The Securities Regulatory Commission disclosing the illegal facts of Changsheng Biology and punishing 18 responsible persons

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 The Securities Regulatory Commission disclosing the illegal facts of Changsheng Biology and punishing 18 responsible persons


DATA FIGURE: China Securities Regulatory Commission. China News Agency correspondent Zhang Haofeng

BEIJING, Dec. 11, according to the website of the Securities Regulatory Commission, recently, the Securities Regulatory Commission filed a case investigation and tried the illegal and irregular acts of Changsheng Biological Information Disclosure according to law, and imposed administrative penalties on 18 parties, including Gao Junfang, Zhang Jing and Liu Jingye, and warned Changsheng Biological and imposed a fine of 600,000 yuan.

According to the relevant provisions of the Securities Law of the Peoples Republic of China (hereinafter referred to as the Securities Law), the SFC has investigated and tried the illegal and irregular acts of Changsheng Biological Information Disclosure according to law, and informed the parties of the facts, reasons, grounds and rights of administrative penalties according to law. The parties concerned, Changsheng Biology, Gao Junfang, Zhang Jing, Jiang Qianghua, Zhang Youkui, Zhang Huanhao and Zhao Chunzhi, did not submit statements or defend opinions, and did not request a hearing. The parties, Liu Jingye, Zhao Zhiwei, Ju Changjun and Wan Liming, put forward their statements and arguments without asking for a hearing. The parties, Liu Liangwen, Wang Xiangming, Xu Hong, Shen Yi, Ma Dongguang, Wang Qun and Yang Mingwen, requested statements, arguments and hearings. At the request of the parties concerned, the SFC shall hold hearings in accordance with the law to hear the statements and arguments of the parties and their agents. The case has now been investigated and heard.

It has been found that the following illegal facts exist in perennial organisms:

I. Disclosure of pertinent information about DPT vaccine in violation of regulations

(1) Long-lived organisms fail to disclose information on unqualified diphtheria tetanus vaccine testing, complete shutdown and recall according to regulations

On March 14, 2017, Jilin Provincial Institute of Pharmaceutical Inspection extracted a batch of adsorbed acellular DPT vaccine (batch number 201605014-01, hereinafter referred to as DPT vaccine) from Changchun Changsheng Biotechnology Co., Ltd., a wholly-owned subsidiary of Changsheng Biology, and sent it to China Food and Drug Institution for special sampling.

On October 10, 2017, the Chinese Procuratorate made a conclusion that the inspected products did not conform to the regulations.

On October 24, 2017, the Food and Drug Administration of Jilin Province (hereinafter referred to as the Food and Drug Administration of Jilin Province) issued the Notice of Service of the National Drug Sampling Variety Inspection Results and Preparation (hereinafter referred to as the Notice) and delivered it to Changchun Changsheng on October 26. Gao Junfang, then Chairman of the Board of Directors of Biology, General Manager, Financial Director and Legal Representative of Changchun Changchun Chairman, decided to release it. Abandon Changchun Changshengs right to reexamine, state or defend the test results as indicated in the Notification Letter.

On October 27, 2017, Changsheng Changchun held a meeting to study the response to the incident that the test results of DPT vaccine did not meet the standards. Changsheng decided to stop production and recall the vaccine that had been declared and approved. An emergency team was set up, such as recall, public opinion, control, verification and emergency response liaison. Immediately, Changchun Changshengs vaccine was completely discontinued.

On November 6, 2017, Changsheng Biology issued a bulletin that the potency index of the combined DPT vaccine produced in Changchun Changsheng, batch number 201605014-01, was not up to the standard in the drug sampling test of the Chinese Academy of Public Inspection.

On July 20, 2018, Changchun Changsheng received the decision of administrative penalty from the Food and Drug Administration of Jilin Province. The DPT vaccine produced by Changsheng in Changchun was punished as inferior medicine because its potency test did not meet the requirements.

Relevant persons who knew that DPT vaccine test was not qualified, production was stopped and recalled were Gao Junfang, Zhang Jing, Jiang Qianghua, Liu Jingye, Zhang Youkui, Zhao Chunzhi, Yang Mingwen and Zhao Zhiwei.

