Behind the arrest of Kangmei Pharmaceutical's actual controller: Hundreds of billions in market value of Chinese medicine companies trapped in financial fraud
Ma Xingtian, the actual controller of Kangmei Pharmaceutical, was taken compulsory measures by the public security organs.
On July 9th, Kangmei Pharmaceutical Co., Ltd. (ST Kangmei, 600518, hereinafter referred to as "Kangmei Pharmaceutical") issued an announcement saying that after receiving the notice of the company's actual controller Ma Xingtian's family, Mr. Ma Xingtian disclosed and did not disclose due to suspected violations of regulations The crime of important information was enforced by the public security organ.
The announcement stated that Ma Xingtian has not held any positions in the company since May 2020. At present, the company's production and operation are normal, and the company's directors, supervisors and senior management personnel will strengthen the company's management to ensure the continuous and stable development of various businesses.
The 2019 annual report shows that 51-year-old Ma Xingtian has been the chairman and general manager of Kangmei Pharmaceutical since June 1997 until May 2020.
In the last month of Ma Xingtian's performance of Kangmei Pharmaceutical, Kangmei Pharmaceutical also disclosed a news related to Ma Xingtian.
The announcement on May 11 stated that Kangmei Pharmaceutical received a warning letter from the Guangdong Securities Regulatory Commission of the China Securities Regulatory Commission that Kangmei Pharmaceutical had information disclosure violations. Ma Xingtian and the company's financial director Zhuang Yiqing, and the company's board secretary Tang Xu did not comply with the " The provisions of Article 3 of the Administrative Measures for Information Disclosure of Listed Companies perform diligent and due diligence obligations and bear the main responsibility for Kangmei Pharmaceutical’s information disclosure violations, so administrative supervision measures that issue warning letters are taken.
The warning letter shows that on January 23, 2020, Kangmei Pharmaceutical released the 2019 annual performance pre-loss announcement, disclosing that the company expects that the net profit attributable to shareholders of listed companies in 2019 will be approximately -1.35 billion yuan to -1.65 billion yuan. On April 30, Kangmei Pharmaceutical released its main operating performance report for 2019, and disclosed that its annual net profit was revised to -3.648 billion yuan. There is a gap of 2 billion before and after the net profit. The Securities Regulatory Commission believes that Kangmei Pharmaceutical’s previously disclosed performance forecast-related information disclosure was inaccurate, and the performance forecast revision announcement was not disclosed in time, which violated Article 2 of the "Measures for the Administration of Information Disclosure of Listed Companies" 2. Relevant provisions of Article 25.
This is not the first time Ma Xingtian has fallen into a turmoil of lies. Ma Xingtian was punished by the Securities Regulatory Commission in 2019 for alleged financial fraud.
In August 2019, the China Securities Regulatory Commission disclosed that Kangmei Pharmaceutical was suspected of financial fraud: between 2016 and 2018, Kangmei Pharmaceutical was suspected of inflating its operating income by counterfeiting and altering VAT invoices, and by forging and altering large fixed-term deposit receipts. In other ways, money funds are artificially increased, engineering projects that do not meet the accounting confirmation and measurement conditions are included in the report, and fixed assets are artificially increased. At the same time, Kangmei Pharmaceutical allegedly failed to disclose the non-operating funds occupied by the controlling shareholder and related parties in the relevant annual report. The above-mentioned actions caused false records and major omissions in the relevant annual report disclosed by Kangmei Pharmaceutical.
In the CSRC's report, Kangmei Pharmaceutical is "premeditated, organized, long-term and systematic implementation of financial fraud, malicious deception of investors, the impact is extremely bad, and the consequences are particularly serious." In this case, Ma Xingtian was taken a life-long ban in the securities market and was fined 900,000 yuan.
Ma Xingtian: From the youth in the village to the billionaire richest man
If it is not the fraud in recent years, Ma Xingtian may be regarded as a typical example of inspiration.
