① Nine listed companies announced that their companies or related parties were investigated by the Securities Regulatory Commission (subsidiary shares). Among them, Kanghua Biotech and ST Aokang, Guoguang Electric, and Cisco Rui were all the same person; ② The filing notice was given to multiple stocks to “take the lead”, and Zhuolang Technology fell to a standstill the next day. Tianyi Shangjia closed down nearly 15%, Guoguang Electric fell nearly 20% in the market, and Cisco Rui fell nearly 19% in the market.
Financial Services Association, March 17 (Editor Liu Yue) This week, nine A-share listed companies, including Kanghua Biotech, Jinjia, ST Aokang, Tianyi Shangjia, Huashi Technology, Zhuolang Technology, Cisco Rui, Guoguang Electric, and Chaoyue Technology, announced that their companies or related parties were investigated by the Securities Regulatory Commission. For details, see the chart below:
Among them, Jinjia Co., Ltd., a leader in the domestic tobacco label industry, announced on the evening of March 15 that the company received a notice from the Enyang District Supervisory Committee of Bazhong City on March 15 that Qiao Luyu, the company's actual controller and chairman, was investigated and placed in custody. According to the 2022 annual report, Qiaoluyu is the current chairman of the company. In 2022, Qiao Luyu received total pre-tax compensation from the company of 1.932 million yuan, and he did not hold shares in the company.
It is worth noting that this is the third time in the past two years that a case has been opened, investigated, and detained by the Shangyou County Supervisory Commission and the Yudu County Supervisory Commission in April 2022 and May 2023. Investors are also concerned about this matter, and in February of this year, they asked “the chairman of the company has been detained twice, please ask if the issue has been resolved”. In response, Jinjia Co., Ltd. stated that the chairman of the company is carrying out his duties normally.
The actual controller of Kanghua Biotech and ST Aokang's case, which issued an announcement after the market on Friday, was Wang Zhentao. According to public information, Wang Zhentao holds 140.47 million shares of Kanghua Biotech, accounting for 10.40% of the total share capital, and Wang Zhentao holds 605.567 million shares of ST AOKANG, accounting for 15.10% of the total share capital, ranking the second largest shareholder of the two companies. Kanghua Biotech is mainly engaged in R&D, production and sales of vaccine products. In its announcement, it was emphasized that the investigation was against Wang Zhentao personally. The matters being investigated had nothing to do with the company, and the company's business activities were not affected. ST AOKANG, which is engaged in business related to leather shoes and leather goods products, said that during the investigation of the case, the company and Wang Zhentao will actively cooperate with the relevant work of the China Securities Regulatory Commission and promptly fulfill information disclosure obligations in strict accordance with relevant laws and regulations and regulatory requirements.
In addition to disclosing the case filing notice issued by the Securities Regulatory Commission, ST Aokang, which was wearing a hat because the audited agency issued a negative internal control report, also announced that the company had received a warning letter from the Zhejiang Securities Regulatory Bureau on the same night. According to the announcement, the Zhejiang Securities Regulatory Bureau discovered that ST Aokang had a number of internal control issues during on-site inspections. First, the company failed to disclose the non-operating capital usage of related parties in its 2021 annual report, 2022 annual report, and 2023 semi-annual report in accordance with regulations. At present, the amounts occupied by the relevant funds have been repaid. Second, the company's internal controls related to fund payment and dealer management are flawed, and there is confusion between Aokang Group Co., Ltd. and the company's financial personnel. Since the above acts violated relevant regulations, the Zhejiang Securities Regulatory Bureau decided to take administrative supervision measures to issue separate warning letters against ST Aokang, Chairman Wang Zhentao, General Manager Wang Jinquan, and Financial Director and Board Secretary Weng Heng, and record them in the securities and futures market integrity file. Regarding the circumstances of the above warning letter and the reason for the investigation, on the evening of March 15, ST Aokang Chairman Wang Zhentao told Interface News that the investigation was a retrospective investigation into the company's previous use of capital, and we will fully cooperate with the supervisory authorities.
Furthermore, in 2022, ST AOKANG lost 370 million yuan, the first loss in 10 years since listing. The 2023 performance forecast shows that the company still seems to have lost strength, and the net profit for the year is expected to continue to lose 95 million yuan.
Judging from the performance of the secondary market, the stock prices of the companies announced after the market on Thursday or the three A-share listed companies that were investigated by the Securities Regulatory Commission were quite aggressive. Zhuolang Technology fell to a standstill the next day. Tianyi had a good harvest falling nearly 15%, and Huashi Technology fell more than 7% in the intraday market. Tuesday's announcement showed that the shares of Cisco Rui and Guoguang Electric, whose chairman was suspended, both fell sharply the day after the announcement. The former fell nearly 20% in the intraday period, while the latter fell nearly 19% in the intraday period. Another company, Transcendence Technology, which issued an investigation announcement that the chairman had opened a case after the market on Tuesday was not afraid of being bad. After closing a slight decline the next day, it took a car to dismantle the “hot air” and reaped two consecutive 20CM rises and stops on Thursday and Friday. Looking at it for a long time, the notice that the case was filed in the Year of the Dragon gave many stocks “the first step”. Chaohua Technology's “foresight and foresight” fell to a halt, and the stock prices of Shanghai Yilian and Haoli Technology all fell to a halt the day after the announcement. For details, please refer to the Financial Federation's previous report: “Multiple stocks fell to a standstill in response! Nearly 10 listed companies in the Year of the Dragon announced that their companies or related parties have been filed, 3 shares are suspected of insider trading, and the chairman of 10 billion cocktails is suspected of bribing”.
Among them, regarding Zhang Ya's placement, Guoguang Electric and Cisco Rui both told the Beijing Commercial Daily reporter on March 13 that they have not received any documents from the competent authorities to the company regarding the chairman's placement in custody. Against the backdrop of Zhang Ya's placement, the operating conditions of Guoguang Electric and Cisco Rui were not ideal. Net profit in 2023 both declined sharply year on year, and this was also the first drop in net profit after listing. In addition to controlling the two A-share listed companies mentioned above, Zhang Ya is also a major shareholder of Zhenhua Scenery. As of the end of the first three quarters of 2023, Shenzhen Zhenghexing Electronics Co., Ltd. (“Zhenghexing Electronics” for short) held 19.66% of Zhenghe Scenery's shares and was the company's single second-largest shareholder, and Zhang Ya was the actual controller of Zhenghexing Electronics.