Suspected of smuggling! After more than 60 days of residential surveillance, the chairman was still arrested

category:Finance
 Suspected of smuggling! After more than 60 days of residential surveillance, the chairman was still arrested


Zhang Fangliang, chairman of the board of directors of Kingsley Biotechnology (01548, HK), was arrested.

By the end of the day, the Three Gorges new materials and Haili biological limit, Kingsley biotechnology fell nearly 15%.

Black Swan incident photo source: Photo Gallery

Kingsleys board chairman was arrested and the share price plummeted

As a result, the share price of Kingsley biotechnology fell sharply on November 23. The intraday decline was more than 16%, and the price was down 14.92% to HK $10.72.

According to the announcement, the board of directors of Kingsley biotechnology received from Zhang Fangliangs family members a notice of arrest issued by Zhenjiang customs anti smuggling Bureau on November 20, 2020. In addition, two employees who had previously dealt with the import and export activities of the group have been arrested.

On the same day, the board of directors of Kingsley biotechnology announced that Zhang Fangliang had resigned as a non-executive director, chairman of the board of directors, member and chairman of the companys nomination committee, member and chairman of the companys sanctions risk control committee, and director of legend Biotechnology Co., Ltd.

Prior to this, Kingsley bio technology announced on September 21 that on September 17, 2020, the anti smuggling Department of the customs of China inspected the companys offices in Nanjing and Zhenjiang for suspected violation of the import and export provisions of Chinese laws. Zhang Fangliang, chairman of the board of directors, was under residential surveillance and four other employees were detained for questioning.

Photo source: screenshot of Kingsley official website

Zhang Fangliang transferred to Duke University in 1991 and received his doctorate in biochemistry in 1995. After graduating from Duke University, Zhang Fangliang became the main researcher of Schering plough company from 1995 to 2002, and achieved achievements including the first successful cloning of human geranyl transferase in the world.

In 2002, Zhang Fangliang left Schering plough and started from scratch with $5000. He cooperated with two friends to establish Genscript company in the United States, and returned to Nanjing in 2004 to register and establish Kingsley Biotechnology Co., Ltd.

According to Kingsleys announcement, as Zhang Fangliang is a non-executive director and does not participate in the daily operation of the group, the board of directors of the company believes that his resignation will not have a significant impact on the business and operation of the group. At present, the group management team is stable under the leadership of Liu Zhenyu, the companys chief executive officer.

At the same time, the board of directors of Kingsley biotechnology also announced that Zhu Li has been appointed as executive director, Wang Xuehai has been appointed as an independent non-executive director, Meng Jiange has been appointed as the chairman of the board of directors, and Wang Ye has been appointed as the chairman of the companys sanctions risk control committee. The relevant appointments have taken effect since November 22, 2000.

Photo source: Photo Gallery

According to Kingsley bio, the companys main service is to provide customers with gene synthesis services. The products include gene synthesis service, peptide synthesis service, protein expression service, reagent antibody service, primer synthesis service, one-stop biopharmaceutical research and development service, CRISPR / cas9 service (i.e. gene editing technology) and other catalog products; the company has established four main platforms, including entrusted research machine platform, biological drug contract development and production organization platform, and industrial synthetic products Product platform and comprehensive global cell therapy platform.

According to the official website, Kingsley is a highly cited biotechnology company. As of June 2020, more than 51000 magazines around the world cited Kingsleys services and products. At the same time, it is one of the worlds leading gene synthesis suppliers, with a monthly base flux of more than 100 million BP, the longest synthetic gene of 50 KB, and the delivery cycle is as short as 4 working days.

On November 23, Kingsley biotechnology responded in writing to the daily economic news. The reporter said that the company issued an announcement on November 22 to announce the change of relevant positions of the board of directors, which would not have a significant impact on the companys business and operation. Under the leadership of new chairman Meng Jiange and rotating CEO Liu Zhenyu, the companys business, production and R & D work are in normal progress.

