SCHEDULE 13G: Major Shareholder Hongliang Li and Polar Energy Disclose 91% Stake in Leishen Energy Holding Co., Ltd.

Hongliang Li and Polar Energy Company Limited have disclosed a combined beneficial ownership of 91.0% of Leishen Energy Holding Co., Ltd.'s ordinary shares, totaling 15.5 million shares.

Summary

• Polar Energy Company Limited and Hongliang Li collectively beneficially own 15,500,000 ordinary shares of Leishen Energy Holding Co., Ltd.
• This represents 91.0% of the Issuer's total outstanding ordinary shares.
• The ownership percentage is calculated based on 17,025,000 ordinary shares issued and outstanding as of January 8, 2025.
• Polar Energy Company Limited, a British Virgin Islands company wholly owned by Hongliang Li, directly holds 6,355,000 shares.
• An additional 9,145,000 shares are controlled through a Voting Rights Proxy Agreement and Power of Attorney, granted by WISE-POWER ENERGY SERVICES CO., LTD., COBO Petroleum Technology Co., LTD, and Pacific Century Oil and Gas Technology Co., LTD to Polar Energy Company Limited, effective August 10, 2023.

Sentiment

Score: 5

Explanation: The document is a factual disclosure of beneficial ownership and does not contain information that would inherently lead to a positive or negative sentiment regarding the company's operational or financial performance. The high concentration of ownership can be viewed both positively (strong insider commitment) and negatively (limited minority shareholder influence, low liquidity), leading to a neutral overall sentiment for the filing itself.

Positives

• High insider ownership (91.0%) by Hongliang Li and Polar Energy Company Limited may indicate strong confidence in the company's future by its principal shareholder.
• Consolidated voting power through the proxy agreement ensures stable control and potentially streamlined decision-making for the majority shareholder.

Negatives

• The highly concentrated ownership (91.0%) by a single individual and their controlled entity significantly limits the public float and liquidity of Leishen Energy Holding Co., Ltd.'s shares.
• Such a dominant ownership stake can reduce the influence of minority shareholders and potentially lead to decisions that primarily benefit the controlling party rather than all shareholders.

Risks

• Concentrated Control Risk: The 91.0% beneficial ownership by Hongliang Li and Polar Energy Company Limited creates a significant risk of concentrated control, potentially allowing the controlling shareholder to make decisions without the consent of minority shareholders.
• Limited Public Float and Liquidity Risk: The extremely high percentage of shares held by the reporting persons means a very small public float, which can lead to low trading volume and difficulty for investors to buy or sell shares without significantly impacting the price.
• Potential for Conflicts of Interest: With such dominant control, there is an increased risk of potential conflicts of interest between the controlling shareholder's objectives and the interests of other shareholders.

Industry Context

This filing is a standard disclosure of significant beneficial ownership, common across all industries for publicly traded companies. It indicates a highly concentrated ownership structure, which is a notable characteristic for any company, regardless of its specific industry.

Corporate Governance

Related Party Transactions

• The Voting Rights Proxy Agreement and Power of Attorney, through which Polar Energy Company Limited (wholly owned by Hongliang Li) gained control over 9,145,000 shares from WISE-POWER ENERGY SERVICES CO., LTD., COBO Petroleum Technology Co., LTD, and Pacific Century Oil and Gas Technology Co., LTD, represents a transaction between parties that appear to be related to the controlling shareholder, Hongliang Li, given the consolidation of control.

Stakeholder Impact

• Shareholders: Minority shareholders may experience reduced influence over corporate decisions due to the highly concentrated ownership and voting control held by Hongliang Li and Polar Energy Company Limited. The limited public float could also impact liquidity.
• Management: The strong control by the principal shareholder may lead to a more direct and potentially less independent management structure.

Key Dates

Keywords

Leishen Energy Holding Co. Ltd., Polar Energy Company Limited, Hongliang Li, Schedule 13G, beneficial ownership, SEC filing, ordinary shares, voting rights proxy, corporate control, shareholder stake, public float