Kangmei Pharmaceutical's subscription number was reproduced in an article on Xinhuanet on October 16, 2017, detailing the history of Ma Xingtian, the "King of Medicine". In 1969, Ma Xingtian was born in Xiaoshan Village, Wanzi Village, Xiajiashan Town, Puning City, Guangdong Province.
Puning City is located in the Chaoshan area. Chaoshan people are good at doing business because his wife Xu Dongjin is a family of traditional Chinese medicine. The couple opened a pharmacy there. In 1997, the Ma Xingtians started Kangmei Pharmaceutical with the first pot of gold they earned, and their registered place was Puning in their hometown.
The original Kangmei was only a small pharmaceutical company in Guangdong, but in the second year of its establishment, that is, in 1998, Kangmei Pharmaceutical’s chemical medicine production base passed the GMP certification of the national pharmaceutical production quality management standard. In the same year, it successfully developed Luoxinping. , Tetra Pak, Nuosha and many other national new drugs."
Starting with chemicals, Kangmei is known as a Chinese medicine.
In 2001, Kangmei Pharmaceutical was listed on the Shanghai Stock Exchange. At this time, Kangmei Pharmaceutical was still positioned as a chemical drug factory. One of the opportunities to enter the field of Chinese medicine is the reform of the Guangdong Traditional Chinese Medicine Hospital. Because the old Chinese medicine doctors in the hospital are not satisfied with the quality of the medicinal materials, the dean decided to find a more professional person to manage the pharmacy. Kangmei Pharmaceutical has won this opportunity.
Since then, the couple of Ma Xingtian led Kangmei Pharmaceutical towards the scale and standardization of Chinese herbal medicines. For example, in 2002, they invested hundreds of millions of yuan to build the largest modern Chinese herbal medicine industrialization demonstration base in China; in 2003, Kangmei Pharmaceutical Chinese herbal medicine production base Passed GMP certification; launched small package of Chinese herbal medicine pieces in 2005.
Starting from Guangdong, Kangmei Pharmaceutical has spread to the whole country, and Ma Xingtian's worth has also skyrocketed. In the 2017 Hurun Report, the Ma Xingtian family ranked 46th with 40.5 billion, and became the richest man in Jieyang.
Kangmei Pharmaceutical: Hundreds of billions of Chinese medicine empire to fraud
Ma Xingtian's fortune history is closely linked to Kangmei Pharmaceutical. At the beginning of listing, the market value of Kangmei Pharmaceutical was less than 900 million yuan. On May 29, 2018, the market value of Kangmei Pharmaceutical broke 100 billion yuan, reaching 139 billion.
Behind the market value of 100 billion yuan, there is always a market voice of Kangmei Pharmaceutical’s financial fraud. After more than 4 months after the market value exceeded 100 billion, Kangmei Pharmaceutical’s stock price fell intraday, and the stock price fell by nearly 60%. .
The market speculates that it received a real hammer because of the "investigation notice" of the China Securities Regulatory Commission in December 2018. The reason for the investigation was that the information disclosure was illegal and illegal.
The real hammer on April 30, 2019, the day Kangmei Pharmaceutical released its 2018 annual report and released an announcement, saying that due to accounting errors in financial data, it caused an increase in operating income of 8.988 billion yuan in 2017 and an increase in operating costs. With 7.6 billion yuan in sales, 500 million yuan was less in sales expenses, and what made the outside world even worse was that money was included in 29.9 billion yuan.
In the afternoon of April 30, Ma Xingtian also said in an interview with the media: "Financial errors and financial fraud are two things." In the letter of apology issued in the early hours of May 1, Ma Xingtian once again emphasized that "fast development leads to imperfect financial management ".
However, "imperfect financial management" did not allow Ma Xingtian to get rid of the suspected fraud. Later, the above-mentioned CSRC imposed a penalty of 900,000 yuan on his couple.
