On March 16, Zhongqingbao issued an announcement on the company and related parties receiving the "Prior Notice of Administrative Punishment" and a reminder announcement on the company's stock trading will be subject to other risk warnings and stock suspension and resumption of trading, the announcement shows that due to false records in the annual reports from 2019 to 2021, the actual controller was not disclosed in a timely manner and criminal coercive measures were taken, Zhongqingbao and the company's actual controller and a number of senior executives were given warnings and fines, and Zhongqingbao stock trading was implemented other risk warnings. The stock abbreviation will also be changed from "Zhongqingbao" to "ST Zhongqingbao".
On March 16, Zhongqingbao issued an announcement on the receipt of the "Prior Notice of Administrative Punishment" by the company and related parties and a suggestive announcement on the company's stock trading will be subject to other risk warnings and stock suspension and resumption of trading.
Fictitious business regulates revenue and profits
The annual reports from 2019 to 2021 contained false records
According to the announcement, Zhongqingbao received the "Prior Notice of Administrative Punishment" (Shenzhen Securities Regulatory Penalty Zi [2025] No. 5) issued by the Shenzhen Supervision Bureau of the China Securities Regulatory Commission (hereinafter referred to as the "Shenzhen Securities Regulatory Bureau") on March 14, 2025.
After investigation, Zhongqingbao is suspected of having two illegal facts: false records in the annual reports from 2019 to 2021 and failure to timely disclose the criminal coercive measures taken against the actual controller.
Among them, from 2019 to 2021, Shenzhen Proton Internet Technology Co., Ltd. (hereinafter referred to as Proton Internet), a wholly-owned subsidiary of Zhongqingbao, signed a procurement contract with Shenzhen Gaodexin Communication Co., Ltd. (hereinafter referred to as Gaodexin), and later signed sales contracts with 6 related companies introduced by Gaodexin with the same subject matter. The contract money was transferred to the relevant company, which was eventually transferred back to the company via Proton Internet. The above transactions have no commercial substance.
From 2019 to 2021, Proton Internet inflated its operating income by 33.6132 million yuan, 28.0943 million yuan and 17.8783 million yuan, accounting for 7.17%, 9.56% and 5.03% of the disclosed operating income in the current period, and inflated profits by 8.334 million yuan and 6.9811 million yuan and reduced profits by 7.2139 million yuan respectively, accounting for 14.96%, 5.45% and 13.17% of the absolute value of the total disclosed profits in the current period, respectively. At the same time, the operating cost also inflated by 25.2792 million yuan, 21.1132 million yuan and 25.0922 million yuan respectively
Failure to disclose in a timely manner that the actual controller was subject to criminal coercive measures
During the period, the actual controller pledged Zhongqingbao's shares for financing many times
According to a previous report by Nandu Bay Finance Society, on December 29, 2023, Zhang Yunxia was taken compulsory measures by the Futian Branch of the Shenzhen Municipal Public Security Bureau on suspicion of refusing to execute the judgment and ruling during the settlement of civil dispute cases due to debt dispute cases, and received the "Decision on Release on Bail Pending Trial".
According to the announcement, Zhongqingbao and its actual controller Li Ruijie learned that Zhang Yunxia was taken criminal coercive measures no later than April 19, 2024. In accordance with the provisions of the Securities Law, the above matters should be disclosed in a timely manner, but Zhang Yunxia and Li Ruijie jointly requested Zhongqingbao not to disclose it for the time being in order to avoid affecting the financing of Zhongqingbao and its affiliates. It will not be until July 26, 2024 that Zhongqingbao disclosed the above matters.
