Former CFO of A-Share Company Faces 3.4 Million Yuan Fine

Deep News12-19 12:02

Recent announcements from Shanghai-listed Humanwell Healthcare (600079.SH) reveal that the company and its former CFO Wu Yajun face substantial penalties for multiple disclosure violations. The China Securities Regulatory Commission (CSRC) Hubei Bureau issued a prior notice of administrative penalties, citing three major violations:

1. **Undisclosed Related-Party Transactions**: From 2020 to March 2022, Humanwell failed to promptly disclose 12.785 billion yuan in non-operating fund transfers to its controlling shareholder, Wuhan Dangdai Group. The 2020 annual report also omitted these transactions, which accounted for 19.26% of reported net assets.

2. **Material Misstatements**: The company inflated net profits attributable to shareholders by 143 million yuan (12.43%) in 2020, 72 million yuan (5.21%) in 2021, and 91 million yuan (5.71%) in its 2022 interim report by improperly excluding controlled entities from consolidated financial statements.

3. **Concealed Relationships**: Dangdai Group intentionally hid its control over counterparties in two major 2022 transactions totaling 264.5 million yuan, preventing proper disclosure.

**Proposed Penalties**: - Humanwell: 8.5 million yuan fine plus warning - Former CFO Wu Yajun: 3.4 million yuan fine plus warning (2024 compensation: 2.61 million yuan) - Controlling shareholder Dangdai Group: 9 million yuan fine - Chairman Li Jie: 3.9 million yuan fine plus warning - Dangdai's de facto controller Ai Luming: 3.9 million yuan fine + 7-year market ban

The company stated these historical violations (all rectified by 2022) won’t affect current operations. However, the Shanghai Stock Exchange may impose special risk warnings under Listing Rule 9.8.1 for financial misstatements. Humanwell emphasized strengthened internal controls since its July 2025 restructuring.

*Note: Final penalties subject to CSRC's formal decision.*

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