To protect A-shares, we must first protect small and medium-sized investors.
Figure Visual China.
Text |Chen Xi and Liu Jianzhong
Small and medium-sized investors are in a disadvantaged position, and the protection of small and medium-sized investors should start from the openness, transparency, truthfulness, accuracy and completeness of information. However, some listed companies deliberately conceal their true asset status, profitability and cash flow status.
The higher the level of financial fraudsters, the more concealed and harmful financial frauds are. Judging from past cases, the main body of fraud in A-share companies is often the management of the listed company, and it is the collective behavior of the management.
There are many ways to commit financial fraud, but there are five common methods.
The first is to fictitious businesses to inflate revenues and profits. The second is to confirm the progress of the project in advance to inflate revenue and profits. Third, undercounting inventory impairment, goodwill impairment, accounts receivable bad debts, etc. Fourth, the costs and expenses corresponding to the income of the current period are placed in other periods for intertemporal adjustment. Fifth, the use of asset restructuring to inflate profits. Among the many methods of fraud, the first method, the fictitious business, is the most egregious and highly hidden. The company signed false sales contracts with customers, signed false procurement contracts with leading merchants, made false business information such as production, delivery and logistics, and the internal funds and external funds of listed companies cooperated to simulate the flow of business funds, creating the illusion of sales collection, and finally forming a closed loop of fraudulent business.
This method is highly concealed and harmful, and some listed companies have been fraudulent for eight consecutive years before they are discovered. As 2023 draws to a close, we have summarized the top 10 cases of financial fraud that were disclosed in the first 11 months of 2023 and that fell under this category and had the highest inflated profits.
*After the facts of the case are basically determined, the regulator will issue an Advance Notice of Administrative Penalty to the company involved in the case, informing the company of the administrative penalty decision to be made, as well as the facts, reasons and basis on which the decision is based. Relevant personnel of listed companies may make defenses on the facts of the case and punishment. After the case and punishment are finalized, the regulatory authority will issue an Administrative Penalty Decision.
This article is summarized and based on the Administrative Penalty Decision. The 10 cases of financial fraud are listed in descending order of inflated profits.
No. 10 Start-up shares (603557.)sh）
Inflated profits 1$2.9 billion
In 2017, the start-up shares landed on the Shanghai Stock Exchange with the halo of "the first share of children's shoes". The company owns the well-known children's clothing brand "ABC Kids". At that time, the brand ranked first in the domestic children's shoes market share and seventh in children's clothing.
In order to cover up the weak growth, the company has been falsifying its finances for many years since 2018. From 2018 to the first half of 2020, a total of 1$2.9 billionIn 2018, the total inflated profit was 02.3 billion yuan, real profit of 22.3 billion yuan. In 2019, the total inflated profit was 06.6 billion yuan, real profit 17.7 billion yuan. In the first half of 2020, the total inflated profit was 0400 million yuan, real profit 0800 million yuan.
In February 2021, the company announced that "it recently received a written resignation from Mr. Chen Zhangwang, the chief financial officer, who resigned as the company's chief financial officer for personal reasons". It should be noted that in A-shares, the resignation of the CFO is a matter of caution.
In April 2021, the company released its 2020 annual report, revealing its true operating conditions. Operating income in 2020 is 7700 million yuan, down 49% from 2019, while the profit loss was 2700 million yuan. The company was also issued a "non-standard" audit report with a "qualified opinion" by an accounting firm.
In general, a "standard" audit report should not only be an "unqualified" audit report, but should not contain additional paragraphs, paragraphs of emphasis and paragraphs on other matters. "Non-standard" audit reports require a high degree of vigilance.
From the time of listing to the time of exposure of its problems (April 2021), the number of holdings** held by the top three shareholders has decreased significantly.
In 2020 alone, according to the average price of 1104 yuan, the major shareholder Hong Kong start-up (the enterprise controlled by Zhang Limin, the actual controller of the start-up shares) ** value of 6400 million yuan. The second shareholder of Bangao is worth 700 million yuan;Lishui Dawn** is worth 50 million yuan.
When the company's true operating conditions were revealed, the three major shareholders further reduced the number of shares. At the end of 2021, Hong Kong started to hold 04.9 billion shares, down 14.4 billion shares. And Bangao and Lishui Chenxi are no longer among the top ten shareholders.