According to a previous report by Nandu Bay Finance Society, during this period, the two companies controlled by Zhang Yunxia and her husband Li Ruijie have repeatedly obtained financing by pledging Zhongqingbao shares. Tianyancha shows that Shenzhen Baode Investment Holding Co., Ltd. (hereinafter referred to as "Baode Holdings") and Shenzhen Baode Technology Co., Ltd. (hereinafter referred to as "Baode Technology") hold 7.31% and 9.51% of the shares of Zhongqingbao respectively, and the actual controllers Li Ruijie and Zhang Yunxia indirectly hold 16.82% of the shares of Zhongqingbao through the above two companies. In the seven months that Zhang Yunxia was subjected to coercive measures without disclosure, Powerleader Holdings, Powerleader Technology and Li Ruijie successively pledged their shares to a number of banks and financing guarantee companies. Based on the closing price of the pledge starting date, Powerleader Holdings, Powerleader Technology and Li Ruijie pledged a total of about 176 million yuan of Zhongqingbao shares.
The actual controller and a number of senior executives were fined
Zhongqingbao will "wear hats" from March 18
According to the announcement, the Shenzhen Securities Regulatory Bureau believes that there are false records in Zhongqingbao's annual reports from 2019 to 2021, which is suspected of violating the provisions of the Securities Law and constituting an illegal act. Combined with the company's active correction of accounting errors, active cooperation with the investigation, supplementary disclosure and other circumstances of the company's false records, as well as the division of responsibilities and performance of relevant responsible personnel, according to the facts, nature, circumstances and degree of social harm of the parties' illegal acts, the Shenzhen Securities Regulatory Bureau intends to decide: in view of the false records in the annual reports of Zhongqingbao from 2019 to 2021, in accordance with the provisions of the Securities Law, Shenzhen Zhongqingbao Interactive Network Co., Ltd. will be warned and fined 4 million yuan; Li Ruijie, then chairman of Zhongqingbao, and Zhang Chao, then general manager of Proton Internet, were warned and fined 2 million yuan respectively; Li Yilun, then general manager of Zhongqingbao, was given a warning and fined 1 million yuan; Zhang Siqun, then the chief financial officer of Zhongqingbao, was warned and fined 500,000 yuan.
In response to Zhongqingbao's failure to timely disclose the actual controller's criminal compulsory measures and Zhang Yunxia and Li Ruijie's illegal acts of organizing and instigating information disclosure, in accordance with the provisions of the Securities Law, Shenzhen Zhongqingbao Interactive Network Co., Ltd. was given a warning and fined 1 million yuan; Zhang Yunxia and Li Ruijie were fined 3.5 million yuan, of which Zhang Yunxia bore 2 million yuan and Li Ruijie bore 1.5 million yuan; Li Yilun, then chairman and general manager of Zhongqingbao, was given a warning and fined 500,000 yuan; Gao Guozhou, the secretary of the board of directors at the time, was given a warning and fined 200,000 yuan.
At the same time, the announcement shows that due to the receipt of the "Prior Notice of Administrative Punishment", according to the "Rules for the Listing of Stocks on the Growth Enterprise Market of the Shenzhen Stock Exchange", "if a listed company has one of the following circumstances, the firm shall implement other risk warnings for its stock trading: (7) According to the facts stated in the prior notice of administrative punishment of the China Securities Regulatory Commission, there are false records in the financial indicators of the annual report disclosed by the company, but it does not touch the circumstances specified in the first paragraph of Article 10.5.2, and the aforementioned financial indicators include operating income, total profit, net profit, assets or liabilities in the balance sheet", the company's stock trading will be subject to other risk warnings.
Specifically, the shares of Zhongqingbao Company have been suspended for one day since the market opened on March 17 and will resume trading from the market open on March 18. Since March 18, the company's shares have been subject to other risk warnings, and the stock abbreviation has been changed from "Zhongqingbao" to "ST Zhongqingbao"; The stock code remains unchanged and remains "300052"; After the implementation of other risk alerts, the daily limit for stock trading remains unchanged at 20%.
Previously reported
The actual controller was taken compulsory measures for seven months not to disclose, and Zhongqingbao was fined! The company responded
Zhongqingbao and the actual controller were filed by the CSRC, and the actual controller was released on bail pending trial for more than half a year without disclosure
Suspected of violating the law, Li Ruijie, the actual controller of Zhongqingbao, was investigated by the Securities Regulatory Commission
Written by: Zhao Yuan, reporter of Nandu Bay Finance Agency