An accident happened to a listed company and two securities companies were supervised! What happened?

category:Finance
 An accident happened to a listed company and two securities companies were supervised! What happened?


Supervise the company to increase profit by more than 60%

The company that let two stockjobbers receive the ticket is Zhongyu technology.

According to public information, Zhongyu technology was founded on September 19, 2000, mainly engaged in the R & D, production and sales of electric energy meters, power consumption information acquisition system products and power automation system products.

On May 13, 2015, Zhongyu technology was listed and publicly transferred in the national stock transfer system. At the time of listing, the sponsor broker of Zhongyu technology was Pacific Securities, and on April 12, 2016, the sponsor broker was changed to Wanlian securities. On April 4, 2019, Zhongyu science and technology announced that because Zhongyu technology failed to disclose the 2016 annual report before June 30, 2017 (including June 30, 2017), the national small and medium-sized enterprise share transfer system decided to terminate the listing of Zhongyu technology shares from April 8, 2019.

However, no matter in the one-year supervision period of Pacific Securities or the three-year supervision process of Wanlian securities, the two securities companies did not find any greasy in the information disclosure of Zhongyu technology.

According to the disclosure of Guangdong securities regulatory bureau, it is found that Zhongyu technology has the following illegal facts:

In the first half of 2015, Zhongyu science and Technology Co., Ltd. signed a sales contract and four corresponding purchase contracts for grounding transformer of power transmission and transformation project with the material branch of State Grid Zhejiang electric power company. The fictitious business income was 34.076 million yuan, and the fictitious cost was 25.557 million yuan, resulting in the virtual increase of 8.519 million yuan in the financial report of 2015, accounting for 66.72% of the total profit of the current period.

2u3001 Related party transactions failed to fulfill the review procedures and information disclosure obligations in a timely manner.

In the first half of 2015, Shenzhen Donghe Micro Technology Co., Ltd. and Beijing Qingda Huakang Electronic Technology Co., Ltd., which were actually controlled by Zhongyu technology and controlled by Wu Mingyu, the actual controller of the company, and held the equity on behalf of Ye, a total of 54 times of direct non operating capital borrowing and lending, with a total amount of related party transactions of 178 million yuan, accounting for 114.88% of the companys net assets at the end of the disclosure period in the 2015 semi annual report. As for the above-mentioned related party transactions, Zhongyu technology did not timely perform the internal review procedures and disclosure obligations of interim reports, nor did it fully disclose them in the 2015 semi annual report.

Warning letter issued

Guangdong securities regulatory bureau pointed out the two crimes when Pacific Securities supervised Zhongyu technology.

1. Pacific Securities, as the leading securities company of China Yuyu technology, failed to perform its legal duties diligently and strictly, and failed to timely pay attention to the above-mentioned violations and urge them to take effective measures to rectify them in the process of prior review of its information disclosure documents, continuous supervision of its information disclosure obligations and improvement of corporate governance mechanism;

2. In the process of issuing legal compliance opinions for the companys two stock issuance projects in 2015, the company failed to fully perform the duty of Prudential verification in accordance with the requirements of the relevant business rules of the national small and medium-sized enterprise stock transfer system, and improperly issued the company does not violate the provisions of Chapter II of the measures for the supervision and administration of unlisted public companies and the company has not violated the provisions of Chapter II of the measures for the supervision and administration of unlisted public companies on July 27 and August 12, 2015 During the listing period and the process of this stock issue, we have standardized and fulfilled the obligation of information disclosure and other special opinions, which failed to guarantee the authenticity, accuracy and integrity of the documents issued.

According to the provisions of Article 62 of the measures for the supervision and administration of unlisted public companies (Order No. 96 of the CSRC), Guangdong securities regulatory bureau decided to take the supervision and management measures of issuing warning letters on Pacific Securities, ordered them to carefully check the problems existing in their practice, formulate practical rectification measures, and report in writing to Guangdong securities regulatory bureau within 30 days after receiving the decision.

