Acquisition of stepping on thunder leads to huge losses

category:Finance
 Acquisition of stepping on thunder leads to huge losses


Kangni electromechanical disclosed after hours on November 27 that the company received the criminal judgment issued by Nanjing Intermediate Peoples Court of Jiangsu Province. It is reported that Liao Liangmao, the former legal representative of Longxin technology, was put on file for investigation by the economic and Technological Development Zone Branch of Nanjing Public Security Bureau on August 28, 2018 for suspected contract fraud. After the trial of Nanjing Intermediate Peoples court, the defendant Liao Liangmao defrauded the companys property in the process of signing and performing the contract, with a huge amount, and his behavior has constituted the crime of contract fraud. The facts and evidence of Liao Liangmao, the accused of contract fraud, were clear and sufficient by the public prosecution organ.

On November 12, 2020, the Nanjing Intermediate Peoples court held that Liao Liangmao, the defendant, defrauded the other partys property in the process of signing and performing the contract, with a huge amount, 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. According to the facts, nature, circumstances and harm to society of the defendant Liao Liangmao, and in accordance with the provisions of articles 224, 57, 59 and 64 of the criminal law of the peoples Republic of China, the judgment is as follows: 1. The defendant Liao Liangmao, who committed the crime of contract fraud, was sentenced to life imprisonment, deprived of political rights for life, and was also sentenced to confiscation of all his personal property Property. 2u3001 Liao Liangmao, the defendant, was ordered to withdraw his criminal income of about 1.93 billion yuan and return it to Kangni Electromechanical, the victim.

However, the dispute has not yet been fully settled. Since the above judgment is a judgment of first instance, as of the date of announcement, Connie electromechanical learned that the defendant had filed an appeal, and conney said that it would continue to pay attention to the follow-up of the case.

Public information shows that the case dates back to a merger three years ago. At that time, the main business encountered bottlenecks, and koni planned to spend 3.4 billion to acquire Longxin technology. The transaction was completed in 2017, but on June 23, 2018, Kangni electromechanical found problems and gave a major risk warning. Originally, Kangni electromechanical found that Liao Liangmao, chairman and general manager of Longxin Technology (who was also a director and vice president of the company at that time), was suspected of using his position to facilitate illegal external guarantee in the name of Longxin technology. At the same time, Connie also disclosed Liao Liang Maos shareholding was frozen by the judiciary. In order to find out the facts as soon as possible, Kangni electromechanical immediately reported the case to the economic and Technological Development Zone Branch of Nanjing Public Security Bureau. On August 27, 2018, Kangni mechanical and Electrical Co., Ltd. received the notice of filing a case issued by the economic and Technological Development Zone Branch of Nanjing Public Security Bureau, and the public security organ formally filed a case for Liao Liangmaos suspected contract fraud.

According to the public information, the main business of Kangni electromechanical Co., Ltd. is the R & D, manufacturing and sales of rail transit door system, as well as providing rail transit equipment supporting products and technical services. In 2018, the net profit of Kangni electromechanical was - 3.151 billion yuan, from profit to loss on a year-on-year basis, and the audit opinion of unqualified opinion + emphasized matters was also recorded in that year; in 2019, the net profit of Kangni electromechanical was 650 million yuan, and the net profit of the first three quarters of 2020 was 390 million yuan. The largest shareholder of Coney is Nanjing Institute of Engineering Asset Management Co., Ltd., holding 8.57%.

It is also because of the explosion of thunder in 2018 that the share price of Kangni machinery and Electrical Co., Ltd. has dropped sharply, with an accumulated decline of 70.4% in the whole year of 2018.