On March 1, Everbright Securities Company Limited(601788) announced that the Shanghai Stock Exchange issued a decision on disciplinary action against Everbright Securities Company Limited(601788) and relevant responsible persons. Xue Feng, chairman and President of Everbright Securities Company Limited(601788) timely (Acting Secretary of the board of directors), was criticized in a circular.
According to the decision on disciplinary action, upon investigation, the person responsible for information disclosure of Everbright Securities Company Limited(601788) has three violations in the performance of his duties: the disclosure of major contracts is not timely, and the issue of the “difference supplement letter” issued by Everbright capital, a wholly-owned subsidiary of the company, to China Merchants Bank Co.Ltd(600036) , Ruihua bank and other matters are not disclosed; The progress of major litigation matters was not disclosed in time, and Everbright capital appealed the first instance judgment of China Merchants Bank Co.Ltd(600036) v. Everbright capital and Huarui bank v. Everbright capital to Shanghai Higher People’s court, and failed to disclose the relevant second instance judgment in time; The disclosure of major transactions was incomplete, and the company did not fully disclose the put obligation and corresponding performance guarantee of Guangzheng financial holding to Sun Hung Kai Financial Group in the asset purchase and subsequent progress announcement. The above behavior violates the relevant provisions of the Shanghai Stock Exchange.
As for the responsible person, Xue Feng, as the person in charge of the company’s operation and management and information disclosure, also served as the chairman of Everbright capital during the relevant period, decided and approved the MPS project, was clearly aware of the signing of the difference supplement letter, and was directly and primarily responsible for the untimely disclosure of the company’s major contracts; At the same time, as the chairman of Guangzheng financial holding, he led and promoted the acquisition in the whole process, did not urge the company to disclose important matters such as put rights and performance guarantees, and was also primarily responsible for the incomplete disclosure of the company’s major transaction information.
The MPS project in this disciplinary action should be traced back to 2016 at the earliest. At that time, Everbright Baptist Hui, a subsidiary of Everbright capital, once established Jinxin fund in conjunction with storm Group Co., Ltd. and planned to directly or indirectly acquire 65% of the equity of an overseas sports Copyright Agency (MPS company) by establishing a special purpose vehicle.
Everbright capital, as one of the inferior partners, contributed 60 million yuan. However, later, the operation of the sports copyright agency was in trouble, and the Jinxin fund failed to exit as planned, which made the fund face greater risks.
Previously, on January 7, 2022, Everbright Securities Company Limited(601788) received a warning letter from the Shanghai Securities Regulatory Bureau due to the problems of untimely disclosure of major contracts, untimely disclosure of the progress of major events, inaccurate and insufficient disclosure of performance forecast information, incomplete disclosure of major transactions and failure to exercise due diligence in the entrusted management stage of individual corporate bonds.
