The China Securities Regulatory Commission (CSRC) has recently disclosed the first administrative penalty decision in 2022, involving a financial fraud case of about $6.35 million of Chinese fertilizer giant Kingenta Ecological.
Zhongxin Finance reported on Feb. 12 that a probe has found Kingenta guilty of falsifying revenue and profits, concealed related transactions, and falsely recorded assets and liabilities between 2015 and the first half of 2018.
Additionally, some of its subsidiaries transferred funds by entering bogus contracts with suppliers, consumers, and other third parties.
Following the charges, the CSRC ordered the company to make corrections. Kingenta and eight senior executives found responsible for the crime will have to pay a total of nearly $1.18 million in penalties.
On the same day, CSRC also issued a 10-year market ban decision on Wan Lianbu, who established Kingenta in 1998. In addition, he is required to pay 2.4 over $377,000.
Yong Tang, manager of the finance department, was banned for three years.
Kingenta’s share price closed at $0.42 on Feb. 11, an increase of 0.37%. However, this year, the company’s share price has fallen by more than 10%.