The chairman of Shennong Science and Technology Co., Ltd. was fined 700,000 yuan for false income of more than 80 million yuan in three years.

category:Finance
 The chairman of Shennong Science and Technology Co., Ltd. was fined 700,000 yuan for false income of more than 80 million yuan in three years.


From 2014 to 2016, Shennong Science and Technology fabricated seed sales business by forging sales invoices, using external loans to enter the bank account of the opposite party of the contract and eventually flowing into Shennong Science and Technology Bank account in the name of purchasing seeds to forge real capital flow. In three years, the main business income increased by 54.06 million yuan, 22.24 million yuan and 7.51 million yuan respectively.

According to the survey, in November 2014, Shennong Science and Technology signed seed sales contracts with Zhanjiang Xingluo Agricultural Technology Co., Ltd. (Zhanjiang Xingluo) and Guangxi Tengxian Jiahe Seed Co., Ltd. (Tengxian Jiahe). In 2014, Shennong Science and Technology confirmed the sales revenue of seed business to Xingluo, Zhanjiang and Jiahe, Tengxian, respectively, of 193.07 million yuan, 15.25 yuan and 24.098 million yuan. In November 2104, Hunan Shennong Dafeng Seed Industry Technology Co., Ltd., a subsidiary of Shennong Science and Technology Holding Company, signed a seed sales contract with Hunan Zhenglong Agricultural Technology Co., Ltd. In 2014, Shennong Dafeng Seed Industry confirmed that it earned 1.65 million yuan from selling seeds to Zhenglong, Hunan Province.

In March and November 2015, Shennong Science and Technology signed seed sales contracts with Xingluo, Zhanjiang and Jiahe, Tengxian. In 2015, Shennong Science and Technology confirmed 9.568 million yuan and 7.817 million yuan in seed sales to Xingluo, Zhanjiang and Jiahe, Tengxian, respectively. In March 2015, Shennong Dafeng Seed Industry signed a seed sales contract with Zhenglong, Hunan Province. In 2015, Shennong Dafeng Seed Industry confirmed that it earned 4.85 million yuan from seed sales to Zhenglong, Hunan Province.

In March 2016, Shennong Science and Technology signed seed sales contracts with Xingluo, Zhanjiang and Jiahe, Tengxian. In 2016, Shennong Science and Technology confirmed 4.02 million yuan and 3.49 million yuan in seed sales to Xingluo, Zhanjiang and Jiahe, Tengxian, respectively.

At the same time, Shennong Science and Technology also increased its profit by 25.15 million yuan in 2015 through the implementation of the non-commercial transfer of variety rights business.

In September 2015, Shennong Science and Technology signed 11 Technology Transfer Contract (hereinafter referred to as Variety Transfer Contract) with Zhanjiang Xingluo, Tengxian Jiahe, Hunan Zhenglong and Anhui Fengyong Seed Co., Ltd. (hereinafter referred to as Variety Right Transfer Contract), involving 10 Shenhui 568 strong restorer lines of hybrid rice. A total of 25,150,000 yuan was contracted for the right to new plant varieties, and 25.15 million yuan was received from the transfer of the right to new plant varieties confirmed by Shennong Science and Technology. The above businesses are non-commercial transactions, resulting in Shennong Science and Technologys false profit of 25.15 million yuan in 2015.

According to the relevant investigation by the Securities Regulatory Commission, Jiahe in Xingluo and Tengxian of Zhanjiang is controlled by Shennong Science and Technology, and has not actually started its business from 2014 to 2016. Hunan Zhenglong and Anhui Fengyong cooperated with Zhang Xiongfei, the then director and deputy general manager of Shennong Science and Technology, to sign the contract of transfer of variety rights and loan agreements. They did not actually invest in the purchase and use of Shennong Science and Technology-related variety rights. Transaction funds are arranged and raised by Shennong science and technology insiders. After several transfers of Shennong science and technology personnels personal bank accounts, they are transferred to the accounts of Zhanjiang Xingluo, Fujinjiahe, Hunan Zhenglong and Anhui Fengyong companies. Finally, they are transferred to Shennong science and technology bank accounts in the name of purchasing variety rights.

In response, Hainan Supervisory Bureau of the Securities Regulatory Commission issued fines to 14 senior executives who participated in Shennong science and technology fraud. Among them, Huang Peijin was the chairman, controlling shareholder and actual controller of Shennong Science and Technology. He instructed senior managers of Shennong Science and Technology to carry out illegal information disclosure. He did not inform Shennong Science and Technology that it should disclose information when he knew Yunxiang of Hainan Valley as its related party. He reported in 2014, 2015 and 2016. The report is signed to ensure the authenticity, accuracy and completeness of Shennongs scientific and technological information disclosure. It bears the main responsibility for the illegal acts involved and is the person in charge who is directly responsible for the illegal acts. Huang was given a warning and fined 700000 yuan.

Source: Tonghuashun Financial Responsibility Editor: Wang Honggui_NF7326