According to the Zhitong Finance App, Luoxin Pharmaceutical (002793.SZ) announced that Shandong Luoxin Holdings Co., Ltd. (“Luoxin Holdings”), the controlling shareholder of the company, has received the “Administrative Penalty Decision” issued by the Zhejiang Regulatory Bureau of the China Securities Regulatory Commission. The decision states:
As the shareholder of Luoxin Pharmaceutical Holdings, Luo Xin Holdings held 31.23% of Luoxin Pharmaceutical's shares as of May 17, 2023. From May 18 to 24, 2023, Luoxin Holdings reduced its holdings of Luoxin Pharmaceutical shares by a total of 62.25 million shares through a major transaction, accounting for 5.72% of Luoxin Pharmaceutical's total share capital. Luo Xin Holdings did not stop trading in accordance with regulations when the total reduction ratio reached 5%. In violation of regulations, it reduced its holdings by 7.8706 million shares, accounting for 0.72% of the total share capital. The total transaction amount was 52.3393 million yuan. According to the proposed cost method, Luo Xin Holdings' illegal proceeds were 2.301 million yuan.
The Zhejiang Securities Regulatory Bureau decided to issue a warning to Shandong Luoxin Holdings Co., Ltd., confiscate the illegal proceeds of the law, and fine of 500,000 yuan.