Tianyu Group(SZ:002354) Jing Ji Guan Cha Wang·2026-01-08 01:51Core Viewpoint - The case against Guo Baichun, former chairman of Yaqi International, involves allegations of embezzlement and abuse of power during his tenure as deputy mayor of Yinchuan, with significant implications for corporate governance and regulatory oversight in state-owned enterprises [2][3]. Summary by Sections Allegations and Charges - Guo Baichun is accused of instructing two state-owned enterprises to misappropriate a total of 546 million yuan (approximately 84 million USD) for stock trading and other profit-making activities during his time as deputy mayor in 2016 [3][4]. - The prosecution claims he abused his power by directing the Yinchuan Public Security Bureau to take legal actions against competitors, which resulted in substantial losses for those companies [3][4]. Details of Misappropriation - The largest single misappropriation involved 500 million yuan (approximately 77 million USD) linked to Tianyu Shuke (formerly known as Tian Shen Entertainment), where Guo facilitated a loan for stock reduction purposes [4][5]. - The loan was arranged under the pretext of supporting a company’s stock sale, with specific terms including an 8% annual interest rate and a 2% guarantee fee [5][6]. Testimonies and Evidence - Testimonies from key witnesses, including Guo Junwei, indicate that the funds were intended for stock trading, but the execution of the loan process was allegedly expedited without proper due diligence [8][15]. - Guo Baichun's defense argues that the transaction was within the normal business scope of the state-owned enterprises involved and that the funds were not lost but rather generated returns [12][16]. Court Proceedings - The trial is ongoing, with multiple sessions dedicated to examining the evidence and witness testimonies, including those from Guo Junwei and other involved parties [2][17]. - The court will ultimately determine whether Guo Baichun's actions constitute embezzlement, with significant implications for corporate governance practices in state-owned enterprises [16][17].