Source: e company
Many years after the "Kangmei case" has settled, there is a follow-up.
On the evening of March 12, st Kangmei (600518) announced that the company’s dispute over the right to recover with Ma Xingtian, Xu Dongjin, and Qiu Xiwei was put on trial, involving an amount of 2.607 billion yuan. At the same time, ST Kangmei’s case of recovering RMB 341 million from Guangdong Genzhong Zhujiang Accounting Firm (referred to as “Genzhong Zhujiang”) has also been accepted and filed.
Recovered 2.6 billion yuan from the former executives
Public information shows that Ma Xingtian is the former chairman and general manager of Kangmei Pharmaceutical, Xu Dongjin is the former vice chairman and executive deputy general manager of the company, and Qiu Xiwei is the former director, deputy general manager, and former secretary of the board of directors .
As early as November 12, 2021, the court ruled that Kangmei Pharmaceutical should compensate 52,037 investors for investment losses of approximately 2.459 billion yuan, and Ma Xingtian, Xu Dongjin, Qiu Xiwei, etc. bear joint liability for repayment.
Since then, during the bankruptcy and reorganization proceedings, Kangmei Pharmaceutical completed the above-mentioned compensation according to the "Reorganization Plan", and received the "Civil Ruling" on December 29, 2021. The Jieyang Intermediate People's Court ruled to confirm the company's reorganization. The plan has been implemented.
On April 27, 2022, Kangmei Pharmaceutical submitted case filing materials to the court and claimed joint and several liability to other responsible persons in accordance with the law. Among them, the lawsuit requested an order for Ma Xingtian, Xu Dongjin, and Qiu Xiwei to pay a total of 2.607 billion yuan in compensation, interest, litigation fees, and attorney fees that the company has already borne. The case was recently decided by the Guangzhou Intermediate People's Court to be filed for trial.
In addition, Kangmei Pharmaceutical also filed a lawsuit with the People's Court of Yuexiu District, Guangzhou City, requesting an order to award Zhengzhong Zhujiang Payment Company the total compensation, interest, litigation fees, and attorney fees of 341 million yuan. The lawsuit was filed for acceptance on October 12 last year and is currently pending trial.
Regarding the impact of the lawsuit, st Kangmei said that the above-mentioned cases are still in the filing and acceptance stage. At present, the company is unable to determine the impact on the company's profits for the current period or subsequent periods. The specific impact will be subject to subsequent execution and audit reports.
Multiple relevant parties have been pursued
Although the "Kangmei case" has been settled, the accountability of relevant parties continues.
In April 2023, the Jieyang Intermediate People's Court of Guangdong issued a "Civil Ruling" ((2022) Guangdong 52 Po No. 13), declaring the bankruptcy of Kangmei Industrial Investment Holdings Co., Ltd., the original controlling shareholder of Kangmei Pharmaceutical. The ruling shows that Kangmei Industrial's debt repayment assets include monetary funds, other receivables, inventories, long-term equity investments, fixed assets, intangible assets, etc. Subsequently, the manager will dispose of Kangmei Industrial's properties in accordance with the "Property Valuation Plan" and formulate a property distribution plan after the property disposal is completed.
In June 2023, the Beijing High Court made a final ruling on Yang Wenwei, a partner of Genzhong Zhujiang, and added Yang Wenwei as the person subject to execution.
It is understood that in the Kangmei Pharmaceutical fraud case, Genzhong Zhujiang’s practice certificate was canceled due to false records in the audit report it issued. At the same time, its business income of 14.25 million yuan was confiscated and a fine of 42.75 million yuan was imposed, for a total of 57 million yuan. Yang Wenwei was the signed certified public accountant for Kangmei Pharmaceutical's financial statement audit report from 2016 to 2018 (the year of financial fraud). He was Genzhong Zhujiang's general partner and the person directly responsible for issuing the false financial statement audit report. Therefore, the China Securities Regulatory Commission Submit an application to the court to add Yang Wenwei as the person subject to execution.
Turn losses into profits in 2023
In May 2019, Kangmei Pharmaceutical took the initiative to apply for the implementation of "other risk warnings", and since then it has become "st Kangmei". Since then, Kangmei has successively experienced a series of changes such as trusteeship, bankruptcy and reorganization, and changes in controlling shareholders. At the same time, the company has also worked hard to drag its performance out of the quagmire.
In early February this year, st Kangmei released a performance forecast, predicting that it would turn losses into profits in 2023. Since then, the company's stock price has continued to rise or soar red for many trading days. This is the first time that st Kangmei has made a profit since the hosting team settled in 2020.
st Kangmei said it expects to achieve a net profit of 90 million yuan to 135 million yuan in 2023, and will turn a loss into a profit year-on-year. The main reason behind this is that the revenue scale of
is expected to grow by about 16% in 2023, and preliminary estimates will drive the company's gross profit to increase by about 200 million yuan.
Secondly, there is the impact of non-recurring gains and losses. Government subsidies and debt restructuring income are about 60 million yuan. The company has increased asset disposal, and the income from non-current asset disposal has increased by nearly 100 million yuan. And due to debt settlement and other factors, a separate impairment test has been carried out. The provision for impairment of accounts receivable was reversed by about 200 million yuan. At the same time, according to the liquidation review conclusion issued by the tax authorities, part of the local tax increase of about 400 million yuan was reversed. The relevant person in charge of the company also publicly stated that "the revenue target for 2023 has been achieved relatively satisfactorily."
It is understood that st Kangmei announced in 2022 that it will strategically position itself as a smart traditional Chinese medicine and big health brand enterprise with the core of traditional Chinese medicine pieces, focusing on "creating a full-chain characteristic industry of traditional Chinese medicine pieces" and "providing special medical, health and wellness services" The two strategic main lines have fully launched the five major business sectors of traditional Chinese medicine, medical and health care, traditional Chinese medicine city, health products and pharmaceutical business.
But it is worth noting that on the evening of March 12, st Kangmei also issued an announcement that its subsidiary had been filed for bankruptcy liquidation. According to disclosures, Foshan Xiangying Furniture Manufacturing Co., Ltd., a creditor of Kangmei Traditional Chinese Medicine City (Puning) Co., Ltd., a wholly-owned subsidiary, applied for bankruptcy liquidation to the Intermediate People’s Court of Jieyang City, Guangdong Province on the grounds that Puning Traditional Chinese Medicine City was unable to pay off its due debts.
If the case is eventually ruled to be liquidated, it will undoubtedly have a certain impact on ST Kangmei’s Chinese Medicine City business segment.
However, st Kangmei also stated that Puning Traditional Chinese Medicine City plans to submit a "Bankruptcy Application Objection" to Jieyang Intermediate People's Court with relevant evidence and materials. The respondent is not insolvent, and Puning Traditional Chinese Medicine City has the basis for continued operations and bankruptcy. Liquidation is not in the interest of creditors including the applicant. And if Puning Traditional Chinese Medicine City enters bankruptcy liquidation procedures, it will have little impact on the company's Chinese Medicine City business income, and the company's Chinese Medicine City assets will shrink accordingly.
