A few days ago, the State Securities Regulatory Commission publicly disclosed the "No. 1 fine" for 2022 on its website: Kingenta Ecological Engineering Group Co., Ltd. (ST Jinzheng, 002470. SZ) through various means to inflate operating income of up to 23.073 billion yuan and inflate the total profit of up to 1.990 billion yuan through various means, constituting a serious financial fraud, the CSRC imposed a fine of 1.5 million yuan on Kingenta, the actual controller at the time Wan Lianbu was fined 2.4 million yuan and banned from the market for 10 years, li Jiguo, then deputy general manager and head of finance, was fined 600,000 yuan and banned from the market for 5 years, and the manager of the finance department at the time. Tang Yong, director of the financial center, was fined 550,000 yuan.
Recently, the CSRC published Kingenta's administrative penalty decision on its official website
Founded in August 1998, Kingenta Ecological Engineering Group Co., Ltd. is a private enterprise located in Linyi City, Shandong Province, whose main business is compound fertilizer, slow and controlled release fertilizer, water-soluble fertilizer and other soil requirements for the whole line of products and planting solution services. Kingenta has ranked first in the sales volume of the compound fertilizer industry for many consecutive years, and has been certified by the national key high-tech enterprise, the national innovative enterprise, the national and international standard drafting unit, etc., and the business scope covers the whole country and is exported to the United States, Australia, India, Spain, Norway and other overseas countries and regions.
Kingenta is a leading compound fertilizer enterprise in China, ranking first in the industry for many years
On the evening of January 20, 2022, ST Jinzheng issued an announcement that it had received the Administrative Penalty Decision ([2022] No. 1) and the Market Prohibition Decision ([2022] No. 1) from the State Securities Regulatory Commission on January 18, and announced the time development of the relevant penalties: the Company received an investigation notice from the CSRC in September 2020 and was investigated for information disclosure involving violations of laws and regulations; eight months later, the Company received the "Notice of Investigation" in May 2021 Administrative penalties and prior notice of market ban" until the company received the final version of the decision letter in January, and the company's financial fraud was finally settled. According to the Administrative Penalty Decision, Kingenta was mainly suspected of inflating the company's operating income and profits through fictitious trading business, failing to disclose related parties and related party transactions in accordance with regulations, and falsely recording some assets and liabilities. Based on these illegal facts, Kingenta and all relevant management personnel were fined a total of 7.55 million yuan and banned from the market for a total of 18 years.
As the target of the first fine in 2022, Kingenta was fined up to 7.55 million yuan and banned from the market for 18 years
As of the close of trading on February 11, ST Kingent's share price was 2.69 yuan per share (up 0.37% on the day), and the company's total market value was 8.8 billion yuan.