4 brokerages were collectively fined! "Planted" in the same listed company

Editor: Zhang Jinhe

On May 14, the official website of the Jiangsu Securities Regulatory Bureau issued 7 fines for brokers, all of which were related to Jin Tongling's sponsorship and supervision business.

Zhou Ping and Wang Shiwei, the sponsors of Everbright Securities and the company's financial advisors, were taken to issue warning letters;

Guohai Securities and the project continued to supervise and supervise Bao Dai Lin Ju and Tang Bin to be taken to issue warning letters;

Huaxi Securities was suspended from sponsorship business for 6 months;

Huaxi Securities' project continued to supervise the protection of Zheng Yi and Chen Qingling, who were taken to issue warning letters;

Liu Jingfang and Zhang Ran, the insurance agents of Huaxi Securities, shall not hold positions related to the sponsorship business of securities issuance and listing or actually perform the above duties within 2 years;

Soochow Securities and the project leader Wang Qiuming were taken to issue a warning letter for regulatory measures.

4 brokerages were collectively fined! "Planted" in the same listed company

Everbright Securities, Zhou Ping and Wang Shiwei were issued warning letters by the Jiangsu Securities Regulatory Bureau

On April 10, the Jiangsu Securities Regulatory Bureau issued a document stating that after investigation, Everbright Securities Co., Ltd. (hereinafter referred to as Everbright Securities) failed to fully perform its verification obligations in the process of performing its continuous supervision duties in the 2018 project of Jintongling Technology Group Co., Ltd. issuing shares to purchase assets and raising matching funds, and used the professional opinions of other securities service institutions to fail to conduct necessary prudent verification, resulting in false records in the 2018-2020 continuous supervision opinions prepared and issued. Zhou Ping and Wang Shiwei, the sponsors of the financial advisors, are directly responsible for the above violations.

The above matters violated the first paragraph of Article 6 of the Administrative Measures for the Material Asset Restructuring of Listed Companies (Decree No. 127 of the CSRC, effective on September 8, 2016), the first paragraph of Article 6 of the Administrative Measures for the Material Asset Restructuring of Listed Companies (Decree No. 159 of the CSRC, effective on October 18, 2019), the first paragraph of Article 6 of the Administrative Measures for the Material Asset Restructuring of Listed Companies (Decree No. 166 of the CSRC, effective on March 20, 2020) and the Article 22, Paragraph 1 of the Administrative Measures for the Financial Advisory Business of Mergers and Acquisitions of Listed Companies (Decree No. 54 of the CSRC).

In accordance with the provisions of the first paragraph of Article 58 of the Administrative Measures for the Material Asset Restructuring of Listed Companies (Decree No. 166 of the CSRC) and the first paragraph of Article 39 of the Administrative Measures for the Mergers and Acquisitions of Listed Companies (Decree No. 54 of the CSRC), our bureau decided to take the supervision and management measures of issuing warning letters to Everbright Securities, Zhou Ping and Wang Shiwei.

If you are not satisfied with this supervision and management measure, you may file an application for administrative reconsideration with the China Securities Regulatory Commission within 60 days from the date of receipt of this decision, or you may file a lawsuit with the people's court with jurisdiction within 6 months from the date of receipt of this decision. During the period of reconsideration and litigation, the implementation of the above-mentioned supervision and management measures shall not be suspended.

Guohai Securities, Lin Ju, and Tang Bin were issued warning letters by the Jiangsu Securities Regulatory Bureau

On April 10, the Jiangsu Securities Regulatory Bureau issued a document stating that after investigation, Guohai Securities Co., Ltd. (hereinafter referred to as Guohai Securities) failed to perform relevant obligations diligently and conscientiously in the process of performing continuous supervision duties in the non-public issuance of shares by Jintongling Technology Group Co., Ltd. in 2017, and the 2017-2019 continuous supervision on-site inspection report issued during the continuous supervision period was falsely recorded, and the external release procedures of the continuous supervision report did not comply with the regulations.

The above situation violates the provisions of Article 4, Paragraph 1 and Article 6, Paragraph 1 of the Administrative Measures for Securities Issuance and Listing Sponsorship Business (Decree No. 137 of the CSRC). Lin Ju and Tang Bin, as the sponsor representatives of the continuous supervision of the project, bear the main responsibility for the above-mentioned violations.

