Audiences familiar with focus interviews know that it will not be good to be named and criticized in this column.
This huge cancer of the capital market should be severely punished! The punishment should be severe!
Recently, a number of A-share listed companies have been filed and punished by the Securities Regulatory Commission, because they are suspected of financial fraud violations, the amount even exceeded 10 billion yuan. Through these fraudulent actions, these listed companies have whitewashed themselves into white horse stocks with a good performance trend, thus making huge profits. The capital market should be based on honesty and credit. Why do some listed companies often fake? Why can we make a fake? How to protect the interests of investors? What kind of system construction does supervision need?
This summer, Chinas A-share market is not calm. Kangmei Pharmaceutical, Kangdesin Pharmaceutical, Furen Pharmaceutical and a number of listed companies have been found to have different degrees of financial fraud, causing market shocks. The SFC has also condemned such fraud in an unusually harsh tone.
From 2015 to 2018, the SFC confirmed that Kangde Xin had increased its profit by 11.921 billion yuan through various means, such as increasing business income and operating cost. If we restore the financial statements preliminarily, Kangde Xin actually fell into a serious loss from 2015 to 2018, totaling 5.791 billion yuan, which is far more than the fact since its listing. Inter-generational profits.
Since its listing in 2010, Kangde News stock price has risen nearly ten times, and its market value is close to 100 billion yuan. It was once recognized by the market as a white horse stock with high return on investment and long-term performance. On January 14, 2019, Kangdesin, with a book capital of 15 billion yuan, was unable to pay the principal and interest of a 1.5 billion yuan ultra-short-term financing bond, which aroused widespread concern and doubts in the market.
Financial commentator Shui Pi said, There are 10 billion and 20 billion companies on the account. When short-term debt is to be liquidated, several hundred million cant be taken out. Is one of them false? Its very likely that the cash on the account is fake.
On January 22, this year, the SFC immediately filed an investigation into Kangde Xins suspected information disclosure violations. On 5 July, the preliminary investigation and punishment results were published.
Chang Depeng, a spokesman for the Securities Regulatory Commission, said: The Securities Regulatory Commission has served prior notifications of administrative penalties and market ban to the parties involved. It intends to impose top-notch penalties on Kangdesin and its main responsible personnel within the scope of the Securities Law and take measures to ban them from entering the market for life.
Kangmei Pharmaceutical Co., Ltd., which is one of the leading enterprises in the Chinese traditional medicine industry, said in its financial report for 2018 that due to the mistakes in accounting account funds, the company has made mistakes. In 2017, the amount of money is about 29.944 billion yuan. At the same time, due to errors in accounting treatment of purchasing payment, project payment and confirmation of business payment, the inventory is about 19.546 billion yuan less, and nearly 30 billion yuan of money funds disappeared. Following the news, Comex Pharmaceuticals share price dropped for five consecutive trading days. As early as December 28, 2018, the SFC launched a case investigation into Kangmei Pharmaceutical Industry, and announced the progress of the investigation on May 17, 2019.
Chang Depeng, a spokesman for the Securities Regulatory Commission, said: It has been preliminarily identified that the financial reports disclosed by Comex Pharmaceutical Company from 2016 to 2018 are grossly false and are suspected of violating Article 63 of the Securities Law and other relevant provisions. Firstly, false bank deposit receipts are used to increase deposits; secondly, income forgery is carried out by forging business vouchers; thirdly, some funds are transferred to affiliated accounts to buy and sell shares of the company.
On July 26, the Securities Regulatory Commission issued the Annual Report on Accounting Supervision of Listed Companies in 2018. On the basis of a sample review of the annual financial reports of 805 listed companies, it found many problems in the performance disclosure of listed companies, including adjusting profits across time through various means, selectively confirming and disclosing financial status. And regulate profits by structuring transactions.
At the same time, statistics show that in 2018, the SFC made 310 administrative penalty decisions, the number of administrative penalties increased by 38.39%, the amount of fines was 10.641 billion yuan, and 50 people were banned from the market.
