Financial fraud involved! Sichuang Yihui was fined 85.7 million, and the injured investors may be ab

Mondo Finance Updated on 2024-02-01

On January 9, 2024, Sichuang Yihui Technology Co., Ltd. (hereinafter referred to as the company or Sichuang Yihui) disclosed that it received the "Administrative Penalty Decision" (Penalty Decision) issued by the Zhejiang Supervision Bureau of the China Securities Regulatory Commission.

This penalty investigation began on October 28, 2022, and so far, the investigation has been conducted for more than a year, and the conclusion of the investigation into the disclosure of information disclosure of Sichuang Yihui has landed!

According to the penalty decision, a fine of 81.7 million yuan was imposed on Sichuang Yihui for fabricating material false content in the public issuance documents; A fine of 4 million yuan was imposed for information disclosure violations, and a combined fine of 85.7 million yuan was imposed. The then chairman and general manager of Sichuang Yihui were fined 7.5 million yuan.

The penalty decision also shows that the then chairman and general manager of Sichuang Yihui hired experts to issue opinions to assist in the defense of the pre-punishment.

After investigation, Sichuang Medical Save was found to have violated the following facts:

The fraudulent issuance of convertible corporate bonds in 2020 and the falsification of data in the annual reports in 2019 and 2020 were carried out by relevant personnel.

First, there is a material false content in the public offering documents of Sichuang Yihui. On December 16, 2020, Sichuang Yihui announced that its application for the issuance of convertible corporate bonds to unspecified targets had been approved by the China Securities Regulatory Commission for registration.

On January 22, 2021, Sichuang Yihui publicly disclosed the "Prospectus", which contains its financial data for 2017, 2018, 2019 and January-September 2020. On February 1, 2021, Sichuang Yihui disclosed the "Announcement on the Issuance Results of Convertible Corporate Bonds to Unspecified Objects", stating that the scale of convertible bonds issued this time is 81,700000,000 yuan.

Sichuang Yihui has inflated its operating income by 34,929,355 in 2019 through its wholly-owned subsidiary, Yihui Technology, Hangzhou Wenran, Shanghai Xifan, and Shenzhen Yulin97 yuan, inflated profit of 33,021,67243 yuan.

Through its wholly-owned subsidiary, Yihui Technology, Hangzhou Wenran, Shanghai Xifan, Shenzhen Yulin, and Yixin Huitong (Beijing) Technology (Yixin Huitong) carried out false business, as well as confirmed in advance the revenue and cost of related businesses with Guangdong Huashang Software Technology, which was formerly known as Guangzhou Huashang Software Technology, Henan Eton Medical Device Sales, Henan Eton, etc., and the cumulative inflated operating income from January to September 2020 was 60,960,20021 yuan, with a cumulative inflated cost of 6,288,11734 yuan, inflated profit of 52,370,66254 yuan.

Second, there are false records in the 2019 and 2020 annual reports of Sichuang Yihui. Sichuang Yihui has inflated its operating income by 34,929,355 in 2019 through its wholly-owned subsidiary, Yihui Technology, Hangzhou Wenran, Shanghai Xifan, and Shenzhen Yulin97 yuan, inflated profit of 33,021,67243 yuan.

In 2020, Sichuang Yihui inflated its operating income by 96,468,78613 yuan, the cumulative inflated cost is 9,228,18666 yuan, inflated profit of 83,941,38325 yuan.

In the 2019 and 2020 annual reports, the above financial data were not truthfully disclosed.

For the above-mentioned two illegal acts of fraudulent issuance and information disclosure, the China Securities Regulatory Commission made separate penalties and determined that the penalties were finally combined.

Based on the facts, nature, circumstances and degree of social harm of the parties' illegal acts, the EAA ordered Sichuang Yihui to make corrections, gave a warning, and imposed a fine of RMB 85.7 million, as well as other relevant parties.

On April 29, 2022, Sichuang Yihui disclosed the "Announcement on the Correction of Accounting Errors and Retrospective Adjustments in the Previous Period", which corrected the errors in the relevant financial data involved in 2020.

On June 24, 2022, Sichuang Yihui received a warning letter from the Zhejiang Regulatory Bureau due to the correction of errors in the 2020 annual revenue, resulting in inaccurate disclosure of relevant information in the company's regular report.

According to the "** Law" and the judicial interpretation of the Supreme People's Court, listed companies are punished by the China Securities Regulatory Commission for illegal information disclosure, and damaged investors can sue for compensation in accordance with the law, including investment differences, commissions, and stamp duty.

Regarding the terms of the claim, Guangzhou Janssen's legal team believes that tentatively: investors who 300078 or convertible bonds between April 30, 2020 and April 28, 2022, and sell or continue to hold ** or convertible bonds after April 29, 2022 and incur losses, may consider suing for compensation.

Of course, this is only the investor's right to sue, and whether there is a causal relationship and whether it can be supported still needs to be determined by the court.

In particular, the lawyer reminds that the statute of limitations is three years, and if the investor does not claim his rights in time, he is likely to lose the right to win the lawsuit due to the expiration of the statute of limitations.

Sichuang Yihui said that the company's public offering documents fabricated material false content, which does not belong to the initial public offering ** and the issuance of shares to purchase assets and constitute a restructuring and listing, so it does not touch the forced delisting, and the company's production and operation are normal.

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