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Onlly's former executives charged with embezzlement

By Ma Zhenhuan (chinadaily.com.cn)
Updated: 2009-02-26 20:03

Three former senior executives of Jiaoda Onlly Co, China's first listed health food manufacturer, were charged with embezzlement of public funds and taking bribes, the company said.

In a statement, Onlly said its former president Lan Xiande, together with former vice-presidents Fan Xiaobing and Ye Wenliang, were found to have embezzled and taking bribes worth of 153.2 million yuan ($22.53 million).

The three has been charged with above crimes and the case is been proceeded at the Shanghai No 2 Intermediate People's Court, the company statement said, adding that it will closely follow the update of the case, and try to retrieve the previous losses arising from that as much as it can.

Affiliated to the Shanghai Jiaotong University, Onlly is a hi-tech company mainly engaged in manufacturing and sales of biological and health food products.

The company, established in 1990 and listed in Shanghai in July, 2001, gained its fame from its nutrition oral liquid I & Onlly and Onlly capsule, which were quite popular in the Yangtze River Delta.

I & Onlly liquid, containing a live bacteria type of ecological dietetic liquid, is believed to have a special multi-effect to human health, according to Onlly.

Caijing reported yesterday that Lan was believed to have been illegally transferring certain amounts of funds and businesses of Onlly to some companies he controlled during the reshuffling of the company.

The company has been adopting a multi-industrial investment, with some of its subsidiaries suffering from losses.

In a statement issued at the end of last year, the company forecast a 60-100 million yuan for its 2008 performance, citing "drawing risk reserves" and "preparation for asset decrease" as main reasons. It achieved a net profit of 5.11 million yuan in 2007.

Shanghai-based Oriental Morning Post reported last week that the Yang Guoping, the Onlly chairman, said the company will focus its main businesses in areas of health food sales, real estate and financial investment, trying to shrink its business scope from some loss-making areas.

Onnly announced last week that it is seeking buyers of its 19-percent stake in Shanghai Evening Post Co Ltd at a price of 11 million yuan, it purchased the stake at 9.5 million yuan in 2004.

The company also dismissed Sanyuan Onnly, a subsidiary company devoted in the nutrition food sector, in April last year.

Lan and the two former vice-presidents were removed from their posts in December, 2007 and has been under investigation ever since.

Shares of Jiaoda Onlly registered a sharp decline of 7.8 percent to close at 4.61 yuan yesterday.

Born in 1957, Lan, one of the mainly founders of Onlly, has been president of the company between 2001 and 2007.