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[introduction] the actual controller of st sansheng was guilty of manipulating the securities market and other crimes, and the court upheld the original verdict in the final instance

china fund news reporter heard

on the evening of september 3, st san sheng announced that the company's actual controller pan xianwen was guilty of manipulating the securities market and issuing stocks without authorization. the chongqing higher people's court recently made a final judgment on the case and upheld the original verdict.

pan xianwen's crime of manipulating the securities market began in 2018, when st san sheng's stock price reached its highest point of 30.84 yuan per share. now the stock price has fallen by more than 90%, and the total market value has fallen from more than 10 billion yuan at that time to 1.21 billion yuan.

the actual controller was upheld in the final trial

it is reported that the original verdict upheld by the chongqing higher people's court against pan xianwen refers to the verdict made by the chongqing first people's court against pan xianwen in january.

at that time, the chongqing first people's court issued a "criminal judgment" showing that pan xianwen was guilty of manipulating the securities market and was sentenced to two years in prison and a fine of 1 million yuan; he was guilty of issuing stocks without authorization and was sentenced to one year in prison. it was decided to execute a sentence of two years and six months in prison, suspended for three years, and a fine of 1 million yuan.

the criminal judgment shows that pan xianwen committed the crime of manipulating the securities market by conspiring with others to continuously buy and sell stocks with concentrated funds from august 17, 2018 to march 1, 2019. during this period, the securities account involved had a continuous number of shares bought and sold for more than 30% of the total trading volume of the company's stocks during the same period for 20 consecutive trading days.

pan xianwen was convicted of the crime of issuing stocks without authorization. as the directly responsible supervisor of chongqing beisheng pharmaceutical technology co., ltd., he issued stocks to more than 200 specific persons without the approval of the relevant state authorities.

looking back, the above case has lasted for more than three years. on june 1, 2021, pan xianwen was taken into criminal detention by the chongqing public security bureau for suspected manipulation of the securities market. he was released on bail on june 30, 2021, and was placed under residential surveillance on november 6, 2023.

as of the end of june 2024, pan xianwen, as the actual controller of st san sheng, holds 24.2% of the shares of st san sheng.

source: st sansheng 2024 semi-annual report

still affected by the actual controller's capital occupation

st san sheng announced that pan xianwen is not currently serving as a director, supervisor or senior executive in the company, and the above judgment will not affect the company's normal business operations.

however, as the actual controller of st san sheng, pan xianwen had previously caused the problem of controlling shareholder's misappropriation of st san sheng, which has not been resolved to date.

as of august 28, the balance of non-operating funds (including interest) occupied by pan xianwen and his affiliates from st san sheng reached 105 million yuan, accounting for 30.33% of st san sheng’s latest audited net assets.

on august 28, st sansheng announced that pan xianwen intends to solve the problem of capital occupation by introducing investors. the work of introducing investors is still in progress and the relevant plan is still under discussion. at present, pan xianwen and his related parties have not yet formulated an effective and executable plan.

on may 10, st san sheng received the "administrative supervision measures decision" issued by the chongqing securities regulatory bureau, which ordered the company and its actual controller to complete rectification within 6 months and resolve the problems of capital occupation and illegal guarantees.

article 8.6 of the "shenzhen stock exchange listing rules" (revised in 2024) stipulates that if the company and its actual controller fail to complete rectification within the required period, the company's shares and its derivatives will be suspended from the next trading day after the expiration of the prescribed period (november 11), and the suspension period shall not exceed two months.

it is reported that if a listed company completes rectification within the suspension period, the company's shares and its derivatives will be resumed; if the rectification is not completed within the suspension period, the company's stock trading will be subject to a delisting risk warning, and the company's stock abbreviation will be prefixed with "st".

editor: xiaomo

audit: wooden fish

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