Recently, two executives of “demon stock” Andon Health Co.Ltd(002432) (002432. SZ) were interviewed by the regulatory authorities. According to the regulatory documents, the reason why Tianjin Securities Regulatory Bureau decided to take regulatory talk measures this time is that Andon Health Co.Ltd(002432) did not disclose all the experimental results in the announcement on January 7, which belongs to the incomplete disclosure of information. The chairman and Secretary of the company bear the main responsibility for the integrity of the information disclosure of the interim report of the listed company.
However, it is surprising that after the official announcement of the regulatory documents, the Andon Health Co.Ltd(002432) Secretary interviewed this time issued a statement to the media. The main idea is that the reason why the letter phi is incomplete is that there are many professional terms involved in the experimental report. The company does not want to write the announcement too difficult to interpret, so it uses a relatively concise statement. Andon Health Co.Ltd(002432) said that this approach is based on the perspective of investor protection.
The author believes that this statement of Andon Health Co.Ltd(002432) is very not serious. Because after the disclosure of the experimental results on January 7, the exchange soon noticed that there were obvious differences between its announcement in Chinese and the experimental results document in English. Andon Health Co.Ltd(002432) avoided all the detection results with CT value greater than 21.59, and only said in the announcement that “the self-test kit detected 100% of the Omicron active virus samples with maximum CT value of 21.59 (n = 5) in the experiment”. Obviously, this announcement is intended to report good news, focusing on the “100% detection rate”, which is also the direct reason for regulators to interview two executives. The complete experimental results will not be disclosed until the reply to the inquiry letter of the exchange on January 15.
In the 14 fold rise, Andon Health Co.Ltd(002432) xinphi violated rules more than once. Before and after November 15 last year, Andon Health Co.Ltd(002432) took the initiative and released important information in advance. To this end, it also received a supervision letter from Shenzhen Stock Exchange. It is said that Jiu’An replied on the interactive easy platform on the progress of the kit’s obtaining the authorization of FDA EUA earlier than the time disclosed in the designated media, violating the provisions of the stock listing rules (revised in 2020). In hindsight, these two operations have led to the continuous rise of stock prices for several days, which has aroused the attention and punishment of the regulatory authorities, and has been identified as a violation of letter phi, which has actually affected the judgment of investors and the fluctuation of stock prices.
Such violations of the letter Phi cannot be tolerated and the atmosphere cannot be encouraged. Whether it is the subjective intention or negligence of senior executives of listed companies, the violation of letter Phi will directly affect the objectivity and fairness of market transactions. In the long run, it will also bring reverse incentives to investors and the market and breed new problems. The letter Phi system is also an important basic system of the capital market. It belongs to the scope of serious laws and regulations and is also the cornerstone of market transaction trust. Listed companies must disclose it truthfully, timely and completely. Violators should be punished according to the law.
Information disclosure is a neutral institutional tool. However, in practice, it is possible to disclose artificially in advance or later, incomplete or selective disclosure. This will inevitably directly affect the judgment of investors and the market, even mislead investors’ decisions, indirectly affect the stock price and market trend, and may cause unnecessary losses to investors. Considering these possibilities, the measures for the administration of information disclosure of listed companies clearly stipulates that “information disclosure obligors shall not use the information voluntarily disclosed to improperly affect the trading price of the company’s securities and their derivatives, and shall not use voluntary information disclosure to engage in illegal acts such as market manipulation.”
From the perspective of regulatory punishment, the illegal letter phi of Andon Health Co.Ltd(002432) has not risen to the level of market manipulation. The current characterization is that the letter phi is incomplete and there is negligence in the operation process. The purpose of interviewing executives is to urge improvement. The author believes that although this level of punishment is just “scratching” in the eyes of the market, the company can not secretly rejoice or even issue such a non serious statement. The omission of the letter phi is an objective fact, and the correct way should be to correct it afterwards, rather than continue to confuse the public and escape responsibility.
Andon Health Co.Ltd(002432) the beginning and end of the “regulatory conversation”: the share price rose 12 times in less than three months, and replied to the regulatory letter to avoid the important and take the light?
