Layn Natural Ingredients Controller Resigns Amid Five-Year Securities Market Ban
Qin Benjun has stepped down from all roles at Layn Natural Ingredients, including the position of Chairman, following a five-year ban from the securities market imposed by Chinese regulators. The health products manufacturer confirmed this news, revealing that Qin, who also acts as Layn’s actual controller, has been fined over CNY2.07 million (USD285,000) for market manipulation. Additionally, CNY690,000 (USD94,910) in illegal gains has been confiscated from him.
The investigation into Qin for alleged securities market manipulation began on May 10 last year, conducted by the Securities and Futures Commission. Layn clarified that this issue is a personal administrative penalty on Qin Benjun and stressed that it does not affect the day-to-day operations of Layn Natural Ingredients or involve other senior management members.
Despite these developments, Layn’s operations and production remain unaffected, with the company confirming that everything is running normally. Layn’s shares [SHE: 002166] closed at CNY8.39 (USD1.16) each in Shenzhen today, showing no change. The stock has seen an 8 percent increase in value this year.
Qin held a significant position in the company as the largest shareholder, owning a stake of 36.6 percent. He is the sole individual with ownership of more than 5 percent of the company’s shares. In Layn’s third-quarter earnings report, it was revealed that the company’s net profit surged by 148 percent to CNY100 million (USD13.8 million) in the nine months leading up to Sept. 30 compared to the previous year. Revenue also saw a substantial increase of 32 percent to CNY1.2 billion (USD165.1 million). In the previous year, Layn’s profit declined by 54 percent to CNY83 million (USD11.4 million) despite a 6.7 percent rise in revenue to CNY1.5 billion.
Specializing in natural health products, Layn was established in 2000 and serves various sectors including food and beverage, pharmaceuticals, healthcare, cosmetics, pet supplies, and feed. These events may impact the company’s leadership structure, but Layn reassures stakeholders that its core business remains stable.
The leadership change at Layn Natural Ingredients comes amidst a period of growth and transformation in the company’s financial standings. It’s important for investors to stay informed about these developments in the securities market to make well-informed decisions regarding their investments.
