Guizhou Bai Ling: The company and several related responsible persons were fined a total of 14.9 million yuan for violations.

Recently, Guizhou Bailin issued an announcement stating that, due to violations, the company was fined RMB 10 million, and multiple relevant responsible persons were collectively fined RMB 14.9 million.

According to the investigation, the company did not use the accrual basis as its accounting foundation. It accrued selling expenses in accordance with the matching principle for revenue, costs, and expenses, which resulted in RMB 350 million of selling expenses being under-accrued in 2019, and RMB 350 million of profit being overstated. This accounted for 95.73% of the total profit stated in the current-period report (absolute value, same below). In 2020 and 2021, selling expenses were under-accrued and profits were overstated by RMB 24,000 and RMB 63.79 million, respectively, accounting for 115.35% and 45.04% of the total profit. In 2023, selling expenses were overstated by RMB 459 million and profit was under-accrued, accounting for 93.17% of the total profit stated in the current-period report.

Jiang Wei, who served as the company’s then-chairman, was fined RMB 5 million and had a 10-year ban from the securities market. Niú Min, the then director, general manager, and secretary to the board of directors, was fined RMB 3.5 million; Jiang Yong, the brother of Jiang Wei—then director and deputy general manager, and also then-chairman—was fined RMB 2 million; Feng Jixian, the then deputy general manager, was fined RMB 1.5 million; Li Hongxing, the finance director and then held office, was fined RMB 800,000; Yuan Yuanzhen, the then executive deputy general manager, was fined RMB 600,000; independent directors Zhang Hongwu, Yang Ming, and Hu Jian were each fined RMB 500,000.

(Guizhou Bailin announcement)

(Editor: Yang Yan Lin Chen)

Key words:

                                                            Medical