December 3, 2022, Cross-border Connect announced that it had recently learned from the public security organs that the former chairman and general manager of the company, Xu Jiadong (resigned from office in May 2021) has been investigated by the Wanbailin Branch of the Taiyuan Municipal Public Security Bureau for suspected embezzlement. After he stepped down, the company found that he had committed crimes that infringed on the company's interests during his tenure. It has been investigated and verified by the public security organs. The specific amount and the person involved in the case are still to be finalized by the relevant departments. At present, the company's production and operation activities are normal. The company's board of directors will fully cooperate with the relevant departments in the review of the above cases and make every effort to recover the company's losses. The impact on the company is currently uncertain.
In fact, in 2019 and 2020, the cross-border connection created two years of inventory impairment and cost inversion. After the auditing agency issued an inability to express its opinions, the company's stock price consecutively fell to the limit. Abnormal impairment and cost abnormalities have become common methods for listed companies to take financial baths and management or actual controllers to embezzle funds from listed companies. Now Xu Jiadong's embezzlement may be related to previous inventory change payments, and through the Hong Kong wallet company, the purpose of fictitious capital occupation of inventory procurement. Although the listed company clearly stated that there was no inflated revenue and also ambiguously stated that it may be capital occupation, combined with many financial fraud cases, it is not ruled out that the possibility of Global EasyGo is used as a fund reservoir to fabricate revenue and net profit in order to meet the performance bet clause, in order to meet the performance bet , the inventory account is used as a fund reservoir to make up revenue and net profit.
On December 24, 2021, in the company's special opinion that it could not express its opinions, the company stated that its subsidiary Shenzhen Global transferred 4.424 billion yuan of inventories in 2020 and previous years. In order to digest the inflated inventory, Shenzhen Global will falsely dispose of 4.424 billion yuan of inventory in 2020, of which the operating costs in 2020 were inflated by 1.77 billion yuan, and falsely written off inventory in 2020 was 2.645 billion yuan (corresponding to impairment provisions of 2.479 billion yuan).
Since then, the cross-border communication has started a cycle of 9 months of inquiries and re-inquiry. As of August 31, 2022, the cross-border communication finally responded to the second inquiry letter again after repeated extensions. However, this reply company used incomplete data from January to December 2018 and January to December 2019, and launched the business system. The inventory balance on January 1, 2018 was 475 million yuan less than the disclosed data.
However, this ambiguous explanation soon received three inquiries from the exchange again. The exchange asked for instructions: Please give your company a supplementary explanation of the data source, acquisition method and calculation process of the business system sales amount of 11.133 billion yuan and the purchase amount of 8.671 billion yuan from 2018 to 2019, indicating the reasons why the summary of the two years from 2018 to 2019 can be obtained but the data from 2018 and 2019 cannot be obtained separately, and provide necessary and appropriate explanations. Please provide additional disclosures of the sales amount and purchase amount of the business system in 2018 and 2019, and compare and analyze it with the financial book operating costs.
So far, the suspense of the inventory changing transactions has once again brought uncertainty to the company's 's removal of the hat . As for the reason for inflated inventory, whether the inventory does not exist at all or is falsely listed in inventory for sales expenses or suspected of embezzlement of office. The company gave this result of logical reasoning, and there was no sufficient evidence to support it, so it was impossible to inform the reasons.
Yisuo 515.com's attorney, Shanghai Oriental Cambridge Law Firm, professional securities lawyer Lou Xiaoyun reminded: The subsidiary Shenzhen Global transferred 4.424 billion yuan of receivables to inventory in 2020 and previous years. In order to digest the inflated inventory, Shenzhen Global will falsely dispose of 4.424 billion yuan of inventory in 2020, of which 1.77 billion yuan of operating costs in 2020 were inflated, and 2.645 billion yuan of inventory was falsely written off in 2020 (corresponding to impairment provisions of 2.479 billion yuan). The above behavior has constituted false records and misleading statements of the financial statements of previous years. Although the company cannot ascertain the specific circumstances of the violation, through the data that it has already recognized, there are false records in the 2017 annual report . Any investors who buy between April 28, 2018 and still hold and who have held the at the close of April 29, 2021 can apply for losses on the official platform. We have filed a case with the Taiyuan Intermediate People's Court in this case.
On September 9, 2022, the relevant responsible persons of Cross-border Communication and Xu Jiadong and other relevant responsible persons were issued by the exchange for public condemnation or criticism. The disciplinary punishment shows that in 2020 and previous years, Global EasyGo falsely transferred the receivables into inventory, failed to deal with sales expenses, logistics expenses across the period, and fixed asset losses . Therefore, the company corrected the accounting errors for the 2020 financial statements, and the total profits in 2020 were -2.804 billion yuan and -1.899 billion yuan respectively, with a difference of 905 million yuan, accounting for 32.28% of the absolute value of the total profit before the correction; before and after the correction; before and after the correction The annual net profit attributable to shareholders of listed companies was -3.374 billion yuan and -2.060 billion yuan, respectively, with a difference of 1.314 billion yuan, accounting for 38.94% of the absolute value of net profit before correction. Due to the impact of inflated and false disposal of inventory matters, the company in 2020 was 1.099 billion yuan, accounting for 39.19% of the total disclosed profits in the current period; the net profit was 1.508 billion yuan, accounting for 44.67% of the disclosed net profits in the current period.
