Zhongxin Jingwei, February 25 - On February 25, Wuhan Contemporary Mingcheng Culture and Sports Group Co., Ltd. (hereinafter referred to as "*ST Mingcheng") announced that the company intends to be fined 7.6 million yuan by the Hubei Securities Regulatory Bureau.
*:* ST Mingcheng announcement.
After investigation, *ST Mingcheng is suspected of illegal information disclosure as follows:
There were material omissions in the guarantee matters disclosed in the 2020 annual report. The four guarantees provided by the company for the loan of the related party Modern Investment to Hubei Cooperation and its subsidiaries, the guarantee provided by the company for the loan of Yushi Mining to CEIC, the full guarantee provided by the company for the payment obligation of Xinying Cayman to the AFC, and the guarantee provided by the company for the loan of Contemporary Football Club to Zeng Mouchao were not disclosed in the 2020 annual report, which constituted a major omission as stipulated in the second paragraph of Article 197 of the ** Law of the People's Republic of China (hereinafter referred to as the "** Law").
On November 13, 2023, *ST Mingcheng issued the "Announcement on the Termination of the Guarantee between the Company and the Former Holding Subsidiary and the Asian Football Confederation", so that the Company has provided full guarantee for the payment obligations of New England Cayman to the AFC. As disclosed in the Company's Reorganization Plan, Modern Group and its affiliates have issued a written commitment letter to the Company, promising to unconditionally exempt the Company's debts to Modern Group and its affiliates in the same amount as the Company's liability for compensation in accordance with the law, and to release the Company's non-compliant guarantees.
There were false entries in the 2020 annual report. *ST Mingcheng failed to recognize the repurchase debt of 20.21 million yuan of equity investment funds as a liability in the 2020 annual report when the repurchase obligation was triggered, which constituted a false record as stipulated in the second paragraph of Article 197 of the ** Law.
There were false entries in the 2021 annual report. *The unrecognized liabilities of ST Mingcheng's repurchase obligations, inaccurate revenue recognition, insufficient inventory impairment, and inaccurate goodwill impairment have all led to an inflated revenue 98420166 in the financial statements of the 2021 annual report89 yuan, undercounting the impairment amount 31051765099 yuan, undercounting liabilities of 30,000,000 yuan, inflating the total profit by 40893781788 yuan. The aforesaid acts of the company constitute a false record as stipulated in the second paragraph of Article 197 of the ** Law.
In addition, *ST Mingcheng failed to disclose the arbitration information and related party transactions in a timely manner.
Based on the above illegal acts, the Hubei Securities Regulatory Bureau intends to decide:
issued a warning to *ST Mingcheng and imposed a fine of $7.6 million; gave a warning to the then chairman Yi Rentao and imposed a fine of 4 million yuan; Li Zhenyu, then deputy general manager and chief financial officer, was given a warning and fined 1.7 million yuan. In addition, Gao Wei, Yan Aihua, Yu Lingxiao and other relevant parties were given warnings and fined 1 million yuan, 700,000 yuan, and 500,000 yuan respectively.
According to the data, *ST Mingcheng's main business is film and television media business and sports business, and its main products include film and television dramas, artist brokerage, advertising, production, sports marketing, sports**, sports tourism, sports brokerage, venue operation, sports products, cinemas, and sports copyrights.
In terms of performance, in 2023, *ST Mingcheng expects to achieve a net profit attributable to shareholders of listed companies of about 22000000 yuan to 3200000 yuan, which will turn losses into profits compared with the same period last year. The pre-profit of this performance is mainly due to the change in the scope of the consolidated statements caused by the liquidation of the company's former holding subsidiary, Contemporary Mingcheng (Hong Kong)**, and the completion of the implementation of the company's reorganization plan, and other non-recurring profit and loss events, with an impact of 2450000 yuan to 3700000 yuan.
In the secondary market, *ST Mingcheng closed up 237% to 173 yuan shares, with a total market value of 3.5 billion yuan. (Zhongxin Jingwei app).
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