In accordance with the provisions of Article 62 of the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing (Decree No. 137 of the CSRC), our bureau decided to take supervision and management measures of issuing warning letters to Guohai Securities, Lin Ju and Tang Bin.

Zheng Yi and Chen Qingling were issued warning letters by the Jiangsu Securities Regulatory Bureau

On April 10, the Jiangsu Securities Regulatory Bureau issued a document stating that after investigation, Huaxi Securities Co., Ltd. (hereinafter referred to as Huaxi Securities) failed to perform relevant obligations diligently and conscientiously in the process of performing continuous supervision duties in the non-public issuance of shares by Jintongling Technology Group Co., Ltd. in 2019.

The above situation violates the provisions of Article 7, Paragraph 1, Article 28 and Article 41 of the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing (Decree No. 170 of the CSRC).

As the sponsor representative of the ongoing supervision of the project, you are primarily responsible for the above violations. In accordance with the provisions of Article 65 of the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing (Decree No. 170 of the CSRC), our bureau has decided to take supervision and management measures against you by issuing a warning letter.

Soochow Securities and Wang Qiuming were issued warning letters by the Jiangsu Securities Regulatory Bureau

On April 10, the Jiangsu Securities Regulatory Bureau issued a document stating that after investigation, Soochow Securities Co., Ltd. (hereinafter referred to as Soochow Securities) failed to be diligent and conscientious in the non-public issuance of bonds by Jintongling Technology Group Co., Ltd. in 2021.

The above situation violates the provisions of Article 6, Paragraph 1 and Article 41, Paragraph 1 of the Administrative Measures for the Issuance and Trading of Corporate Bonds (Decree No. 180 of the CSRC), Articles 3 and 52 of the Guidelines for Internal Control of Investment Banking Business of Securities Companies (CSRC Announcement [2018] No. 6). Wang Qiuming, as the person in charge of the project, is directly responsible for the above violations.

In accordance with the provisions of Article 68 of the Administrative Measures for the Issuance and Trading of Corporate Bonds (Decree No. 180 of the CSRC), our bureau decided to take supervision and management measures to issue warning letters to Soochow Securities and Wang Qiuming.

Huaxi Securities was suspended from sponsoring business for 6 months

On April 28, the Jiangsu Securities Regulatory Bureau issued a document stating that after investigation, your company did not perform due diligence in the practice of the non-public issuance of shares sponsored by Jintongling Technology Group Co., Ltd. in 2019, there were false records in the sponsorship letter for the issuance of shares to specific objects, there were false records in the relevant reports issued in the continuous supervision stage, and the implementation of on-site inspection work was not in place, which violated Article 20 of the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing (Decree No. 137 of the CSRC). Article 25 and the provisions of Article 7, Paragraph 1, Article 22, Article 28 and Article 41 of the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing (Decree No. 170 of the CSRC).

In accordance with the provisions of Paragraph 1 of Article 67 of the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing (Decree No. 170 of the CSRC), the Jiangsu Securities Regulatory Bureau has decided to suspend Huaxi Securities Co., Ltd. from April 28 to October 27, 2024.

Liu Jingfang shall not hold any position related to the sponsorship business of securities issuance and listing for 2 years

On April 28, the Jiangsu Securities Regulatory Bureau issued a document stating that after investigation, Huaxi Securities Co., Ltd. (hereinafter referred to as Huaxi Securities) had problems such as failure to be diligent in due diligence and false records in the issuance of shares to specific targets in the practice of the non-public issuance of shares sponsored by Jin Tongling Technology Group Co., Ltd. (hereinafter referred to as Jin Tongling) in 2019, and the above matters violated Articles 20 and 25 of the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing (Decree No. 137 of the CSRC). Article 7, Paragraph 1 and Article 22 of the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing (Decree No. 170 of the CSRC). Liu Jingfang, as the sponsor representative of Jin Tongling's non-public stock project in 2019, failed to be diligent and conscientious, and was directly responsible for the violations in the sponsorship stage of Huaxi Securities, violating the provisions of Article 5, Paragraph 1 and Article 6, Paragraph 1 of the Administrative Measures for Securities Issuance and Listing Sponsorship Business (Decree No. 170 of the CSRC).

In accordance with the provisions of Article 65 of the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing (Decree No. 170 of the CSRC), the Jiangsu Securities Regulatory Bureau decided that Liu Jingfang (ID number: 41**********06) is an unsuitable person, and shall not hold the relevant positions or actually perform the above duties of the securities company's securities issuance and listing sponsorship business within 2 years from the date of the decision on regulatory measures.

