5月18日早间,康美药业发布公告称,经核查,公司与相关关联公司存在88.79 亿元的资金往来,该等资金被相关关联公司用于购买公司股票,这一行为触及《上海证券交易所股票上市规则》13.1.1 条规定“投资者难以判断公司前景,投资者权益可能受到损害”的情形。公司向上海证券交易所申请对公司股票实施“其他风险警示”。
One of China’s largest listed drugmakers has asked the Shanghai stock exchange to suspend trading of its shares from Monday.
The news comes as Kangmei Pharmaceutical tries to limit the damage after regulators confirmed it fabricated its financial reports from 2016 to 2018.
The China Securities Regulatory Commission found Kangmei 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.
Kangmei confirmed in a stock filing that the company moved 8.88 billion yuan, or 1.28 billion dollars, through affiliated companies to purchase its own shares.
It admitted the practice made it, quote, “difficult for investors to judge the company’s prospects and investors’ rights and interests may have been damaged.”
The filing announced that the company had asked the exchange to suspend trading of its shares from Monday.
Trading in the company’s shares would then be moved to the risk warning board, where stock price changes would be limited to a daily movement of 5 percent to curb volatility.