The CSRC Administrative Penalty Decision No. 2023 No. 80 issued a warning and imposed a fine of RMB 57 million on the start-up sharesA fine of 10 million yuan was imposed on the general manager, Zhou JianyongZhang Limin, the actual controller and chairman of the board, was fined 5 million yuanA total of $5 million in fines was imposed on the other responsible persons.
No. 9 Hongda New Materials (002211.)sz）
Inflated profits 13.3 billion yuan
On January 5, 2019, Hongda New Materials issued an announcement that the original controlling shareholder (Jiangsu Weilun Investment Management*** held 12.2 billion shares (28.8 million shares of the total share capital.)23%), transferred to Shanghai Hongzi Enterprise Development*** hereinafter referred to as Shanghai Hongzi), the actual controller of Hongda New Materials was changed to Yang Xin.
However, Yang Xin only holds it for Sui Tianli, and Sui Tianli is the actual controller of Hongda New Materials. And Sui Tianli led the famous "private network communication" in the history of A-shares, which implicated more than ten listed companies, with false sales of more than 90 billion yuan.
In July 2011, Sui Tianli invested in the establishment of Shanghai Xingditong Communication Technology Co., Ltd. 90% of the shares, and since then began the so-called private network communication products of "private network communication", which have not been actually sold, nor used by consumers, but only through the signing of false contracts, forged business and other ways to conduct business with listed companies.
Sui Tianli controls many enterprises, some of which are upstream businessmen of listed companies, and some are downstream customers. More than 10 listed companies participated in this event with or without knowing it.
After Sui Tianli became the actual controller of Hongda New Materials, he also brought the "private network communication" business. In 2019, Hongda New Materials inflated its total profit by 0300 million yuan, accounting for 39% of the total profit disclosed in the annual report;In 2020, the total inflated profit was 10.3 billion yuan, accounting for 151% of the total profit disclosed in the current annual report.
China Securities Regulatory Commission Administrative Penalty Decision 2023 No. 24 gave a warning to Hongda New Materials and imposed a fine of 3 million yuan;Sui Tianli was fined $10 million;Yang Xin was fined 2 million yuan;A total fine of 500,000 yuan was imposed on the other responsible persons.
No. 8 Danbang Technology (002618.)sz）
Inflated profits2400 million yuan.
In 2011, Danbang Technology was listed on the small and medium-sized board of the Shenzhen Stock Exchange, and its main business is flexible printed circuit boards and flexible packaging products. Liu Ping is the actual controller and chairman of the company. In 2015, Shenzhen Danbang Investment Group, the major shareholder of Danbang Technology, was punished by the China Securities Regulatory Commission for violating the rules. (China Securities Regulatory Commission Administrative Penalty Decision 2015 No. 46).
When Danbang Technology's financial fraud drama just started, it also carried out a braggart performance. On July 16, 2018, Danbang Technology issued the "Announcement on the Successful Trial Production of TPI Thin Film Carbonization Technology Transformation Project", saying: "The multilayer graphene two-dimensional quantum carbon-based film of the project is currently the world's leading production process. Since then, Danbang Technology's stock price has risen for two consecutive days.
On July 24, 2018, the Shenzhen Stock Exchange asked Danbang Technology to provide a document source to support its conclusions. On August 1, 2018, Danbang Technology replied that after checking the two journals of Science and Nature, it has not seen any reports similar to the company's quantum carbon-based thin film material technology. Danbang Technology also did not provide specific sources of literature.
On August 3, 2018, the "SME Board Regulatory Letter [2018] No. 145 stated: "(Danbang Technology) used exaggerated words and sentences in the announcement without a factual basis, which was misleading. ”
In October 2020, Liu Ping was reported by Wang Liyi and Zou Shenghe for academic fraud. Both were executives at Danbang Technology until 2016. Liu Ping claimed to have graduated from Wuhan University of Science and Technology in 1988 majoring in composite materials, but the report letter said, "Liu Ping, chairman of Danbang Technology and chief scientist who is also claimed to be the chief scientist, has not attended a day of college and has no master's degree." The contents of this report were later confirmed.
Starting from October 14, 2020, the head of the internal audit department, the head of the financial department, the general manager, and the secretary of the board of directors of Danbang Technology have resigned one after another. In the same month, Danbang Technology received a "Letter of Concern" from the exchange. The inside story of Danbang Technology's financial fraud was slowly revealed.
