① Yang Yongping, the Chairman of Shanghai Xuerong Bio-Technology, has been subjected to detention measures, and the company is not aware of the progress or conclusion of the detention investigation. ② Yang Yongping received a warning letter from the Shanghai regulatory bureau last year due to inaccurate financial data disclosure. ③ From 2021 to 2023, the net income of the company was in a loss position.
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On the evening of June 11, Caixin News (Reporter Chen Kang) learned that Shanghai Xuerong Bio-technology Co., Ltd. (300511.SZ), which has been continuously operating at a loss, received a written notice of sequestration and filing from the Yongdeng County Supervision Committee. Yang Yongping, the controlling shareholder, legal representative, director, chairman, and general manager of the company, was subject to detention measures.
Yang Yongping has been the company's chairman since August 2014. She has also served as the company's general manager since April 2022, overseeing accounting. As of March 31, Yang Yongping held 107.6 million shares, accounting for 21.57% of the total share capital and making her the company's largest shareholder. The second and third largest shareholders are Zhejiang Yinwan Private Equity Fund Management Co., Ltd. and Zhu Huancheng, with shareholding ratios of 3.76% and 1.96%, respectively.
The company stated that as of the date of this announcement, it had not received any investigation or cooperation documents from the relevant authorities, and is therefore not aware of the progress or conclusion of the detention investigation. All other directors, supervisors, and senior management of the company, excluding Yang Yongping, are currently performing their duties normally.
According to her resume, Yang Yongping also serves as vice president of the China Edible Fungi Association, president of the Factory Committee of the China Edible Fungi Association, honorary president of the Shanghai Vegetable and Edible Fungi Industry Association, among other positions.
On December 25th of last year, Yang Yongping received a warning letter from the Shanghai Securities Regulatory Bureau. This was due to inaccuracies in the asset impairment test of Weining Xiangrong Biological Technology Co., Ltd., a wholly-owned subsidiary of Shanghai Xuerong Bio-technology Co., Ltd. from 2020 to 2022, resulting from calculation errors and inappropriate forecasting methods, which did not comply with the relevant regulations of the 'Enterprise Accounting Standards No. 8 - Impairment of Assets' and led to inaccurate financial data disclosed in the corresponding annual reports.
In this incident, Yang Yongping was issued a warning letter for violating the provisions of Article 3 of the 'Measures for the Administration of Information Disclosure by Listed Companies' (CSRC Order No. 40) and Article 4 of the 'Measures for the Administration of Information Disclosure by Listed Companies' (CSRC Order No. 182). Shanghai Xuerong Bio-technology Co., Ltd. subsequently received an 'Administrative Supervision Measure Decision' from the Shanghai Securities Regulatory Bureau and a 'Regulatory Letter' from the Shenzhen Stock Exchange.
According to public information, Shanghai Xuerong Bio-technology Co., Ltd. is mainly engaged in the research and development, factory cultivation, and sales of fresh edible fungi. The company's products mainly include shiitake mushrooms, oyster mushrooms, and mushrooms. As of the end of 2023, the company's daily production capacity of edible mushrooms was 1710 tons, of which the daily production capacity of shiitake mushrooms was 1275 tons, ranking first in the country.
On May 10th, Shanghai Xuerong Bio-technology Co., Ltd. received a 20% limit-up, which was attributed to it being a concept stock of cell immunotherapy. However, the company's cell immunotherapy business is very small and has no significant impact on its performance.
Shanghai Xuerong Bio-technology Co., Ltd. has been continuously losing money since 2021, with a net loss of 188 million yuan in 2023. As of May 17th, the company's borrowing balance was 2.075 billion yuan, an increase of 527 million yuan from the end of 2023, and the cumulative increase in borrowing accounted for 33.95% of the company's net assets at the end of 2023.