Li Fucheng, the Controller of Fucheng Stock Co., Ltd., was investigated for the trouble of the richest man in Yanjiao

 Li Fucheng, the Controller of Fucheng Stock Co., Ltd., was investigated for the trouble of the richest man in Yanjiao

Finance Associated Press (Chengdu, Reporter Chai Gang) News, started with seven cows, made A share funeral and burial first share, listed for 15 years never cut leek, almost every year cash dividend is not bad money... This is the A side of Li Fucheng, the richest man in Yanjiao and founder of Fucheng Stock (600965. SH), while his B side is that negative rumors continue, in sharp contrast to his positive image in the capital market.

Financial Associated Press reporters recently interviewed the tax authorities to verify the rumor of tax-related issues of Fucheng Group, the controlling shareholder of Fucheng Stock, and related real estate enterprises. On September 9, the relevant person in charge of Hebei Tax Bureau responded that the case was currently under investigation led by the Provincial Discipline Commission. At the same time, the relevant personages of Sanhe Taxation Bureau also told reporters that the case had a great impact, and the State Administration of Taxation had registered there.

Investigation led by Hebei Discipline Commission

Recently, there are market rumors that Fucheng Group has been investigated by relevant departments for tax evasion and tax evasion. Finance Associated Press reporters have interviewed Hebeis tax and public security systems to verify this.

On September 6, the reporter called the spokesman of Hebei Tax Bureau to interview the Fucheng Group Tax-related issue. The other party said that they knew the situation and then responded. On September 9, the relevant head of the Bureau responded that the case is currently being investigated by the Hebei Discipline Commission, and it is not clear to them at what stage of the investigation.

Discipline Commission leads the investigation, which may involve bribery, joint crime with relevant officials, or tax evasion. According to the procedure, the Disciplinary Commission first checks and then transfers it to the inspection organ if it needs to bring a lawsuit after the investigation. A legal person told the Financial Associated Press.

Lu Boxiong, deputy director of Jinglin (Guangzhou) Law Firm, pointed out that the crime of favoritism and fraud without undertaxation is also one of the crimes of dereliction of duty, which may be accompanied by the crime of tax evasion by enterprises.

Reporters have repeatedly dialed Dong Mi and Zheng Dai of Fucheng Stock Company, but no one has answered them.

It is worth mentioning that in 2013, Zhai Jinglin, Secretary of the Party Branch of Shuangying Village, Gaolou Town, Sanhe City, demanded property from Fucheng Investment Group Co., Ltd. and encroached on collective land transfer funds in the process of land transfer in Shuangying Village, taking advantage of his position. The amount involved is more than 108 million yuan. The public security organs shall, according to law, investigate suspected non-state functionaries of accepting bribes.

Tax issues related to affiliated enterprises

Enterprise survey shows that from January 31 this year, Fucheng Real Estate holds all shares of Lianfu Real Estate frozen by Hengshui Public Security Bureau. Lianfu Real Estate is a wholly-owned subsidiary of Fucheng Real Estate, which is a wholly-owned subsidiary of Fucheng Group. Its legal representative is Li Fucheng. The shareholders of Fucheng Group are Li Fucheng, Li Gaosheng (Chairman of Fucheng Stock Company) and Li Gaoqis father and son.

Civil disputes involving property preservation decision-making organs are courts, and by the public security to freeze, it is very likely to involve criminal cases. Lawyer Lu Boxiong told the Financial Associated Press.

Regarding the freezing of the above-mentioned shares, the staff of Sanhe Tax Bureau told the reporter of China Business Daily earlier that they were under investigation and were not convenient for interviews. The newspaper reporter learned from the Hengshui Police Department that the case of Lianfu Real Estate was handled by the special team, which transferred personnel from the Hengshui Public Security Bureau.

According to outside rumors, Li Fucheng and Li Gaosheng were also taken away by relevant departments for investigation, and then bailed pending trial. But the news has not been confirmed by the relevant departments. The reporter sent an interview letter to the Hebei Public Security Bureau by fax. The other party said that he needed to know about it before replying. As of this article, no reply has been received.

Lawyer Lu Boxiong said that if the person responsible has been bailed pending trial, according to judicial practice, this means that there is a possibility of being sentenced to probation, and probation must be sentenced to less than three years of imprisonment in order to apply. From this point of view, the relevant responsible persons criminal responsibility in this case may also be sentenced to less than three years, or even apply probation.

The reason for the downward trend of the pre-judgment of criminal responsibility may be that the circumstances of mitigation and mitigation of sentencing, such as the voluntary surrender of criminal suspects, the voluntary payment of taxes and the voluntary payment of fines, have occurred in this case. Lawyer Lu Boxiong said that the maximum bail awaiting trial is not more than 12 months.

In fact, as early as March this year, there was news on the Internet that Fucheng Group was checked, and several senior executives, such as Yu Hong, the financial director, and Chen Jingjing, the general manager of real estate, were taken away. According to netizens, the reason is that Fucheng real estate tax evasion and tax evasion, and the amount is not small. However, on August 21, the Fucheng Secretariat of the Board of Directors in Shanghai E interactive response said, these network hearsay just listen to it.

