The Securities News Agency reported on March 20 that the aftermath of the LeTV financial fraud case was not over, and Ping An Securities, the sponsor responsible for LeTV’s IPO business, received a fine. The reporter learned from relevant persons close to the regulatory authorities that the Shenzhen Securities Regulatory Bureau recently issued an advance notice of administrative supervision measures to Ping An Securities, and plans to order Ping An Securities to make corrections and suspend the qualification of the sponsor for three months. The sponsor representative and the person in charge of the sponsoring business at that time were identified as inappropriate persons for 5-10 years, and other relevant personnel related to the compliance business were taken measures such as supervisory interviews. At present, the supervisory department is in the process of prior notification, and the corresponding administrative supervision measures will be officially issued after the completion of the procedure.

At the same time, Zhongde Securities, the sponsor of LeTV’s refinancing project, also received a fine from the China Securities Regulatory Commission on March 20. On March 20, Shanxi Securities, the parent company of Sino-German Securities, issued an announcement that the China Securities Regulatory Commission plans to decide to order Sino-German Securities to make corrections and issue a warning, “one penalty and two penalties”, confiscation of business income of about 5.66 million yuan, and a fine of about 11.32 million yuan Fines; Yang Lijun and Wang Xin were warned and fined 150,000 yuan respectively.

The China Securities Regulatory Commission determined that the non-public offering sponsorship business of Zhongde Securities LeTV.com was suspected of failing to perform its duties diligently. First, the sales information of the top ten customers has not been fully obtained and compiled; second, the authenticity of the business occurrence has not been effectively verified. Yang Lijun and Wang Xin, representatives of LeTV’s non-public offering signature sponsorship, are directly in charge. The China Securities Regulatory Commission plans to decide to order Zhongde Securities to make corrections, issue a warning, confiscate business income of 5,660,377 yuan, and impose a fine of 11,320,754 yuan; give a warning to Yang Lijun and Wang Xin, and impose a fine of 150,000 yuan respectively.

Previously, the China Securities Regulatory Commission found out that LeTV has inflated its performance for ten consecutive years from 2007 to 2016, and the period involving the financial data of the non-public issuance filing documents was from 2012 to 2016. January to June 2014 and 2015. From 2012 to 2014, LeTV’s inflated revenue was RMB 89.6533 million, RMB 199.9817 million and RMB 351.9419 million respectively, and the profit was inflated by RMB 84.4510 million and RMB 193.3969 million. and 342.7038 million yuan, accounting for 37.04%, 78.49% and 470.11% of the total disclosed profit for the current period.

Financial fraud has always been the focus of the CSRC. At present, the supervision of intermediaries and practitioners in IPO and refinancing has been strengthened through various means. The fines issued by Sino-German Securities and Ping An Securities are to fully implement the “zero tolerance” law enforcement principle.It is a powerful measure to further strengthen the supervision of intermediary institutions such as sponsors, and to tighten the responsibilities of intermediary institutions.

The China Securities Regulatory Commission has stated many times that it will continue to urge intermediaries and their practitioners to fulfill their responsibilities, effectively play the role of “gatekeeper” in the capital market, focus on key areas, highlight For major cases, adhere to the principle of “double investigation in one case”, effectively increase the cost of violations, effectively enhance the deterrence of law enforcement, safeguard the legitimate rights and interests of issuers and investors, and provide a strong legal guarantee for the reform, development and stability of the capital market. It can be expected that for intermediaries that dare to touch the red line, the regulatory authorities will severely punish them, and investigate and punish them severely and quickly.