Yang Zhaoquan, deputy director of the Financial Committee of the Beijing Lawyers Association, said: As far as listed companies are concerned, they should take the initiative to increase profits and release false information to the outside world. In this case, investors can not understand the real situation.
These listed companies, which have been investigated by the SFC, usually encounter the risk of stock price plunge, suspension or even delisting. The investors behind them are the ones who suffer the most direct losses.
Data show that the number of shareholders of Kangde Xin has increased from 27,000 to 158,000 during the four years of suspected financial fraud, which also means that more than 150,000 investors will face huge investment losses. According to the top penalty standard within the scope of the current Securities Law, the SFC will impose a fine of 600,000 yuan on Kangde Xin to control the actual situation. Zhong Yu, then chairman of the board, was fined 900,000 yuan and banned from entering the securities market for life.
In 2017, Kangde News stock price reached a historic value of 2.671 yuan per share and its market value was close to 100 billion yuan. Since then, it has fallen all the way. As of July 5, the last trading day before the suspension of trading, its share price was only 352 yuan per share, and its market value has evaporated to 82.1 billion yuan. Many insiders believe that compared with the companys more than 11.9 billion yuan of fraudulent profits and the evaporated market value of 82.1 billion yuan, even the top penalty is obviously inadequate.
Wu Xiaoqiu, Vice President of Renmin University of China, said, The Criminal Law, Criminal Procedure Law, Company Law and Securities Law should be severely punished for this serious violation of capital market law. This punishment is three-dimensional, and we generally focus on administrative punishment, including prohibition, etc., which is not binding and deterrent. First of all, of course, criminal punishment. Criminal punishment is not two or three years. We are too low now.
It is noteworthy that the Securities Law (Revised Draft) which is in the process of revision stipulates the protection of investors with special chapters, highlighting the importance of legislators to the protection of investors.
Wu Xiaoqiu, Vice President of Renmin University of China, said, The first step in protecting investorsinterests is to choose what kind of listed companies to go public. This is the first step in protecting investors interests, because you have to choose those growing enterprises to go public. The protection of investorsinterests also has a fundamental protection of interests. Once there are illegal acts in the market, how to protect the interests of investors, especially small and medium investors, and establish some special systems, including the group litigation system and so on, are all our considerations.
Wu Xiaoqiu, Vice President of Renmin University of China, said: All kinds of illegal activities of listed companies have the shadow of intermediaries. These problems are closely related to their unprofessionality and independence, and even some of them are collusive. Therefore, we should strengthen the supervision and punishment of these intermediaries, which is also an important guarantee to ensure the interests of investors.
In order to control financial fraud of listed companies, we must take appropriate measures and increase the punishment of financial fraud. When discussing the falsification of A-share listed companies, the head of the Securities Regulatory Commission pointed out that listed companies and major shareholders must tell the truth and make true accounts, firmly adhere to the four bottom lines, do not disclose false information, do not engage in insider trading, do not harm the interests of listed companies, do not manipulate stock prices, the next step will be the same as before to trust listed companies. Illegal acts of disclosure of interest shall be severely punished. The development of the capital market can not be separated from the improvement of the legal environment. The integrity of the market and the protection of investors need more participation and joint maintenance.
Looking back on what happened to all three listed companies
1. Kangmei Pharmaceutical Industry
Kangmei Pharmaceutical Co., Ltd. was founded in 1997. In 2001, it was listed on the Shanghai Stock Exchange and issued 18 million common shares in RMB. At the beginning of the issuance, the companys total stock was 70.8 million shares, and the largest shareholder was Kangmei Industrial Investment Holding Co., Ltd. (up to the first quarter of 2019, the share-holding ratio reached 32.83%).