I will think that DPT vaccine is the first kind of vaccine which is included in the national immunization plan according to the Regulations on Vaccine Circulation and Vaccination Administration of the State Council. It has a great impact on childrens health and society. The actual sales of the vaccine in 2016 and 2017 were 38134,000 and 307,100,000 respectively. Although the total sales revenue was small, it had a wide impact. The sales volume of the vaccine exceeded the sales volume of the commodities (276,299,000 in 2016 and 303,970,000 in 2017). As a pharmaceutical manufacturer, the safety and reliability of product quality is related to the health and safety of the public, as well as the judgment of the investment value of the company by the public. It may have a significant impact on the trading price of Changsheng Biology stock. Changchun Changsheng, a subsidiary of Changchun Changsheng Biological Company, found that the vaccine did not meet the requirements of the national drug sampling test. It was totally discontinued and the vaccine that had been declared and approved was recalled. It belongs to Article 67, paragraph 1, paragraph 2, paragraph 1, paragraph 12 of the Securities Law and Article 30, paragraph 1 of the Regulations on Information Disclosure of Listed Companies (Order 40 of the Securities Regulatory Commission). Major events specified in Items (1), 16 and 21 of the second paragraph. Changsheng Biology failed to disclose the information that had a significant impact on investorsinvestment decisions.

(2) There are misleading statements and major omissions in the announcement of Changchun Changsheng Biological Products

On November 6, 2017, Changsheng Biology issued the Announcement on the Related Situation of Subsidiary Products, which disclosed that the batch number of Changsheng vaccine produced in Changchun is 201605014-01, and the potency index of DPT vaccine detected in the sample test of the Chinese Peoples Procuratorate does not meet the standard requirements, The batch of Changsheng vaccine produced in Changchun totals 252,600 (3/person), all sold to diseases in Shandong Province. Center for Disease Control and Prevention. The unqualified potency index of DPT vaccine in this batch may affect the immune protection effect, but it has no effect on human safety. The company will actively cooperate with the relevant departments such as the National Health and Family Planning Commission to evaluate the protection effect of the batch of vaccines, and take appropriate measures according to the regulatory requirements according to the evaluation results. Changsheng Changchun now carries out a comprehensive self-examination of the production system, carefully find out the reasons for the inefficiency, and strengthen quality control. In addition to DPT vaccine, Changchun Changsheng other vaccine products are normally produced and sold. The aforementioned batch of 252,600 DPT vaccines has achieved sales revenue of 833,825.24 yuan. In view of the small proportion of DPT vaccine in the companys total sales revenue, the above matters have no significant impact on the companys current production and operation.

According to the SFC, DPT vaccine is the first type of national vaccine for infants and young children, which is related to the health of infants and young children, and has great social impact. At the same time, the vaccine is one of the six major products on sale of Changsheng Biology. In 2017, the wholesale volume of the vaccine reached 9,004,803, which has a wide range of impacts. The quality of the vaccine will lead to social and public safety crisis, which will lead to huge operating risks of listed companies and huge losses to investors. In the case that the vaccine was found to be ineffective, the vaccine was completely discontinued and recalled, and the relevant drug regulatory authorities had intervened, Changsheng Biology only disclosed that the unqualified batch vaccine (batch number 201605014-01) sales revenue accounted for a small proportion of the companys total sales revenue, and that the unqualified vaccine sampling test had no significant impact on the companys current operation, but did not make the company involved. The full shutdown of vaccine production, the initiation of recall procedures, the involvement of relevant regulatory authorities and other possible impacts are fully disclosed to investors. Its behavior weakens market concern by avoiding the importance while neglecting the importance, seriously misleads investors, infringes on investorsrights and interests, and disrupts the normal market order.

(3) Changsheng organism did not disclose the information investigated by Jilin Provincial Food and Drug Administration

On July 20, 2018, Changsheng Biology issued the Announcement on the Subsidiary Company Receiving the Decision on Administrative Penalties, which showed that in the special national drug test, Changsheng Changsheng produced the `Adsorbed acellular DPT Combined Vaccine(batch number: 201605014-01), which was tested by China Institute of Food and Drug Verification and Research, the test results [potency determination] did not meet the requirements. If the above-mentioned drugs meet the requirements of item (6) of paragraph 3 of Article 49 of the Drug Administration Law of the Peoples Republic of China, they shall be punished according to inferior drugs, and if Changchun Changsheng violates Paragraph 1 of Article 49 of the Drug Administration Law of the Peoples Republic of China, the production and sale of inferior drugs shall be prohibited. The regulations will be filed for investigation on October 27, 2017. However, up to the announcement, Changsheng did not disclose the matters investigated by Jilin Food and Drug Administration.

