On February 5, 2024, delisting warning stocks, **002089, *ST Xinhai (Xinhaiyi Technology Group Co., Ltd.*** issued a number of announcements:
ST Xinhai has received the "Administrative Penalty Decision" from the China Securities Regulatory Commission. *ST Xinhai's participation in the false self-circulation business of private network communication inflated sales revenue and profits, as well as the improper accounting treatment of Shaanxi Tongjia Automobile Co., Ltd., a shareholding company, in 2019 led to the false record of *ST Xinhai's annual reports for 6 consecutive years from 2014 to 2019. According to the calculation, the net profit attributable to the parent company of ST Xinhai for three consecutive fiscal years from 2016 to 2018 was actually negative, and the non-net profit deducted in the 2019 fiscal year was negative.
Among them, the inflated sales revenue in 2014 was 2more than 2.4 billion yuan, accounting for 19 percent of the total disclosed revenue in the current period70%, inflated cost of sales 1More than 7.7 billion yuan, with a total inflated profit of more than 46.98 million yuan, accounting for 28% of the total disclosed profit in the current period70%；
In 2015, the sales revenue was inflated by 90.7 billion yuan, accounting for 52 percent of the total disclosed revenue for the current period11%, inflated cost of sales 7More than 5.4 billion yuan, inflated total profit 1more than 5.3 billion yuan, accounting for 82 percent of the total disclosed profit in the current period29%；
In 2016, the sales revenue was inflated by 11more than 8.8 billion yuan, accounting for 62 percent of the total disclosed revenue in the current period52%, inflating the cost of sales by 10More than 3.8 billion yuan, inflated total profit of 14.9 billion yuan, accounting for 203 percent of the total disclosed profit for the current period33%；
In 2017, the sales revenue was inflated by 8more than 7.5 billion yuan, accounting for 54% of the total disclosed revenue in the current period59%, inflated cost of sales 7More than 9.5 billion yuan, with a total inflated profit of more than 80.82 million yuan, accounting for 50% of the total disclosed profit (absolute value) in the current period52%；
In 2018, the sales revenue was inflated by 42 billion yuan, accounting for 54% of the total disclosed revenue in the current period84%, inflated cost of sales 3More than 4.8 billion yuan, with a total inflated profit of more than 71.95 million yuan, accounting for 1333%；
In the first half of 2019, sales revenue was inflated1more than 2.4 billion yuan, accounting for 46 percent of the total disclosed revenue in the current period14%, inflated cost of sales 10.2 billion yuan, inflated total profit of more than 21.32 million yuan, accounting for 17 of the total disclosed profit (absolute value) in the current period38%；
In 2019, the total inflated profit was more than 64.95 million yuan, accounting for 63% of the total disclosed profit in the current period28% (based on Xinhaiyi's corrected total profit data in July 2021).
The SFC decided:
ordered the shares of Xinhaiyi Technology Group to make corrections, gave a warning, and imposed a fine of 4 million yuan;
Zhang Yibin, the actual controller, chairman and president of Xinhaiyi, was warned and fined 2 million yuan;
Xu Lei, the then chief financial officer of Xinhaiyi, was warned and fined 600,000 yuan;
Xi Fang, the then director and secretary of the board of directors of Xinhaiyi, was warned and fined 500,000 yuan;
Dai Wei (March 2010 to December 2019), the then chief financial officer of Xinhaiyi, was given a warning and fined 150,000 yuan.
At the same time, the China Securities Regulatory Commission imposed a 10-year market ban on Zhang Yibin, the actual controller, chairman and president of Xinhaiyi. During the prohibition period, Zhang Yibin is not allowed to continue to engage in ** business in the original institution or serve as a director, supervisor or senior manager of the original listed company or unlisted public company, nor shall he engage in ** business in any other institution or serve as a director, supervisor or senior manager of other listed companies or unlisted public companies.
As reported earlier:
In 2014, Zhang Yibin, the actual controller and chairman of Xinhaiyi, and Sui Tianli, the actual controller of private network communication, and others established two companies, Xinhaiyi Information and Xinhaiyi Electronics. Although the company is the head of Xinhaiyi, it is not controlled by Xinhaiyi, but by Sui Tianli.
Xin Haiyi and Sui Tianli each take what they need. Sui Tianli carried out false self-circulation business to inflate sales revenue and profits. Xinhaiyi, on the other hand, included the revenue and profit generated by the private network communication business of the two companies that were not under its actual control into the scope of the consolidated statements, thereby inflating the revenue and profit. Through this approach, Xinhaiyi whitewashed its performance from 2014 to 2019 and continued to renew the life of listed companies.
There are as many as 13 A-share listed companies involved in Sui Tianli Private Network Communication, and the amount involved is as high as 90 billion, which is known as "the largest A-share in 2021".
