PDF《长春达兴药业股份有限公司》

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长春达兴药业股份有限公司CHANGCHUN DA XING PHARMACEUTICAL COMPANY LIMITED* (a joint stock limited company incorporated in the People'

s Republic of China) (Stock Code :8067) RESIGNATION OF CHAIRMAN, EXECUTIVE DIRECTOR, NON-EXECUTIVE DIRECTOR AND INDEPENDENT NON-EXECUTIVE DIRECTOR Ms. Qu Lian Qin has tendered her resignation as Chairwoman and executive director of the Company with effect from

5 December 2006. Mr. Yu Chen Kun, Mr. Lu De Yi, Mr. Guo Bin and Mr. Zhang Dong Hai have tendered their resignation as executive director of the Company with effect from

5 December 2006. Mr. Dong Guo Zhi has tendered his resignation as non-executive director of the Company with effect from

5 December 2006. Mr. Shi Jie, Mr. Sun Xiao Bo and Mr. Zhang Zhong Sheng have tendered their resignation as independent non-executive director of the Company with effect from

5 December 2006. Trading in shares of the Company was suspended effective from

28 July

2005 and remains suspended until further notice. The current directors of Changchun Da Xing Pharmaceutical Company Limited (the Company ) were elected by the shareholders in the shareholders meeting on June 28, 2005. From June 28,

2005 to October 30, 2006, the Company has gone through a series of events, including the arrest of former Chairman, Mr. Feng Zhen Wen and former CFO, Ms. Li Xiu Jie, due to their suspicious crime of faking financial data and appropriation of company'

s assets to their personal accounts, the suspension of trading of the Company'

s stock due to inability to disclose financials on time, prosecution by the creditors and auction of the Company'

s assets. The current board of directors has tried their best to bring the Company to * For identification purposes only

2 normal operation, and to minimize the shareholder'

s loss, however, this can not be achieved because of the extremely large ratio of liability/asset the Company has. Now, Ms. Qu Lian Qin and the other

8 directors have decided to resign from their directors positions. Following is a detailed explanation to the material events the Company has gone through recently. 1. About former Chairman, Mr. Feng Zhen Wen and former CFO, Ms. Li Xiu Jie. Mr. Feng and Ms. Li were arrested on September,

2005 due to their suspicious crime of faking financial data and appropriation of company'

s assets to their personal accounts. The police started investigation of the crime since their arrest, and until October 2006, the police have found an apartment home worth 500,000 RMB under Mr. Feng'

s name, which the police believe it is purchased using the Company'

s money, the police have also found cash in Ms. Li'

s account of 4,950,000 RMB, which the police believe it is transferred from the Company'

s account. The assets the policed found under Mr. Feng and Ms. Li'

s name were used towards the upgrade of the liquid product manufacturing plant in order to meet GMP examination and to pay part of the debt, some were also reserved for normal operation. The crime is still being investigated by the police and the procuratorate. 2. Financials. Discovered by the police, before the resignation of the former Chairman, Mr. Feng Zhen Wen, he instructed the accounting staff to fake the Company'