It was found that Danbang Technology falsely increased its operating income by 1 in 2018, 2019 and the first half of 2020 by forging sales contracts, sales orders, finished product warehouse receipts, customer statements and other relevant information8.7 billion yuan, 28.3 billion yuan and 11.1 billion yuan, accounting for the disclosed operating income in the current period. 6% and 826%。
According to the company's average gross profit margin during the above period, Danbang Technology inflated its profits by 75.44 million yuan and 1 in 2018, 2019 and the first half of 2020 respectively200 million yuan and 44.78 million yuan, accounting for % and 3637% of the total disclosed profit in the current period, respectively. The total inflated net profit was 2400 million yuan.
The financial fraud began in the first half of 2018, and Liu Ping took ** shares from 2019. In November 2020, when the market discovered that the company had financial problems, Liu Ping's shareholding had increased from 15.4 billion shares down to 10.6 billion shares, down 04.8 billion shares. According to the average stock price of 121 yuan, this part of the ** is worth 5800 million yuan.
Administrative Penalty Decision No. 2023 No. 10 of the Shenzhen Supervision Bureau of the China ** Supervision and Administration Commission gave a warning to Danbang Technology and imposed a fine of 4 million yuan;Liu Ping, the actual controller and chairman of the board, was fined 8 million yuanXie Fan, chairman of the board of supervisors, and Deng Jianfeng, the head of finance, were fined 2 million respectivelyA total of $4.9 million in fines was imposed on the other responsible persons.
7th place Handler (300201sz）
Inflated profits2$8.9 billion
Handler's full name is Xuzhou Handler Special Vehicle Co., Ltd., which is mainly engaged in the research and development, production and sales of special vehicles such as aerial work vehicles, power emergency support vehicles, and fire trucks. Handler went public in 2011 with a net profit of 02.5 billion yuan.
In 2015, Handler invested 2600 million yuan acquired Lianshuo Automation Technology *** hereinafter referred to as Lianshuo Technology). From 2016 to 2019, Handler inflated its revenue and profits in each period through its wholly-owned subsidiary, Lianshuo Technology.
In 2016, the inflated operating income was 1500 million yuan, inflated profit 07.7 billion yuan. In 2017, the inflated operating income was 1800 million yuan, inflated profit 07.6 billion yuan;In 2018, the inflated operating income was 1700 million yuan, inflated profit 08.6 billion yuan;In 2019, the inflated operating income was 200 million yuan, and the total inflated profit was 0500 million yuan. The total inflated profit is 2$8.9 billion
Jiangsu Supervision Bureau Administrative Penalty Decision No. 4 2023 ordered Handler to make corrections, gave a warning, and imposed a fine of 3.5 million yuan;Yang Ya, vice chairman of Handler and general manager of Lianshuo Technology, was fined 2 million yuan, former chairman Ding Jianping was fined 1.5 million yuan, and other responsible persons were fined a total of 1.8 million yuan.
Handler's 2019 annual report is suspicious. Although the accounting firm gave a standard unqualified audit report, the "Inquiry Letter" of the Shenzhen Stock Exchange on May 8, 2020 hit the nail on the head, "(please add) whether the performance of Lianshuo Technology is true and accurate, the current sales collection, whether there is a return after the period, and whether there is a cross-period recognition of revenue." Please report the sales contracts and sales receipts of the top ten customers of Lianshuo Technology from 2016 to 2019. ”
In September 2020, during the on-site inspection, the Jiangsu Securities Regulatory Bureau found that Handler had clues of material misdisclosure during Ding Jianping's actual control, and this triggered the incident of Handler's management snatching control of the company by force.
To add a background: in April 2020, the controlling shareholder of Handler, Jiangsu Institute of Mechanical and Electrical Research, hereinafter referred to as Jiangsu Electromechanical, transferred 5% of the shares of Handler to Zhongtianze Holding Group. In addition, Jiangsu Electromechanical and Ding Jianping changed the controlling shareholder of Handler to Zhongtianze Group and the actual controller to Jin Shiwei through the proxy voting rights. At this time, Jin Shiwei controlled the company for a total of 24Voting rights corresponding to 98% of the shares.
