Last night, for more than 230,000 shareholders holding Jinfa Technology (600143), it was hard to sleep all night. Why is the reason? The company's chairman is released on bail by for suspected insider trading and leaking insider information. This is a worse problem for Jinfa Technology, whose stock price has fallen by 70% in more than a year.
The billionaire was investigated by the police
Public information shows that Jinfa Technology's main business is the research, development, production and sales of new chemical materials. Its main products include new materials such as modified plastic , completely biodegradable plastic , as well as medical and health products such as meltblown cloth, masks, and gloves. Jinfa Technology is one of the most complete products in the global chemical new materials industry, and is also the largest and most complete products in the Asia-Pacific region.
The announcement issued by Jinfa Technology on the evening of the 26th stated that the company received a notice from the actual controller and chairman of Yuan Zhimin on the same day. Due to suspected insider trading and leaking insider information in 2016, Yuan Zhimin was investigated by the Economic Crime Investigation Bureau of Shenzhen Public Security Bureau. Shenzhen Public Security Bureau issued a "Bao Pending Decision" to him, deciding to release him on bail, and the deadline will be calculated from May 25.
Jinfa Technology's 2021 annual report shows that Yuan Zhimin, male, 60 years old, founded Jinfa Technology in 1993, currently holds 19.83% of the company's equity , and receives a reward of about 3.85 million yuan from the company in 2021. In the Hurun Global Rich List released in March 2022, Yuan Zhimin and his wife, Xiong Haitao, ranked 1767th with a wealth of 13.5 billion yuan.
Jinfa Technology stated that at present, Yuan Zhimin, the actual controller and chairman of the company, performs his duties normally, the company's operations are normal, and the management is stable. The company's board of directors and management will ensure that the company's business activities are carried out normally.
The annual report shows that Yuan Zhimin is a master of engineering at Beijing Institute of Technology. He founded Jinfa Technology Co., Ltd. in 1993. He has served as the 12th National People's Congress representative , Guangdong Federation of Industry and Commerce , Guangzhou Federation of Industry and Commerce , Guangzhou Municipal Committee of the Chinese People's Political Consultative Conference Standing Committee, Guangzhou Science and Technology Association Vice Chairman.
According to Article 182 of the " Criminal Law ", if the securities and futures market is manipulated and the securities and futures trading prices or the trading volume of securities and futures , and the circumstances are serious, the sentence shall be sentenced to fixed-term imprisonment of not more than five years or detention, and shall be fined alone; if the circumstances are particularly serious, the sentence shall be sentenced to fixed-term imprisonment of not less than five years but not more than ten years, and shall be fined. The executives of listed companies have changed from 's designated residence to surveillance in to bail pending trial for suspected manipulation of the securities and futures markets. In judicial practice, if the crime is convicted, they may be sentenced to probation in the future.
Recalling the administrative penalty letter disclosed by the China Securities Regulatory Commission in June 2019, it shows that in 2016, Yuan Zhimin joined hands with others to illegally buy Jinfa Technology's stocks for more than 15 million yuan before the company disclosed its employee stock ownership plan in accordance with the law. Therefore, the China Securities Regulatory Commission confiscated 327,300 yuan of illegal gains and was fined 589,100 yuan.
The stock price fell sharply, falling 70% in more than a year
Published information shows that Jinfa Technology is one of the most complete products and largest production modified plastics manufacturers in China, mainly engaged in the research, development, production and sales of new chemical materials. Jinfa Technology is headquartered in Guangzhou Science City , with 48 subsidiaries and has R&D and production bases in overseas regions such as South Asia, North America, and Europe.
In terms of performance, financial data shows that in 2021, Jinfa Technology's revenue reached 40.199 billion yuan, and increased by 14.65% year-on-year. In terms of net profit, it was 1.661 billion yuan, a significant decrease of 63.78% year-on-year.
In the first quarter of this year, Jinfa Technology's net profit continued to decline, achieving 421 million yuan, a year-on-year decrease of 44.93%.
It is also worth mentioning that blonde technology, which is backed by high-quality concepts such as biodegradable plastics, is a star stock in the capital market in recent years. In 2020, the company made a big profit by producing anti-epidemic products, and its stock price increased by from the low point at the end of 2018.Market data shows that the company's stock price in 2018 was 3.31 yuan per share. However, after the low point, it began to rise continuously, and as of the end of February 2021, it rose to 31.91 yuan per share, an increase of nearly 10 times.
But unfortunately, the high-level pullback is also very tragic. Since the historical high set on February 3, 2021, the stock price has fallen by more than 70%.
Regarding the sharp decline in the stock price, a person from Jinfa Technology Securities Department told the reporter of " China Times " that the stock price is affected by various factors in the secondary market, and the company has paid attention to this, but whether some measures will be taken depends on the subsequent situation. In this regard, since information disclosure issues are involved, everything is subject to the announcement.
Source: Hexun.com, China Times, etc.
