Core Viewpoint - Zhao Yeqing and associates manipulated the stock of Jincheng Pharmaceutical, resulting in significant financial losses and subsequent regulatory penalties, leading to Zhao's resignation as chairman and director of the company [1][3][4]. Group 1: Regulatory Actions and Penalties - The China Securities Regulatory Commission (CSRC) found that from August 18, 2017, to February 10, 2020, Zhao Yeqing, along with Wang Zhen and Liu Feng, controlled 104 securities accounts to trade Jincheng Pharmaceutical stock, incurring losses exceeding 7 million yuan [2][3]. - The accounts engaged in frequent trading over 595 trading days, with 502 days of active trading, resulting in a total buy amount of 2.134 billion yuan and a sell amount of approximately 1.870 billion yuan [2]. - The CSRC imposed a total fine of 3 million yuan on Zhao Yeqing, Wang Zhen, and Liu Feng, with Zhao personally liable for 1.5 million yuan, and instituted market bans of 4 years for Zhao and 3 years for Wang [3]. Group 2: Company Impact and Financial Performance - Following the regulatory actions, Zhao Yeqing submitted his resignation from all positions within Jincheng Pharmaceutical, effective immediately, while the company stated that the penalties only pertained to Zhao personally and did not affect the company's operations [4]. - As of the announcement date, Zhao held approximately 2.88% of the company's total shares, and the company is in the process of electing a new chairman [4]. - Jincheng Pharmaceutical, listed on the Shenzhen Stock Exchange since June 2011, reported a revenue of 1.932 billion yuan for the first three quarters of 2025, a year-on-year decline of 23.19%, with a net profit of 31.58 million yuan, down 79.1% [4]. - The company experienced a net loss of 11.81 million yuan in the third quarter, a significant decline of 157.7% year-on-year [4]. Group 3: Product Development - Jincheng Pharmaceutical has made progress in product development, recently obtaining registration certificates for "Dihydrosulfonyladenosine enteric-coated tablets" and "medical gynecological gel," aiming to diversify its product line to address operational challenges [5].

Group 1 - The resignation of Zhao Yeqing, the chairman and actual controller of Jincheng Pharmaceutical, is due to personal reasons and will not affect the company's normal operations [1][3] - Zhao Yeqing has been penalized by the China Securities Regulatory Commission (CSRC) for stock manipulation, which involved a network of 104 accounts [3][8] - The manipulation occurred from August 18, 2017, to February 10, 2020, with the account group participating in trading on 502 out of 595 trading days, significantly impacting stock prices and trading volumes [4][5] Group 2 - During the manipulation period, the account group held an average of 18.58 million shares daily, representing 5.68% of the company's circulating shares, with a peak holding of 32.09 million shares, or 9.04% [4] - The stock price increased by 21.30% during a specific period, while the broader market index only rose by 2.90%, indicating the manipulation's effectiveness [4] - The total amount of buy orders during the manipulation reached approximately 2.134 billion yuan, with a selling amount of about 1.870 billion yuan, resulting in a net loss of 7.39 million yuan [5] Group 3 - The CSRC imposed fines totaling 3 million yuan on Zhao Yeqing, Wang Zhen, and Liu Feng, with Zhao Yeqing personally fined 1.5 million yuan and banned from the market for four years [8] - The investigation and hearing process lasted over a year, with the CSRC confirming the existence of joint manipulation intent and substantial evidence against the individuals involved [8][9] - Jincheng Pharmaceutical, listed on the Shenzhen Stock Exchange since June 2011, reported a revenue of 1.932 billion yuan for the first three quarters of 2025, a year-on-year decline of 23.19%, and a net profit of 31.58 million yuan, down 79.1% [9][10] Group 4 - The company is facing operational challenges, as evidenced by a net loss of 11.81 million yuan in the third quarter of 2025, a decline of 157.7% year-on-year [9] - Recent product development efforts include obtaining registration for new pharmaceutical products, indicating attempts to diversify and strengthen the product line [10]