Changsheng Bio-technology, a biopharmaceutical company that rattled China's drug industry last year by forging data on vaccines, will be delisted from the Shenzhen Stock Exchange.
The Shenzhen bourse made the decision on Tuesday night, citing the breach as "major", according to a statement posted on the exchange's website.
Shares of Changsheng Bio-technology, which is based in China's north-eastern province of Jilin, will trade for a final 30 trading days before the stock is officially expelled from the exchange's main board, which is expected to take place on November 26. Trading in the shares has been suspended since March 5. The stock last traded at 1.51 yuan after 95 per cent of the company's market value was wiped off within 10 months.
It is the first company to be booted from the bourse since the mainland's exchanges strengthened their delisting rules last year, making "endangering public safety, health and national security" one of the delisting criteria.
In July last year, Changsheng Bio-technology was found to have falsified production and inspection data on rabies vaccines, and to have made ineffective vaccines for diphtheria, whooping cough and tetanus for babies.
The scandal even drew the attention of President Xi Jinping, who called for a thorough investigation in the case. Eighteen people including chairwoman, Gao Junfang, were arrested and Changsheng Bio-technology, China's second-largest vaccine maker at the time, was fined 9.1 billion yuan (US$1.27 billion).
Changsheng Bio-technology has not released any financial results since the first half last year, as the company could not find and pay an audit firm, with all its bank accounts frozen. Net income for the six months ending in June 2018 dropped 4.6 per cent from a year earlier to 252.1 million yuan, according to an interim report.
The company had a total of 22,759 shareholders then, it said. Gao, its chairwoman, held an 18.1 per cent stake in the company as its biggest shareholder.
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