After investigation, on October 26, 2017, while Jilin Provincial Food and Drug Administration served the Notice to Changsheng, Changchun Changsheng, its production department and inspection office staff have gone to Changsheng to supervise product recall and seal up inventory products. Changchun Changsheng staff also confirmed that they had cooperated with the Food and Drug Administration of Jilin Province to investigate the sales situation. On Nov. 3, a spokesman for the former State Food and Drug Administration introduced the disposal of unqualified products with pertussis vaccine potency index. He said that an investigation team was sent to investigate two enterprises (including Changsheng, Changchun) and conduct on-site production system compliance inspection.

Changchun Changsheng, a subsidiary of Changsheng Biology, was investigated for alleged violation of the Drug Administration Law of the Peoples Republic of China (hereinafter referred to as the Drug Administration Law), which belongs to the major events stipulated in Article 67, paragraph 1, paragraph 2 (12) of the Securities Law and Article 30, paragraph 1 and paragraph 2 (11) of the Measures for the Management of Information Disclosure of Listed Companies. Changsheng did not disclose the information that had a significant impact on investorsinvestment decisions.

The above facts are proved by relevant announcements, inquiry notes of parties and relevant personnel, minutes of meetings and relevant documents provided by the company.

The above-mentioned actions of immortals violate the provisions of Article 63, Article 66 and Article 67 of the Securities Law, Article 2, Article 19, Paragraph 1, Article 30, Article 32 and Paragraph 1 of the Measures for the Management of Information Disclosure of Listed Companies, and constitute the issuer, listed company or other mentioned in Paragraph 1 of Article 193 of the Securities Law. The obligor of information disclosure fails to disclose the information in accordance with the regulations, or the information disclosed has the illegal act of false record, misleading statement or major omission. Gao Junfang, then chairman, general manager and financial director of Changsheng Biology, was directly responsible for the above violations of Changsheng Biology. Other persons who know about Changchun Changsheng DPT vaccine are then directors, senior managers Zhang Jing, Zhao Chunzhi, then senior managers Jiang Qianghua, Liu Jingye, Zhang Youkui, Yang Mingwen and Zhao Zhiwei. The above-mentioned persons fail to meet the requirements of Article 68, paragraph 3, of the Securities Law to ensure that the information disclosed by listed companies is true, accurate and complete. They are Changsheng Biology. Other persons directly responsible for the above-mentioned violations.

II. Disclosure of Rabies Vaccine Violations

According to the current laws and regulations, pharmaceutical manufacturers must organize production in accordance with the Quality Management Standards for Pharmaceutical Production (hereinafter referred to as GMP). Therefore, Changchun Changsheng must pass GMP certification, obtain a certificate and produce vaccine within the validity period of the certificate; the GMP certificate obtained should be re-applied for certification six months before the expiration of the validity period.

On November 14, 2012, Changchun Changsheng obtained the GMP certificate of freeze-dried human rabies vaccine (Vero cells) (injections) (hereinafter referred to as rabies vaccine), which is valid until November 13, 2017. Because the declaration materials do not meet the basic requirements of certification, on November 13, 2017, Changchun Changsheng has obtained the GMP certificate of rabies vaccine expired, and did not obtain the GMP certificate of rabies vaccine, so the production of rabies vaccine was suspended. Later, Changchun Changsheng applied for GMP certification of rabies vaccine again, and obtained GMP certificate of rabies vaccine again on April 19, 2018.