Jin Shiwei promised to get more shares through the private placement, but in April 2021, Zhongtianxue Group terminated the private placement plan. Zhong Tianze believes that Ding Jianping failed to fully and truthfully disclose the operating conditions of the listed company when signing the contract, and demanded compensation for liquidated damages63.8 billion yuan. And, at the beginning, it cost 2Lianshuo Technology, which was purchased for 600 million yuan, was transferred by Jin Shiwei for 1 yuan.
After that, the parties began litigation to seize control of the company. In October 2021, Zhongtianze spoke out, saying that Ding Jianping snatched the company's official seal and financial seal. A series of lawsuits over financial fraud continued until December 2023.
6th place Zeda Yisheng (688555sh）
Inflated profits29.6 billion yuan
Zeda Yisheng was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange in June 2020. According to the prospectus, the company is mainly engaged in information business. With a new generation of information technology as the core, the company provides information solutions for pharmaceutical, medical, agricultural and other industries for enterprises, enterprises and institutions.
The prospectus stated: "The company has been rated as a high-tech enterprise, with 18 invention patents, 130 software and software copyrights, and has established an academician expert workstation. ”
However, less than two years after its listing, Zeda Yisheng has frequent situations. In December 2021, we received the "Inquiry Letter from Shanghai ** Exchange". In March 2022, Lin Ying, the actual controller, chairman and general manager, and Ying Lan, the chief financial officer and secretary of the board of directors, assisted the relevant authorities in the investigation. In April 2022, an audit report with a "qualified opinion" was issued by an accounting firm.
The investigation shows that Zeda Yisheng has inflated its operating income by 3 from 2016 to 2019 before listing by signing false contracts and carrying out false business4.2 billion yuan, inflated profit of 18.7 billion yuan. Inflated profits are 9 times higher than real profits. This constitutes a fraudulent listing.
After listing, the "2020 Annual Report" inflated operating income by 1500 million yuan, accounting for 59 percent of the current report5%, inflated profit 08.2 billion yuan, accounting for 89% of the current report. The "2021 Annual Report" inflated operating income by 07.1 billion yuan, accounting for 216%, inflated profit by 02.7 billion yuan, accounting for 562%。
Zeda Yisheng inflated its total revenue by 3400 million yuan, inflated profit 29.6 billion yuan
The China Securities Regulatory Commission Administrative Penalty Decision No. 2023 No. 29 and the China Securities Regulatory Commission Administrative Penalty Decision No. 2023 No. 48 decided to give a warning to Zeda Yisheng and impose a fine of 86 million yuan. Lin Ying, the actual controller, should be fined 38 million yuan;A total of 27 million yuan was fined to other responsible persons. On July 7, 2023, Zeda Yisheng was officially delisted and terminated by the Shanghai Stock Exchange.
5th Amethystum Storage (688086.)sh）
Inflated profits37.5 billion yuan
Amethystum Storage was listed on the Science and Technology Innovation Board of the Shanghai Stock Exchange in February 2020. According to the prospectus, the company is an optical storage technology enterprise with a strong level of competition in China. The company carries out the research and development, design and development of the core technology of Blu-ray data storage.
The company has a state-level "Blu-ray Testing Laboratory" and "Guangdong Blu-ray Storage Engineering Technology Center", has obtained 5 invention patents, 71 software copyrights, and participated in the preparation of 8 national, industry and local standards.
In June 2017, before landing on the Science and Technology Innovation Board, Amethystum Storage raised 16.4 billion yuan, with a subscription price of 7$1 share. Among them, Wang Sicong's Tianjin Pulse No. 1 Asset Management Partnership (hereinafter referred to as Tianjin Puls) subscribed for 704230,000 shares, with an investment of about 50 million yuan. Tianjin Pulse holds 592%, ranking the fourth largest shareholder. At this time, the total market value of amethystum storage was less than 900 million yuan.
On the first day of Amethystum Storage's listing (February 26, 2020), the stock price closed at 7824 yuan, with a total market value of 14.9 billion yuan. In less than 3 years, the market value has increased 16 times, which shows that the market has high hopes for amethystum storage.
However, on January 4, 2021, something unusual happened. Amethystum Storage issued an announcement, "Due to the needs of the company's business development and annual audit work, the company intends to re-appoint Lixin as the company's 2020 financial report auditor after consensus." "Changing accountants before the annual report is something investors should be wary of.
