Hikvision cashed out tens of billions? Gong Hongjia becomes the “King of Cash Out” in A-shares

On November 13, Hikvision issued an announcement stating that the company’s directors Hu Yangzhong and Gong Hongjia received the “Notice of Investigation” from the China Securities Regulatory Commission on November 11, and the two directors were placed on file for investigation on suspicion of information disclosure violations.

The directors involved in the case, Hu Yangzhong and Gong Hongjia, are both founders of the company. Among them, Hu Yangzhong has been the general manager of the listed company. Gong Hongjia was an important investor in the company at the beginning, and is now the second largest shareholder.

According to Hikvision’s announcement, when Hikvision was established in 2001, Gong Hongjia invested 2.45 million yuan, accounting for 49% of the investment. Since then, after several equity transfers and registered capital increase. At the beginning of Hikvision’s listing, Gong Hongjia invested 124 million yuan, holding 27.55% of the shares.

According to the data, from 2011 to 2018, Gong Hongjia reduced his shareholding in Hikvision at least 21 times, with a cumulative cash-out amount of 14.6 billion yuan, making him the “King of Cash-out” in A-shares.

As of the end of the third quarter of 2019, Gong Hongjia still held 13.43% of Hikvision’s shares. According to the latest closing price, this part of the shares corresponds to a market value of about 41.9 billion yuan.

Without considering Hikvision’s dividends, Gong Hongjia’s initial investment of 124 million yuan has increased to 56.5 billion yuan in less than 10 years.

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