Rabies vaccine is the main product of Changchun Changsheng. Its business income in 2016 and 2017 is 490, 671, 482.34, 734, 259 and 490.13 yuan respectively, accounting for 48.34% and 47.70% of Changshengs business income in that year. Its business income accounts for more than other products on sale of Changsheng. The failure of Changchun Changsheng Rabies Vaccine GMP Certificate results in the discontinuation of major business and the re-acquisition of the Rabies Vaccine GMP Certificate, which belongs to Article 67, Paragraph 1, Paragraph 2 (1), Paragraph 6, Paragraph 12 of the Securities Law and Article 30, Paragraph 1, Paragraph 2 (1), Paragraph 6 and Paragraph 16 of the Measures for the Management of Information Disclosure of Listed Companies. Major events specified in Items 1 and 21. Changsheng Biology failed to disclose the information that had a significant impact on investorsinvestment decisions.

The above facts have been proved by the relevant evidences such as the inquiry records of the parties and relevant personnel, the application materials for GMP certification of rabies vaccine and so on.

The above-mentioned behavior of immortals violates the provisions of Article 63, Article 66 and Article 67 of the Securities Law, Article 2, Article 19, Paragraph 1, Article 30 and Paragraph 1 of Article 33 of the Regulations for the Management of Information Disclosure of Listed Companies, and constitutes the meaning of issuer, listed company or other information disclosure mentioned in Paragraph 1 of Article 193 of the Securities Law. The business person fails to disclose the information in accordance with the regulations, or the information disclosed has the illegal act of false record, misleading statement or major omission.

Gao Junfang, then chairman, general manager and financial director of Changsheng Biology, was directly responsible for the above violations of Changsheng Biology. Other persons who know that the GMP certificate of rabies vaccine expires and stops production and retrieves information are then directors, senior managers Zhang Jing, Zhao Chunzhi, then senior managers Jiang Qianghua, Liu Jingye, Zhang Youkui, Yang Mingwen and Zhao Zhiwei. The above-mentioned persons fail to ensure the authenticity and accuracy of the information disclosed by Listed Companies in accordance with the requirements of Article 68, paragraph 3, of the Securities Law. Integrity is the other persons directly responsible for the above-mentioned violations of the law of perennial organisms.

3. False records exist in the annual reports and internal control self-evaluation reports from 2015 to 2017

(1) Investigation and disposal of Changchun Changsheng vaccine

1. The actual sales of Changchun Changsheng DPT vaccine in 2015, 2016 and 2017 were 5.19.66 million, 3.813 million and 3.07 million respectively. In October 2017, it was found that the test results did not conform to the standard and was punished by the State Drug Regulatory Department as inferior drugs and stopped production.

2. The actual sales of Changchun Changsheng rabies vaccine in 2015, 2016 and 2017 were 265 million, 27.629 million and 3.0397 million respectively. The production of Changchun Changsheng rabies vaccine violated the Drug Administration Law. The relevant parties have been submitted for arrest by the public security organs on suspicion of producing and selling inferior drugs. The specific facts are as follows:

From July 6 to July 8, 2018, the State Drug Administration (hereinafter referred to as the State Drug Administration) inspected Changchun Changsheng flight. On July 15, the Notice of Changchun Changsheng Biotechnology Co., Ltd. on Illegal and Illegal Production of Freeze-dried Rabies Vaccine for Human Use (No. 60, 2018) issued by the State Pharmaceutical Regulatory Bureau. During the flight inspection, it was found that the production of Changchun Changsheng Rabies Vaccine was in serious violation of the Regulations on Quality Control of Pharmaceutical Production, such as falsification of records, and so on. Jilin Province Food and Drug Regulatory The GMP certificate of rabies vaccine (certificate No. JL20180024) ordered Changchun Changsheng to stop producing rabies vaccine. On July 22, the relevant person in charge of the State Pharmaceutical Supervision Bureau informed Changchun Changsheng of the illegal production of rabies vaccine. It was found that Changchun Changsheng had fabricated production records and product inspection records, and arbitrarily changed process parameters and equipment, which seriously violated the relevant provisions of the Drug Administration Law and the Regulations on Quality Control of Drug Production. The State Pharmaceutical Administration has ordered Changsheng to stop production, withdraw GMP certificates, recall unused rabies vaccines, and jointly with the Food and Drug Administration of Jilin Province to investigate Changsheng. On July 27, the investigation team of the State Council announced that the facts of illegal and illegal production of rabies vaccine in Changchun Changsheng have been basically clarified. Changchun Changsheng organizes production in violation of the approved production process in order to reduce costs and improve the success rate of rabies vaccine production. In order to cover up violations, Changchun Changsheng systematically fabricated production and inspection records and issued purchase invoices for mice with false dates to meet the inspection by the regulatory authorities. Public security organs have launched investigation into the illegal production of rabies vaccine in Changchun Changsheng. On July 29, Gao Junfang and 18 other suspects were arrested by Chunxin District Bureau, Changchun Public Security Director, on suspicion of producing and selling substandard drugs. On August 6, the investigation team of the State Council announced that Changsheng in Changchun had seriously violated the relevant regulations of the quality control standards of drug production and the national drug standards in the production of rabies vaccine since April 2014. Some batches of Changsheng were mixed with the expired raw liquor, and the date and batch number were not filled in as well as the date of production of some batches were marked backward.

