Fang Hongcheng, the wife of the former general manager of Hesheng Silicon, recently published an article revealing the fraud of Hesheng Silicon during the IPO process. She said that in order to obtain the qualifications required for a successful listing, they deliberately concealed the real administrative documents issued by the tax department and forged another one.
This is not the first time Luo Liguo has been reported by his real name. As early as November 12, 2023, Fang Hongcheng's wife complained to the regulator that he had improper influence on Luo Liguo and tried to use the relocation of the company to threaten and interfere with the judicial process.
However, Halcyon Silicon firmly denied any false claims and warned against those responsible for fabricating rumors and defaming the chairman.
According to Fang Hongcheng's family, the case will be heard in public on January 29, and more inside information is expected to be revealed.
In Mrs. Fang Hongcheng's whistleblower article, the detail that caused an uproar was that Hesheng Silicon was suspected of forging ** official letters before its listing in 2017 to deceive shareholders and investors. She claimed that in order to maximize profits, the company deliberately concealed the true administrative documents and forged another highly deceptive document on its own.
Dating back to 2011, the company's investigation data shows that Hesheng Silicon Industry made mistakes in tax declaration during this period and failed to deduct personal income tax of about 914256 yuan, and at the same time did not pay the property tax about 6520,000 yuan.
Therefore, on November 9, 2015, the Third Taxation Branch of the Jiaxing Local Taxation Bureau issued the "Tax Administrative Penalty Decision" (Zhejia Di Shui Ji Zhi [2015] No. 95) in response to this matter, and the fine amount was as high as 5020,000 yuan.
However, it is surprising that, despite the clarity of the facts of the penalty, Halcyon Silicon did not adequately remind investors of the reference matter in the prospectus. More importantly, Mrs. Fang Hongcheng pointed out that in order to meet the audit requirements of the capital market, the company actually adopted such an evil way as forging ** official letters.
Mrs. Fang Hongcheng claimed that the sponsor, CITIC** (603006SH) and the person in charge of the Halcyon IPO project had suggested that the administrative penalty resolution be withdrawn before a true verification opinion could be issued. The intermediary even asked Halcyon Silicon to actively carry out communication and coordination with the tax department, hoping to revoke the penalty.
After the vigorous efforts of the company's senior management, the Jiaxing tax department finally agreed to issue only a document to clarify that this administrative penalty is not a major tax administrative penalty, but it has not really been revoked.
However, the sponsor and the solicitor asked for a further step and they were still unable to accept the treatment of merely providing clarification in the statement. In desperation, in order to achieve the goal of listing, Hesheng Silicon was forced to choose to forge an official document.
The screenshot attached to Mrs. Fang Hongcheng's public information shows that on September 23, 2017, Gong Jiping, secretary of the board of directors of Hesheng Silicon Industry, issued a "Statement on the Relevant Situation of Hesheng Silicon Industry Co., Ltd." dated December 17, 2015 (hereinafter referred to as the "2015 Explanation") from the Inspection Bureau of the Local Taxation Bureau of Jiaxing City, Zhejiang Province.
In addition, she noted that there was a serious conflict in the content of the Information Note. One statement indicated that the fine had been withdrawn during negotiations, while the other insisted that the administrative penalty against the company was only a non-material one.
Lawyer Wang Zixiang, director of Beijing Qingtian Notary Law Firm, pointed out that if the "2015 Statement of Facts" is falsified evidence, then Hesheng Silicon will face the risk of serious administrative violations such as forging national official documents and seals, as well as possible violations of criminal laws and regulations.
About the leader in polysilicon.
1. Comparative analysis of Hesheng Silicon and leading companies such as TBEA and LONGi Green Energy: Hesheng Silicon quietly landed in the capital market in 2017, and attracted much attention due to the rapid growth of market value in that year - from 2017 to 2021, the market value soared from the initial 3.1 billion yuan to 141.8 billion yuan, and it hit a record high in 2021 (25741 yuan shares), and in the same year, the company's market value increased by more than 110.4 billion yuan, and the scale exceeded 100 billion.
"Qianjiang Evening News" praised it as "the market value growth rate of Zhejiang stocks is amazing".
According to the data, Fang Hongcheng, the former general manager of Hesheng Silicon Industry, is also a member of the Expert Committee of China Fluorine and Silicon Association and a special expert of Jiaxing Port Innovation Research Institute, and he has made important contributions to the development and growth of Hesheng Silicon Industry.
According to Luo Liguo, the founder and chairman of Hesheng Silicon, after inviting Fang Hongcheng to join Hesheng Silicon in 2009, he successively served as vice president and general manager.
However, the good times did not last long, and in December 2018, due to differences between the management philosophy and Fang Hongcheng, the "hero" finally chose to leave. It is worth noting that although Fang Hongcheng spent ten wonderful years in Hesheng Silicon, when he left, he did not successfully obtain the return on equity value that he deserved.
According to the official statement of Hesheng Silicon, although the two parties signed an equity transfer agreement, Fang Hongcheng did not pay the corresponding consideration and did not carry out the relevant equity change procedures.
In addition, the clause also stipulates that after five years of full-time service to the company, only those who meet all other requirements can receive the corresponding bonus as a cash reward for share appreciation.
In view of the fact that Fang Hongcheng has been in office for less than two years, and has been found by the company to be suspected of endangering the interests of listed companies and has reported the case to the public security organs, Luo Liguo, chairman of Hesheng Silicon, has reason to believe that he cannot enjoy this reward.
So far, the two companies that Fang Hongcheng has been involved in have been in trouble, and the affiliated enterprises of the partner were forced to stop work in January this year, and even the Shanxi and Sichuan projects he planned to build have also been affected.
On the other hand, its former owner Hesheng Silicon Industry, its *** also suffered turmoil, since the first revelation that the chairman of Hesheng Silicon Industry was suspected of illegal acts, the company's stock price gradually declined - from 565 yuan shares fell to 4891 yuan shares, down 1343%。Throughout the past few years, Halcyon Silicon's performance has not been satisfactory, and although revenue has increased, there has been no corresponding improvement in profitability.
The company's revenue in the first three quarters of 2023 increased by 881%, however, the decline in net profit attributable to the parent company was as high as 5203%。Its financial situation is also not optimistic: whether it is monetary funds, short-term borrowings or total non-current liabilities due within one year, the total amount of debt repayment is high, and the short-term debt repayment pressure is not small.
From the end of 2022 to the third quarter of 2023, its net cash flow from operating activities was negative for four consecutive quarters, net cash flow from investment activities remained negative, and only net financing cash flow remained positive.
According to the calculation of the former compounding**, on September 14, 2021, the share price of Hesheng Silicon hit a nearly three-year high, reaching 257$41 shares. Since then, however, the downward trend has not been reversed, despite some **. As of January 23, the company's ** price was only 486 yuan shares, in the past two and a half years, the cumulative decline reached 8112%。
It is also understood that Fang Hongcheng**'s case will be tried on January 29, 2024 in the Pinghu People's Court in Jiaxing, Zhejiang. It remains to be seen what the truth of the matters involved is.