As a result of accounting errors in financial data, business income in 2017 was more than 8.898 billion yuan, operating costs were more than 7.6 billion yuan, sales expenses were less than 500 million yuan, financial expenses were less than 200 million yuan, sales goods were more than 10.2 billion yuan, currency funds were more than 29.9 billion yuan, and cash items related to fund-raising activities were more than 300 million yuan.
After the announcement came out, the market was uproarious.
The SFC said on May 17 that the SFCs daily supervision at the end of 2018 found that there were doubts about the authenticity of Kangmei Pharmaceutical Co., Ltd. (Kangmei Pharmaceutical Co., Ltd.) financial reports, suspected of false statements and other illegal violations, and I would immediately file a case for investigation.
It has been preliminarily found that the financial reports disclosed by Comme Pharmaceutical Company from 2016 to 2018 are grossly false and suspected of violating Article 63 of the Securities Law and other relevant provisions.
Firstly, false bank documents are used to increase deposits.
The second is to counterfeit income by forging business documents.
Thirdly, some of the funds are transferred to related party accounts to buy and sell the companys stocks.
As a former white horse stock in the A-share market, Kangmei Pharmaceutical has also received a lot of shareholders. The latest data show that as of 31 January 2019, there are nearly 300,000 shareholders.
* ST Kangdes 2018 report shows that last year, the company realized 9.150 billion yuan in business income, a decrease of 22.38% compared with the previous year; the total profit was 343 million yuan, a decrease of 88.24% compared with the previous year; the net profit attributed to the parent company was 281 million yuan, a decrease of 88.66% compared with the previous year. The annual report also said that the companys Book Money Fund was 15.516 billion yuan, of which 12.21 billion yuan was deposited in Xidan Branch of Bank of Beijing.
Independent directors of the company strongly questioned the authenticity of 12.21 billion yuan.
In the evening announcement of May 7, the companys online banking showed that 12.2 billion yuan was deposited in Xidan Branch of Bank of Beijing (hereinafter referred to as Xidan Branch). However, Xidan Branch wrote back that account balance is 0.
Cha Kang Dexin suspected that during the period from 2015 to 2018, he falsely increased business income through fictitious sales business, and through fictitious purchasing, production and R&D costs, product transportation costs, etc., falsely increased business costs, R&D costs and sales costs. Through the above way, * ST Kangde has increased its total profit by 11.9 billion yuan.
What is the concept of false profit of 11.9 billion yuan?
Kangde Xin was listed in 2010, and the total net profit in the eight years since its listing is more than 8 billion, which shows how bad the financial fraud is!
Subsequently, the Shenzhen Stock Exchange announced that if the SFC makes a final administrative penalty decision on * ST Kangde, the Shenzhen Stock Exchange will start the compulsory delisting process of the company in the first time.
3. Furen Pharmaceutical Industry
According to the previous announcement, Furen Pharmaceutical intends to distribute a dividend of 1 yuan per 10 shares, calculated as 627 million shares of total equity, and 62.72 million yuan to shareholders.
Just like Kang Dexins routine, when Kang Dexin had 15 billion yuan of money on its books, it could not afford to pay back its short-term debt by one billion yuan, and the dominoes collapsed.
For more than 20,000 shareholders of Furen Pharmaceutical, the truth of Furen Pharmaceutical is like a bolt from the blue. The investors are worried about whether the once capital-sought medical white horse stock will become the next Kangmei Pharmaceutical Industry.
According to the companys financial information, as of July 19, 2019, the company and its subsidiaries had total cash of 127,240,702.45 yuan, of which 123,461,985.09 yuan was limited and 3,778,717.36 yuan was unrestricted.
On the evening of July 26, Furen Pharmaceutical Co., Ltd., a White Horse Stock issued a notice saying that the company had received the Notice of Investigation from the China Securities Regulatory Commission for suspected violations of laws and regulations and was investigated.
Up to now, there are more than 20,000 shareholders in Furen Pharmaceutical Industry.
Source: Yang Bin_NF4368, Responsible Editor of China Foundation Newspaper