(2) False records exist in the disclosure of information on Immortals

In the case that the internal control system has not been effectively implemented, the production of perennial organisms has not been organized in accordance with GMP regulations, and seriously violates the relevant provisions of the drug production quality management standards and national drug standards, there are false records in the relevant annual reports and internal control self-evaluation reports. The specific facts are as follows:

1. False records in the annual report and internal control self-evaluation report for 2015

Changsheng Biology disclosed in its annual report in 2015: Modern vaccine production base in line with the latest GMP standard, pay close attention to production quality, strengthen internal management, and constantly improve product quality level, The company will continue to improve existing production technology and production process to optimize production processes and improve production efficiency; the company regards product quality as enterprise life. We will continue to uphold the product quality tenet of Quality is the lifeline of the enterprise, Changchun Changsheng attaches great importance to product quality. The content of the disclosure does not conform to the facts and is a false record.

In the internal control self-evaluation report of 2015 released by Changsheng Biology on April 29, 2016, Changchun Changsheng, an important subsidiary company of Changsheng Biology, was included in the evaluation scope. It disclosed that according to the identification of major internal control defects in non-financial reports of the company, on the basis date of internal control evaluation report, the company did not find significant internal control defects in non-financial reports, the company and its principal sons. According to the actual situation, the company has established and improved the corresponding internal control system, and improved the ability of internal control, risk identification and risk prevention. The content of the disclosure does not conform to the facts and is a false record.

On April 27, 2016, the third meeting of the board of directors of Changsheng Biology deliberated and adopted the annual report for 2015 and the self-evaluation report for internal control for 2015. Gao Junfang, Zhang Jing, Zhang Youkui, Liu Liangwen, Wang Xiangming, Ma Dongguang, Shen Yi and Xu Hong, then independent directors, signed the annual report for 2015 and the internal control self-evaluation report for 2015. Gao Junfang, Zhang Jingye, Liu Jingye, Jiang Qianghua, Zhang Youkui, Ju Changjun, Wan Liming, Zhao Zhiwei and Wang Qun signed the annual report for 2015.

2. False records in the 2016 annual report and the internal control self-evaluation report

Changsheng Biology disclosed in its annual report in 2016: During the reporting period, the company insists on honest management, organizes production in strict accordance with GMP regulations, strictly procures raw materials, processes and sells products, ensures product quality and safety, and provides high-quality vaccines for customers, modern vaccine production base meeting the latest GMP standards, we will continue to uphold thequality. Changchun Changsheng has gained a good market reputation and formed a good market brand by virtue of its rich product mix and safe and reliable product quality. The content of the disclosure does not conform to the facts and is a false record.

In the internal control self-evaluation report of 2016 released by Changsheng Biology on March 31, 2017, Changchun Changsheng, an important subsidiary company of Changsheng Biology, was included in the evaluation scope. It disclosed that according to the identification of major internal control defects in non-financial reports of the company, on the basis of internal control evaluation report, the company did not find significant internal control defects in non-financial reports, the company and its principal sons. According to the actual situation, the company has established and improved the corresponding internal control system, and improved the ability of internal control, risk identification and risk prevention. The content of the disclosure does not conform to the facts and is a false record.

