China-Singapore Jingwei client, May 15 (Xiao Xiaoqiong), the former Baima Kangmei Pharmaceutical's penalty result was finally determined. In the early morning of May 15th, Kangmei Pharmaceutical issued an announcement on "Receiving the Administrative Penalty Decision and Market Entry Decision of the China Securities Regulatory Commission". The Securities Regulatory Commission issued a formal penalty for the previous disclosure of information violations by Kangmei Pharmaceutical Co., Ltd.

  Kangmei Pharmaceutical's share price source on the 15th: wind

  However, at the same time when the verdict was issued, Kangmei Pharmaceutical's stock price had a daily limit. As of the close of the 15th, the company's share price was reported at 2.82 yuan / share, an increase of 4.83% hit the daily price limit, 153,000 hand orders, and a total market value of 14.03 billion yuan.

Top penalty for market ban

  Information shows that on March 19, 2001, Kangmei Pharmaceutical shares were listed and traded on the Shanghai Stock Exchange. Its main business is the production and sales of Chinese herbal medicines, proprietary Chinese medicines, and chemical drugs. The actual controllers of the company are Ma Xingtian and Xu Dongjin. Before being investigated, the company's market value was as high as more than 130 billion yuan, which is a hundred-billion-dollar white horse stock that is hotly discussed in the market.

  The penalty decision shows that Kangmei Pharmaceutical has the following illegal facts: (1) There are false records in the "2016 Annual Report", "2017 Annual Report", "2018 Semi-annual Report", and "2018 Annual Report", which increase the operating income. , Interest income and operating profit; (2) "2016 Annual Report", "2017 Annual Report" and "2018 Semi-annual Report", there are false records and false increase in monetary funds; (3) "2018 Annual Report" False records, false increase of fixed assets, construction in progress, investment real estate.

  In response, the Securities Regulatory Commission made administrative penalties and market ban decisions on Kangmei Pharmaceutical ’s violations of laws and regulations, and ordered Kangmei Pharmaceutical to be corrected, given a warning, and imposed a fine of 600,000 yuan, and imposed 21 million yuan to 21 responsible personnel. Fines ranging from 100,000 yuan are imposed, and six major responsible persons are subject to a 10-year to life-long securities market ban. Relevant intermediaries are suspected of illegal or illegal behaviors in the administrative investigation and review procedures. At the same time, the SFC has transferred Kangmei Pharmaceutical and related personnel to the judicial organ for suspected criminal behavior.

  Wu Lijun, a lawyer of Zhongwei 515.com, who represented Kangmei Pharmaceutical's shareholders, told Zhongxin Jingwei Client that as long as Kangmei Pharmaceutical does not delist, investors have a higher probability of winning compensation. Lawyer Zhang Zhiwang of Beijing Deheng (Ningbo) Law Firm stated that he bought Kangmei Pharmaceutical stocks from April 20, 2017 to December 28, 2018 and still held them at the close on December 28, 2018; or The shares of Kangmei Pharmaceutical were purchased from April 30, 2019 to May 17, 2019, and they were still held at the close on May 17, 2019. The above-mentioned stockholders can contact their lawyers to claim for investment losses caused by the counterfeit of Kangmei Pharmaceutical.

  With regard to the transfer of suspected criminal acts of Kangmei Pharmaceutical and related personnel to the judicial authorities by the Securities Regulatory Commission, it does not affect the investor ’s claim. According to the "Securities Law" and the judicial interpretation of the Supreme People's Court, listed companies that have suffered investor rights and interests due to securities frauds such as false statements shall bear civil liability for compensation, including investment differences, commissions, stamp duty and loss of interest. .

  Regarding the daily limit of Kangmei Pharmaceutical's stock price, Wu Lijun believes that "the daily limit after the administrative penalty of Kangmei Pharmaceutical also makes all stockholders who entrust us to claim a trace of chill. The market may think that it will not be forced to delist due to major violations of law and short-term Good. "

Multiple executives resign

  On the evening of the 15th, Kangmei Pharmaceutical issued an announcement saying that the company's directors Ma Xingtian, Xu Dongjin and other executives submitted resignation reports. On the same day, the Shanghai Stock Exchange sent a letter requesting the company to find major defects and do rectification work.

  Kangmei Pharmaceutical's announcement shows that on May 15, 2020, the company received the resignation reports of company directors Ma Xingtian, Xu Dongjin, and senior management personnel Lin Guoxiong, Zhuang Yiqing and Wen Shaosheng. For personal reasons, Ma Xingtian resigned from the company's chairman, general manager, member of the nomination committee and strategy committee, Xu Dongjin resigned from the company's vice chairman, executive deputy general manager and member of the remuneration and appraisal committee, Lin Guoxiong resigned from the company's deputy general manager, Zhuang Yiqing resigned As the company's chief financial officer, Wen Shaosheng resigned as the company's deputy general manager.

  In accordance with the relevant laws, regulations and the "Articles of Association", the resignation reports submitted by Ma Xingtian, Xu Dongjin, Lin Guoxiong, Zhuang Yiqing and Wen Shaosheng became effective when they were sent to the board of directors. The resignation of Ma Xingtian and Xu Dongjin will not cause the company's board of directors to fall below the statutory minimum requirement, and will not affect the normal operation of the board of directors.

  At the same time, on May 15, 2020, the company received the "Shanghai Stock Exchange Supervision Work Letter on Matters Concerning Administrative Penalties for Kangmei Pharmaceutical" issued by the Shanghai Stock Exchange. The Shanghai Stock Exchange requires the company to search for major deficiencies in the company's internal control based on the China Securities Regulatory Commission's "Administrative Punishment Decision" and "Market Ban Decision", implement those responsible for violations of laws and regulations, do rectification work, improve the company's quality, and maintain all shareholders interest.

  The Shanghai Stock Exchange requires that all directors and supervisors of the company should be diligent and responsible, attach great importance to the company ’s current performance losses, debt risks and other major risk issues, take effective measures to improve operations, maintain production and operation stability, and should promptly perform information disclosure obligations to fully disclose All kinds of major risks that actually exist.

  On May 15, Yi Huiman, chairman of the China Securities Regulatory Commission, stated on the “May 15 National Investor Protection Publicity Day” that financial fraud, insider trading, market manipulation, and other vicious violations of laws and regulations have occurred frequently, which not only damages the market ecology, but is also more important What affects investor confidence. In this regard, we must fight hard, use heavy code, resolutely eliminate the black sheep, and effectively protect the legitimate rights and interests of investors. We maintain the high-pressure situation of daily supervision and inspection and law enforcement, and concentrate our efforts on investigating a large number of major financial fraud cases involving Kang Dexin and Kang Mei Pharmaceutical, which are highly concerned and adversely affected by the market. Maintain "zero tolerance" for vicious violations of laws and regulations such as financial fraud, purify the market ecology, and further gain trust in the market. (Sino-Singapore Jingwei APP)

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