There is also doubt about the use of the drug industry or collective claims for extra funds

"The problem that the drug industry of Cologne (002422.SZ) is being investigated by the regulatory authorities will be fully closed by the end of June." June 5, hairdresser Huang Xin, a representative of the pharmaceutical securities business in Cologne, said to the 21st century economic reporter. On the night of June 4, the drug industry disclosed the SFC's decision to penalize it. As a result of the March 15, 2011 acquisition of June-Jian plastic process, the Cologne pharmaceutical industry and Gunjian original shareholders Huifeng investment has been linked to the relationship without disclosure, the SFC has made a case investigation. The 4th survey results showed that the Cologne pharmaceutical industry was fined 300,000 Yuan, chairman Liu Innovation, general manager Cheng Zhipeng and other senior executives were warned, and accordingly fined. According to SSE [Weibo] requirements, June 6 Liu Genue, such as the Cologne pharmaceutical executives will be in the panoramic network of public apology. Hairdresser Huang Xin said: "After the apology, there will be a network of interactive links, investors can communicate with senior executives." However, according to people familiar with the matter, the letter of apology has been drafted, the content "relatively empty", did not talk about substance. This is not Liu Genue's first public apology, on May 21, 2014, at the company's shareholders ' meeting, Liu Reform also repeatedly apologized to the shareholders, and said "will never make the same mistake." For the reasons of the frequent association of trade violations, hairdresser Huang Xin explained that "the company is not familiar with the relevant laws and regulations." But if you look at it from another perspective, "unfamiliar" is just as good for the capital of the Cologne industry to provide exports. or trigger a class action. Xu Feng, a lawyer for the Shanghai Hua Rong law Firm, is collecting the shares of the market, preparing for a class action lawsuit against the losses to investors caused by false statements. June 5, Xu Feng told the 21st Century Economic report Reporter: "only after the administrative punishment has been decided, only then may propose the civil compensation." Therefore, the premise of class action is that the drug industry has received the SFC's punishment. Xu Feng's assistant revealed that investors had not been involved in activist litigation for a day. Cologne medicine to buy June Jian plastic, the first by the Sichuan Provincial Securities and Regulatory Bureau on May 3, 2013 issued ordered rectification notice. From the contents of the company bulletin, Gunjian Plastic by the two natural persons shareholder, Wang Yishong, the two people invested 20 million yuan. March 2011, the Cologne pharmaceutical industry to 426 million yuan for the price from two people to buy June Jian plastic 100% of the equity, then the net assets premium of about 5 times times. This seemingly normal transaction is investigated only because Gunjian plastic customers are too concentrated, mainly to the Cologne pharmaceutical industry to provide soft plastic packaging products. After the Sichuan provincial Securities and Regulatory Bureau found that the actual investment of Gunjian plastic for Huifeng investment, and Huifeng investment is a collective investment company of the Cologne pharmaceutical employees, the chairman of the Liu Genue of Cologne can carry out control. So the purchase of June-jian plastic behavior became a cologne from the left pocket money to the right pocket of the game. In this way, 2011 years ago, the trade between Cologne and Gunjian Plastics was identified as a related transaction due to the large amount, and the 2011 takeover was also considered a related transaction. Within one months after the Sichuan Securities and Regulatory Bureau ordered the rectification letter issued, the SFC decided to take the suspected letterIn violation of the rules, the investigation of the Cologne pharmaceutical industry. Hairdresser Huang Xin repeatedly stressed: "June jian plastic problem is due to the company is not familiar with the relevant laws and regulations caused." For this reason, the company has already carried out rectification, and accepted the SFC's punishment no longer reconsideration and brought administrative proceedings. It can be said that the matter has been closed until June 4. "However, hairdresser Huang Xin said that in accordance with domestic law, the company and the main executives were warned by the CSRC, a few years on the company's listing refinancing will have some impact." "But there is no restriction on financing such as debt, so it will not affect the company's funding." "Xu Feng still thinks, the loss of the investor should be compensated for two years of the concealment of the related transaction," There is no punitive compensation policy in China, but the investment loss and transaction tax, stamp duty, etc., can be compensated by the collective action, there have been similar cases in China. "Super Raise funds suspense" June Jian plastic incident civil compensation may have a chance, but Xu Feng said that the Cologne pharmaceutical industry is also concealed related transactions but could not sue. April 16, the Cologne pharmaceutical Industry Bulletin said that received the Sichuan Provincial Securities and Regulations Bureau of the Administrative supervision of the decision book, the Bureau decided that Liu Innovation in the actual control of Chengdu Trading Company, Long Yi Trade and the Cologne pharmaceutical subsidiary of Yili Twinings Biological transactions, by Liu Genue agreed and arrangements related personnel. The related transaction actually involved an amount of 222 million yuan. Since October 2013, the SFC has delegated the authority of administrative supervision measures to the provincial and regulatory authorities. I found that since the implementation of the system, there have been few cases of case investigation in the provinces, and it is generally a letter requiring rectification. According to Xu Feng, civil litigation is not possible without punishment, just "administrative supervision". Although the amount of trade-related transactions is not large, the Cologne side also said that before the end of June will come up with rectification plan, but a number of related transactions are pointing to the fund investment projects, it is doubtful. In August 2010, the company planned to raise 1.5 billion yuan, actually raised 4.77 billion yuan. Large sums of money are being invested in new projects in Cologne, but the rewards are not all satisfactory. November 2010, the Cologne market soon after the use of super raise funds 247 million yuan to buy Zhejiang Mirror 85% of the equity, then there is a voice said the purchase price is too high. However, the company placed great expectations on the Zhejiang Mirror, estimated its 2011-year income of 400 million yuan, net profit of 40 million. In fact, the National Mirror 2011 Annual income of only 136.68 million yuan, 2011 years after the report has not disclosed its performance. Huifeng investment and long trade related issues related to the use of super funds, whether there is a violation of the use of funds to raise money problem? Hairdresser Huang Xin clear: "Whether the SFC or the Sichuan Provincial Bureau, a number of investigations are targeted at the company related transactions, has never pointed out the issue of transaction content, nor the use of the Fund to raise funds to investigate." "The Cologne pharmaceutical industry only at the end of 2013 has been ordered by the Sichuan Provincial Securities Regulatory Bureau Rectification notice, which involves some illegal use of funds, but is the use of funds in the process of improper, not overrun and other serious problems." According to the, the Cologne pharmaceutical industry has already made a rectification of the trade-related transactions, and will announce the rectification plan by June 30, which does not involve the issue of fundraising.