R&G Pharma: During the company's IPO application process in 2020, it encountered malicious extortion

R&G Pharma Technology Co., Ltd. issued a statement saying that during the listing application process, Zhong Dafang, under the inducement, instigation, and coercion of a professional criminal gang led by Chen, meticulously planned and organized, utilizing key nodes in the company's listing review, employing illegal methods such as withholding company documents, forging documents, repeatedly making false reports to regulatory agencies, and writing "small essays" to publish false statements online to create public opinion, thereby obstructing and delaying the company's listing process. They used this as leverage to extort hundreds of millions of yuan from the company and its actual controllers. For the long-term development of the company and to protect the legal rights and interests of shareholders, investors, and all employees, the company and its actual controllers were forced to compromise and pay a large sum of money to Zhong Dafang and others. Since the company's listing, Zhong Dafang, Chen, and others have intensified their threats by reporting and applying public pressure to demand even more money. The company believes that the actions of the relevant personnel have caused significant losses to the company and its actual controllers, are extremely malicious in nature, and should be severely punished according to the law, and that crime should no longer be tolerated. Therefore, they provided further complaint materials to the public security organs. After review by the public security organs, Zhong Dafang has been criminally detained, and his accomplice Chen has fled abroad