Scope of claim of Kangmei Pharmaceutical shareholders

the claim scope of Kangmei Pharmaceutical shareholders includes: investment difference, commission, stamp duty and interest loss.

overview of the lawsuit:

on December 31, 22, the company received the notice of responding to the lawsuit (22) No.2171 at the beginning of the Republic of China, which was sent by Guangzhou Intermediate People's Court. Eleven natural persons, including Gu Moumou and Liu Moumou, filed a lawsuit with the Intermediate People's Court of Guangzhou City, Guangdong Province on the dispute over the liability for misrepresentation of the company's securities.

Guangzhou Intermediate People's Court filed a case for acceptance on December 31, 22, and formed a collegial panel to hear the case according to law. On February 1, 221, the company received the Civil Ruling from Guangzhou Intermediate People's Court on this litigation case, and the plaintiffs Gu Moumou and Liu Moumou were elected as the proposed representatives by the plaintiffs, bringing an ordinary representative lawsuit.

Basic information of this lawsuit:

(1) Parties to the lawsuit: plaintiffs: eleven natural persons such as Gu Moumou and Liu Moumou; Defendants: the company and 21 then-Dong Jiangao, including Ma Xingtian, Xu Dongjin, Qiu Xiwei, Zhuang Yiqing, Wen Shaosheng and Ma Huanzhou

(2) Litigation requests:

(1) Request to confirm that the plaintiffs Gu Moumou and Liu Moumou are the litigation representatives of the plaintiffs in this indictment, and request the court to initiate an ordinary representative lawsuit;

(2) Request Ma Xingtian and Xu Dongjin to compensate the plaintiff for the loss of investment difference of 41,522 yuan according to law;

(3) Request Ma Xingtian and Xu Dongjin to compensate the plaintiff for the loss of investment difference in commission of 123.17 yuan, stamp duty of 41.52 yuan and interest loss of 1,172.51 yuan; 4. Request that the defendants be jointly and severally liable for the above losses of the plaintiff according to law.

(III) Facts and reasons Since October 218, the media have questioned the authenticity of the company's monetary funds, and relevant media reports have been reprinted in large numbers, and then the company's share price has fallen sharply.

on December 29, 218, the company and its directors, supervisors and senior managers were placed on file for investigation by China Securities Regulatory Commission, and on May 13, 22, the CSRC made a decision on administrative punishment. The illegal facts identified by administrative punishment include: there were false records in the company's annual reports in 216, 217 and 218 and the semi-annual report in 218. Inflated operating income, interest income, operating profit and monetary funds, inflated fixed assets, projects under construction and investment real estate, and failed to disclose the related transactions of non-operating occupied funds of controlling shareholders and their related parties as required. Directors, supervisors and senior executives of the company are not diligent and conscientious. Based on the trust in information disclosure, the plaintiff bought the stocks involved from the implementation date to the disclosure date, thus suffering heavy losses.