Luo Weiguo, the actual controller of Tianyu Bio, has been ordered by the Chongqing bureau of the China Securities Regulatory Commission to forfeit 15.8533 million yuan in illegal gains and pay a fine of 19.75 million yuan for illegal share reduction, bringing the total penalty to more than 35 million yuan. The Shanghai Stock Exchange also publicly censured him on the same day. Luo Weiguo, through the Muxin Bronze No. 1 Fund, of which he was the sole unit holder, formed a concert-party relationship with himself. Between November 15 and December 28, 2021, he cumulatively reduced his holdings by 14.5792 million shares, accounting for 5.02 percent of total share capital. To conceal the violation, Luo Weiguo transferred the fund units to an individual named Wan Mouhong and announced that the concert-party relationship no longer existed. However, the Chongqing bureau determined that the transfer had no commercial substance, and the actual illegal reduction involved 11.6777 million shares worth 165 million yuan. Luo Weiguo had applied to make representations and request a hearing, but later gave up the hearing in writing before it took place. Tianyu Bio stressed that the penalty only concerns the personal conduct of the actual controller and does not affect the company's normal production and operations.
Tianyu Ecology & Landscape CoActual controller fined for illegal share reduction, regulatory penalty.