On March 29, 2017, at the eleventh meeting of the third board of directors of Changsheng Biology, the annual report 2016 and the self-evaluation report 2016 of internal control were considered and adopted. Gao Junfang, Zhang Jinghao, Zhang Dinghao, Zhao Chunzhi, Liu Liangwen, Wang Xiangming, Xu Hong, Shen Yi and Ma Dongguang, then independent directors, signed the annual report 2016 and the internal control self-evaluation report 2016. Gao Junfang, Zhang Jing, Liu Jingdi, Jiang Qianghua, Zhang Dinghao, Zhang Youkui, Ju Changjun, Wan Liming, Zhao Zhiwei, Wang Qun, Zhao Chun, then senior managers Zhi signed and agreed to the 2016 annual report.

3. False records in the annual report 2017 and the internal control self-evaluation report

Changsheng Biology disclosed in its annual report in 2017 that modern vaccine production base conforming to the latest GMP standard, Changchun Changsheng attaches great importance to product quality, Changchun Changsheng has gained a good market reputation by virtue of its rich product mix and safe and reliable product quality, and has formed a good market brand, vaccine product quality is in the forefront of the industry, we will follow up Continue adhering to the quality is the lifeline of the enterprise product quality purpose, to provide consumers with reliable products at ease. The content of the disclosure does not conform to the facts and is a false record.

On May 26, 2018, Changsheng Biology issued a supplementary announcement on the full text of the 2017 annual report, which supplemented the contents of the original 2017 annual report Section 5, Important Matters 18, Social Responsibility Situation. On May 29, Changsheng Biology issued its annual report for 2017 (after updating). On the basis of the annual report for 2017 issued on March 9, it added such expressions as During the reporting period, the company adheres to honest management, organizes production strictly in accordance with GMP regulations, strictly controls all aspects of raw material procurement, production and processing, product sales, ensures product quality and safety, and provides customers with high-quality vaccines. The content of the disclosure does not conform to the facts and is a false record.

In the report of internal control self-evaluation for 2017 released by Changsheng Biology on March 9, 2018, Changchun Changsheng, an important subsidiary company of Changsheng Biology, was included in the scope of evaluation. It disclosed that according to the identification of major defects in internal control of non-financial reports of the company, no major defects in internal control of non-financial reports were found in the company on the basis day of internal control evaluation report, after inspection, on the company. Every year, according to the requirements of relevant laws and regulations and the actual situation of the company, the internal control system has been established. There are no major defects, and it has been effectively implemented. The content of the disclosure does not conform to the facts and is a false record.

On March 7, 2018, the seventeenth meeting of the third board of directors of Changsheng Biology deliberated and adopted the annual report 2017 and the self-evaluation report 2017 on internal control. Gao Junfang, Zhang Dinghao, Zhang Jing, Liu Liangwen, Wang Xiangming, Zhao Chunzhi, Xu Hong, Ma Dongguang and Shen Yi, then independent directors, agreed to the 2017 annual report and the 2017 internal control self-evaluation report. Gao Junfang, Zhang Jing, Liu Jingdi, Jiang Qianghua, Zhang Dinghao, Zhao Chunzhi, Zhang Youkui, Ju Changjun, Wanli Ming, Wang Qun and Zhao Zhi, then senior managers, agreed to the 2017 annual report and the 2017 internal control self-evaluation report. Wei and Yang Mingwen signed and agreed to the 2017 annual report.

The above facts are proved by the annual report of Changsheng Biology from 2015 to 2017, the self-evaluation report of internal control from 2015 to 2017, the relevant written confirmation opinions, the inquiry transcripts of the parties and the press releases.

The falsely recorded annual reports and internal control self-evaluation reports of Changsheng Biology from 2015 to 2017 violate Articles 63, 66 and 67 of the Securities Law and Articles 2, 19, 1 and 30 of the Regulations for the Management of Information Disclosure of Listed Companies, constituting the issuer mentioned in Article 193, paragraph 1 of the Securities Law. A listed company or other obligor of information disclosure fails to disclose information in accordance with the provisions, or the information disclosed has false records, misleading statements or major omissions.

