Lu Jianming, chairman of a Chinese healthcare giant, posted on Weibo, showing him burning incense and praying for blessings at Jingshan Temple in February this year. His behavior violated local epidemic prevention policies, attracting public concern and becoming a hot search.

He tried to explain that due to the epidemic, Jingshan Temple was closed. However, his friend contacted the temple monks to allow him to enter the hall and burn three incense sticks.

Lu Jianming, once again, has become a hot search when his company, Tongce Medical, has seen a slump in its market value.

As Chinese Headline News reported on November 20, Lu Jianming has been investigated by the authorities, leading to a 60% slump in Tongce Medical’s market value and a plunge of  9 billion yuan ($12.6 billion) in his net worth.

On the evening of November 18, Tongce Medical announced that Lu Jianming, the actual controller and chairman of the company, had received the “Notice of Filing” from the China Securities Regulatory Commission.

The preliminary understanding shows that the content of the case mainly involves the information disclosure of the One Fund Zhejiang Tongce Number One Investment Partnership or “One Fund.”

Tongce Medical and Lu Jianming reportedly received a regulatory fine from the Zhejiang Securities Regulatory Bureau for One Fund’s questionable compliance.

The decision letter mentioned that from October 19 to December 30, 2021, Tongce Medical had non-operating fund transactions of $20 million (143 million yuan) with enterprises controlled by the beneficial owner Lu Jianming. However, the company failed to fulfill the corresponding decision-making procedures as required and did not fulfill its information disclosure obligations.

Tongce Medical issued an announcement on October 10 related to the rectification report of the decision of Zhejiang Securities Regulatory Bureau. The bureau’s decision is about administrative supervision measures, which mentioned that the company had several information disclosure violations.

Tongce is one of the top 50 competitive listed pharmaceutical companies in China. The company’s main business is medical services, including clinical, and scientific research and a teaching trinity of large dental medical groups. It now has 65 operating dental medical institutions. Its market value peaked at nearly $19 billion in late June last year.

Tongce Medical has experienced a decline in its performance this year, with the latest market value of just over $6.4 billion, a slump of more than 65% compared to its high last year.Lu Jianming was present regularly on the Hurun 100 Rich List, New Fortune 500 Rich List, and the Forbes Global Rich List. On November 8, he ranked 514th on Hurun 100 Rich List with 12 billion yuan (1.7 billion dollars), down from 193 last year, with his wealth shrinking by 9 billion yuan.

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