Furen Pharmaceuticals financial fraud was fined 5.9 million yuan real controller Zhu Wenchen 10 years market ban

Yesterday (October 27), Furen Pharmaceuticals announced that the company received the "Administrative Penalty Decision" issued by the CSRC and the "Market Ban Decision."
documents show that Furen Pharmaceuticals' performance has been false for years, and the company and related personnel have been fined a total of 5.9 million yuan.
, zhu Wenchen, the company's real controller, has been banned from the securities market for 10 years.
understood that in May 2019, Furen Pharmaceuticals held its 2018 annual general meeting to consider and approve the 2018 annual profit distribution plan, the total amount of cash dividends required is about 60 million yuan.
However, the cash dividend of 60 million yuan, but in the first quarter of last year reported the end of the balance of monetary funds of 1.816 billion yuan, the company said that the funding arrangements were not in place in time, resulting in the failure to pay cash dividends on schedule.
the Shanghai Stock Exchange immediately issued an inquiry letter, the assets of Furen Pharmaceuticals were investigated.
"Decision on Administrative Penalties" shows: "The failure of Furen Pharmaceuticals to disclose the guarantee of related parties in 2018, in violation of the Notice on regulating the external guarantee behavior of listed companies" (No. 120 of the Securities regulatory commission (2005) No. 1 and (v) "the board of directors of a listed company or the general meeting of shareholders to consider and approve the external Guarantees must be disclosed in a timely manner in the press designated by the CSRC for information disclosure", and the provisions of Article 67 (2) (12) of the Securities Law of 2005 on "Other Matters prescribed by the Securities Regulatory Authority of the State Council" constitute the acts referred to in Article 193 (1) of the Securities Law of 2005.
Wenchen, chairman of Furen Pharmaceuticals, and Zhang Haijie, secretary of the board of directors, are the executives directly responsible.
In accordance with the facts, nature, circumstances and extent of social harm committed by the parties, and in accordance with the provisions of Article 193, paragraph 1, of the Securities Act 2005, I will decide: First, there are false records, major omissions, and failure to timely report on the periodic reports of Furen Pharmaceuticals. Disclosure of the related party guarantee, ordered Furen Pharmaceutical Group Pharmaceutical Co., Ltd. to correct, give a warning, and imposed a fine of 600,000 yuan; The controller directed a fine of 600,000 yuan for engaging in information disclosure violations, a warning to Zhu, Zhu Wenliang and Su Hongsheng, and a fine of 200,000 yuan, a warning to Zhu Wenyu and a fine of 150,000 yuan, and Zhang Haijie and Zhu Xue. Zhao Wenrui, An Hui, Geng Xin and Li Wei were given warnings and fined 100,000 yuan respectively; Li Cheng and Wei Hai were given warnings and fined 50,000 yuan, respectively; and Zhang Weibing was given a warning and fined 30,000 yuan.
II, the major asset restructuring documents 100,000 yuan reported and disclosed by Furen Pharmaceutical Co., Ltd. falsely recorded acts, ordered Furen Pharmaceutical Group Pharmaceutical Co., Ltd. to correct, give a warning, and imposed a fine of 600,000 yuan; Su Hongsheng was given a warning and fined 150,000 yuan, Zhu Wenyu and Zhao Wenrui were given a warning and fined 100,000 yuan respectively, An Hui, Geng Xinsheng and Li Wei were given a warning and fined 50,000 yuan respectively, and Zhang Weibing, Zhang Haijie, Li Cheng and Wei Hai were given a warning and fined 30,000 yuan, respectively.
3, the information provided by Furen Pharmaceutical Group Co., Ltd. is falsely recorded, a warning, and a fine of 600,000 yuan;
Combining the above three illegal facts, a total of 1.2 million yuan was imposed on Furen Pharmaceutical Group Pharmaceutical Co., Ltd., 600,000 yuan on Furen Pharmaceutical Group Co., Ltd., 1.5 million yuan on Zhu Wenchen, 350,000 yuan on Zhu Cheng, Zhu Wenliang and Su Hongsheng, and 300,000 yuan on Zhu Xuechen. A fine of 10,000 yuan; a fine of 250,000 yuan for Zhu Wenyu; a fine of 200,000 yuan for Zhao Wenrui; a fine of 150,000 yuan for An Hui, Geng Xin and Li Wei; a fine of 130,000 yuan for Zhang Haijie; a fine of 80,000 yuan for Li Cheng and Wei Hai; and a fine of 60,000 yuan for Zhang Weibing.
