Wu Gang, chairman of Jiuding Group, was investigated The former New Third Board giant was fined 600 million yuan at the beginning of the year

Cover news reporter Xiong Yingying

On September 29, Jiuding Group (430719. OC) an announcement bringing the long-forgotten company back into the public eye.

Jiuding Group announced that Chairman Wu Gang received the "Notice of Case Filing" from the China Securities Regulatory Commission on the 28th, because his related behavior was suspected of violating the relevant laws and regulations of the fund, according to the "Securities Law of the People's Republic of China" and other laws and regulations, on July 23, 2021, the China Securities Regulatory Commission decided to file a case against Wu Gang.

Jiuding Group said that the matters involved in the filing of the case were an investigation of Wu Gang's individuals, which had no significant impact on the company's operations, and the company was currently operating normally. Chairman Wu Gang will fully cooperate with the CSRC's investigation work, and at the same time fulfill the information disclosure obligation in strict accordance with regulatory requirements.

It was once the leader of the new third board

The market value of the high-light period exceeded 100 billion

Founded in 2010, Jiuding Group is a comprehensive investment group focusing on private equity investment management. In April 2014, Jiuding Group was listed on the New Third Board, becoming the first private equity investment institution to land on the New Third Board.

After the listing, the stock price of Jiuding Group soared all the way, soaring to 950 yuan at the highest time, and the market value exceeded 100 billion yuan within one year, becoming the listed company with the highest market value on the New Third Board.

Within a year or two, the company obtained funds through large-scale private placements, and then in turn acquired listed companies or financial licenses.

On May 15, 2015, Jiuding Investment, a subsidiary of Jiuding Group, acquired 100% of the equity of Jiangxi Zhongjiang Group Co., Ltd. (hereinafter referred to as "Zhongjiang Group") for RMB4.15 billion, thereby acquiring Zhongjiang Real Estate, an A-share listed company. Subsequently, the abbreviation of Zhongjiang Real Estate was renamed "Jiuding Investment".

During the period, Jiuding Group also successively acquired Kyushu Securities and Zhongjie Insurance Economy, established Jiutai Fund, annexed Fortis Insurance, invested in Internet financial platforms such as Lending Treasure, etc., and its business layout quickly covered various fields such as securities companies, insurance, public funds, and private equity business, with rapid growth in performance.

However, the good times were short-lived, and in 2017, Jiuding Group achieved a net profit attributable to the shareholders of listed companies by 43.95% year-on-year. According to the financial report, due to the impact of the new regulations on the reduction of holdings, during the reporting period, the company's investment management business revenue decreased by 35% year-on-year, and investment income decreased by 32% year-on-year. In 2018, the operating income of Jiuding Group exceeded the mark of 10 billion yuan, reaching 11.17 billion yuan, an increase of 26.26% year-on-year; but the net profit attributable to it plummeted by 117.11% in the same period, achieving its first loss since listing.

It is worth mentioning that since June 8, 2015, Jiuding Group has suspended trading due to major matters, and did not resume trading until March 27, 2018, which also set a record for the longest suspension time in the history of the New Third Board. On the first day of the resumption of trading, the company's stock price fell by nearly 50%, and finally closed at 3.42 yuan, and the market value evaporated by more than 50 billion yuan compared with before the suspension.

The company was just fined 600 million yuan at the beginning of the year

Chairman Wu Gang served in the Securities regulatory commission

Wu Gang, the founder of Jiuding Group, is also a controversial figure in the financial circle.

According to public information, Wu Gang was born in 1977 in Bazhong, Sichuan, limited by family economic conditions, he entered the Sichuan Provincial Technical Supervision School after graduating from junior high school, during which he taught himself a diploma in mathematics, a bachelor's degree in law and a bachelor's degree in accounting, and worked as an accountant in a cement factory after graduation. In 1998, Wu Gang was admitted to the southwest university of finance and economics as a graduate student, and after graduation, he worked in the investment banking department of Minfa Securities as a project manager, and was admitted to the CSRC a year later.

From 2002 to 2010, Wu Gang worked in the Inspection Department and the Risk Office of the Institutional Supervision Department of the China Securities Regulatory Commission, and successively served as deputy director, director and assistant to the president of Guangxi Beibu Gulf International Port Group. Since 2010, he has served as the chairman of Kunwu Jiuding Investment Management Co., Ltd., the chairman of Beijing Kunwu Jiuding Investment Holding Co., Ltd., Beijing Tongchuang Jiuding Investment Holding Co., Ltd., and Beijing Tongchuang Jiuding Investment Management Co., Ltd.

According to media reports, under the leadership of Wu Gang, Jiuding Group created the "PE factory" model, that is, large-scale investment in Pre-IPO projects, in order to suddenly enter the shares, to be successfully listed Stock Price soared, waiting for the opportunity to exit, earning high profits. In October 2009, the first batch of 28 enterprises on the GEM were listed in Shenzhen, and the investment of Jifeng Agricultural Machinery and Jinya Technology was convenient for Jiuding Investment. However, in the process of its rapid expansion, there are also many questions about its compliance in the industry.

On January 14 this year, Jiuding Group issued an announcement that the company received an advance notice of administrative penalties from the China Securities Regulatory Commission, confiscating 501 million yuan of illegal gains and imposing a fine of 100 million yuan for using other people's accounts to engage in securities transactions; giving a warning to Wu Gang, executive director of Jiuding Holdings and chairman of Jiuding Group, and imposing a fine of 100,000 yuan. At the same time, due to the violation of the second fixed increase in CITIC approval in 2014, the CSRC ordered it to make corrections, gave a warning, and imposed a fine of 600,000 yuan.

Just two days ago, on September 27, Jiuding Group and related responsible persons received a disciplinary decision from the National Stock Transfer Company. Due to the violation of information disclosure, chairman Wu Gang was given a disciplinary punishment that was publicly reprimanded and recorded in the integrity file of the securities and futures market; the general manager Huang Xiaojie, deputy general managers Qin Zhengyu, Cai Lei, Wu Qiang, and the then secretary of the board of directors, Gu Zhipeng, were given disciplinary sanctions to report criticism, and recorded in the integrity file of the securities and futures market. This penalty is also a follow-up to the above-mentioned administrative penalties imposed by the CSRC.

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