Wang Guanhua, the former chief financial officer who was once a director of Taodi-KY, was sued for allegedly avoiding losses by insider trading for the chairman.

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[Reporter Qian Lizhong/Taipei Report] Taodi-KY, which specializes in the Chinese children's clothing brand market, in order to cover up the huge losses caused by the impact of the epidemic in China, as well as the loss of up to 350 million yuan, Zhou Xuncai, the Hong Kong chairman, Suspected of falsifying financial reports and insider trading to avoid losses of 1,488,960 yuan; the Taipei District Prosecutor’s Office today prosecuted Zhou Xuncai, Chinese financial director Cheng Zhangtao, chief auditor Chen Jianwei, and former directors for crimes such as insider trading in violation of the Securities Exchange Act and special breach of trust. Former chief financial officer Wang Guanhua and 4 others.

The period of insider trading involved in this case is from July 11 to August 12, 2020. Zhou Xuncai knew in advance that China Taodi had suffered serious operating losses. Compared with the previous period and the same period of the previous year, he was facing serious losses However, during the period when insiders were prohibited from trading stocks before and after the announcement of Zhongxun, Wang Guanhua was instructed to sell shares by insider trading, and sold 198 shares at a total of 42.88 yuan per share, avoiding losses of 1,488,960 yuan.

Since the prosecution has not seized the illegal proceeds, after the prosecution of the whole case, it is recommended that the court declare confiscation or expropriation.

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Shi Jingbin and Jiang Mingnan, the visa accountants of Qinye Zhongxin who were also involved in the case at the beginning, and Lin Yuxuan, a female employee of Qinye Zhongxin Accounting Firm who was in charge of making the draft, mistrusted the false transaction certificate provided by Zhou Xuncai, which led to the incident. There were major false errors in the financial report. The prosecution believes that the three people have nothing to do with the illegal activities of Taodi's high-level executives. Today, the three people will not be prosecuted.

The prosecution believes that Zhou Xuncai, in order to conceal the fact that China Taodi did not actually invest in Xingyin Fund, Shi Jingbin and other three people carried out the review of China Taodi and Taodi-KY’s financial reports for the third quarter of 2019 in October 2019, and the 2020 In January, when the 2019 annual financial report review was performed, false internal and external transaction certificates were provided, which caused three people to mistakenly believe that China Taodi had invested in Xingyin Fund, resulting in a major false financial report.

The prosecution found that China Taodi is the parent company of Taodi-KY. In 2020, China Taodi was affected by the pneumonia epidemic, which led to a sharp decline in operations and indirectly caused Taodi-KY's operating loss in the second quarter of 2020. The loss was obviously higher than that of the previous period and the same period of the previous year. Zhou Xuncai and others artificially covered up the company's losses, and were suspected of fabricating the fact that China Taodi invested 350 million yuan in Xingyin Fund to cover up China Taodi's cash flow of up to 350 million yuan. , causing investors to misjudge the financial report, seriously affecting the rights and interests of investors.