Guizhou Bailing Group Pharmaceutical Co., Ltd., listed as ST Bailing, announced that its actual controller Jiang Wei has received an advance notice of administrative penalty from the China Securities Regulatory Commission. For suspected insider trading, violations of information disclosure rules, and transferring shares in breach of restrictive regulations, Jiang Wei is to have about 156 million yuan of illegal gains confiscated and be fined about 157 million yuan, bringing the total confiscation and fines to about 313 million yuan. He will also be barred from the securities market for five years. Another party involved, Gu Zili, is to be fined a total of 3 million yuan for helping Jiang Wei hold shares and derivative contracts on his behalf, participating in insider trading decisions, and relaying instructions. Investigations found that Jiang Wei held company shares and over-the-counter derivative contracts through private fund products. During the sensitive period for insider information in April 2024, he decided to sell shares and terminate derivative contracts early, avoiding losses of about 156 million yuan. From 2022 to 2024, he failed to truthfully report his shareholdings, causing false records of shareholding information in multiple announcements. Between October 2022 and January 2023, he transferred shares in violation of restrictive regulations. The company said the matter does not involve the listed company, will not affect normal production and operations, and does not trigger mandatory delisting for major violations.
Guizhou Bailing Group Pharmaceutical Co LtdActual controller penalized for insider trading and disclosure violations, though company says operations unaffected.