Frequently punished

Classification rating of Pacific Securities suffered four consecutive falls

It is worth noting that for Pacific Securities, the matter of being punished may have been a bit numb. In recent years, under the downturn in performance, Pacific Securities has encountered a lot of bad things, especially since this year, the company has been punished frequently.

It is worth noting that these two penalties are due to the illegal sales of financial products of investment company controlled by Song Mou, the former general manager of Inner Mongolia Branch, and his subordinates.

In August this year, Shenyang Branch of the peoples Bank of China issued two penalty tickets to Pacific Securities for failing to fulfill the customer identification obligations as required.

Not only that, Pacific Securities has a number of lawsuits. On the evening of September 25, Pacific Securities issued a notice on litigation and litigation progress, which showed that Pacific Securities and its subsidiaries had accumulated litigation (Arbitration) amount of 2.3 billion yuan (principal) in the past 12 months.

Combined with a variety of problems, the classification rating of Pacific Securities has also declined year by year. In the 2020 classified evaluation results of securities companies released by the CSRC not long ago, Pacific Securities was rated CCC, which was the fourth consecutive year of rating decline. From 2017 to 2019, Pacific Securities was rated a, BB, and B respectively.

Wanlian securities was also fined

Supervision requires them to improve the quality of practice

Coincidentally, the day before Pacific Securities was fined, Wanlian securities was also issued a warning letter by Guangdong securities regulatory bureau.

Guangdong Securities Regulatory Bureau requires Wanlian securities and related personnel to learn from the lessons, strengthen the study of securities laws and regulations, strengthen risk awareness, improve the quality of practice, and prevent the recurrence of similar incidents.

It is worth noting that before Wanlian securities was fined, Tianjian, the then accounting firm of Zhongyu technology, also received a warning letter from Guangdong Securities Regulatory Bureau on March 5 this year. The reason is that the firm and its certified public accountants Zhang Yunhe and Li Wenyu have many problems in the audit project of 2014 annual report of Zhongyu technology.

It is worth noting that, like Pacific, Wanlian securities is not calm this year.

On April 29 this year, China Securities Regulatory Commission (CSRC) disclosed the decision on the adoption of regulatory measures against Jiangxi green giant ecological environment Co., Ltd. not accepting stock issuance application within 36 months.

The CSRC pointed out that in the process of Jiangxi huliangs application for IPO and listing, there were a lot of changes in the names, abstracts and subsidiary account records of the banks running counterparties, the incomplete disclosure of the related parties and the capital transactions such as loan write off and inter-bank lending, etc., as well as the defects in accounting basis and internal control. And its sponsor is Wanlian securities.

In addition, according to the official website of Zhejiang securities regulatory bureau, from June 3 to June 5, Zhejiang Securities Regulatory Bureau issued five regulatory letters, and relevant personnel of the business departments of four securities companies, including Wanlian securities, were punished for violating the regulations on Honest Employment and providing introduction for customer financing. According to the investigation, Liu Pan had the following behaviors when he was the person in charge of the securities business department of South Jiefang Road, Shaoxing, Wanlian Securities Co., Ltd.: first, he provided the convenience of introducing customers, providing margin, transferring securities account number and password, and collecting remuneration for clients entrusting others to buy and sell stocks; second, divulging regulatory investigation information; third, it was the disclosure of regulatory investigation information; Third, holding the equity of a private fund management company, failing to report as required, and having conflict of interest with your performance of duties.

It must be noted that Wanlian securities is currently queuing up for IPO. As early as June last year, the company had submitted the prospectus. On the evening of April 17, this year, Wanlian securities IPO received the first feedback. The CSRC raised 32 questions in total, including three aspects of business standardization, information disclosure and financial accounting information.

According to the data disclosed by the China Securities Regulatory Commission, in the latest classification evaluation of securities companies, the classification rating of Wanlian securities rose by one place compared with last year and returned to BBB level.