Following the China Securities Regulatory Commission, the Shanghai Stock Exchange (SSE) also issued a fine to Huang Youlong and Zhao Wei.
According to The Paper, on the evening of the 20th, the Shanghai Stock Exchange issued a decision on disciplinary action against Zhejiang Xiangyuan Culture Co., Ltd., Tibet Longwei Culture Media Co., Ltd. and relevant responsible persons.Kong Deyong, Tibet Longwei Culture Media Co., Ltd. and its directly responsible personnel Huang Youlong, Zhao Wei, and other directly responsible personnel Zhao Zheng publicly condemned them, and publicly determined that Kong Deyong, Huang Youlong, Zhao Wei, and Zhao Zheng were not suitable to serve as directors, supervisors, and supervisors of listed companies within 5 years.senior management.
At the end of 2016, Longwei Media, a subsidiary of Zhao Wei and Huang Youlong, announced that it planned to acquire a 29% stake in Wanjia Culture, with a consideration of 3.06 billion yuan.
The reason why this transaction has become the focus of market attention is that among the 3.06 billion yuan proposed by Zhao Wei, 3 billion yuan will come from borrowings, and the leverage ratio is as high as 51 times.Zhao Wei's celebrity status has attracted attention.However, the acquisition plan has been changed several times in a short period of time, from the transfer of controlling rights to the acquisition of only 5% of the shares, and finally completely terminated, and the two parties will not pursue any liability for breach of contract, which directly caused the share price of Wanjia Culture to ride a roller coaster.
In April 2018, the official website of the China Securities Regulatory Commission issued an administrative penalty decision and a market ban decision, ordering Wanjia Culture and Longwei Media to make corrections, giving warnings, and imposing a fine of 600,000 yuan respectively; Kong Deyong, Huang Youlong, Zhao Wei, Zhao WeiHuang Youlong, Zhao Wei, and Kong Deyong were banned from entering the securities market for 5 years.
The acquisition of Wanjia Culture’s equity at a price of 3 billion through high leverage was finally determined by the China Securities Regulatory Commission as seriously affecting the market order, damaging the confidence of small and medium investors, and affecting the fairness, justice and openness of the market.
The China Securities Regulatory Commission determined that Longwei Media was established one month before the acquisition, and did not make sufficient preparations for funds during the period. In the case of limited domestic payable funds and insufficient preparations for financial institutions to acquire funds, they adopted a highly leveraged acquisition method and signed aEquity Transfer Agreement.Under the circumstances that the ability to perform and the results of the performance are inaccurate, and the authenticity and accuracy of the acquisition cannot be guaranteed, rashly announce the acquisition information.Due to the superposition of celebrity effects and other factors, his behavior seriously misled the market and investors, aroused great attention from the market and the media, and caused the stock price of Wanjia Culture to fluctuate sharply, seriously disrupting the normal market order.
In the disciplinary decision announced by the Shanghai Stock Exchange, the Shanghai Stock Exchange mainly pointed out the violations of Kong Deyong, Huang Youlong, Zhao Wei, and Zhao Zheng in fulfilling their information disclosure obligations, including failing to fully warn of the risk of termination, which seriously misled the market and investors.There are major omissions in false records in plans and arrangements; failure to timely disclose the failure to reach financing cooperation with financial institutions, etc.
The disciplinary punishment decision made by the Shanghai Stock Exchange is: publicly determine that Kong Deyong, Huang Youlong, Zhao Wei, and Zhao Zheng are not suitable to serve as directors, supervisors, and senior managers of listed companies within 5 years, and publicly condemn them.
The Shanghai Stock Exchange stated that the above-mentioned disciplinary action will be notified to the China Securities Regulatory Commission and the Zhejiang Provincial People's Government, and recorded in the integrity file of the listed company.If a party refuses to accept the above-mentioned disciplinary decision of public condemnation, it may apply to the Exchange for a review within 15 trading days, and the execution of this decision will not be suspended during the review period.
The Shanghai Stock Exchange also reminded that companies, company acquirers and their relevant responsible persons should take precautions, strictly follow the provisions of laws, regulations and stock listing rules, and conscientiously perform their information disclosure obligations.
