The securities regulator has slapped a fine of 300,000 yuan (US$37,500) on Gu Chujun, former chairman of Hong Kong and Shenzhen-listed appliance maker Guangdong Kelon Electrical Holdings, for a string of improper corporate behaviors.

The once flamboyant Gu has also been banned by the China Securities Regulatory Commission (CSRC) from investing in the stock market and holding any position in a listed company for life.

The CSRC found that Kelon had overstated its profits by 387.18 million yuan between 2002 and 2004 and failed to report 3.03 billion yuan in loans in 2003.

Yan Yousong, Guangdong Kelon's former vice president, was also fined 200,000 yuan by the CSRC and barred from any future activity in the domestic stock market for 10 years.

Earlier this month, the CSRC levied a fine of 600,000 yuan on Guangdong Kelon for providing false information and for other offenses, while 12 former executives face fines ranging from 50,000 yuan to 200,000 yuan.

Gu, who was arrested by police in August last year, is being prosecuted on accusations of "embezzling and misappropriating" huge amounts of Guangdong Kelon's assets.

The CSRC has transmitted Gu's case to the judicial department for further investigations that may lead to possible criminal penalties against Kelon's former management.

Hisense Group, a major domestic home appliance maker, agreed to pay 680 million yuan to buy a 26.43 percent stake in Guangdong Kelon from Guangdong Greencool Enterprise Development Co., the flagship firm of Gu that is the largest shareholder of Guangdong Kelon.

Kelon said Friday it postponed a board meeting scheduled Friday to approve its 2005 results until further notice.

It said it will suspend the trading of A shares once again, or even delist, if it can't publish its financial results for 2005 and the first quarter of 2006 by Sept. 1.

Editor: Donald