Zhongxin Finance, February 12, according to the website of the China Securities Regulatory Commission, the China Securities Regulatory Commission announced the Administrative Penalty Letter No. 1 of 2022.

Kingenta and its actual controller, Wan Lianbu, and other 8 people, who had fraudulently increased their income by 23.1 billion yuan through fictitious trade business for 5 years, issued fines, with a total fine of 7.55 million yuan.

Screenshot from the official website of the China Securities Regulatory Commission.

　　According to the administrative penalty letter, the illegal facts of Kingenta Ecological Engineering Group Co., Ltd. (“Kingenta”) include: falsely increasing income and profits through fictitious trade business; failing to disclose related parties and related transactions as required; some assets and liabilities exist false records.

　　Among them, in terms of falsely increasing income and profits through fictitious trade business, the administrative penalty document shows that from 2015 to the first half of 2018, Kingenta and some of its subsidiaries within the scope of the consolidated statements fabricated contracts with its suppliers, customers and other external units, Idling funds, carrying out fictitious trade business without actual logistics, accumulatively inflated income of 23,073,450,600 yuan, inflated cost of 21,083,848,800 yuan, and inflated total profit of 1,989,601,800 yuan.

　　The CSRC believes that Kingenta's "2015 Annual Report", "2016 Annual Report", "2017 Annual Report", "2018 Annual Report", "2019 Annual Report" and "2018 Semi-annual Report", "2019 Annual Report" There are false records in the semi-annual report.

　　At that time, Wan Lianbu, the actual controller, chairman and general manager of Kingenta, was fully responsible for decision-making and organizing the implementation of illegal acts. At that time, he was the deputy general manager and financial director of Kingenta, Li Jiguo, and then the manager of Kingenta's financial department and the director of the financial center Tang. Bravely organized and participated in illegal acts, failed to perform diligently and fulfilled his obligations, and was the person in charge directly responsible. The illegal circumstances of Wan Lianbu and Li Jiguo were more serious, and the illegal circumstances of Tang Yong were serious.

　　The China Securities Regulatory Commission decided: Jin Zhengda was ordered to make corrections, given a warning and fined 1.5 million yuan; Wan Lianbu was given a warning and a fine of 2.4 million yuan; Li Jiguo was given a warning and a fine of 600,000 yuan; Tang Yong was given a fine of 600,000 yuan. A warning was given and a fine of 550,000 yuan was imposed; Cui Bin, Gao Yiwu, Yan Mingxiao, Zheng Shulin, and Xu Hengjun, the relevant executives of Kim Zhengda at the time, were given a warning and a fine of 500,000 yuan respectively.

　　At the same time, the China Securities Regulatory Commission decided to impose a 10-year market ban on Wan Lianbu, a five-year market ban on Li Jiguo, and a three-year market ban on Tang Yong.

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