The Securities Association of China plans to take strict self-discipline measures and have "zero tolerance" for bribery.
Recently, the Securities Association of China plans to amend some provisions of the "Securities Association of China Implementation Measures for Self-Discipline Measures" to thoroughly implement the Party Central Committee's decision-making and deployment on insisting on investigating both bribery and bribery, and severely punish bribery in the capital market with a "zero tolerance" attitude .
Recently, companies such as Dashanlin and Huayu Software were punished for bribery by their units, thus becoming negative examples in the capital market.
Racing to gain acreage on the commercial battlefield and seeking fame in the capital market is the current situation of Da Shen Lin (603233.SH).
On the evening of April 12, an announcement released by Dashenlin showed that the company received a "Criminal Judgment". Its subsidiary Maoming Dashenlin Chain Pharmacy Co., Ltd. (referred to as "Maoming Subsidiary") was guilty of unit bribery and was sentenced to a fine of 4 million yuan. ; Ke Jinlong, the actual controller of the company, was convicted of bribery by his employer and was sentenced to three years and six months in prison and fined 500,000 yuan.
It should be noted that the Maoming subsidiary received the "Notice of Case Filing" issued by the Maoming City Supervisory Committee on August 18, 2023, but it was not disclosed until half a year later, that is, on March 2, 2024, that Da Shenlin was suspected of Disclosure violation.
As one of the leading pharmaceutical retail chains in China, as of the end of the third quarter of 2023, Dashanlin has 12,993 stores.
Under rapid expansion, as of the end of the third quarter of 2023, Dashenlin's gross profit margin continued to decline to 37.05%.
Recently, Dashenlin terminated its plan to raise 1.897 billion yuan (originally planned to raise 3.025 billion yuan).
Ke Jinlong was sentenced to three and a half years for bribery
On the evening of April 12, Dashanlin announced that the company had recently received a "Criminal Judgment" issued by the People's Court of Dianbai District, Maoming City, Guangdong Province.
The "Criminal Judgment" shows that the defendant's Maoming subsidiary was guilty of unit bribery and was sentenced to a fine of RMB 4 million; the defendant Ke Jinlong was guilty of unit bribery and was sentenced to three years and six months in prison and fined RMB 500,000.
Da Shenlin said that as of the date of the announcement, the company's production and operations were normal. The lawsuit involves the historical wholesale business of the Maoming subsidiary, which accounts for a low proportion of business revenue. The company's main business is concentrated in the retail business of chain drugstores. Ke Jinlong himself does not currently hold any position in the company and does not participate in any business management affairs of the company. The matters involving Ke Jinlong in this lawsuit will not have a significant adverse impact on the company's normal production and operations.
Da Shenlin also stated that the first-instance judgment of this lawsuit will have a small impact on the company's profits and losses and will not affect the company's normal production and operations. However, since the judgment of this lawsuit has not yet taken effect, the company is temporarily unable to accurately determine the specific impact.
It is worth noting that on March 2, Dashanlin announced that its Maoming subsidiary received the "Indictment" from the People's Procuratorate of Dianbai District, Maoming City, Guangdong Province on November 23, 2023. The plaintiff is the People’s Procuratorate of Dianbai District, Maoming City, Guangdong Province, and the defendant is Maoming Dashenlin Chain Pharmacy Co., Ltd., and the defendant is Ke Jinlong, one of the actual controllers of the company; the litigation institution is the People’s Court of Dianbai District, Maoming City, Guangdong Province, and the litigation institution is The location is Dianbai District, Maoming City, Guangdong Province.
Dashenlin's supplementary announcement shows that the Maoming subsidiary received the "Notice of Case Filing" (printed on August 11, 2023) issued by the Maoming Municipal Supervisory Committee on August 18, 2023, and launched an investigation into the Maoming subsidiary; On August 24, 2023, I received the "Detention Notice" (printed on August 21, 2023) regarding the criminal detention of Ke Jinlong, one of the actual controllers of the company, issued by the Dianbai Branch of the Maoming Public Security Bureau. Subject to criminal detention; on November 23, 2023, the "Indictment" (printed on October 12, 2023) was received from the People's Procuratorate of Dianbai District, Maoming City, Guangdong Province, and a public prosecution was launched in accordance with the law on suspicion of unit bribery; according to the "Indictment" ", Ke Jinlong was detained on July 14, 2023.