601727. Shanghai Electric was fined 5 million yuan by the China Securities Regulatory Commission on December 9, 2022, and Zheng Jianhua, the chairman at the time, was fined 1.4 million yuan. Zheng Jianhua has been arrested and tried on April 19, 2023, on charges of **crime, **crime, misappropriation**, and abuse of power by personnel of state-owned companies. Zheng Jianhua was charged with **15.6 billion; Arbitrage **7.23 million; misappropriated ** for others to use, and more than 700 million yuan has not been returned so far, and he has also been accused of abuse of power.
Due to the penalty received by *ST Xinhai from the China Securities Regulatory Commission, the Shenzhen Stock Exchange imposed a major illegal forced delisting on *ST Xinhai**. On February 6, 2024, trading in *ST Xinhai** will be suspended from the opening of the market.
The founder and actual controller of ST Xinhai is Zhang Yibin, born in December 1964. Since 1985, he has successively served as a teacher of Suzhou Vocational University and a cadre of Suzhou Pharmaceutical Administration. Later, he served as the general manager of Suzhou Haiyi Telecom Equipment. Since 1997, he founded Xinhaiyi and served as chairman and general manager.
In November 2006, Xinhaiyi was listed on the Shenzhen Stock Exchange, and gradually developed into new energy vehicles, lithium batteries, LEDs, quantum communications, optical communications, software and other industrial fields. At present, Zhang Yibin and Ma Lingzhi hold 1784%, is its first and second largest shareholder, and is also the actual controller.
In 2008, a subsidiary, Suzhou Xinnajing Optoelectronics, was established to engage in LED manufacturing.
In 2014, Zhang Yibin, Xin Haiyi, Sui Tianli and others, who were not at ease to do business, were involved in private network communication**.
In 2016, Zhang Yibin and Xinhaiyi acquired Shaanxi Tongjia, a new energy automobile company with a full license and located in Baoji, Shaanxi. From 2017 to 2018, Shaanxi Tongjia was at the forefront of the sales list of new energy logistics vehicles. In 2019, Shaanxi Tongjia was discontinued.
After the thunderstorm of private network communication, in July 2021, Xinhaiyi was investigated by the China Securities Regulatory Commission on suspicion of illegal information disclosure. In the course of the investigation, the China Securities Regulatory Commission (CSRC) not only found that the private network communication false self-circulation business, but also had the problem of improper accounting of Shaanxi Tongjia.
On January 16, 2023, Xinhaiyi received the "Prior Notice of Administrative Penalty and Market Prohibition" issued by the China Securities Regulatory Commission. On January 18, Xinhaiyi was given a delisting warning, wearing a star and a hat, and the abbreviation was changed to *ST Xinhai.
During the investigation process and after receiving the "prior notice", Zhang Yibin said that he would hire the best team of lawyers to fight to the end.
After ST Xinhai was given a delisting warning, its share price hovered around 1 yuan in 2023, falling below 1 yuan several times, facing the danger of delisting at face value.
In addition to the financial fraud from 2014 to 2019 disclosed above, after estimating the actual loss from 2016 to 2019, *ST Xinhai also basically lost money from 2020 to 2022, with losses of 27.4 billion, a small profit of 500,000, a loss of 29.7 billion. On January 30, 2024, *ST Xinhai released a performance forecast with a loss of 50 million to 70 million in 2023.
Since 2016, Xinhaiyi, which has basically not made a profit, is actually a "hollow boss" and has no ability to operate a new energy vehicle manufacturing plant. In 2019, Shaanxi Tongjia stopped production, and Xinhaiyi continued to release the news of the reorganization of Shaanxi Tongjia.
In December 2021, Xinhaiyi found the richest man in Sichuan, Liu Yonghao, who added a new Ding asset in Shanghai.
In July 2022, Xinhaiyi sought the support of three companies, namely Soochow Cement, Baoji Industrial Development Group, and Hunan Ancient Automobile, owned by Jiang Xueming, the former richest man in Jiangsu.
In November 2022, Xinhaiyi signed a Letter of Intent for Equity Acquisition with Jizhaojia GCN, which will invest more than 60% of the equity of Shaanxi Tongjia through a share exchange. Ji Zhaojia GCN is a company under the name of the famous host Yang Lan and her husband Wu Zheng.
On October 11, 2023, Xinhaiyi plans to set up a new joint venture company with Tongchi Group with its own funds or self-raised funds of 95 million yuan to establish a new energy intelligent commercial vehicle operation headquarters.
On February 1, 2024, *ST Xinhai announced that in order to reduce the company's liabilities and financial expenses and optimize the company's resource allocation, the company intends to indirectly hold Xinna Jingguang 9214% equity.
But most of these reorganizations only heard the sound of the stairs and did not see anyone coming down, which did not help much to improve the situation of *ST Xinhai.
As of February 5, 2024, before the advertisement, *ST Xinhai's share price has been below 1 yuan for 11 days, and it is not far from the 20-day face value delisting.
On February 5, 2024, *ST Xinhai stock price is 078 yuan shares, with a total market capitalization of 107.2 billion. After delisting, the company** will be transferred to the old third board and can only be traded once a week.