On the evening of April 29, 2021, Amethystum Storage released its 2020 annual report. This annual report was still issued a qualified opinion by Lixin Certified Public Accountants, becoming the first non-standard annual report on the Science and Technology Innovation Board. The accountant's audit report pointed out possible problems with Amethystum Storage, such as whether the prepaid equipment payment is true and whether the accounts receivable are recoverable. On the same day, Amethystum Storage received the "Letter of Inquiry" from the Shanghai Stock Exchange.
Starting from March 9, 2021, a number of institutions have ** amethystum storage many times, including Tianjin Puls.
On February 12, 2022, Amethystum Storage received the "Notice of Case Filing" from the China Securities Regulatory Commission due to illegal information disclosure, and the truth of performance fraud gradually became clear.
The survey shows that Amethystum Storage has accumulated an inflated operating income of 61.3 billion yuan, inflated profit 08.6 billion yuan;This constitutes a fraudulent listing.
After the listing, the annual revenue in 2019 was inflated by 27.1 billion yuan, inflated profit 14.5 billion yuan, the inflated profit is 17 times the real profit;For the full year of 2020, the inflated revenue was 32.8 billion yuan, inflated profit 16.9 billion yuan, the real profit is negative.
Amethystum storage inflated revenue by 75.4 billion yuan, inflated profit of 37.5 billion yuan
The China Securities Regulatory Commission Administrative Penalty Decision No. 30 2023 decided to give a warning to Amethystum Storage and impose a fine of 36.69 million yuan;Zheng Mu and Luo Tiewei, the actual controllers, were fined 21.64 million yuan and 18.04 million yuan respectivelyA fine of 14.35 million yuan was imposed on other responsible persons of the company.
4th place United Strong (002383.)sz）
Inflated profits5$2.1 billion
In 2010, when the IPO of United Strong was listed, it attracted much attention because Yao Ming held 056%, ranking among the top five shareholders. In fact, the business of United Strong has nothing to do with sports, and its main business is the research and development, manufacturing and sales of products related to Beidou navigation technology.
There are two main fictitious businesses that are used to inflate profits.
First, United Strong inflated its profits through fictitious radar-related businesses.
Hezhong Strong participated in radar-related business, fabricated production business processes, purchased from a company actually controlled by Yu, and then sold it to a channel company arranged by Yu. After multiple circulations, the channel company returned to the company controlled by Yu, forming an idling cycle. As the investor, Hezhong Strong does not provide technology, does not participate in production, does not handle goods, does not directly contact customers and businessmen, and only contracts, documents, and invoices cooperate with the bill and capital flow in related business, and there is no physical delivery, and there is no business substance. Inflated total profit from 2017 to 2019 by 06.1 billion yuan.
Second, United Strong inflated profits through fictitious "private network communication business".
We know that the "private network communication business" is a false business without business substance, but in the name of providing processing services, it joins the private network communication business chain, but in fact it does not assume the processing role and does not provide any value-added technology. The total profit from 2017 to 2020 was inflated by 42.7 billion yuan.
The above two, together with other methods, inflated profits totaled 5$2.1 billion
After verification, the "China Securities Regulatory Commission Administrative Penalty Decision 2023 No. 35" decided to give a warning to United Strong and impose a fine of 6 million yuan;The founder Guo Xinping was fined 4 million yuanA total fine of 2.5 million yuan was imposed on the other responsible persons.
In fact, as early as May 2020, United Strong's business was questioned. The annual audit accountant issued an audit report with a "qualified opinion" on the 2019 financial statements of United Strong, which emphasized the risks of "private network communication business".
In July 2019, after the fraud and before the incident, Guo Xinping, the founder and then chairman of the company, transferred 72.32 million shares of his shares, and the transfer ** was 1343 yuan shares, a total of 9700 million yuan.
Third place Qixin shares (002781sz）
Inflated profits26300 million yuan
Qixin Co., Ltd. is mainly engaged in the design and construction of architectural decoration projects, and landed on the main board of the Shenzhen Stock Exchange in 2015. Prior to its listing, the company continued to falsify from 2012 to 2014, accumulating inflated profits by inflating revenues and undercounting costs and expenses4.5 billion yuan. After listing, from 2015 to 2019, Qixin shares continued to falsify financially, accumulating inflated profits by 17900 million yuan.
