Caixin 11/5 news (Reporter Wu Chao): Once the glorious 'Textile Giant' Lu Keping, after receiving a series of regulatory fines, is also facing criminal trial.

Tonight, jiangsu sihuan bioengineering (000518.SZ) announced that according to the Criminal Judgment of the Taizhou Intermediate People's Court, the actual controller of the company, Lu Keping, was sentenced to 3 years in prison and 4 years of probation for the crime of insider trading, with illegal gains of 0.232 billion yuan confiscated.

Jiangsu sihuan bioengineering stated that the illegal facts of the above insider trading mainly involve Huarun PV Technology Co., Ltd., which is unrelated to the company. Lu Keping, the actual controller, is currently not serving as a director, supervisor, or executive of the company, and the above judgment will not affect the company's normal business operations.

In addition, jiangsu sihuan bioengineering also issued a cautionary announcement regarding the partial shares held by Lu Keping being judicially auctioned. This capital giant, who once created the A-share 'Yangguang Series', is on the verge of losing control of the last listed company.

According to the announcement, the Jiangyin People's Court will publicly auction 0.286 billion shares held by Yu Qinfen, Wang Hongming, and Chen Jianguo from 10:00 on December 5, 2024, to 10:00 on December 6, 2024. The three individuals are all concerted action persons of Lu Keping. Jiangsu sihuan bioengineering stated that if the judicial auction is completed, it may lead to a change in the company's control.

Public information shows that Lu Keping, now 80 years old, is from Xinqiao Town, Jiangyin City, Jiangsu Province. In 1993, Jiangyin Jingmao Spinning Mill established the Yangguang Group, and Lu Keping became the head of the Yangguang Group. Since then, the Yangguang Group has rapidly developed into the world's largest wool spinning production enterprise and obtained the first China Well-Known Trademark in the industry.

In 1999, jiangsu sunshine (600220.SH) was officially listed, and Lu Keping continued to expand his business and capital territory, gradually entering various fields such as photovoltaics, medical instruments, ecological agriculture and forestry, overseas minerals, and took control of the listed companies jiangsu sihuan bioengineering, Huarun PV (600401.SH), vtron group co.,ltd. (002308.SZ). Except for jiangsu sihuan bioengineering, the other three have been delisted, with Jiangsu Sunshine and Vtron Group both delisting this year.

In recent years, Lu Keping has been punished by regulators multiple times for manipulating and illegally disclosing information behind listed companies. In 2020, Lu Keping was banned for life from the market by the China Securities Regulatory Commission and fined 27.34 million yuan. In September of this year, due to illegal information disclosure related to Vtron Group Co.,Ltd., Lu Keping was ordered to correct, warned, and fined 22 million yuan, while once again being banned for life from the securities market. In October, Jiangsu Sihuan Bioengineering announced that Lu Keping received a 'Notice of Filing' from the China Securities Regulatory Commission.

The future of Jiangsu Sihuan Bioengineering is also full of uncertainties, and it is unclear whether it can maintain its listing status. Since 2021, Jiangsu Sihuan Bioengineering has been in continuous losses, with revenue below 0.3 billion yuan for two consecutive years in 2022-2023. In the first three quarters of this year, the revenue was only 0.156 billion yuan, with a net loss attributable to the parent company of -14.62 million yuan. According to the 'Shenzhen Stock Exchange Stock Listing Rules (2024 Revision)', if a listed company in the last audited accounting year has a negative sum of audited total profits, net profits, and net profits after deducting non-recurring gains and losses, and the deducted operating income is less than 0.3 billion yuan, a delisting risk warning will be implemented.