① Li Ping, the actual controller of Nanwei Co., Ltd., and Xiang Qinhua, the former financial director, received the Administrative Penalty Decision from the Jiangsu Securities Regulatory Bureau; ② The two were fined approximately 48.7084 million yuan in total for selling their own shares to avoid losses during the insider information sensitive period.
Cailian Press, November 4 (reporter He Fan) The insider trading case involving Li Ping, the actual controller of Nanwei Co., Ltd. (603880.SH), and former financial director Xiang Qinhua has been concluded. The two received the Administrative Penalty Decision from the regulatory authorities today, with a combined penalty and confiscation of about 48.7084 million yuan.
This evening, Nanwei Co., Ltd. announced that due to trading company shares during the insider information sensitive period, the company's controlling shareholder and actual controller Li Ping, as well as the former financial director Xiang Qinhua, received the Administrative Penalty Decision issued by the Jiangsu Securities Regulatory Bureau of the China Securities Regulatory Commission.
Based on the facts, nature, circumstances, and social harm level of the violations committed by the parties involved, and according to the relevant provisions of the Securities Law, the Jiangsu Securities Regulatory Bureau decided to confiscate Li Ping’s illegal gains of 11.7767 million yuan and impose a fine of 35.33 million yuan; confiscate Xiang Qinhua’s illegal gains of 101,700 yuan and impose a fine of 1.5 million yuan.
On suspicion of insider trading, on October 23, 2024, Li Ping and Xiang Qinhua separately received the Notice of Investigation issued by the China Securities Regulatory Commission. The Jiangsu Securities Regulatory Bureau found that due to the funds of Nanwei Co., Ltd. being occupied by its actual controller and the enterprises under his control, Tianheng Certified Public Accountants (referred to as “Tianheng”) issued an adverse opinion on the company’s internal control audit report for the fiscal year 2022. This led to the implementation of other risk warnings and suspension of trading of the company's stock, significantly affecting the market price of the company’s shares. Before public disclosure, this constituted insider information as defined by the Securities Law, with the sensitive period of this insider information being from March 1, 2023, to April 28, 2023.
Between March 14 and March 28, 2023, Li Ping controlled and decided on transactions for the "Li Ping" Guolian Securities account, which sold a total of 8.184 million shares of the company through centralized bidding and block trading. The transaction amount was 47.9678 million yuan, and after calculation, avoided losses amounting to 11.7767 million yuan.
Between March 21 and 22, 2023, the "Xiang Qinhua" Guotai Junan Securities account sold a total of 54,000 shares of the company through centralized bidding. The transaction amount was 340,500 yuan, and after calculation, avoided losses amounting to 101,700 yuan.
As insiders with access to insider information, Li Ping and Xiang Qinhua violated the provisions of the Securities Law by trading "Nanwei Co., Ltd." shares during the insider information sensitive period, constituting illegal insider trading. Both had requested not to be subject to administrative penalties, but after reconsideration, the Jiangsu Securities Regulatory Bureau did not accept the statements and defenses presented.
Nanwei Co., Ltd. stated that the administrative penalties mentioned in the Administrative Penalty Decision do not involve the company and will not affect the company’s daily production operations or business activities.
It is reported that Nanwei Co., Ltd. mainly engages in the research, production, and sales of products such as transdermal products, medical tapes and bandages, first aid kits, sports protection products, protective equipment, and nursing supplies.
From 2021 to 2024, Nanwei Co., Ltd. reported consecutive losses. In the first three quarters of this year, the company achieved revenue of RMB 447 million, a year-on-year decrease of 1.70%; net profit attributable to shareholders was -RMB 24.9281 million, representing a year-on-year decline of 87.25%.