The two A-share directors also had an accident,

The stock price both falls the limit

By the end of the 23rd, the two stocks were still firmly closed down, with 260000 new materials and 140000 Haili biological products.

As of the end of September, there were 42400 shareholders in Sanxia new material and 37900 shareholders in Haili bio. For these more than 80000 shareholders, this Monday is undoubtedly a Black Monday.

On the evening of November 20, Haili biology and Three Gorges new materials issued a notice, and the controller and chairman of the Board met with mandatory measures.

Haili bio announced that it received a notice from Zhang Haiming, the actual controller and chairman of the company, on November 20, 2020, it received the decision on bail pending trial issued by Jingan branch of Shanghai Public Security Bureau on November 18, 2020. Due to the illegal business case of a company under investigation in Jingan District of Shanghai, according to relevant provisions, it decided to obtain bail pending trial, with the period starting from November 19, 2020.

At the same time, the company received a notice from the family members of Zhou Yusheng, a supervisor, that Zhou Yusheng was detained by Jingan branch of Shanghai Public Security Bureau on October 31, 2020 for suspected job encroachment.

At present, Zhang Haiming, the actual controller and chairman of the company, can perform his duties normally. Zhou Yusheng, the supervisor of the company, is a retired consultant and does not actually hold any post except the supervisor. Therefore, the above matters do not have a substantial impact on the normal business operation of the company. At present, the production and operation of the company are normal and all work is carried out in an orderly manner.

Sanxia Xincai also announced that on November 20, the company received a notice from the family members of Xu Xizhong, the companys chairman and actual controller, that Xu Xizhong was detained by Puning Public Security Bureau of Guangdong Province for his personal suspicion of obtaining loans by fraud.

Xu Xizhong involved in the above matters have nothing to do with the company and its affiliated enterprises, the company has not been adversely affected, and the current production and operation is normal.

According to public information, the main business of Sanxia new materials is the production and sales of flat glass and glass deep-processing products, gypsum and other new building materials; sales of building materials and non-metallic mineral products; scientific research and development of new building materials. Since 2018, the profitability has been weakened, with a net profit of 240 million yuan, a year-on-year decrease of 40.46%; in 2019, the net profit will further decline by 95.5%, leaving only 10.8236 million By 2020, the company will turn from profit to loss, with a loss of 591 million yuan in the first three quarters.

In recent years, the performance of Haili biological also showed a weakening trend, with a year-on-year decline of 81.27% in 2018 and a decrease of 42.95% in 2019. Although the net profit in the first three quarters of 2020 remains positive, the decline is very serious, with a decline rate of 70.99%. Haili bios main business is the research and development, production, sales and service of veterinary vaccines, mainly divided into two categories of livestock and poultry vaccines, a total of 31 products. It is worth noting that Haili biological has dropped from a high of 54.03 yuan in August this year to 16.27 yuan at present, a decrease of about 70%. Editor: Lu Xiangyong, Du Bo, Du Hengfeng, proofread by Du Hengfeng, Li Jinghan. Source: Daily Economic News Editor: Zhong Qiming_ NF5619

In recent years, the performance of Haili biological also showed a weakening trend, with a year-on-year decline of 81.27% in 2018 and a decrease of 42.95% in 2019. Although the net profit in the first three quarters of 2020 remains positive, the decline is very serious, with a decline rate of 70.99%. Haili bios main business is the research and development, production, sales and service of veterinary vaccines, mainly divided into two categories of livestock and poultry vaccines, a total of 31 products.

It is worth noting that Haili biological has dropped from a high of 54.03 yuan in August this year to 16.27 yuan at present, a decrease of about 70%.

(this article is for reference only and does not constitute an investment proposal. Therefore, the operation risk shall be borne by yourself) edited by Lu Xiangyong, Du Bo, Du Hengfeng and proofread by Li Jinghan