Qixin shares have been fraudulent financially for eight consecutive years, inflating profits by a total of 26300 million yuanIf it is not faked, Qixin shares have lost money in the past eight years.
In mid-2021, some employees of Qixin Co., Ltd. reported to the Xinyu state-owned asset management department in real names. On the last day of 2021, Qixin issued an announcement "Reminder Announcement on Self-Examination of the Suspected Non-operating Capital Occupation by the Affiliates of the Original Actual Controller". On March 31, 2022, Qixin was investigated by the China Securities Regulatory Commission, and the veil of continuous financial fraud of Qixin shares was slowly lifted.
Before Qixin's risk exposure, starting from June 2019, Ye Jiahao, the actual controller of Qixin shares, and his spouse Ye Xiudong began to take ** shares, and cashed out more than 100 million yuan in 2019. In June 2020, Yip Ka Ho and his spouse ended with 10900 million yuan transferred 30% of the company's shares.
After the completion of the transaction, Xinyu Investment Holdings became the controlling shareholder. However, Xinyu Holdings significantly undervalued Qixin shares by 33Hidden risks in accounts receivable of 800 million yuan. In 2021, Qixin's performance exploded, with a loss of 17500 million yuan. The accounting firm issued a non-standard audit report on the annual report.
After verification, the "China Securities Regulatory Commission Administrative Penalty Decision 2023 No. 62" decided to give a warning to Qixin shares and impose a fine of 50 million yuan;imposed a fine of 14 million yuan on the original actual controller, Ye Jiahao;A total of 46.5 million yuan was fined to other responsible persons.
2nd place Aerospace Communications (600677sh）
Inflated profits 29800 million yuan.
Aerospace Communications was launched in 1993 and has been on the market for 30 years. The company's main business is information and communication, aerospace defense and equipment manufacturing.
The financial fraud of space communications can be traced back to 2003. In 2007, the Ministry of Finance announced the No. 13 accounting information quality inspection and determined that the company had inflated profits of 31.1 million yuan from 2003 to 2005. In 2014, it was again identified by the securities regulatory department as inflating profits. The 2023 Administrative Penalty Decision mainly targets financial fraud after 2016.
In 2015, Aerospace Communications issued shares to the original shareholders of Zhihui Shanghai at a price of 10700 million yuan to acquire 51% of the shares of Wisdom Shanghai Technology, hereinafter referred to as Wisdom Shanghai. Zhihui Haipai is a mobile phone OEM.
Zou Yonghang, the founder of Wisdom Shanghai, and Zhu Hankun and others promised that the actual net profit of Wisdom Shanghai in 2016, 2017 and 2018 would not be less than 2500 million yuan, 300 million yuan, 3200 million yuan.
Aerospace Communications' 2016 financial report was issued a non-standard audit report by Baker Tilly International Accounting Firm. Subsequently, Aerospace Communications switched to Ruihua Accounting Firm. Since then, the 2017 and 2018 financial reports have been audited with unqualified opinions.
On October 31, 2019, Aerospace Communications was investigated by the China Securities Regulatory Commission. After verification, from 2016 to 2018, Zhihui Haipai formed false income through fictitious procurement and sales and other businesses65700 million yuan, inflated profit of 22500 million yuan. Inflated profits by inflating operations such as work.73.2 billion yuan. The total inflated profit is 29800 million yuan.
China Securities Regulatory Commission Administrative Penalty Decision No. 9 2023 decided to give a warning to Aerospace Communications and impose a fine of 600,000 yuan;Zou Yonghang and Zhu Hankun, the main shareholders and main persons in charge of Zhihui Haipai, were fined 300,000 yuan respectivelyA total fine of 900,000 yuan was imposed on other responsible persons.
No.1 Kaile Technology (600260.)sh）
Inflated profits 59400 million yuan.
Kaile Technology was listed on the main board of the Shanghai Stock Exchange in 2000. In 2012, the company's four major revenues were: 33% of optical fiber and cable, 41% of real estate, 17% of liquor, and 6% of plastic pipes. In 2016, Kaile Technology began to enter the "private network communication business". We now know that "private network communication" is almost a complete financial **.
