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recently, the zhejiang securities regulatory bureau disclosed five administrative penalty decisions, making public the illegal insider trading of shengyang technology stocks by five people.

according to the disclosed details, ye shengyang, the son of shengyang technology's chairman, as an insider of the insider information, suggested to three high school classmates to buy and sell shengyang technology stocks at a dinner party. in the end, all four of them and the chairman's driver were fined, with the total amount of fines and confiscations exceeding 23 million yuan.

chairman's son leaked secrets during dinner with high school classmates

the penalty decision shows that on september 25, 2020, ye mouming, chairman and actual controller of shengyang technology, received an introductory material about jiaoxin group sent by others on wechat and learned that there was a cooperation project.

after negotiations and discussions, on february 10, 2021, shengyang technology's controlling shareholder shengyang holdings and ye mouming signed a "share transfer agreement" with guojiao beidou, stipulating that shengyang holdings would transfer 7.69% of shengyang technology's shares to guojiao beidou. on february 18, 2021, shengyang technology disclosed a series of announcements including the "indicative announcement on changes in the equity of the controlling shareholder" regarding the aforementioned matters.

on october 29, 2021, shengyang technology signed a "cooperation intention agreement" with jiaoxin group, intending to purchase 100% of the equity of beijing zhongjiao by issuing shares and paying cash. on october 30, 2021, shengyang technology issued a "suspension announcement on planning major asset restructuring" for the above-mentioned matters. the company was suspended from november 1 and resumed trading on november 15.

the zhejiang securities regulatory bureau stated that shengyang technology's purchase of 100% of beijing cccc's equity by issuing shares and paying cash was insider information as defined in article 52 of the securities law before it was made public.the insider information was formed no later than october 25, 2020 and made public on october 30, 2021.ye mouming, ye shengyang and others are insiders of the inside information. among them, ye shengyang learned about it no later than november 19, 2020.

public information shows that ye shengyang is the son of ye mouming, chairman and actual controller of shengyang technology, and was born in 1987. he has served as assistant to the general manager of zhejiang shengyang technology co., ltd., head of the investment committee of shanghai nianfang investment management co., ltd., and director and general manager of shengyang technology, and left in april 2021.

the penalty decision shows thatye shengyang and shan, cao, and yuan were high school classmates, have known each other for many years, and the four of them have established a wechat group and often play basketball together. in addition, shan works at shengyang technology.

from the evening of may 4 to the early morning of may 5, 2021, ye shengyang, shan, cao, and yuan moujie had dinner together. during the meal, ye shengyang analyzed shengyang technology and told them that they could buy now, and it was up to them to decide whether to buy or not.afterwards, shan, cao and yuan all bought shares of shengyang technology. ye shengyang knew that shan and yuan had bought shares of shengyang technology and discussed account opening, transactions and earnings with shan on wechat.

the above facts are sufficiently proven by evidence such as company announcements, situation explanations, interrogation records, securities account information and transaction records, bank fund flows, and calculations of illegal income.

the four were fined more than 20.5 million yuan

another driver was fined

the zhejiang securities regulatory bureau stated that as an insider of the insider information, ye shengyang recommended shan, cao, and yuan moujie to buy shengyang technology stocks during the sensitive period of insider information, which violated the provisions of article 53, paragraph 1 of the securities law and constituted an illegal act as described in article 191, paragraph 1 of the securities law.

according to the facts, nature, circumstances and degree of social harm of the illegal acts committed by the parties, in accordance with the provisions of article 191, paragraph 1 of the securities law,the zhejiang securities regulatory bureau decided to impose a fine of 2.5 million yuan on ye shengyang for advising others to buy and sell shengyang technology shares before the insider information was disclosed.

three high school classmates were also fined.among them, shan had his illegal gains of 793,700 yuan confiscated and was fined 1,587,300 yuan; cao had his illegal gains of 446,200 yuan confiscated and was fined 800,000 yuan; yuan had his illegal gains of 4,793,800 yuan confiscated and was fined 9,587,700 yuan.

the total amount of fines and confiscations exceeds 20.5 million yuan.

in addition, xu has known ye's family since childhood. during the period of the case, he was responsible for taking care of ye's family affairs, served as ye's driver, had frequent contact with ye, and served as the manager of shengyang holdings from august 2018 to november 2021. ye went to shanghai on october 25, 2020 to discuss with jiaoxin fund personnel, and went to shanghai on september 21, 2021 to communicate, all of which were driven by xu.

the zhejiang securities regulatory bureau pointed out that during the sensitive period of insider information, xu had contact with ye mingming, who knew the insider information, and controlled xu's account group to trade shengyang technology stocks. the trading activities were highly consistent with the insider information, and the trading behavior was obviously abnormal, and he failed to provide a reasonable explanation for the abnormal trading behavior. the above behavior violated the provisions of article 50 and article 53, paragraph 1 of the securities law, and constituted insider trading as described in article 191, paragraph 1 of the securities law.

according to the facts, nature, circumstances and degree of social harm of the illegal acts committed by the parties, in accordance with the provisions of article 191, paragraph 1 of the securities law,xu's illegal gains of 1.1383 million yuan were confiscated and he was fined 2.2765 million yuan.

the company's revenue increased but profits did not in the first half of the year

according to official website information, zhejiang shengyang technology co., ltd. was founded in 2003. its predecessor was zhejiang shengyang cable co., ltd. in 2010, it underwent a share restructuring and was renamed zhejiang shengyang technology co., ltd. it was listed on the shanghai stock exchange in april 2015.

the company's products mainly include coaxial cables, data cables, high-frequency heads, small-size display screens and 5g communication base stations. the products are mainly used in various standard signal transmission systems such as television (cable tv, satellite tv), fixed networks, wireless networks, and satellite communications.

in the first half of this year, the company achieved revenue of 357 million yuan, a year-on-year increase of 1.36%; net profit attributable to the parent company was 5.1275 million yuan, a year-on-year decrease of 49%. as of the end of june, the total number of shareholders of the company exceeded 15,700 households.

comesource:china fund news