Tianfeng Securities Fined Over 40 Million, 5 Responsible Persons Required to Pay Half of Penalty

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Tianfeng Securities (rights protection) multiple penalties implemented.

On March 14, Tianfeng Securities announced that due to suspected illegal financing and information disclosure violations involving Wuhan Contemporary Technology Industry Group Co., Ltd. (hereinafter “Contemporary Group”) and other shareholders or related parties, the Hubei Securities Regulatory Bureau fined Tianfeng Securities 15 million yuan.

On the same day, due to suspected illegal disclosure of shareholding changes by Fujian Yong’an Forestry (Group) Co., Ltd. (hereinafter “Yongan Forestry”), the Fujian Securities Regulatory Bureau ordered corrections, issued a warning, and fined 4 million yuan.

In addition to penalizing the firm, the Hubei and Fujian regulators also held individuals accountable, imposing penalties on responsible persons totaling over 20 million yuan.

Regarding these penalties, Tianfeng Securities stated that the company sincerely accepts regulatory sanctions and will resolutely implement all decisions. This marks the thorough resolution of longstanding risks, with comprehensive rectification work solidly underway. Currently, operations are stable and orderly, and the company has entered a new stage of steady development.

Illegal financing and disclosure violations

Five responsible persons fined; President Wang Linjing fined twice

In the two administrative penalty decisions mentioned above, Tianfeng Securities’ violations share some commonalities. Besides illegal financing, both penalties involved disclosure violations.

In the Hubei regulator’s penalties, Tianfeng Securities’ disclosure violations included: failure to disclose related-party transactions with Contemporary Group in annual reports from 2020 to 2022, and failure to disclose other types of related-party transactions with Contemporary Group; in 2021, failure to disclose related-party transactions with Guanggu Financial Leasing.

In the Fujian regulator’s penalties, Tianfeng Securities failed to promptly disclose shareholding change information of Yongan Forestry. Specifically: on December 31, 2021, the Quanzhou Intermediate People’s Court of Fujian issued an “Enforcement Ruling,” ordering the transfer of 41,372,005 shares of Yongan Forestry and dividends held by the defendants Su Mouxu and Fujian Nan’an Xiongguan Investment Center (Limited Partnership) to Tianfeng Securities to settle related debts, stating “the above property rights transfer shall take effect from the date this ruling is served on the applicant for enforcement.”

On December 31, 2021, Tianfeng Securities, as the enforcement applicant, received the “Enforcement Ruling,” holding 12.29% of Yongan Forestry’s total shares. According to the “Administrative Measures for the Acquisition of Listed Companies,” Tianfeng Securities should have promptly disclosed this shareholding change, but only issued “Notification Letters” to Yongan Forestry on February 23, 2022, and March 7, 2022.

Based on these violations, the Hubei Securities Regulatory Bureau penalized five responsible persons.

• Warnings and a 6 million yuan fine for former Chairman Yu Lei, who was also banned from securities markets for life.
• Warnings and a 6 million yuan fine for former Vice President and CFO Xu Xin, also banned for life.
• Warnings and a 3.3 million yuan fine for Vice President and Executive Vice President Zhai Chenxi.
• Warnings and a 3 million yuan fine for Director and President Wang Linjing.
• Warnings and a 3 million yuan fine for Executive Vice President Feng Lin.

Based on the violations, the Fujian regulator penalized Wang Linjing.

The Fujian regulator pointed out that Wang Linjing, as President of Tianfeng Securities, was responsible for the company’s management. After learning on December 31, 2021, about the enforcement ruling from Quanzhou Intermediate Court, she failed to promptly organize the company to disclose the shareholding change of Yongan Forestry, directly responsible as the supervisor.

According to the facts, nature, circumstances, and social harm of her violations, and based on the Securities Law, the Fujian regulator decided to: issue a warning to Wang Linjing and impose a fine of 1.4 million yuan.

