Zhitong Finance App News, Guang Yuyuan (600771.SH) announced that on April 10, 2024, the company and relevant parties received the “Administrative Penalty Decision” and “Market Ban Decision” issued by the Shanxi Regulatory Bureau (“Shanxi Securities Regulatory Bureau”) of the China Securities Regulatory Commission.
It was discovered that the company and related parties had the following illegal facts: the disclosure of the “buyout sales” model in the company's 2016 to 2021 annual report was untrue. Under the circumstances where the subsidiary Shanxi Guangyuyuan Sinopharm Co., Ltd. (“Shanxi Guangyuyuan”) and some downstream commercial companies had “slow sales and an immediate expiration date, can be returned unconditionally”, they imposed pressure on some downstream commercial companies and misused the “confirm revenue as soon as it is shipped” accounting policy to confirm sales revenue in advance. At the same time, sales expenses were not handled accurately or in the accounting period. Situations specified in accounting standards. As a result of the above situation, there are false records in the company's 2016 to 2022 annual report and 2023 semi-annual report.
According to reports, the Shanxi Securities Regulatory Bureau decided to issue a warning to the company and imposed a fine of 8 million yuan, and issued separate warnings and fines to then-chairman Zhang Bin and others. Furthermore, due to the seriousness of Zhang Bin's violation, he was banned from entering the securities market for 10 years. During the prohibited period, apart from continuing to hold the position of director, supervisor, or senior manager of the original securities issuer, they are also prohibited from engaging in securities business, securities service business, or as directors, supervisors, or senior management positions of other securities issuers in any other organization.