Yesterday, in the constant group announced that the company exists because of corporate governance, information disclosure, financial management and accounting, to raise funds and management issues, CSRC shall order rectification Guangxi. Announcements, in corporate governance, in the constant group board, saying the decision-making capacity so useless. For example, in 2011, in the constant group first Xeikon medicine and Guangdong signed a cooperation agreement, agreed to develop “Guangzhou Baiyun District, Tak Hong Road, Lot No. 9 residential project” to the other party to pay 50 million yuan compensation for project development fee; after the signing of equity investment with the acquisition of Guangdong Jiarui contract, agreed to co-financing the acquisition of property in Kunming Shengfei Sheng Technology Co., Ltd. and Kunming Pharmaceutical Biotechnology Co., Ltd. into shares on, and then pay a 50 million share purchase money. But the deal only after the chairman Xu Shuqing approval, fails to perform board decision-making procedures. In addition, after the closely watched for the constant group broke up the issue with the Shandong step, the rectification decided that the board has not decided to cooperate fully discussed in advance, failed to do careful decision-making; in the total distribution before the signing of the agreement, the company only by Wuzhou Pharmaceutical form a simple feasibility analysis report, signed by the board to consider only the total distribution agreement in the motion to convene a temporary board of directors to discuss the matter, voting by correspondence and meetings held, not according to that company directors, especially outside directors the matter was fully discussed. In this regard, the constant group that is aware of the problem, and said that he would strictly deal with the matters submitted to the Board, providing for the submission of the relevant issues necessary background information required to be complete. In addition, the concern is that the constant group, there are still a number of undisclosed related party transactions and major contracts. Which, in March 2011, the company and Guangzhou Yuexiu District, Xeikon Drug Research Institute signed a total of 160 million yuan two technology transfer and development of new drugs (commission) contract, the transaction amount 160 million more than the company’s 2010 year-end audited number of 1.332 billion yuan of net assets 10%, the company did not disclose the information in a timely manner. In response to these many problems, Guangxi CSRC requires constant and Deputy General Manager Peng Weimin, chairman Xu Shuqing on April 30, 2012 to complete the rectification of the issues involved.
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