China Securities Regulatory Commission issued the heaviest fine in history

China Securities Regulatory Commission issued the heaviest fine in history On the 10th, Beijing time, the China Securities Regulatory Commission officially announced the penalty results for Wanfu Biotech’s fraudulent listing case. Wanfu Biotech...

On the 10th, Beijing time, the China Securities Regulatory Commission officially announced the punishment for Wanfu Biotech. As a result of the punishment for the fraudulent listing case, Wanfu Biotech, its executives and related intermediaries were all severely punished. Among them, the penalty imposed on the sponsor Ping An Securities was the most severe fine issued to a sponsor since the introduction of the sponsorship system in 2004.

A spokesman for the China Securities Regulatory Commission emphasized on the same day that the Wanfu Biotech case highlighted the weak awareness of integrity and serious flaws in professional ethics of the relevant issuers and intermediaries. It not only violated the basic requirements for information disclosure and the market's "three fair principles", but also seriously damaged the interests of investors. The relevant issuers, intermediaries and relevant responsible personnel will be held criminally or administratively responsible.

Our reporter learned that the China Securities Regulatory Commission will announce the punishment results of many major cases involving the capital market in the near future, and will crack down on various illegal activities in the capital market in accordance with the principle of "strict and expeditious" to protect the rights and interests of investors, especially small and medium-sized investors, to the greatest extent possible. Shanxi Tianneng, Xindadi, Henan Tianfeng and other cases have entered the investigation stage, and will be disclosed to the public in a timely manner based on the progress of the cases.

Wanfu Biotech's fraud is shocking. There are three falsified accounts for five years

Wanfu Biotech is known as the first case of fraudulent listing on the GEM. Its financial fraud is shocking. The reporter learned a detail: During the investigation of Wanfu Biotech, it produced as many as three books of accounts, which surprised the investigators. After the fraud was exposed, its chairman Gong Yongfu also readily admitted the fact of financial fraud.

According to the investigation results announced by the China Securities Regulatory Commission, in order to meet the conditions for public issuance of stocks and listing, according to the decision of Chairman and General Manager Gong Yongfu and the arrangement of personnel by Chief Financial Officer Qin Xuejun, From 2008 to 2010, Wanfu Biotech inflated sales revenue by approximately 120 million yuan, 150 million yuan, and 190 million yuan respectively, and inflated operating profits by approximately 28.51 million yuan, 38.57 million yuan, and 45.9 million yuan.

In addition, Wanfu Biotech's 2011 annual report and 2012 semi-annual report contained false records. The 2011 annual report and 2012 semi-annual report disclosed by it inflated sales revenue by 280 million yuan and 165 million yuan, and inflated operating profits by 66.35 million yuan and 34.35 million yuan.

The China Securities Regulatory Commission has punished 20 senior executives, including the chairman of Wanfu Biotech. The breadth of the punishment is unprecedented in history. Wanfu Biotech, Gong Yongfu, and Qin Xuejun are suspected of committing fraudulent issuances and false records and have been transferred to the public security organs for criminal liability.