China News Service Client, Beijing, November 18th (Reporter Xie Yiguan) "One road, the corners of the world, the two hearts accompany each other, the vows will not be blown by the wind, the romance will not be wet by the rain, and the suffering and pain of the common people will be aided by the love of the world. Joy and happiness..."

　　Many people are familiar with Kangmei Pharmaceuticals because of the previous "Kangmei Zhilian" advertisement. It is rumored that the male and female protagonists of the MV at that time interpreted the love story of Kangmei Pharmaceuticals founders Ma Xingtian and Xu Dongjin.

　　But things have changed. Now Ma Xingtian was sentenced to 12 years in prison in the first instance, and Xu Dongjin was also sentenced to fixed-term imprisonment.

The picture shows a screenshot of the advertisement of "Kangmei Zhilian".

Manipulation of the market, financial fraud, Kang Mei and his wife were sentenced

　　On November 17, the Intermediate People's Court of Foshan City, Guangdong Province publicly pronounced on the case of 12 people including the former chairman and general manager of Kangmei Pharmaceutical, including Ma Xingtian, who manipulated the securities market.

　　Ma Xingtian was sentenced to 12 years in prison and fined RMB 1.2 million for the crimes of manipulating the securities market, disclosing violations of regulations, not disclosing important information, and several crimes of bribery by the unit. He was sentenced to 12 years in prison and fined RMB 1.2 million; Manager Xu Dongjin and 11 other responsible persons were sentenced to fixed-term imprisonment and fined for participating in related securities crimes.

The screenshot is from the Foshan Court Network.

　　The court found that between 2015 and 2018, Ma Xingtian, in cooperation with others, raised a large amount of funds in violation of regulations, used the stock trading account under his actual control to buy and sell, continuously trade, and manipulate the stock price and trading volume of Kangmei Pharmaceutical, resulting in a total of 20 times. The cumulative trading volume for 10 consecutive trading days has reached more than 30% of the total trading volume of the securities during the same period, and the accumulated trading volume for a total of 10 consecutive trading days has reached more than 50% of the total trading volume of the securities during the same period.

　　Ma Xingtian also organized, planned, and directed the company's relevant personnel to conduct financial fraud, and disclose false business information to the company's shareholders and the public; deliberately concealed the non-operating capital occupation of more than 11.6 billion yuan by the controlling shareholder and related parties without disclosing it.

　　In addition, from 2005 to 2012, Ma Xingtian sought illegitimate interests for Kangmei Pharmaceuticals, bribing a total of HK$7.9 million and RMB 600,000 to several state officials. Kangmei Pharmaceuticals and Ma Xingtian both constituted the crime of bribery by the company.

Kangmei Pharmaceutical has just been sentenced to 2.459 billion yuan in compensation

　　It is worth mentioning that on November 12, the Guangzhou Intermediate People’s Court just issued a judgment of first instance, ordering Kangmei Pharmaceutical Co., Ltd. to compensate securities investors for losses of 2.459 billion yuan due to false statements in the annual report and other infringements. Ma Xingtian, the former chairman and general manager And the 5 directly responsible personnel, Zhengzhong Zhujiang Certified Public Accountants and the directly responsible personnel shall bear all joint and several liability for compensation, and 13 related responsible personnel shall bear part of the joint and several liability for compensation according to the degree of fault.

　　On December 31, 2020, 11 investors filed an ordinary representative lawsuit with the Guangzhou Intermediate People's Court regarding the misrepresentation of Kangmei Pharmaceutical.

On April 16, 2021, the Guangzhou Intermediate People's Court issued an announcement that the case was transferred to a special representative litigation. This case also became the first special representative litigation case in my country.

　　Since the number of investors involved in this case is more than 55,000, it is also the largest number of plaintiffs and the highest compensation amount in the civil compensation case of a listed company that has been tried by the court so far.

　　What is embarrassing is that Kangmei Pharmaceutical was once a famous "white horse stock", setting a historical record of market value of 139 billion yuan.

In the past, there was a saying that "Kangmei Pharmaceutical's tax payment accounts for one-third of Puning City and one-sixth of Jieyang City."

　　On the Hurun Report, in 2016, the Ma Xingtian family ranked 46th with a fortune of 33 billion yuan; in 2018, the Ma Xingtian family ranked 52nd with a fortune of 41 billion yuan; after the financial fraud scandal was exposed in 2019, the Ma Xingtian family directly dropped Fall to the 723th place.

　　The stock of Kangmei Pharmaceuticals was also subject to risk warnings. The stock abbreviation was changed from "Kangmei Pharmaceuticals" to "ST Kangmei". The market value fell precipitously, triggering many investors to defend their rights.

Kangmei Pharmaceuticals stock price chart.

　　Before receiving criminal penalties, in August 2019, Kangmei Pharmaceutical had received the "Administrative Penalty and Market Prohibition Notice" issued by the China Securities Regulatory Commission. The CSRC found that from 2016 to 2018, Kangmei Pharmaceutical The accumulated inflated revenue was nearly 30 billion yuan, the accumulated inflated currency funds were about 88.7 billion yuan, the total assets were increased by 3.605 billion yuan, and the total amount of non-operating funds was 11.619 billion yuan to the controlling shareholder and its related parties.

　　For this reason, the China Securities Regulatory Commission ordered Kangmei Pharmaceutical to make corrections, gave warnings, and imposed a fine of 600,000 yuan; Ma Xingtian and Xu Dongjin were warned and fined 900,000 yuan respectively.

Later, the six main responsible persons were banned from entering the securities market for 10 years to life.

　　On February 18 this year, the China Securities Regulatory Commission imposed administrative penalties on the Zhengzhong Zhujiang Accounting Office, who was in charge of the financial audit of Kangmei Pharmaceutical, and related responsible personnel.

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