Ordered to return 1.933 billion! The person in charge of Coneys M & A case was sentenced indefinitely

category:Finance
 Ordered to return 1.933 billion! The person in charge of Coneys M & A case was sentenced indefinitely


According to the criminal judgment issued by the Nanjing Intermediate Peoples court, the Nanjing Intermediate Peoples court held that the defendant Liao Liangmao cheated the other partys property in the process of signing and performing the contract, and the amount was especially huge, and his behavior has constituted the crime of contract fraud. The fact that the public prosecution organ accused the defendant Liao Liangmao of the crime of contract fraud is clear and the evidence is reliable and sufficient. This court supports the charge. Liao Liangmao, male, born on December 7, 1979, is the original legal representative of Guangdong Longxin Technology Co., Ltd. He was detained in criminal detention on August 28, 2018 and arrested on September 30 of the same year for his contract fraud. He is now in custody in Qixia District detention center of Nanjing city.

This judgment is the first instance judgment. If you do not accept this judgment, you may appeal to the higher peoples Court of Jiangsu Province through Nanjing Intermediate Peoples court or directly within 10 days after receiving the judgment. As of the date of the announcement, Connie electric learned that the defendant Liao Liangmao had filed an appeal.

Tracing the source

The reason why conney was involved in this lawsuit still needs to start with a merger and acquisition three years ago.

The main business of Kangni Electromechanical is rail transit products, involving trunk railway vehicle door system, urban rail vehicle door system, platform safety door system, etc. The other business is auto parts, including charging assembly, high voltage harness and high voltage module, as well as some traditional auto parts business. The major shareholder of the company is Nanjing Institute of Engineering Asset Management Co., Ltd., holding 8.57%.

After Kangni electromechanical was listed in 2014, in order to break through the bottleneck of its main business, it began to look for extension expansion, and finally fell in love with Longxin technology. Longxin technology is an integrated solution provider for surface treatment of consumer electronic precision structural parts. In 2017, Kangni electromechanical successfully acquired Longxin technology, which is in the stage of rapid development and growth. Through this merger and acquisition, Connie said that the company has formed a rail transit + consumer electronics dual business operation pattern.

Longxin technology, which invested 3.4 billion yuan to acquire, made good achievements in the first year of acquisition in 2017, and successfully completed the promised performance with the deduction of non net profit of 241 million yuan. However, the good times did not last long, and the marriage had a turning point. In June 2018, Connie electromechanical self exposed scandal, and Liao Liangmao, chairman and general manager of Longxin technology, a subsidiary, was found to be involved in illegal external guarantee in the name of Longxin technology by taking advantage of his position. At the same time, Liao Liangmaos 33.2 million shares of Kangni Electromechanical limited circulation shares have been frozen by the judiciary, accounting for 65.62% of his total shares.

After reporting the case to the Public Security Bureau, Kangni mechanical and Electrical Co., Ltd. received the notice on filing a case issued by the economic and Technological Development Zone Branch of Nanjing Public Security Bureau on August 27, 2018. The public security organ formally filed a case for Liao Liangmaos suspected contract fraud crime. The next day, Liao Liangmao was detained on suspicion of contract fraud and arrested on September 30 of the same year.

cutting

What is the real profit situation of Longxin technology? Data shows that in 2018, Longxin technology achieved sales revenue of 576 million yuan and net profit of - 1.093 billion yuan. As of the end of 2018, Dalingshan and other three factories have ceased operation, while Longxin technology and xinmalian plant only maintain the production under hand orders; in 2018, Longxin technology incurred a huge loss of 1.15 billion yuan, and was insolvent at the end of the year.

Encountering the black swan incident, Connie electromechanical immediately divested the assets of Longxin technology. In June 2019, Connie announced that in order to solve the crisis caused by the merger and acquisition of Longxin technology by listed companies, prevent further expansion of losses, and maintain the healthy development of the companys original main business, it plans to sell 100% equity of Longxin technology to Nanjing Zijin guancui private enterprise relief development fund partnership (limited partnership) (hereinafter referred to as the relief development fund). According to the announcement, the transaction was priced at 400 million yuan. Considering that the transaction is based on the spirit of bail-out, after the completion of equity transfer, if the income from subsequent disposal of Longxin technology by the transferee is less than 400 million yuan, all relevant disposal income shall be owned by the transferee; if the subsequent disposal income of Longxin technology by the transferee is higher than 400 million yuan, 90% of the part exceeding 400 million yuan shall be owned by the listed company and 10% shall be owned by the bail-out company Development Fund. After cutting Longxin technology, the performance of Kangni Machinery & Electronics Co., Ltd. improved. According to the third quarter report, in the first nine months of 2020, the company realized a total operating revenue of 2.515 billion yuan, a year-on-year decrease of 1.64%, and a net profit of 390 million yuan, a year-on-year increase of 82.65%. Source: Securities Times Author: Li Xiaoping, editor in charge: Wang Xiaowu_ NF

Encountering the black swan incident, Connie electromechanical immediately divested the assets of Longxin technology. In June 2019, Connie announced that in order to solve the crisis caused by the merger and acquisition of Longxin technology by listed companies, prevent further expansion of losses, and maintain the healthy development of the companys original main business, it plans to sell 100% equity of Longxin technology to Nanjing Zijin guancui private enterprise relief development fund partnership (limited partnership) (hereinafter referred to as the relief development fund). According to the announcement, the transaction was priced at 400 million yuan. Considering that the transaction is based on the spirit of bail-out, after the completion of equity transfer, if the income from subsequent disposal of Longxin technology by the transferee is less than 400 million yuan, all relevant disposal income shall be owned by the transferee; if the subsequent disposal income of Longxin technology by the transferee is higher than 400 million yuan, 90% of the part exceeding 400 million yuan shall be owned by the listed company and 10% shall be owned by the bail-out company Development Fund.

After cutting Longxin technology, the performance of Kangni Machinery & Electronics Co., Ltd. improved. According to the third quarter report, in the first nine months of 2020, the company realized a total operating revenue of 2.515 billion yuan, a year-on-year decrease of 1.64%, and a net profit of 390 million yuan, a year-on-year increase of 82.65%.