Financial fraud for many years, nearly 500 years of "time-honored brands" locked up and delisted! Major shareholders arbitrage huge sums of money, more than 50,000 shareholders "pay the bill"
National Business Daily
2024-04-25 21:02Published on the official account of Sichuan Daily Economic News
A time-honored traditional Chinese medicine enterprise with a history of nearly 500 years collapsed.
On April 25, *ST Tai'an (hereinafter referred to as "Tai'an Tang") fell again to close at 0.57 yuan, which has closed below 1 yuan for 12 consecutive trading days, and the total market value is only 437 million yuan.
According to the current stock price calculation, even if all the daily limits are limited in the next 8 trading days, the share price of Tai'an Tang will not be able to return to above 1 yuan, and the delisting condition of "the stock price will be lower than 1 yuan for 20 consecutive trading days" will be reached, and the delisting will be locked in advance.
Nearly 500 years of "China's time-honored brand"
The net loss in 3 years exceeded 3 billion yuan, which was maintained by selling houses
Guangdong Tai'antang Pharmaceutical Co., Ltd. was founded in 1995 and has become a national high-tech listed company integrating pharmaceutical research and development, production and sales after 23 years of vigorous development. It has a number of well-known products under its name, such as Pi Bao Cream, Kirin Pill, Heart Treasure Pill, etc., and its annual sales are more than 100 million yuan at its peak.
The actual controller of the company is Ke Shuquan, the thirteenth generation descendant of Tai'an Tang, born in 1948, a doctor of philosophy, an inheritor of intangible cultural heritage, who has been practicing medicine for 50 years, and is currently the chairman of Tai'an Tang Group, the largest shareholder of Tai'an Tang, and the inheritor of the representative project of national intangible cultural heritage. His son Ke Shaobin served as the chairman and general manager of Tai'an Tang for many years, and resigned in March this year.
In 2015, Ke Shuquan debuted on the "Hurun Report" with a net worth of 3.9 billion yuan, and has been on the list for many years since then.
In fact, in addition to the risk of delisting at face value, the risk of financial delisting of Tai'an Tang is also high. The company was unable to express an opinion due to the issuance of the 2022 annual financial and accounting report, and the company's shares have been subject to delisting risk warning from May 5, 2023.
Since 2021, the company has lost money for three consecutive years, with a total loss of more than 3 billion yuan, of which the net profit attributable to the parent company in 2021 and 2022 will be 800 million yuan and 820 million yuan respectively. According to the 2023 performance forecast announced by Tai'antang, the company's net profit attributable to the parent company in 2023 is expected to lose 1.77 billion yuan to 1.92 billion yuan. Earlier, in 2018, the company had begun to make a profit by selling houses.
Tai'an Tang said that during the reporting period, the company's debts were heavy, the proportion of fixed assets was large, and fixed expenses such as depreciation and amortization remained high; Guangdong Kangaiduo Digital Health Technology Co., Ltd. and suppliers were in litigation disputes, because the company provided joint and several liability guarantees, and many of Kangaiduo's supplier litigation companies were jointly and severally liable, the company's financing channels were seriously restricted, the liquidity of working capital was insufficient, and the investment funds in product sales channels were scarce, resulting in a large loss of product operating profits, and the asset impairment loss was large in the reporting period, with an asset impairment of about 1.9 billion yuan。
The 2023 annual report is very important for Tai'an Tang, but according to the company's announcement, because the company's non-operating occupied funds of the controlling shareholder involved in the company's inability to express opinions in 2022 have not been fully recovered, there are still significant uncertainties in the company's ability to continue operations, and due to the company's internal control deficiencies and other reasons, the auditor may not be able to obtain sufficient information on the specific time of the occurrence of the company's large impairment losses accrued in 2023. Appropriate audit evidence, the auditor is likely to be unable to express an opinion on the company's 2023 annual financial report, and the company is more likely to touch the financial category of mandatory delisting stipulated in the Shenzhen Stock Exchange Stock Listing Rules.
On April 7, Tai'an Tang announced that on April 2, the Intermediate People's Court of Shantou City, Guangdong Province issued the "Decision" and "Civil Ruling", and the Shantou Intermediate People's Court decided to terminate the company's pre-reorganization procedure and not accept the reorganization application submitted by the applicant (creditor) Guangzhou Zhongbang Supply Chain Management Co., Ltd. and the listed company. The announcement did not explain why the court terminated the company's pre-reorganization proceedings.
The termination of Tai'antang's reorganization application has undoubtedly increased the risk of delisting the company's shares. Since April 8, the company's stock price has continued to fall to the limit, locking in "1 yuan delisting" in advance.
