China News Agency, Beijing, May 14 (Reporter Chen Kangliang) In response to the high-profile Kangmei Pharmaceutical financial fraud case, the China Securities Regulatory Commission released news on the evening of the 14th that it imposed a penalty and ban on Kangmei Pharmaceutical.

  The relevant person in charge of the China Securities Regulatory Commission said that recently, the China Securities Regulatory Commission made administrative penalties and market ban decisions on Kangmei Pharmaceutical ’s violations of laws and regulations, and decided to order Kangmei Pharmaceutical to be corrected, give a warning, and impose 600,000 yuan (RMB, the same below) Fines, ranging from 900,000 to 100,000 yuan fines for 21 responsible persons, and 6 years for the principal responsible persons to take 10-year to lifetime securities market ban measures.

  As a former "star pharmaceutical company" of China's A shares, Kangmei Pharmaceutical previously disclosed the company's 2018 annual report and corrected some of the financial data before 2018. Among them, the financial report at the end of 2017 falsely increased nearly 30 billion yuan in monetary funds, causing external doubts. .

  The Securities and Futures Commission finally determined that between 2016 and 2018, Kangmei Pharmaceutical had inflated huge amounts of operating income, forged or altered large fixed-term deposit receipts, and inflated monetary funds, and included engineering projects that did not meet the accounting confirmation and measurement conditions into the report. Inflated fixed assets, etc. At the same time, Kangmei Pharmaceutical has non-operating funds occupied by the controlling shareholder and its related parties. The above-mentioned behavior caused false records and major omissions in the relevant annual report disclosed by Kangmei Pharmaceutical.

  The above-mentioned person in charge said that Kangmei Pharmaceutical has premeditated, organized, long-term and systematic financial fraud, tramples on the rule of law, has no awe to the market and investors, and seriously damages the healthy ecology of the capital market. After the CSRC found out that the case involved illegal activities, it immediately concentrated its efforts to investigate and deal with it, and punished severely and vigorously while adhering to the rule of law.

  The person in charge emphasized that with the promulgation and implementation of the new "Securities Law" and the continuous advancement of capital market reforms, the cost of financial fraud and other securities violations will increase significantly. After the administrative penalty decision is made, the relevant responsible units and personnel will also face investor civil Litigation claims pay a higher price. The CSRC will also continue to strengthen investor protection, improve the quality of listed companies, consolidate the responsibilities of intermediaries, accurately supervise law enforcement, resolutely purify the market environment, and better play the role of the capital market in serving the real economy and investors. (Finish)