Sudden! Company | Chen Weixiong | Company | A-share
*ST Bailong announced on June 28th that the company received an "arrest notice" issued by the Jieyang Public Security Bureau from the family members of the actual controllers of the company, Chen Weixiong and Chen Nana, on June 27th. It has been learned that with the approval of the People's Procuratorate of Jieyang City, Chen Weixiong and Chen Nana were arrested on June 19th on suspicion of fraudulent stock issuance, violation of disclosure rules, and failure to disclose important information.
Chen Weixiong and Chen Nana have resigned from their positions as directors, supervisors, and senior management of the company since April 2022, and have not participated in the company's business management. The above matters will not have an impact on the company's daily production and operation activities.
As early as May 15th of this year, * ST Bailong announced that the company had received notices from the families of the actual controllers Chen Weixiong and Chen Nana, who were suspected of violating regulations and not disclosing important information and were taken compulsory measures by the public security organs.
Public information shows that * ST Bailong is a company jointly controlled by Chen Weixiong and Chen Nana. Chen Weixiong once served as the chairman of * ST Bailong, and Chen Nana once served as the vice chairman and general manager of * ST Bailong. However, in April 2022, the company was punished by the China Securities Regulatory Commission for false records and illegal disclosure of information. Chen Weixiong and Chen Nana were also subject to lifelong market entry bans, and both resigned.
In November 2020, the company received a notice from its controlling shareholders and actual controllers, Chen Weixiong and Chen Nana. They received an investigation notice from the China Securities Regulatory Commission, stating that they were suspected of manipulating the company's stock price. In accordance with relevant provisions of the Securities Law of the People's Republic of China, the China Securities Regulatory Commission decided to initiate an investigation into them.
On April 19, 2022, * ST Bailong and related personnel received the Administrative Penalty Decision and the Market Prohibition Decision. According to the survey, the company has accumulated a false increase in operating revenue of 1.276 billion yuan and a total false increase in profit of 410 million yuan from 2013 to 2018* The illegal facts that ST Bailong still has include: false records in the initial public offering prospectus, 2016 non-public offering stock issuance report and listing announcement, and regular reports; Failure to truthfully disclose the "other non current assets" statement items in the annual reports from 2017 to 2019, and failure to truthfully disclose the use of raised funds in the 2018 annual report; There were cases from 2018 to 2020 where external guarantees did not comply with the approval procedures and information disclosure obligations.
According to the Market Prohibition Decision, Chen Weixiong, then Chairman of * ST Baolong, Chen Nana, then Vice Chairman and General Manager, and some senior management personnel of the company were aware of and involved in Baolong's financial fraud. In addition, Chen Weixiong and Chen Nana, who were appointed as CFOs in a timely manner, were directly responsible for the false records in the initial public offering prospectus, non-public offering stock issuance report and listing announcement, and annual reports from 2015 to 2019.
The China Securities Regulatory Commission believes that the illegal behavior of Chen Weixiong and Chen Nana is particularly serious. The China Securities Regulatory Commission, in accordance with the relevant provisions of the Securities Law and the Regulations on Prohibitions from the Securities Market, has decided to impose lifelong market bans on Chen Weixiong and Chen Nana, and impose 10-year or 5-year market bans on other responsible personnel, respectively.
Recently, the company released its 2022 annual report, which showed a net loss of 818 million yuan attributable to the owners of the parent company in 2022, compared to a net loss of 1.552 billion yuan in the same period last year, narrowing the loss; The operating revenue was 114 million yuan, a year-on-year decrease of 23.11%; The basic earnings per share were 1.5204 yuan, while the basic earnings per share for the same period last year were 2.8851 yuan. At the end of 2022, the net assets attributable to the shareholders of the listed company were -655 million yuan.
