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MarketScreener Homepage  >  Equities  >  Shanghai Stock Exchange  >  Kangmei Pharmaceutical Co., Ltd.    600518   CNE0000017M1

KANGMEI PHARMACEUTICAL CO., LTD.

(600518)
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China's Kangmei Pharma sinks by daily limit as watchdog accuses it of fraud

05/21/2019 | 03:09am EST

SINGAPORE (Reuters) - Shares in Chinese drugmaker Kangmei Pharmaceutical Co, a constituent of MSCI's global indexes, fell by their daily limit of 5% on Tuesday after China's securities regulator accused it of faking reports and a risk alert was put on the stock.

Shanghai-listed Kangmei, which in April said an "accounting error" had led it to overstate cash in 2017 by 29.94 billion yuan ($4.3 billion), was given an alert tag by the stock exchange indicating it was at risk of being de-listed.

Kangmei's 5.33% exchange-traded bond due 2022 also fell to a low of 29.01 yuan on Tuesday, from a close of 32.25 yuan on Monday. Kangmei has 12 outstanding bonds worth a total of 17.65 billion yuan, according to Refinitiv data.

The China Securities Regulatory Commission (CSRC) said late on Friday it had uncovered "major falsehood" in Kangmei's financial reports disclosed between 2016 and 2018, including suspected violations of securities law.

The CSRC accused Kangmei of using fake bank bills to inflate deposit figures, falsifying reported revenue, and transferring funds into connected parties' accounts to trade its own stock.

Kangmei's shares have dropped 40% in the 12 trading days since it revealed the cash overstatement on April 30. 

Calls to Kangmei's investor relations department went unanswered.

Weak governance has long been a black mark against mainland Chinese companies and the Kangmei case has sparked calls for tougher oversight and stiffer punishments.

($1 = 6.9044 Chinese yuan renminbi)

(Reporting by Shu Zhang, additional Reporting by Andrew Galbraith; Editing by Stephen Coates)


© Reuters 2019
Stocks mentioned in the article
ChangeLast1st jan.
BYD COMPANY LIMITED -1.29% 245.8 End-of-day quote.20.96%
KANGMEI PHARMACEUTICAL CO., LTD. -1.60% 2.46 End-of-day quote.-8.21%
SHANGHAI A INDEX 0.84% 3769.5856 Real-time Quote.2.69%
US DOLLAR / CHINESE YUAN RENMINBI (USD/CNY) 0.10% 6.4885 Delayed Quote.-0.69%
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Financials
Sales 2019 11 446 M 1 764 M 1 764 M
Net income 2019 -4 661 M -718 M -718 M
Net Debt 2019 31 913 M 4 917 M 4 917 M
P/E ratio 2019 -3,77x
Yield 2019 -
Capitalization 12 236 M 1 888 M 1 885 M
EV / Sales 2018 4,67x
EV / Sales 2019 4,41x
Nbr of Employees 9 209
Free-Float 51,2%
Chart KANGMEI PHARMACEUTICAL CO., LTD.
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Kangmei Pharmaceutical Co., Ltd. Technical Analysis Chart | 600518 | CNE0000017M1 | MarketScreener
Technical analysis trends KANGMEI PHARMACEUTICAL CO., LTD.
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Managers and Directors
NameTitle
Guo Wei Liu General Manager
Xing Gu Ma Chairman
Jing Ke Chairman-Supervisory Board
Jin Cheng Wan Chief Financial Officer & Director
Zhen Ping Jiang Independent Director
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