After the exposure of financial fraud, Kangmei Pharmaceutical issued an announcement on May 18, 2018, proactively applying to the Shanghai Stock Exchange to implement "other risk warnings" on the company's stock. The company's stock abbreviation was changed from "Kangmei Pharmaceutical" to "ST Kangmei".
From small town pharmaceutical factories to hundreds of billions of market value of Chinese medicine enterprises, and now it is impossible to withdraw from the fraud scandal, Kangmei Pharmaceutical's ups and downs are unavoidable. After Ma Xingtian withdrew from the management of Kangmei Pharmaceutical, according to the 2019 annual report, Ma Hanyao took the post of chairman. Official information shows that Ma Hanyao was born in September 1966, college degree, joined Kangmei Pharmaceutical in 1997, and served as the company's workshop manager and factory. Business administrator, deputy general manager of trade department, general manager of sales department. From April 2006 to present, he has served as director of the company; from October 2019 to present, he has served as deputy general manager of the company.
No one knows where Kangmei Pharmaceutical will go next, but the current situation of Kangmei Pharmaceutical is not optimistic. According to the report of the first quarter of 2020 (revised version), the announcement shows that during the reporting period, the company achieved revenue of 1.17 billion yuan, a year-on-year decline of 76.13%; net profit attributable to shareholders of listed companies was -297 million yuan, a year-on-year decline of 552.28% .
According to the 2019 annual report, during the reporting period, the company achieved revenue of 11.46 billion yuan, a year-on-year decline of 32.93%; the net profit attributable to shareholders of listed companies was -4.661 billion yuan, a year-on-year decline of 1344.53%.
It is worth mentioning that Lixin Certified Public Accountants (Special General Partnership) for the 2019 annual audit work issued a qualified audit report on the company's 2019 annual financial report.
One of the reasons for this audit result is that on December 31, 2019, Ma Xingtian controlled affiliates Puning Kangchun Pharmaceutical Co., Ltd. and Puning Kangdu Pharmaceutical Co., Ltd. (the actual controllers are all Ma Xingtian) were occupied by non-operating companies. The total balance of funds is 948,112,262 yuan. Ma Xingtian promised that he will plan to repay all the funds occupied by the capital occupier's non-operating funds and corresponding interest in cash in installments from 2020 to 2022, but "as of the date of the audit report, it is impossible to obtain sufficient Appropriate audit evidence."
Today, the official website of Kangmei Pharmaceutical is still being updated. The latest news before the press release is that the pharmaceutical and food homology trading center of Kangmei Chinese Medicine City Trading Hall 2 opened on June 28, but Ma Xingtian's speech as chairman is still retained. On its official public account, the content is mainly based on health science knowledge, and a song "Kangmei Love" is inserted at the beginning of many articles.
The song was created in 2007 by singer Tan Jing, and the MV was performed by actors Ren Quan and Li Bingbing. It was played on CCTV and became a brand for Kangmei Pharmaceutical to shape the brand. The lyrics read: "Ming Yue Qing Feng Acacia, Liri Baicao are also passionate, two hearts are together, you and I write the myth of love." Kangmei Pharmaceutical is the investment producer behind this song and the MV, and the men and women in the MV The story of the love and entrepreneurship of the Lord is believed to be based on Ma Xingtian and his wife.
Kangmei Pharmaceutical is a typical example of husband and wife entrepreneurship. Ma Xingtian and his wife followed each other. Among the many punishments, Ma Xingtian followed his wife Xu Dongjin. According to the official information of Kangmei Pharmaceutical, Xu Dongjin has served as a supervisor of Kangmei Industrial Investment Holdings Co., Ltd. since June 1997; as an executive director of Puning International Information Consulting Services Co., Ltd. since August 2010; from June 1997 to May 2020 , Served as the company's vice chairman and executive deputy general manager. Since August 2010, he has been the executive director of Puning Jinxin Pawn Shop Co., Ltd.
Surging news trainee reporter Li Xiaoxiao