Gao Junfang, then chairman, general manager and financial director of Changsheng Biology, was directly responsible for the above violations of Changsheng Biology. Zhang Jing, Zhang Dinghao, Zhao Chunzhi, Liu Liangwen and Wang Xiangming, then independent directors Xu Hong, Ma Dongguang and Shen Yi, then senior managers Liu Jingye, Jiang Qianghua, Zhang Youkui, Ju Changjun, Wanli Ming, Wang Qun, Zhao Zhiwei and Yang Mingwen failed to guarantee the listed companies in accordance with Article 68, paragraph 3, of the Securities Law. The authenticity, accuracy and completeness of the information disclosed are the other persons directly responsible for the above-mentioned illegal acts committed by the perennial organisms.

The parties and their agents put forward the following defensive opinions in the hearings, statements and defensive materials:

The SFC believes that: first, directors and senior managers of listed companies should be diligent and responsible to ensure that the information disclosed by listed companies is true, accurate and complete. The reasons put forward by the parties for not participating in illegal acts, not responsible for information disclosure, not engaging in production and operation work, insufficient capacity, trusting professional institutions or professional opinions do not constitute reasons for exemption, and I will have taken these factors into account in the measurement of penalties.

Secondly, in response to Liu Jingyes argument, the existing evidence is sufficient to prove that he knows that DPT vaccine test is not qualified, full shutdown and recall, and that the GMP certificate of rabies vaccine expires, shutdown and re-acquisition of relevant information, but he fails to diligently fulfill his duty to ensure that the information disclosed by listed companies is true, accurate and complete, and should bear the corresponding legal responsibility.

Thirdly, Ju Changjun, Wan Liming and Wang Qun did not submit sufficient evidence to prove their diligence.

Fourthly, independent directors should be honest and diligent, maintain their identity and independence in performing their duties, and carry out effective supervision, verification and investigation on listed companies and related subjects. According to the Guidelines for the Performance of Independent Directors of Listed Companies and other provisions, the existing evidence is insufficient to prove that Xu Hong, Shen Yi and Ma Dongguang are diligent and responsible.

Fifth, in response to Shen Yis argument, 1. The relevant records in the annual report from 2015 to 2017 set up a good image of Changsheng Biologys honest management, focusing on product quality and safety as a whole, which is inconsistent with the facts and constitutes a false record. The content of the supplement to the Annual Report 2017 (Updated) does not affect the responsibility of the parties concerned for the Annual Report 2017 and the Self-Evaluation Report of Internal Control disclosed on 9 March 2018. 2. The annual report of Changsheng Biology in 2015 and the self-evaluation report of internal control were disclosed on April 29, 2016. In October, 2017, the Food and Drug Administration of Jilin Province found the illegal act of Changchun Changsheng, which did not exceed the time limit of administrative punishment.

Sixth, in view of Yang Mingwens defense opinion, 1. As for the signing of the relevant annual report and the internal control self-evaluation report, I will not confirm the fact that Yang Mingwen signed the internal control self-evaluation report in 2017. 2. According to Yang Mingwens inquiry record, his argument that the short-term failure of GMP certificate of rabies vaccine has no effect on its sales can not prove that he did not know the information about the expiration, suspension and re-acquisition of GMP certificate of rabies vaccine. 3. According to the travel record submitted by Yang Mingwen, I will adopt his argument that he did not attend Changchun Changsheng Conference on October 27, 2017. However, the evidence in the case is sufficient to prove that it knows that DPT vaccines are not qualified for testing, and that production has been suspended and recalled.

According to the facts, nature, circumstances and degree of social harm of the illegal acts committed by the parties concerned, and in accordance with the provisions of Article 193, paragraph 1, of the Securities Law, the SFC decides:

1. To order and correct the immortals, give warnings and impose a fine of 600,000 yuan;

Second, Gao Junfang, Zhang Jing, Liu Jingye and Jiang Qianghua were warned and fined 300,000 yuan respectively.

3. Give warnings to Zhang Youkui, Zhao Chunzhi and Zhang Huanhao, and impose fines of 200,000 yuan respectively.

4. Warnings were given to Liu Liangwen, Wang Xiangming, Xu Hong, Shen Yi, Ma Dongguang, Ju Changjun, Wan Liming, Wang Qun, Zhao Zhiwei and Yang Mingwen, and fines of 50,000 yuan were imposed respectively.

Source: Ji Xueying_NN6784, Responsible Editor of CNN