: "The SFC considers that the annual report of Furen Pharmaceuticals for 2015-2018 inflated monetary funds, failed to disclose the non-operating capital occupancy of controlling shareholders and their related parties, and that the 2018 annual report did not Disclosure of related party guarantees, resulting in the existence of false records and major omissions in periodic reports, in violation of Article 63 of the Securities Law of 2005 "the information disclosed by listed companies in accordance with the law must be true, accurate and complete, and there must be no false records", "The company information of publicly issued securities" Disclosure Content and Format Guidelines No. 2 - Content and Format of Annual Reports (SFC Announcement (2015) No. 24, CSRC Announcement (2016) No. 31, SFC Announcement (2017) No. 17) Article 31 (1) "Where a company has a non-operational occupation of funds by controlling shareholders and their related parties, the relevant decision-making procedures shall be fully disclosed, as well as the opening amount of the funds occupied, the amount of occurrence, the balance at the end of the period, the reasons for the occupation, the expected repayment method and the time of liquidation". Article 40(4) "Where a company and related parties have such matters as debt transactions or guarantees, the reasons for the formation shall be disclosed, the opening balance of the creditor's rights and debts, the amount of the current period, the balance at the end of the period, and their impact on the company", as well as the provisions of Article 66 (6) of the Securities Law of 2005, constitute the acts referred to in Article 193 (1) of the Securities Law of 2005.
Zhu Wenchen signed a written confirmation in his annual report for 2015-2018, ensuring that the 2015-2018 annual report is true, accurate, complete and that he is the person in charge directly responsible.
Finren Pharmaceuticals' failure to disclose the related party guarantee in a timely manner in 2018, in violation of the Notice on regulating the external guarantee behavior of listed companies (No. 120 of the Securities and Exchange Commission (2005)) I. (5) "The external guarantees approved by the board of directors of listed companies or the general meeting of shareholders must be considered and approved in China." The provisions of Article 67(2) (12) of the Securities Law of 2005 "Other Matters prescribed by the Securities Regulatory Authority of the State Council" designated by the CSRC for timely disclosure in the press constitute acts referred to in Article 193 (1) of the Securities Law of 2005.
Wenchen, chairman of Furen Pharmaceuticals, is the person in charge directly in charge.
Zhu Wenchen as the actual controller, chairman and general manager of Furen Pharmaceuticals, the actual controller of Furen Group, decision-making, arrangements for Furen Group, Furen Holdings occupied Furen Pharmaceuticals, Prescription Group funds matters, not only knowing that Furen Pharmaceuticals exists by Furen Group, Furen Holdings occupied The situation of the funds, also knowing that the underlying asset prescription group also exists by the Furen Group, Furen Holdings occupied the funds, but still signed a commitment to ensure that the "reorganization report", periodic report content is true, accurate and complete, and in the breach of the guarantee matters bear the main responsibility, seriously harm the interests of investors, the illegal circumstances are more serious.
The circumstances of Zhu Wenchen's illegal act are more serious, and in accordance with the provisions of Article 233 of the Securities Law of 2005 and Article 3 (115) of the Securities Market Prohibition Provisions (SFC Order No. 115), I will decide that Zhu Wenchen shall be banned from the securities market for 10 years. Measures, from the date of the announcement of the decision by the Self-Government Council, shall, during the period of prohibition, not only continue to engage in securities business in the original institution or hold the positions of directors, supervisors and senior managers of the original listed company or unlisted public companies, nor shall they engage in securities business in any other institution or hold the positions of directors, supervisors and senior managers of other listed companies or unlisted public companies.
to this point, because of a "dividend" and caused by the Furen pharmaceutical industry "thunderstorm" event came to an end, the future of the company can turn over, we will continue to pay attention to! Source: sST Auxiliary Announcement