Financial fraud for many years, by the major shareholders "digging the wall"
has become a dishonest person subject to execution, and has been claimed by shareholders
Recently, Tai'an Hall can be described as riddled with negativity. On December 4, 2023, Tai'antang announced that the company and related parties received the "Prior Notice of Administrative Punishment" issued by the Guangdong Supervision Bureau of the China Securities Regulatory Commission, and the company and its subsidiaries had non-operating capital occupation with the controlling shareholder Tai'antang Group through various methods such as prepayment of equipment purchases, prepaid drug purchases, and payment of forest ginseng purchases, and the amount of capital occupation from 2018 to the first half of 2022 was 64.8464 million yuan, 205 million yuan, 277 million yuan, and 269 million yuan respectively. 161 million yuan, accounting for 1.22%, 3.80%, 5.10%, 5.87% and 3.61% of the current net assets respectively, with a total amount of 980 million yuan.
In addition, Guangdong KangAiduo Digital Health Technology Co., Ltd., a subsidiary of Tai'antang, inflated inventory and profits by reducing carry-over costs and under-recording expenses. The company and its subsidiary, Guangdong Hongxing Group Co., Ltd., Hongxing Pharmaceutical Factory, inflated revenue and profits by inflating the sales price of drugs. Through the above methods, the company inflated profits by 66 million yuan, 144 million yuan, 116 million yuan, and 103 million yuan respectively from 2018 to 2021, accounting for 20.08%, 115.79%, 304.72%, and 12.25% of the absolute value of the total profits recorded in the current report, and there were false records in the relevant periodic reports.
In this regard, the Guangdong Securities Regulatory Bureau ordered Guangdong Taiantang Pharmaceutical Co., Ltd. to make corrections, gave a warning and imposed a fine of 4.2 million yuan, gave a warning to Ke Shaobin, the chairman of the board at the time, and imposed a fine of 5 million yuan, in addition to a number of senior executives were fined 500,000 to 1 million yuan.
In addition, the Shenzhen Stock Exchange also disciplined Tai'an Tang and its controlling shareholders, actual controllers, and a number of senior executives:
1. Ke Shaobin, chairman and general manager of Guangdong Taiantang Pharmaceutical Co., Ltd., was publicly reprimanded and publicly determined to be unsuitable to serve as a director, supervisor, or senior manager of a listed company for 10 years;
2. Give a public reprimand to Guangdong Taiantang Pharmaceutical Co., Ltd.;
3. Give public reprimand to Tai'antang Group Co., Ltd., the controlling shareholder of Guangdong Tai'antang Pharmaceutical Co., Ltd., and Ke Shuquan, the actual controller;
4. Yu Xiang, director and chief financial officer, Ke Shaofang, director and deputy general manager, Jiao Baoyuan, then deputy general manager and general manager of KangAiduo, Song Xiuqing, director, and Xie Chengsong, deputy general manager, were given the punishment of public reprimand.
Until February 8 this year, Tai'antang announced that the unpaid amount of non-operating funds occupied by the controlling shareholder Tai'antang Group still exceeded 390 million yuan.
According to the company's investigation data, Tai'antang and its controlling shareholder, Tai'antang Group, have a large amount of risk information under their names, including dishonest judgment defaulters, judgment debtors, and restrictions on high consumption. In addition, Ke Shuquan, the actual controller of the company, has also been restricted from high consumption.
According to the Sina shareholder rights protection platform on April 24, the platform received an application for rights protection from a shareholder surnamed Wu against Tai'an Tang on the same day, and the rights protection consultation has been accepted by the lawyer. On the platform, it can be seen that up to now, many shareholders have filed claims against Tai'an Tang.
The conditions for the claim published by the platform are as follows:
Stocks bought between 2019-01-31 and 2022-06-15 and sold or held at the close of trading on 2022-06-16.
Bought between 2019-04-10 and 2023-09-15 and sold or still held at the close of trading on 2023-09-16.
Stocks bought between 2019-04-10 and 2022-08-26 and sold or held at the close of trading on 2022-08-27.
As of the close of trading on April 24, Tai'an Tang still had 51,068 shareholders.
Editor|Duan Lian, Gai Yuanyuan, Du Hengfeng
Proofreading|Lu Xiangyong
Cover image: Visual China (not related to the picture or text)
The daily economic news is synthesized from Tai'an Tang's announcement, Tai'an Tang's official website, Securities Times, enterprise checks, public information, etc
National Business Daily
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Financial fraud for many years, nearly 500 years of "time-honored brands" locked up and delisted! Major shareholders arbitrage huge sums of money, more than 50,000 shareholders "pay the bill" -
Financial fraud for many years, nearly 500 years of "time-honored brands" locked up and delisted! Major shareholders arbitrage huge sums of money, more than 50,000 shareholders "pay the bill" -
Financial fraud for many years, nearly 500 years of "time-honored brands" locked up and delisted! Major shareholders arbitrage huge sums of money, more than 50,000 shareholders "pay the bill" -
Financial fraud for many years, nearly 500 years of "time-honored brands" locked up and delisted! Major shareholders arbitrage huge sums of money, more than 50,000 shareholders "pay the bill" -
Financial fraud for many years, nearly 500 years of "time-honored brands" locked up and delisted! Major shareholders arbitrage huge sums of money, more than 50,000 shareholders "pay the bill" -
Financial fraud for many years, nearly 500 years of "time-honored brands" locked up and delisted! Major shareholders arbitrage huge sums of money, more than 50,000 shareholders "pay the bill"