However, for as long as half a year, Dashenlin did not make any announcement on the above situation.
Da Shenlin said that during this process, the company mistakenly believed that the matter had not had a major impact on the company's production and operations. At the same time, because the case was still under trial and had not yet been decided, the company did not grasp the relevant information disclosure requirements accurately and failed to do so in a timely manner. Making an announcement, the company sincerely apologizes for the negative impact caused by this incident.
On April 9, Dashanlin announced that the company had recently received a decision on administrative supervisory measures from the Guangdong Supervision Bureau of the China Securities Regulatory Commission, taking administrative supervisory measures of supervisory talks against the company’s chairman Ke Yunfeng, general manager Ke Guoqiang, and board secretary Liang Runshi.
The gross profit margin of nearly 13,000 stores dropped
Dashenlin is one of the leading pharmaceutical retail chain companies in China, mainly engaged in chain retail business of Chinese and Western patent medicines, ginseng nourishing medicinal materials and traditional Chinese medicine pieces, health products, medical equipment and other commodities. Currently, the actual controllers of Dashenlin are Ke Yunfeng, Ke Kangbao, and Ke Jinlong, and the three are brothers.
Data shows that from 2020 to 2022, the number of Dashenlin chain stores will be 6,020, 8,193 and 10,045 respectively, with an average annual rate of 2,000 and entering the "era of thousands of stores".
The announcement of operating data in the third quarter of 2023 shows that as of the end of the third quarter of that year, Dashanlin had 12,993 stores (including 3,688 franchise stores) with a total operating area of 809,500 square meters (excluding franchise store area). -In September, the company added a net of 2,948 stores, including 1,019 newly opened stores, 427 acquired stores, 1,681 franchised stores, and 179 closed stores.
In terms of performance, from 2019 to 2022, Dashenlin’s operating income was 11.141 billion yuan, 14.583 billion yuan, 16.759 billion yuan, and 21.248 billion yuan respectively; net profits were 703 million yuan, 1.062 billion yuan, 791 million yuan, and 1.036 billion yuan respectively. Yuan.
In the first three quarters of 2023, Dashenglin's operating income reached 17.723 billion yuan, a year-on-year increase of 19.61%, and is expected to reach 25 billion yuan for the whole year; net profit was 1.174 billion yuan, a year-on-year increase of 27.20%.
However, under the rapid expansion, the asset-liability ratio of Dashanlin has also continued to rise, reaching 50.05%, 54.81%, 65.76%, and 67.06% respectively from 2019 to 2022.
At the end of the third quarter of 2023, Dashanlin's asset-liability ratio reached 63.28%, still maintaining a high level.
At the same time, the gross profit margin of Da Shen Lin continues to decline, reaching 39.48%, 38.47%, 38.15%, and 37.80% respectively from 2019 to 2022. At the end of the third quarter of 2023, Dashenlin’s gross profit margin dropped to 37.05%.
It is worth mentioning that in January 2024, Dashenlin disclosed the "Proposal on Terminating the Issuance of Stocks to Specific Targets in 2023 and Withdrawing the Application Documents."
In January 2023, Dashanlin announced that it planned to raise no more than 3.025 billion yuan, of which 1.638 billion yuan would be used for pharmaceutical chain store construction projects to open 3,600 pharmaceutical chain stores.
In December 2023, Dashanlin announced that it would adjust the amount of funds raised from 3.025 billion yuan to 1.897 billion yuan.
Regarding the withdrawal of the fixed increase, Da Shenlin said that after comprehensive consideration of the market environment and the company's development plan and many other factors, full communication with relevant parties and prudent analysis and demonstration, the company decided to terminate the issuance of shares to specific objects and withdraw the Application document.

https://financecn/2024-04-15/detail-inarwimw4804410.d.html?cref=cj