ST Tai'an Latest Claim News:
On April 30, 2024, Guangdong Taiantang Pharmaceutical Co., Ltd. issued the "Announcement on Serious Abnormal Fluctuations in Stock Trading", which showed:
1. The stock trading price of Guangdong Taiantang Pharmaceutical Co., Ltd. (hereinafter referred to as the "Company") has deviated from the daily closing price decline by -71.77% for 29 consecutive trading days (March 18 to April 29, 2024).
2. According to the "2023 Annual Report" and the "2023 Annual Audit Report" disclosed by the company on April 30, 2024, Sichuan CEFC (Group) Accounting Firm (Special General Partnership) (hereinafter referred to as "CEFC Sichuan") issued an audit report on the company's 2023 annual financial statements that could not express an opinion. The Company touches Article 9.3.11, Paragraph 1 (3) of the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange (revised in August 2023) (hereinafter referred to as the "Stock Listing Rules") "Audit Report on the Financial Accounting Report Issued with a Qualified Opinion, Unable to Express an Opinion or a Negative Opinion", and the listing of the Company's shares will be terminated.
3. On April 8, 2024, the company disclosed the "Announcement on Receiving the Court's Decision and Ruling" (Announcement No.: 2024-017), and the company received the "Decision" [(2023) Yue 05 Po Shen No. 13 No. 13] and the "Civil Ruling" [(2023) Yue 05 Po Shen No. 13] issued by the Shantou Intermediate People's Court, Shantou Intermediate People's Court terminated the pre-reorganization procedure of Guangdong Tai'antang Pharmaceutical Co., Ltd., and did not accept the applicants, Guangzhou Zhongbang Supply Chain Management Co., Ltd., Guangdong Tai'antang Pharmaceutical Co., Ltd.'s reorganization application against Guangdong Tai'antang Pharmaceutical Co., Ltd.
4. As of the date of this announcement, the matters involved in the company's 2022 annual audit report have not been completely eliminated, the impact of significant uncertainty in the company's ability to continue operations in the 2023 annual audit report has not been eliminated, the impact of the controlling shareholder's non-operating funds has not been eliminated, and the audit institution cannot determine the impact on the opening number of some statement items in the balance sheet and its impairment loss on the current year's profit and loss. There are doubts about the accuracy of the confirmation of market expenses and the appropriateness of their inclusion in the relevant period, resulting in the auditor's inability to express an opinion on the company's 2023 annual audit report. If the company touches the financial compulsory delisting stipulated in the "Shenzhen Stock Exchange Stock Listing Rules", the company's shares will be terminated from listing.
Prior to this, Tai'antang and the relevant parties received the Administrative Penalty Decision ([2023] No. 31) issued by the Guangdong Supervision Bureau of the China Securities Regulatory Commission on December 26, 2023. After investigation, Tai'an Hall has the following illegal facts:
(1) There are false records in Tai'an Tang's annual reports from 2018 to 2021
From 2018 to 2021, Tai'an Tang inflated profits by 65,996,384.68 yuan, 143,712,582 yuan, 115,928,145.58 yuan, and 103,189,525.66 yuan respectively, 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.
(2) Tai'an Tang failed to disclose related party transactions as required, and there were major omissions in the annual reports from 2018 to 2021 and the semi-annual reports of 2022
From 2018 to the first half of 2022, Tai'antang and its subsidiaries had related party transactions with its controlling shareholder, Tai'antang Group Co., Ltd., which occupied non-operating funds, through various methods such as prepayment for equipment purchases, prepayment for drug purchases, and payment for understory ginseng. From 2018 to the first half of 2022, the amount of capital occupation was 64,846,419.70 yuan, 205,265,742 yuan, 276,554,699.08 yuan, 269,269,391.59 yuan and 161,129,919.70 yuan, accounting for 1.22%, 3.80%, 5.10%, 5.87% and 3.61% of the net assets recorded in the current report. Tai'an Tang failed to disclose the above matters in a timely manner as required, nor did it disclose them in the 2018 annual report, 2019 annual report, 2020 annual report, 2021 annual report, and 2022 semi-annual report. If a material omission is constituted of the above-mentioned illegal facts, it is sufficient to make a determination if it is proved by evidence such as the announcement of the listed company, the accounting vouchers and original vouchers of the relevant bank accounts, the explanation of the situation, and the records of the interrogation.
The China Securities Regulatory Bureau decided: 1. To order Guangdong Tai'antang Pharmaceutical Co., Ltd. to make corrections, give a warning, and impose a fine of 4.2 million yuan; 2. To give a warning to Ke Shaobin and impose a fine of 5 million yuan, of which a fine of 2 million yuan was imposed as the person in charge who was directly responsible, and a fine of 3 million yuan was imposed as the actual controller; 3. To give a warning to Yu Xiang and to a fine of 1.5 million yuan; 4. To give a warning to Jiao Baoyuan and Ke Shaofang, and to impose a fine of 1 million yuan each; 5. To Song Xiuqing, Xie Chengsong was given a warning and fined 500,000 yuan each.
According to the Securities Law and the Several Provisions of the Supreme People's Court on the Trial of Civil Compensation Cases Arising from False Statements in the Securities Market, listed companies shall be liable for civil compensation if their rights and interests are damaged due to illegal information disclosure and misrepresentation, and the injured investors have the right to claim compensation for losses.
The reference conditions for ST Tai'an claim are as follows:
Those who meet any of the following conditions can participate in the claim:
1. Those who bought 002433 Tai'an Tang between January 1, 2019 and June 15, 2022, and sold or held it after June 15, 2022 (inclusive).
2. Those who bought 002433 Tai'an Tang between April 10, 2019 and April 28, 2023, and sold or held it after May 5, 2023 (inclusive).
The above conditions for the registration of Tai'an Tang's claims only represent the views of Xie Baoping's financial and securities team, and are not used as any securities investment decisions and trading recommendations, and are subject to the final determination of the court.
Basis for ST Tai'an violation:
On September 15, 2023, Tai'an Tang received the "Notice of Case Filing" issued by the China Securities Regulatory Commission (No. 0062023023) issued by the China Securities Regulatory Commission for suspected violations of information disclosure laws and regulations.
On December 1, 2023, Tai'an Tang received the "Prior Notice of Administrative Punishment" (Guangdong Zheng Jian Zhi Zi [2023] No. 40).
On December 26, 2023, Tai'an Tang received the Administrative Penalty Decision ([2023] No. 31) issued by the Guangdong Supervision Bureau of the China Securities Regulatory Commission.