Shennong Science and Technology was found guilty of three counts of compensation: not the same punishment as executives

category:Finance
 Shennong Science and Technology was found guilty of three counts of compensation: not the same punishment as executives


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Three counts verified

According to the investigation of the SFC, Shennong Science and Technology has three charges.

The first is to increase the main business income. From 2014 to 2016, Shennong Science and Technology increased its main business income by 54.0577 million yuan, 22.236 million yuan and 7.514 million yuan respectively through fictitious seed sales business. Specifically, customers involved in fictional business include Zhanjiang Xingluo Agricultural Technology Co., Ltd., Guangxi Tengxian Jiahe Seed Co., Ltd., and Hunan Zhenglong Agricultural Technology Co., Ltd. It was found that 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.

Secondly, the transfer of fictitious variety rights. Shennong Science and Technology 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 (New Plant Variety Rights Transfer) Contracts with Zhanjiang Xingluo, Tengxian Jiahe, Hunan Zhenglong and Anhui Fengyong Seed Co., Ltd. (referred to as Anhui Fengyong), involving 10 new plants such as Shenhui 568, a strong restorer line of hybrid rice. Variety rights, the total contract amount of 25.15 million yuan, Shennong Science and Technology confirmed the transfer income of 25.15 million yuan. However, the Hainan Securities Regulatory Bureau found that the above businesses were non-commercial transactions, resulting in Shennong Science and Technologys false profit of 25.15 million yuan in 2015. The Securities Regulatory Bureau found that Jiahe in Xingluo and Tengxian of Zhanjiang was controlled by Shennong Science and Technology, and did not actually carry out 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.

Its not like executives being punished

Compared with the prior notification of administrative penalty, Shennong Science and Technologys decision on penalty has only one change, which is in violation of the companys general managers special assistants strong will.

Previously, the notice of administrative penalty showed that Yizhiqiang was a special assistant to the general manager of Shennong Science and Technology. Although he did not serve as a director, supervisor or or senior manager of Shennong Science and Technology, he undertook the daily expenditure management, fund management and fund allocation of Shennong Science and Technology, and actually fulfilled the duties of senior management personnel of Shennong Science and Technology. u3002 Yizhiqiang organizes, plans and implements the business of seed sale and transfer of variety rights, arranges the repayment of related business, assumes the main responsibility for the illegal acts involved, and is the person in charge who is directly responsible for the illegal acts. To this certainty, Yizhiqiang appealed. The SFC said: Yizhiqiang put forward his statement and defense opinions on his position and role in Shennong science and technology information disclosure violations. After review, according to the relevant evidence, our bureau adopted the partys statement and defense opinions.

The revised decision on administrative penalty shows that Yizhiqiang was a special assistant to the general manager. Although he did not serve as a director, supervisor or or senior manager of Shennong Science and Technology, he undertook the daily expenditure management, fund management and fund allocation of Shennong Science and Technology, and actually fulfilled the duties of senior management personnel of Shennong Science and Technology. Yizhiqiang participates in the implementation of seed sales and transfer of variety rights, and arranges for the repayment of related businesses. It is the person in charge who is directly responsible for the illegal activities. Compared with the former, he is no longer regarded as the organizer and planner of the violation, nor as the main responsibility, but as a concrete implementer. Despite the change in violation of the regulations, the amount of the fine of Yizhiqiang remained unchanged, all of which were 200,000 yuan.

It is worth noting that when the SFC decides whether a person should be responsible, it does not only depend on whether he has a senior executive position, but also on whether he has fulfilled his senior executive duties.

On September 23, Shennong Science and Technology (30,189) accumulated more than 80 million yuan of false income from 2014 to 2016, and 25 million yuan of false profit in 2015. Fourteen former directors of Shennong Science and Technology were punished, of which Huang Peijin, the chairman, was fined 700,000 yuan.

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.

Source: Author of Jinling Evening News: Editor-in-Charge of Tao Wei: Wang Honggui-NF7326