Official information shows Wang Linjing, born in 1975, graduated from Fudan University with a bachelor’s degree in World Economics, and earned a master’s degree from the same university. She also holds a Ph.D. in National Economics from the Chinese Academy of Social Sciences. She has worked at the National Development and Reform Commission, China Tongda Electronic Network Systems, and other institutions, serving as Vice President of the company. She is currently a member of the company’s Party Committee, Director, President, Acting CFO, and also serves as Director of Hengtai Securities and Chairman of Hengtai Changcai Securities.

Among the five senior executives, Wang Linjing is the only one penalized twice, with total fines of 4.4 million yuan. Data shows that in 2022, 2023, and 2024, her pre-tax compensation from Tianfeng Securities was 1.2529 million, 1.6034 million, and 1.4017 million yuan respectively, totaling 4.238 million yuan.

In summary, her penalties over three years have exhausted her pre-tax salary.

New Chairman Pang Jiemin “takes the helm”

2026 is the decisive year for high-quality development

Financial reports show that from the end of 2018 to the end of 2021, Contemporary Group and its subsidiary Renfu Pharmaceutical jointly held 12.96%, 12.96%, 12.43%, and 9.56% of Tianfeng Securities’ shares, always its largest shareholder.

In 2022, “Contemporary Group” faced a debt crisis, with multiple bonds defaulting, weakening its control over Tianfeng Securities. State-owned enterprise Hongtai Group, a provincial-level SOE in Hubei, acquired shares held by Renfu Pharmaceutical and Lianfa Investment Group, with the share transfer approved by the China Securities Regulatory Commission at the end of 2022. In February 2023, Hongtai Group officially became the controlling shareholder of Tianfeng Securities.

Since Hongtai Group became the largest shareholder, Tianfeng Securities’ performance has significantly improved. In 2023, its operating income and net profit attributable to shareholders reached 3.427 billion yuan and 307 million yuan, respectively, with year-on-year growth of 99.10% and 120.44%.

In October 2024, Tianfeng Securities held a cadre meeting attended by Zeng Xin, Party Secretary and Chairman of Hubei Hongtai Group. Deputy Party Secretary Zeng Qingzhu announced that the Party Committee of Hubei Hongtai Group decided to appoint Pang Jiemin as Party Secretary of Tianfeng Securities.

Personal background shows Pang Jiemin, with a graduate degree and a Ph.D., previously worked at the People’s Bank of China Beijing Branch, the China Securities Regulatory Commission’s Institutional Supervision Department, and the Financial Services Office of Xicheng District, Beijing. He served as Vice General Manager of Beijing Financial Street Investment (Group), Chairman of Hengtai Securities, COO of China Galaxy Financial Holdings, and is now Party Secretary and Chairman of Tianfeng Securities, also serving as Director of Hengtai Securities.

Just a few months after taking the helm, Pang Jiemin faced challenges. In 2024, Tianfeng Securities’ performance declined again. The company’s revenue was 2.7 billion yuan, down 21.21%, with a net loss of 29.7091 million yuan, a decrease of 109.67%.

After more than a year of effort, Tianfeng Securities is expected to have a fruitful 2025, with projected net profit attributable to shareholders between 125 million and 185 million yuan.

In early 2026, in a letter to all Tianfeng employees, Chairman Pang Jiemin summarized that 2025 was a crucial year for a historic turning point. The company successfully completed a 4 billion yuan private placement, launched the “Second Entrepreneurship” campaign, and saw significant growth in revenue and profit, with overall operational quality improving.

Looking ahead to 2026, Chairman Pang Jiemin emphasized that it will be the decisive year for Tianfeng Securities to achieve high-quality development.

In 2026, Tianfeng Securities aims to accomplish two strategic shifts: first, fully realize an internal transformation toward “self-sustaining growth, standardized governance, and reputation repair” in the first half of the year; second, solidly promote the “Six New Tianfeng” initiatives, accelerate into a new phase of high-quality development, and build a new type of securities firm with standardized management, strong performance, and extensive service capabilities.

Four major challenges await Tianfeng in 2026: 1. Strengthen the central role of Party leadership; 2. Decisively win the battle for independent financing and the “new-old separation”; 3. Conquer risk recovery and operational transformation; 4. Persist in systemic governance and long-term development.

With these longstanding risks resolved, Tianfeng Securities can once again move forward lightly in 2026.