Hangzhou Tigermed Consulting Co., Ltd. (Tigermed) reported that its controlling shareholders and executive directors, Mr. Ye Xiaoping and Ms. Cao Xiaochun, have received two regulatory documents from the Zhejiang branch of the China Securities Regulatory Commission (CSRC):
1) a Warning Letter for historical disclosure breaches and 2) an Advance Notice of Administrative Penalty proposing financial sanctions.
Key findings outlined by the Zhejiang Regulatory Bureau are as follows:
• On 7 December 2022, Mr. Ye and Ms. Cao each sold A-shares that collectively reduced their combined stake by 1%. Mandatory disclosure was not made until 12 May 2026, breaching Article 13(3) of CSRC Takeover Rules (Orders 166 and 227).
• On 20 September 2019, their voting stake reached a cumulative 5% change, yet the required Simplified Report on Changes in Equity Interests was also delayed until 12 May 2026, contravening Article 86(2) of the 2005 Securities Law and Article 63(2) of the 2019 Securities Law.
Regulatory actions:
• Warning Letter: Logged in the securities and futures market integrity records. Both parties must submit a written compliance report within 10 working days.
• Proposed penalties: A warning plus a RMB0.50 million fine for each individual, totaling RMB1.00 million, under Article 197(1) of the Securities Law.
Procedural rights allow Mr. Ye and Ms. Cao to request an administrative hearing, file for CSRC reconsideration within 60 days, or initiate court proceedings within six months.
Tigermed’s board stated that the infractions stem from historical shareholding changes already disclosed in previous filings, and the measures do not impact the Group’s ongoing operations. Further updates will be issued as necessary.
Investors are advised to exercise caution when dealing in Tigermed shares.
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