"Electric Eel Finance" Electric Eel No. / text
In the capital market, information disclosure is the cornerstone of maintaining investor confidence and market fairness. However, when this cornerstone is eroded, the health of the market is threatened. Recently, *ST Weichuang and its related responsible persons were "issued" by the regulator with a fine of up to 56.7 million yuan for involving a number of information disclosure violations, which once again focused the public's attention on the construction of the rule of law and corporate integrity in the capital market.
On September 18, *ST Weichuang issued an announcement disclosing that the company disclosed the "Announcement on the Company's Receipt of the Notice of Case Filing from the China Securities Regulatory Commission" (Announcement No.: 2023-070), "Announcement on Receiving the Notice of Case Filing from the China Securities Regulatory Commission" (Announcement No.: 2023-071), "Announcement on Receiving the Notice of Case Filing from the China Securities Regulatory Commission for the Company's Proposed Acquirer" (Announcement No.: 2023-071), "Announcement on the Company Receiving the Notice of Case Filing from the China Securities Regulatory Commission" (Announcement No.: 2023-071), "Announcement on the Company Receiving the Notice of Case Filing from the China Securities Regulatory Commission" (Announcement No.: 2023-071), "Announcement on the Receipt of the Notice of Case Filing from the China Securities Regulatory Commission for the Company's Proposed Acquirer" (Announcement No.: 2023-071), "Announcement on the Company Announcement on the receipt of the notice of filing by the China Securities Regulatory Commission (Announcement No.: 2023-073) by the upper shareholders, the company, Liu Jun, the company's proposed acquirer, and Lu Keping, the controlling shareholder of the company's controlling shareholder Taizhou Zhongshu Wolters Kluwer Equity Investment Partnership (Limited Partnership), the actual controller of Jiangsu Sunshine Group Co., Ltd., were filed by the China Securities Regulatory Commission (hereinafter referred to as the "China Securities Regulatory Commission") on suspicion of illegal information disclosure.
*On May 9, 2024, ST Weichuang disclosed the "Announcement on the Company's Receipt of the Notice of Case Filing from the China Securities Regulatory Commission" (Announcement No.: 2024-016), which was filed by the China Securities Regulatory Commission on suspicion of failing to disclose annual reports on time and other information disclosure violations and violations.
Recently, *ST Weichuang received the "Prior Notice of Administrative Punishment" issued by the Guangdong Supervision Bureau of the China Securities Regulatory Commission (Guangdong Zheng Jian Zhi Zi [2024] No. 26 and Guangdong Zheng Jian Zhi Zi [2024] No. 25), and the "Administrative Penalty Prior Notice" shows:
1. For the failure of Weichuang to timely disclose the change of the actual controller, the change of the actual controller of the company caused by the acquisition by agreement, the occupation of non-operating funds of related parties, and the non-operating capital transactions between the company and related parties, according to the facts, nature, circumstances and degree of social harm of the parties' illegal acts, in accordance with the provisions of Article 197, Paragraph 1 of the Securities Law,
(1) Weichuang Group Co., Ltd. was ordered to make corrections, given a warning, and imposed a fine of 3.5 million yuan;
(2) Give warnings to Lu Keping, Liu Jun, and Lu Yu, and impose fines of 2 million yuan each;
(3) Give Zhou Feng a warning and impose a fine of 800,000 yuan;
(4) Give warnings to Lu Yongsheng, Wen Jingjing, and Chen Xiang, and impose fines of 600,000 yuan each;
(5) Give warnings to Xu Zhaohui, Zhang Shuhan, Cao Xiuming, and Chen Xiaomeng, and impose fines of 500,000 yuan each;
(6) Liang Chunhui was given a warning and fined 200,000 yuan.
2. For the false records in the 2023 semi-annual report and the third quarter report of 2023, according to the facts, nature, circumstances and degree of social harm of the parties' illegal acts, in accordance with the provisions of paragraph 2 of Article 197 of the Securities Law,
(1) Weichuang Group Co., Ltd. was ordered to make corrections, given a warning, and imposed a fine of 5 million yuan;
(2) Give Lu Keping a warning and impose a fine of 15 million yuan, of which a fine of 10 million yuan was imposed on him as the actual controller and a fine of 5 million yuan was imposed on him as the responsible person;
(3) Give Lu Yu a warning and impose a fine of 4 million yuan;
(4) Give warnings to Lu Yongsheng, Wen Jingjing, Chen Xiang, Xu Zhaohui, Zhang Shuhan, and Liang Chunhui, and impose fines of 500,000 yuan each.
3. For Lu Keping's illegal acts of failing to timely perform the obligation to inform the actual controller of changes and the failure to timely perform the obligation to notify of major changes in the circumstances of the controlling company as required, according to the facts, nature, circumstances and degree of social harm of the parties' illegal acts, and in accordance with the provisions of the first paragraph of Article 197 of the Securities Law, Lu Keping was ordered to make corrections, given a warning, and imposed a fine of 5 million yuan.
4. For Liu Jun's illegal act of failing to perform the obligation to report the acquisition by agreement in a timely manner as required, according to the facts, nature, circumstances and degree of social harm of the parties' illegal acts, and in accordance with the provisions of Article 196, Paragraph 1 of the Securities Law, Liu Jun was ordered to make corrections, given a warning, and imposed a fine of 5 million yuan.
5. In accordance with the provisions of Article 221 of the Securities Law, Article 3, Paragraph 1, Article 4, Paragraph 1, Article 5, and Article 7, Paragraph 1 of the Provisions on the Prohibition of Entry into the Securities Market (Decree No. 185 of the CSRC),
(1) Impose a lifetime market ban on Lu Keping. From the date of the announcement of the decision by the Bureau, in addition to continuing to engage in securities business or securities service business in the original institution or serving as a director, supervisor or senior management of the original securities issuer, it shall not engage in securities business or securities service business in any other institution or serve as a director, supervisor or senior management of another securities issuer;
(2) Impose a lifetime market ban on Liu Jun. From the date of the announcement of the decision by the Bureau, in addition to continuing to engage in securities business or securities service business in the original institution or serving as a director, supervisor or senior management of the original securities issuer, it shall not engage in securities business or securities service business in any other institution or serve as a director, supervisor or senior management of another securities issuer;
(3) Impose a 10-year market ban on Lu Yu. From the date of the announcement of the decision by the Bureau, during the prohibition period, in addition to continuing to engage in securities business or securities service business in the original institution or serving as a director, supervisor or senior management of the original securities issuer, it is also prohibited to engage in securities business or securities service business in any other institution or to serve as a director, supervisor or senior management of another securities issuer.
*ST Weichuang Announcement of prior notice of administrative punishment
*The penalties imposed on ST and the relevant responsible persons for information disclosure violations are a microcosm of the process of legalization of the capital market. It reminds all market participants that respect and success can only be earned if they follow the rules. For regulators, how to further strengthen the supervision of information disclosure, increase the cost of non-compliance, and protect the rights and interests of investors is still a long-term and arduous task. For listed companies, honest management and standardized operation are the only ways to win the trust of the market and investors.
"Electric Eel Finance" will continue to pay attention to the follow-up progress of this incident.