Stock abbreviation: Shanxi Securities Co.Ltd(002500) Stock Code: Shanxi Securities Co.Ltd(002500) No.: pro 2022007 Shanxi Securities Co.Ltd(002500)
Announcement on the holding subsidiary’s receipt of the prior notice of administrative punishment from the CSRC
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Shanxi Securities Co.Ltd(002500) (hereinafter referred to as the company and the company) was published in the securities times, China Securities Journal, Shanghai Securities News, securities daily and cninfo.com on January 19, 2022（ http://www.cn.info.com.cn. ）The announcement on the receipt of the notice of filing a case by the China Securities Regulatory Commission by the holding subsidiary (p.2022002) was published. Zhongde Securities Co., Ltd. (hereinafter referred to as Zhongde securities), the holding subsidiary of the company, is suspected of violating laws and regulations in the recommendation business in the 2016 non-public offering of shares by LETV information technology (Beijing) Co., Ltd. (hereinafter referred to as LETV). According to the securities law of the people’s Republic of China, the administrative punishment law of the people’s Republic of China and other laws and regulations, The China Securities Regulatory Commission (hereinafter referred to as the CSRC) decided to file a case against Sino German securities.
On March 18, 2022, Yang Lijun and Wang Xin, the signing and recommendation representatives of Zhongde securities and LETV’s 2016 non-public offering project, received the prior notice of administrative punishment (punishment Zi [2022] No. 11) from the CSRC. The main contents are announced as follows:
1、 Relevant contents of prior notice of administrative punishment
After investigation, the facts of Sino German securities suspected of violating the law are as follows:
(I) LETV’s non-public offering and illegal activities in 2016
On May 26, 2015, LETV announced its application for non-public offering. On June 2, 2016, LETV received the reply from the CSRC. On August 8, the non-public offering of shares was listed on the Shenzhen Stock Exchange. LETV issued 106643 million new shares to four qualified investors, raising 4.799 billion yuan.
According to another investigation by the CSRC, LETV falsely increased its performance for ten consecutive years from 2007 to 2016, including the financial data of non-public offering application documents from 2012 to 2014 and from January to June 2015. From 2012 to 2014, LETV falsely increased its revenue by 896533 million yuan, 1999817 million yuan and 3519419 million yuan respectively, and falsely increased its profits by 84.451 million yuan, 1933969 million yuan and 3427038 million yuan, accounting for 37.04%, 78.49% and 470.11% of the total profits disclosed in the current period.
(II) non public offering recommendation business of Sino German securities
Sino German securities issued the application draft and final draft of the issuance recommendation letter on June 12 and September 1, 2015 respectively. The signing recommendation representatives were Yang Lijun and Wang Xin, and the recommendation business income was 5660377 yuan.
(III) Sino German securities is suspected of failing to exercise due diligence
Sino German securities had problems in LETV’s non-public offering recommendation business in 2016: (1) the sales of the top ten customers were not fully obtained and compiled; (2) The authenticity of the business was not effectively verified.
The above-mentioned acts of Sino German securities are suspected of violating the provisions of paragraphs 7, 8 and 9 of Article 22 of the working standards for due diligence of sponsors; Suspected of violating the provisions of Article 30 of the measures for the administration of securities issuance and listing recommendation business; Suspected of violating the provisions of paragraph 2 of Article 11 of the securities law of the people’s Republic of China (hereinafter referred to as the securities law of 2005), which was revised in 2005, and suspected of constituting the situation described in article 192 of the securities law of 2005. Yang Lijun and Wang Xin, the signing and recommendation representatives of LETV’s non-public offering, are the directly responsible executives.
The above facts are proved by relevant issuance application documents, due diligence working papers of Sino German securities, written records of inquiries of the parties, information explanations provided by the parties, relevant evidence of LETV’s fictitious business and other evidence.
According to the facts, nature, circumstances and degree of social harm of the illegal acts of the parties, and in accordance with Article 192 of the securities law of 2005, the CSRC plans to decide:
1. Order Sino German securities to make corrections, give a warning, confiscate the business income of 5660377 yuan and impose a fine of 11320754 yuan;
2. Give a warning to Yang Lijun and Wang Xin and impose a fine of 150000 yuan respectively.
In accordance with articles 45, 63 and 64 of the administrative punishment law of the people’s Republic of China and the relevant provisions of the administrative punishment hearing rules of the China Securities Regulatory Commission, Zhongde securities, Yang Lijun and Wang Xin have the right to state, defend and request a hearing on the administrative punishment to be implemented by the CSRC.
2、 Impact on the company and risk tips
The advance notice of administrative punishment received by Zhongde securities, the holding subsidiary of the company, involves illegal acts and does not touch the major illegal compulsory delisting stipulated in articles 9.5.1, 9.5.2 and 9.5.3 of the stock listing rules of Shenzhen Stock Exchange (revised in 2022). At present, the operation of the company is normal. Subsequently, the company will perform the obligation of information disclosure in strict accordance with the regulatory requirements. The information disclosure media designated by the company are securities times, China Securities News, Shanghai Securities News, securities daily and cninfo.com（ http://www.cn.info.com.cn. ）, the information released by the company is subject to the announcements published or released by the above media. Please invest rationally and pay attention to investment risks. It is hereby announced
Shanxi Securities Co.Ltd(002500) board of directors March 21, 2022