Prior to the revelation, Kaile Technology's share price (pre-weighting) went from a low of 6 in 20162 yuan, up to 25 yuan in 2018.
From 2016 to 2020, Kaile Technology cooperated with Sui Tianli to carry out the "private network communication" business. During the cooperation period, Kaile Technology only has a small number of private network communication services, and other private network communication services are false. It is only in accordance with the contract to forge procurement warehousing, production warehousing, sales warehousing and other documents, no actual business.
Kaile Technology has a large amount of fraud, a high proportion of fraud, and the circumstances are very bad.
In 2016, the operating income was inflated by 41300 million yuan, inflated profit 17.7 billion yuan, the amount of inflated income accounted for 49% of the disclosed operating income of the year, and the inflated profit accounted for 65% of the disclosed profit of the year.
In 2017, the inflated operating income was 11.1 billion yuan, and the inflated profit was 92.1 billion yuan, and the amount of inflated income accounted for 73.3 percent of the disclosed operating income of the year3%, and the inflated profit accounted for 99% of the disclosed profit for the year99%。
In 2018, the inflated operating income was 146400 million yuan, inflated profit of 16300 million yuan, and the amount of inflated operating income accounted for 86% of the disclosed operating income of the year3%, and the inflated profit accounted for 144 of the disclosed profit in the year8%。
In 2019, the inflated operating income was 136200 million yuan, inflated profit of 17600 million yuan, the amount of inflated operating income accounted for 85% of the disclosed operating income of the year9%, and the inflated profit accounted for 183 of the disclosed profit in the year7%。
In 2020, the operating income was inflated by 77500 million yuan, inflated profit of 14500 million yuan, and the amount of inflated operating income accounted for 91% of the disclosed operating income of the year1%, and the inflated profit accounted for 247 of the disclosed profit in the year5%。
From 2016 to 2020, Kaile Technology has accumulated an inflated operating income of 512300 million yuan, inflated total profit of 59400 million yuan. It is estimated that the real net profit attributable to the parent company of Kaile Technology from 2017 to 2020 is negative.
China Securities Regulatory Commission Administrative Penalty Decision 2023 No. 46 decided to give a warning to Kaile Technology and impose a fine of 10 million yuan;Zhu Dixiong, the chairman of the board of directors at the time, was fined 5 million yuanA total fine of 1.5 million yuan was imposed on the other responsible persons.
As early as the second quarter of 2019, Kaile Technology's second largest shareholder at that time (Shanghai Zhuofan Investment*** began to continuously ** the company's shares, and by the end of June 2021, it had a total of more than 90% of the shares. Based on the average share price for the period, the value of these shares is more than $500 million.
Major shareholder liquidation** should be brought to the attention of investors.
Conclusion
The financial fraud of listed companies is very harmful, but it is difficult for ordinary small and medium-sized investors to find clues from financial reports. For example, how to distinguish between virtual and real in an order?Another example is whether the impairment of accounts receivable is sufficientFor example, if a company uses its own funds to purchase wealth management products, how can it tell whether this is real financial management or just a channel, and the funds actually flow to the target company designated by the company?
Judging from the past cases of counterfeiting, there are some situations that need to be paid close attention to:
Accountants give "non-standard" audit reports, general managers, chief financial officers, board secretaries and other senior executives resignation annual reports postponed disclosure of major shareholders continue to a large proportion of the replacement of accountants Overall, it is difficult for ordinary investors to find problems in the early stage of financial fraud, and they have often been fraudulent for many years when they are discovered, and investment losses have often been caused. And company insiders are more likely to spot the clues of financial fraud.
In view of this, the reporting of financial fraud by listed companies should be encouraged. Because reporting is associated with high risk, the reward for reporting should be maximized.
At the same time, listed companies should strengthen information disclosure. For example, many years ago, listed companies needed to disclose the top five major merchants and five major customers, but now they are no longer disclosed, and have been replaced by customer ABCDE or ** business 12345. The disclosure of this information is conducive to investors to verify the truth of the company's business.
Listed companies cannot conceal important information under the guise of protecting trade secrets, etc. If a company is worried about the leakage of trade secrets, it can choose not to go public.
Ordinary small and medium-sized investors are the living water for the healthy development of the A** field, and protecting them is to protect the A** field.
The author is a researcher at the Industry Research Center of Caijing, edited by Liu Jianzhong.