Caixin
Caixin Global – Latest China News & Headlines

Home >

ABOUT US

CX Tech is Caixin Global's real-time tech news portal, featuring 24-hour news, short-form analysis, and roundups from business and tech media in China.

TRENDING
Pakistan Health Official Denies Report of Coronavirus Infection
Gold Extends Surge as Virus Spread Spurs Rush to Haven Assets
Oil Tumbles on Virus Fear While Saudis See ‘Very Limited’ Impact
LATEST
3M Cranks Up Face-Mask Production Amid Wuhan Virus Outbreak
Facebook, Nissan Evacuating, Starbucks Stores Shut: Virus Impact
Stocks Tumble Around the World on Virus Jitters
Coronavirus Could Hit Japan’s Economy Harder Than SARS, Say Economists
Pakistan Health Official Denies Report of Coronavirus Infection
Gold Extends Surge as Virus Spread Spurs Rush to Haven Assets
Oil Tumbles on Virus Fear While Saudis See ‘Very Limited’ Impact
WHO Declines to Declare Chinese Virus a Global Health Emergency
Chinese Airlines Told to Provide Free Cancellations on Domestic Flights
China Aims to Halve New Solar Plant Subsidy Budget for in 2020
Scientists Dispute Whether Snakes Are Source of Wuhan Coronavirus In Humans
Chinese Company Buys UK Steel Trading Company Stemcor
ByteDance Is Seeking a New CEO for Its TikTok Business
China Issues Biosafety Certificates to Domestic GM Soybean, Corn Varieties
Rail Transport of Coal Grows at Slower Pace
E-Commerce Sites to Block Price Gouging on Health Products in Virus Outbreak
Wuhan Suspends Public Transit System Amid Virus Fears
Chinese Internet Companies to Give Away Nearly 15 Billion Yuan in New Year Red Envelopes
Huawei CEO Dismisses Impact of More U.S. Sanctions
Huawei Again Tops China’s Software Industry, Which MIIT Says Is Still Frail
Regulator Finds Kangmei Pharma Fabricated Financial Reports

By Wang Juanjuan and Denise Jia / May 18, 2019 05:08 AM / Finance

Photo: IC Photo

Photo: IC Photo

China’s securities regulator concluded an investigation of one of China’s largest listed drugmakers, finding the company fabricating its financial reports from 2016 to 2018.

Shanghai-listed traditional Chinese medicine supplier Kangmei Pharmaceutical Co. Ltd. used fake bank deposit slips to inflate its cash reserves, forged documents for non-existent business activities, and transferred company funds to related parties to trade in its own stock, the China Securities Regulatory Commission (CSRC) said Friday.

Kangmei’s auditor, GP Certified Public Accountants Co. Ltd., the largest auditing company in Guangdong, was also put under investigation for failure to perform due diligence.

Kangmei disclosed April 30 that it was targeted by regulators on suspicion of false financial reports involving a 29.9 billion yuan ($4.4 billion) overstatement of cash on hand.

But the company’s founder and chairman Ma Xingtian described the overstatement as an “accounting error” as results of loopholes in internal controls and financial management. After correcting the accounts, the company’s net profit in 2016 and 2017 would have been reduced by half.

Kangmei was previously involved in several bribery cases involving government officials. According to court documents released last June, the company bribed Cai Ming, former director of the drug safety supervision department at the Guangdong Province Food and Drug Administration, to the tune of 300,000 yuan from 2014 to 2015.

In February, the company was rattled by default risks on $300 million of bonds. The crisis was eased later after the Guangdong provincial government stepped in.

Share this article
Open WeChat and scan the QR code