Zhang Ran shall not hold any position related to the sponsorship business of securities issuance and listing of securities companies for 2 years

On April 28, the Jiangsu Securities Regulatory Bureau issued a document stating that after investigation, Huaxi Securities Co., Ltd. (hereinafter referred to as Huaxi Securities) had problems such as failure to be diligent in due diligence and false records in the issuance of shares to specific targets in the practice of the non-public issuance of shares sponsored by Jin Tongling Technology Group Co., Ltd. (hereinafter referred to as Jin Tongling) in 2019, and the above matters violated Articles 20 and 25 of the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing (Decree No. 137 of the CSRC). Article 7, Paragraph 1 and Article 22 of the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing (Decree No. 170 of the CSRC). Zhang Ran, as the sponsor representative of Jin Tongling's non-public stock project in 2019, failed to be diligent and conscientious, and was directly responsible for the violations in the sponsorship stage of Huaxi Securities, violating the provisions of Article 5, Paragraph 1 and Article 6, Paragraph 1 of the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing (Decree No. 170 of the CSRC).

In accordance with the provisions of Article 65 of the Administrative Measures for the Sponsorship Business of Securities Issuance and Listing (Decree No. 170 of the CSRC), the Jiangsu Securities Regulatory Bureau decided to determine that Zhang Ran (ID number: 34**********19) is an unsuitable person and shall not hold the relevant positions or actually perform the above duties within 2 years from the date of the decision on regulatory measures.

Dahua has previously been fined

On May 13, Dahua Certified Public Accountants (Special General Partnership) (hereinafter referred to as Dahua) issued a statement through its official WeChat, stating that it had received administrative penalties from the Jiangsu Regulatory Bureau of the China Securities Regulatory Commission for failing to be diligent and conscientious during the audit of Jin Tongling's annual report.

On the same day, more than 10 listed companies such as Far East Transmission and Jiahe Mekang successively issued announcements announcing the cancellation of the appointment of Dahua as the company's auditor in 2024. The reporter of "Daily Economic News" interviewed some of the listed companies as investors and confirmed that Dahua was fined and suspended from engaging in securities service business for 6 months.

Dahua said in the statement that it is deeply saddened and ashamed of this punishment, and will learn lessons, face difficulties, face up to shortcomings, solve problems, and earnestly fulfill its responsibilities as a "gatekeeper" of the capital market.

Jin Tongling has committed financial fraud for 6 consecutive years

Jin Tongling's financial fraud has been as long as 6 years. According to the disclosure of Dahua, the above-mentioned securities service business of the firm was suspended for 6 months, that is, because it undertook the audit business of Jin Tongling's annual report.

On November 20 last year, Jin Tongling announced that it had received a prior notice of administrative penalties that from 2017 to 2022, Jin Tongling and its subsidiaries had inflated or reduced their total revenue and profits through various means.

In 2017, 2018, 2021, and 2022, Jintongling's inflated revenue was 501 million yuan, 550 million yuan, 68.9307 million yuan, and 15.3085 million yuan respectively, and the total inflated profits were 146 million yuan, 148 million yuan, 73.9871 million yuan, and 43.3273 million yuan respectively; In 2019, Jin Tongling reduced its revenue by 197 million yuan and its total profit by 38.5277 million yuan, and in 2020, Jin Tongling reduced its revenue by 5.3768 million yuan and increased its total profit by 57.3008 million yuan.

The Jiangsu Securities Regulatory Bureau intends to decide to order Jin Tongling to make corrections, give a warning, and impose a fine of 1.5 million yuan, give a warning to Ji Wei, then chairman, vice chairman and general manager, and impose a fine of 2 million yuan, and give a warning to Yuan Xueli, then chief financial officer and secretary of the board of directors, and impose a fine of 1 million yuan; Xu Kunming, assistant to the general manager and then director, and Mao Xinpeng, supervisor and minister of finance, were warned and fined 600,000 yuan each. The above-mentioned penalties have been implemented on January 3 this year.

The daily economic news is synthesized from the official website of the Jiangsu Securities Regulatory Bureau, the official WeChat of Dahua Certified Public Accountants, and the daily economic news (reporter: Yang Yu)

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