Related transactions with 15 companies were not disclosed
On March 7, 2013, Foshan Lighting disclosed the announcement of the administrative penalty decision issued by the Guangdong Securities Regulatory Bureau. The decision letter shows that 15 companies including Foshan Schnoch California Electric Co., Ltd. and Foshan Hongbang Electrical and Lighting Co., Ltd. are directly or indirectly controlled by relatives such as the son of Zhong Xincai, then chairman and general manager of Foshan Lighting, and are related parties of Foshan Lighting. However, since 2010, Foshan Lighting has concealed the above-mentioned related relationships. At the same time, when transactions with related parties exceeded the disclosure standards, it did not review the board of directors and failed to make timely announcements, which violated relevant securities laws and regulations.
For this reason, the regulatory authorities ordered Foshan Lighting to make corrections, issued a warning, and imposed a fine of 400,000 yuan. The then chairman and general manager Zhong Xincai, the then deputy general manager and board secretary Zou Jianping and six senior executives were given warnings, and four of them were fined ranging from 30,000 to 150,000 yuan respectively.
After investigation, related related transactions of Foshan Lighting occurred around July 15, 2010. On July 6, 2012, Foshan Lighting announced two administrative regulatory measures decisions from the Guangdong Securities Regulatory Bureau, which revealed the problem of related transactions between Foshan Lighting and four related companies. On November 5, Foshan Lighting was investigated by the Guangdong Securities Regulatory Bureau for suspected illegal information disclosure.
By March 2013, when Foshan Lighting disclosed the administrative penalty decision of the Guangdong Securities Regulatory Bureau, the number of related companies involved had expanded from 4 to 15.
As long as the time conditions are met, you will be compensated
Wu Lijun, a securities rights lawyer at Shanghai Oriental Cambridge Law Firm, told the Beijing News that false statements by listed companies are a tort. According to relevant laws and regulations, the burden of proof lies with the listed companies. As long as such false statements exist and cause losses to shareholders, it can be presumed that there is a causal relationship between the two.
Wu Lijun said that Foshan Lighting A-share code 000541 and Guangdong Lighting B-share code 200541 both belong to the scope of securities that can be claimed this time, as long as Foshan Lighting was purchased between July 15, 2010 and July 5, 2012 (inclusive) Or the B shares of Guangdong Lighting and held them at the close of trading on July 5, 2012; or the B shares of Foshan Lighting or Guangdong Lighting were purchased between July 6, 2012 and November 2, 2012 (inclusive) and held at the closing of November 2, 2012, you can participate in the claim.
He said that whether the stock price of Foshan Lighting A shares rose or fell after May 7, 2013, it would have nothing to do with this claim, that is, the profits or losses of shareholders after the aforementioned time would not affect any amount of the claim or the result of the compensation. As long as the aforementioned buying and holding time conditions are met, profits can still be claimed and compensated. At the Foshan Lighting shareholders meeting held the day before yesterday, company chairman Pan Jie said that as of the end of April, 1,303 people had sued the company, with claims amounting to 180 million yuan.
Shareholders: If there were no illegal operations, the stock would not have fallen so much
The problem of violations in Foshan Lighting's letter of approval has affected the stock price. Before July 2012, Foshan Lighting's stock price had been above 9 yuan for a long time. Since the announcement of the violation on July 6, Foshan Lighting's stock price has continued to slump, hovering between 6 and 7 yuan for a long time. It was not until the first half of this year that there was a wave of rising prices.
Shareholder Wu Shunying was the first shareholder in the country to file a lawsuit in court. Yesterday, she told the Beijing News reporter that she bought Foshan Lighting in 2011 at a cost of about 14 yuan. After the letter approval incident, Foshan Lighting's stock price continued to slump. She sold part of the stock in November 2012 and another part in 2013. The average selling price was around 7 yuan, a loss of 50%. "If it were not for illegal operations, the stock would not have fallen so much." Wu Shunying told reporters: "My loss is about 140,000 to 150,000, and I should be compensated by Foshan Lighting." He also said that the company will actively respond to the lawsuit according to normal procedures.
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