China Net Finance, December 13 (Reporter Su Nan Ye Qian) A few days ago, Liyuan Technology announced that it planned to change its accounting firm from Zhonghui Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Zhonghui Firm") to Zhongxinghua Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Zhongxinghua").
It is understood that Liyuan Technology has cooperated with Zhonghui since before its listing, and has been "safe and sound" for several years, until the beginning of this year, the company was investigated by the China Securities Regulatory Commission, and Zhonghui issued a "non-standard" opinion on the company's 2022 annual report.
As for why it is necessary to terminate the cooperation with the accounting firm that failed to audit the company's financial fraud and issued a "non-standard" opinion after the CSRC filed a case against the company, and chose a new accounting firm, Liyuan Technology said that it is mainly to improve the independence of the company's audit institutions and the effectiveness of audit services, fully protect the company's annual report audit work arrangements and the timeliness of annual report disclosure, and better adapt to the company's future business development and standardization needs.
China.com financial reporter learned that although the financial fraud in the year of listing failed to make Liyuan Technology touch the relevant rules of the major illegal forced delisting, and finally ended with the company and related responsible persons being fined a total of 10 million yuan, but the company's performance has been relatively weak since its listing, and the performance of the year of listing declined, and the following year lost money, and has not yet turned around.
Last year, it was issued a "non-standard" audit opinion.
Liyuan Technology was listed on the Science and Technology Innovation Board on May 13, 2021, mainly engaged in the research and development, design and integration of environmental protection water treatment system equipment and hydrogen fuel cell engine systems.
From before the listing to after the listing, Zhonghui issued an unqualified audit opinion on the reporting period of the Liyuan Technology prospectus from 2017 to September 30, 2020, and the first year of listing in 2021. Among them, Zhonghui issued a standard unqualified audit opinion on the company's 2021 annual report, that is, the certified public accountant believes that the financial statements are reflected fairly, and the unqualified audit report does not attach explanatory paragraphs, emphasis paragraphs or any qualifying words.
However, on October 29, 2022, Liyuan Technology issued the "Announcement on the Correction of Accounting Errors in the Previous Period and the Correction of Periodic Reports", stating that since 2021, the company's projects have confirmed the acceptance due to customers or owners and asked the company to postpone the delivery.
On January 5, 2023, Liyuan Technology announced that it was investigated by the China Securities Regulatory Commission for suspected violations of information disclosure laws and regulations. On April 29 of the same year, Zhonghui issued an audit report on the company's 2022 annual report with unqualified opinions on the paragraphs of emphasis, material uncertainties in continuing operations, and other information paragraphs containing other information that has not corrected material misstatements, emphasizing in the audit report the above-mentioned matters of the company's investigation.
On May 4, 2023, Liyuan Technology once again issued the "Announcement on the Correction of Accounting Errors in the Previous Period and the Correction of Periodic Reports", stating that the company's self-inspection found that in addition to the above 9 items, 2 other items also need to be adjusted.
The following month, Liyuan Technology announced the administrative penalty, and the Zhejiang Securities Regulatory Bureau found that in 2021, the company was suspected of inflating its operating income and total profit by confirming the progress of 11 water treatment projects in advance.
Among them, the 2021 annual report inflated operating income by about 10.4 billion yuan, the total inflated profit is about 2707290,000 yuan, accounting for 24 of the disclosed amount in the current period71% and 6823%；In the 2021 semi-annual report, the operating income was inflated by about 1541590,000 yuan, inflated total profit of 425630,000 yuan, accounting for 1342% and 3401%；In the third quarter of 2021, it reported an inflated operating income of about 2168140,000 yuan, inflated total profit of 542560,000 yuan, accounting for 13 of the disclosed amount in the current period54% and 2716%。
According to the Zhejiang Securities Regulatory Bureau, Shen Wanzhong, then chairman and general manager of Liyuan Technology, Pei Zhiguo, deputy general manager in charge of sales, Jin Shiyi, head of the project department, Shen Xueen, chief financial officer and secretary of the board of directors, Lin Hongchen, head of the procurement department, and Cao Yang, deputy general manager in charge of the project department, were mainly responsible for the above illegal acts, so the Zhejiang Securities Regulatory Bureau ordered the company and the relevant responsible persons to correct or give warnings, and imposed a total fine of 10 million yuan.
After listing, the performance "changed face".
Liyuan Technology once stated in the announcement issued on June 22 this year that the above-mentioned information disclosure violations have not touched the major illegal forced delisting stipulated in the "Listing Rules of the Science and Technology Innovation Board of the Shanghai ** Stock Exchange (Revised in December 2020)", and the company's production and operation are normal.
However, it is worth noting that, aside from the series of illegal operations of the management and the relevant audits of accounting firms, the core operating performance of Liyuan Technology after listing is significantly different from that before the listing after the company's active or passive "squeezing water", and has a more obvious "face-changing" characteristic.
According to the data, from 2017 to 2019, the company achieved revenue of about 21.3 billion yuan, 30.8 billion yuan, 33.3 billion yuan, with a compound annual growth rate of about 2508%, respectively, the net profit attributable to the parent company was about 2534780,000 yuan, 4713260,000 yuan, 5217170,000 yuan, with a compound annual growth rate of about 4347%。In 2020, although the company's performance has declined, the revenue and net profit attributable to the parent company can still reach 27.1 billion yuan, 4406450,000 yuan.
After listing, Liyuan Technology's performance in 2021 and 2022 will decline sharply, with revenue of about 31.6 billion yuan, 20.3 billion yuan, and the net profit attributable to the parent company was about 1362770,000 yuan, -3632180,000 yuan. In the first three quarters of this year, the company's revenue was about 19.8 billion yuan, and the net profit attributable to the parent company is about -3923660,000 yuan, in a state of continuous loss.
China.com financial reporters found that although the performance of Liyuan Technology was relatively good before listing, the company's credit impairment losses caused by bad debts of accounts receivable increased sharply after listing. Flush ifind data shows that from 2019 to 2022, the company's income statement credit impairment losses were about 499400,000 yuan, 643680,000 yuan, 1726960,000 yuan, 1562260,000 yuan, in the first three quarters of this year, the data was 1902540,000 yuan, which had a negative impact on the company's net profit level.
In addition, the data shows that the sponsor of the listing of Liyuan Technology's Science and Technology Innovation Board is CITIC**, and the company's listing application was accepted by the Shanghai Stock Exchange on June 11, 2020, passed on January 4, 2021, and was submitted for registration on February 25 of the same year, and the registration took effect on April 6, and it was listed on May 13.