Earlier, Fucheng Real Estate was punished twice by Sanhe City Local Taxation Bureau in April and June 2016. In January 2017, Lianfu Real Estate was also punished by Sanhe City Local Tax Bureau, and in May of that year, it was also punished by Jingxing County Local Tax Bureau of Shijiazhuang City.

Lawyer Lu Boxiong pointed out that the crime of tax evasion belongs to the crime before administrative punishment. According to the relevant provisions of the Criminal Law, taxpayers who have already been subjected to administrative punishment will not be held criminally liable unless they have twice been subjected to tax evasion within five years after they have been notified of recovery by tax authorities according to law. If the administrative penalty is repeated for the third time, the public security organ can directly investigate the criminal responsibility of the perpetrator beyond the treatment of the tax authorities; or if the perpetrator has received criminal punishment for tax evasion within five years, the public security organ can also directly file a criminal investigation for tax evasion.

Share Transfer of Listed Companies

It is worth mentioning that Fucheng shares just held a shareholdersmeeting on August 16 to consider related transactions related to the sale of assets related to beef cattle breeding and slaughtering and processing industries. The announcement mentioned that the shareholdersmeeting was chaired by Chairman Li Gaosheng, and related shareholders Li Fucheng and Li Gaosheng avoided voting.

Li Fucheng, 73, is known as the richest man in Yanjiao and Li Bancheng. His family ranks ninth on the Hurun Rich List in Hebei Province. In 1987, he started with seven cows, and was awarded the title of National Cattle Raising Top Prize by the Ministry of Agriculture in 1994; in 2004, Fucheng shares, which are mainly engaged in cattle raising, cattle slaughtering and beef, landed on the Shanghai Stock Exchange; in 2013, Fucheng shares completed the merger and reorganization of Fucheng catering industry; and in 2014, Baota cemetery, which is owned by major shareholders, was merged again. Fucheng shares formed a multi-industry pattern of animal husbandry and slaughter, food processing, catering services and funeral services, and became the first funeral share of A shares. In the same year, Li Fu successfully retired and his son, Li Gaosheng, took over as chairman and general manager.

At present, the Li Fucheng family holds 62.33% of Fucheng stock. Among them, Fucheng Group holds 35.51%, Li Fucheng holds 15.65%, Fusheng Investment holds 9.01%, and Li Gaosheng holds 2.16%. Among them, the shareholders of Fusheng investment are Li Gaosheng and Li Xuelian husband and wife.

In the capital market, the Li Fucheng family is known as a good shareholder of China who has never reduced its share in the market for 15 years and has paid a 13-year cash dividend. Apart from 2010, Fucheng has made profits every year since its listing. From the stock price point of view, Fucheng shares have risen by 6.4 times since listing (ex-reinstatement, the same below), up by two times so far.

According to the just released report, Fucheng shares realized revenue of 720 million yuan in the first half of the year, an increase of 2.47% over the previous year, and net profit of 86.72 million yuan, a decrease of 0.76% over the previous year. Although the main indicators did not increase significantly, they were stable.

However, just when everything seemed to be going smoothly, on July 13 last year, Fucheng shares suddenly announced that the controlling family of Li Fucheng intends to transfer the ownership of the company to the Overseas Chinese Holding Group. After the transaction is completed, the actual controllers of listed companies will change.

For more than a year now, many investors may have forgotten such a cold announcement. In July this year, an investor asked on the interactive platform of Shanghai Stock Exchange e: Has the equity transfer plan of the major shareholders been terminated? The company responded that it had not terminated.

Negative Li Bancheng

The Li Fucheng family has a huge industry in Yanjiao, located in Sanhe City. In addition to cattle raising and slaughtering, food processing, catering services, funerals, it also extends to real estate, property, finance, hotels, entertainment and other industries through the Fucheng Group. Because of the strategy of taking land with large sum and low cost, developing rapidly and selling back funds quickly, Li Fucheng has many projects in Yanjiao. Local people laugh that half of Yanjiao are Li Fucheng, and he also gets the nickname Li Bancheng.

However, unlike the positive image of the capital market, in the workshop, the Li Fucheng family has been controversial and negative rumors continue.

Apart from the fact that online Chuanfucheng Group was investigated for tax evasion and tax evasion in Fucheng Real Estate in March this year, there are still many negative rumors about the Li Fucheng family.

In May 2017, an article with a source of Qianlong-Fayan Joint Report said that many owners of Yanjiao Ideal New Town District had upheld their rights by shoveling part of the green space into parking spaces because of their dissatisfaction with the property of the district. But since then, these owners have either been beaten or sprayed with paint on their doors to carry out death threats, and some of them dare not return. The public information shows that the developer and property company belong to Fucheng Group.

From 2014 to 2016, there was an earthquake in Hebei officialdom, which was said to be closely related to Yanjiao real estate. Another example is the land bidding event in Zaozuo Village, Yanjiao, which caused a sensation in 2009. According to the reports of China Net and other media, there are illegal bidding and trampling on villagersrights and interests. The ultimate winner is Lianfu Real Estate, which was set up by surprise in November of that year.

Source of this article: Responsible Editor of Finance Associations: Wang Xiaowu_NF