been detained, Yinlong New Energy said today. The management found out about Wei's encroachment on the firm's interests during the due diligence process held to promote the company's listing. It reported the case to public security organs in October.
Shares of the three companies, including Yinlong Investment Holding, were frozen by court order in February, public information shows.
Dong decided to personally invest in Yinlong at the end of 2016 after Gree's bid was unsuccessful. She is the second-largest shareholder with a 17.5 percent stake.
