On December 20, Zhongbai Group (000759) received the "Warning Letter" from the Hubei Securities Regulatory Bureau and the "Regulatory Letter" from the Shenzhen Stock Exchange within two hours, both of which pointed to the same violation - Zhongbai Group failed to disclose its employees in a timely manner as requiredA huge amount of 1.9 billion funds embezzled the matters involved.
After combing, the details of Zhongbai Group's violations are as follows:
On July 22, 2023, Zhongbai Warehouse Supermarket, a wholly-owned subsidiary of Zhongbai Group, found that financial officer Shao Moumou was suspected of embezzling the company's funds, and immediately reported to the public security organs. On October 13, 2023, the public security organs arrested all the relevant criminal suspects. The case is currently in the investigation stage, and the preliminary estimate is that the cumulative amount of embezzled funds is about 21.9 billion yuan, which is expected to lead to an increase of about 2 percent in the original value of the company's other receivables$1.9 billion, accounts payable increased by about 2.%.1.9 billion yuan, and the preliminary estimate is that the provision for bad debts of other receivables is about 2100 million yuan, reducing the total profit in 2023 by about 0500 million yuan, reducing the total profit of the previous year by about 1600 million yuan.
According to the "Administrative Measures for Information Disclosure of Listed Companies" and the "** Law", the above-mentioned estimated losses have reached the specified standards for major events, and the company should fulfill its information disclosure obligations no later than July 25, 2023, but it was not until the evening of December 19, 2023 that the company issued the "Announcement on the Suspected Embezzlement of Funds by Employees of Subsidiaries on Duty" to disclose, concealing the truth for nearly 5 months26%。
The occurrence of a huge amount of embezzlement of duties by a listed company and the concealment of such material matters and the failure to disclose in a timely manner have exposed the deficiencies in the internal control of Zhongbai Group, and it is expected that its 2023 "Internal Control Self-Evaluation Report" and "Internal Control Audit Report" may obtain non-standard opinions as a result.
Therefore, Zhongbai Group failed to disclose the embezzlement of huge amounts of funds by employees in a timely manner as required, and its behavior has met the constitutive elements of misrepresentation, and should bear legal responsibility in accordance with the law, and investors who sell or continue to hold it between July 26, 2023 and December 19, 2023 (inclusive)** and sell or continue to hold on December 20, 2023 (inclusive) can initiate claims on this basis.
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