Song du Service (09608.HK) announced that the CSC supervisor had completed the investigation into the suspected stock insider exchange of Yu Jianwu, the controlling shareholder, and issued a written decision on administrative penalty to him on Wednesday, deciding to confiscate the money he received from the exchange of about 36.8 million yuan (the same below) and impose a further fine of about 110.4 million yuan.
According to the decision, Yu Jianwu must pay the fine and forfeiture to the CSRC within 15 days from the date of receipt of the decision. If he does not accept the written decision, he may apply to the CSRC for administrative review within 60 days from the date of receipt of the written decision, or bring an administrative action in the people's court with jurisdiction within 6 months from the date of receipt of the written decision. During the period of administrative review and administrative litigation, the implementation of the decision will not be suspended. Yu Jianwu confirmed that he would apply for administrative reconsideration or file an administrative lawsuit within the prescribed time limit.
The management of the company learned from Yu Jianwu that the shares involved in the transaction had nothing to do with the shares of the company. Up to now, the business operation of the group is still going on as usual.