A news about listed companies' financial fraud for seven consecutive years has been flooding the Internet.
CITIC Guoan Financial fraud for seven consecutive years
Recently, an announcement from A-share listed company CITIC Guoan made shareholders dumbfounded.
After less than ten months of investigation, the case of CITIC Guoan suspected of illegal disclosure violations has been investigated by the China Securities Regulatory Commission. On the evening of March 3, CITIC Guoan announced that the company received the "Previous Notice of Administrative Penalty" from the China Securities Regulatory Commission.
It was found that CITIC Guoan is suspected of false records in the annual reports for seven consecutive years from 2009 to 2015. In response, the CSRC intends to decide: to order CITIC Guoan to correct the problem, give a warning, and impose a fine of 600,000 yuan; to give a warning to nine relevant responsible persons, and impose a fine of 50,000 yuan to 300,000 yuan respectively.
Let’s see the specific situation.
1. The disclosed "2009 Annual Report", "2010 Annual Report", "2011 Annual Report", "2012 Annual Report", "2013 Annual Report", "2014 Annual Report", "2014 Annual Report" has false records
CITIC Guoan subsidiary - Qinghai CITIC Guoan held a special sales meeting in April 2009. With the expected sales revenue of about 400 million yuan that year, in order to achieve the sales target of 1 billion yuan, it was decided to use pre-sales method to complete the performance, and at the same time, pay the customer's advance interest at the price of 10% and the commercial loan interest rate for the same period (the actual interest rate is subject to the final settlement data of both parties to the contract).
Qinghai CITIC Guoan After receiving the customer's pre-sale payment, it debits bank deposits (or notes receivable) and credits the pre-receivable. At the same time, it fabricates the sales contract of the goods, out-of-warehousing orders and other information to inflate the income, debits accounts receivable on the book, credits the main business income, and hedges and writes off the pre-receivable and accounts receivable at the end of the month.
and so in the Qinghai CITIC Guoan included in the consolidated financial statements of CITIC Guoan , the cumulative operating income was inflated by 506 million yuan, the cumulative financial expenses were under-assembled by 507 million yuan, and the cumulative total inflated profits was 1.012 billion yuan.
That's it. Qinghai CITIC Guoan uses two methods: inflated income and under-calculated financial expenses. From 2009 to 2014, the total inflated operating income was 506 million yuan and the total inflated financial expenses was 506 million yuan. In this way, the total inflated profits were 1.012 billion yuan.
2, and the disclosed "2015 Annual Report" contain false records
In addition, CITIC Guoan also signed the Qinghai CITIC Guoan Investment with CITIC Guoan Investment on December 24, 2014 and January 23, 2015, respectively. After CITIC Guoan transferred 51% of the shares for the first time, the remaining 49% of the shares was changed from the cost method to the equity method to the accounting of the remaining 49% of the shares. Qinghai CITIC Guoan inflated its book revenue and under-calculated its financial expenses during the period from January to June 2015, and inflated its net profit by 68.3261 million yuan during this period, which resulted in an over-calculated investment income of CITIC Guoan in 2015, accounting for 6.24% of the investment income of CITIC Guoan and 8.56% of the total profit.
3. According to the facts, nature, circumstances and degree of social harm of the parties' illegal behavior, and in accordance with Article 193 of the 2005 " Securities Law", the CSRC intends to decide:
1. Order to correct the , and give a warning, and impose a fine of 600,000 yuan;
2. Warn Sun Yalei, Li Hongcan and Sun Lu, and impose a fine of 300,000 yuan respectively;
3. Warn Wu Yiqun and impose a fine of 100,000 yuan;
4. Warn Li Shilin , Luo Ning, Yan Fengxia, Li Xiangyu, and Yan Haoyu, and impose a fine of 50,000 yuan respectively.
What kind of company is CITIC Guoan ?
CITIC Guoan Information Industry Co., Ltd. is a subsidiary of China CITIC Group Corporation. It was listed on the Shenzhen Stock Exchange in October 1997. The company's main business is the investment and construction of cable TV networks and satellite communication networks in the information network infrastructure business. The 2020 semi-annual report shows that CITIC Guoan 's main business is information and services, real estate development and property management, accounting for 99.44% and 0.56% of revenue respectively.
On January 30 this year, the "2020 Annual Performance Forecast" disclosed by CITIC Guoan showed that it is expected to lose 1.85 billion yuan to 2.2 billion yuan in 2020, and the net profit after deducting non-recurring gains and losses is expected to lose 1.94 billion yuan to 2.29 billion yuan. The reason for the performance change is that set aside for the impairment provision for long-term equity investment of Henan Cable TV Network Group Co., Ltd. was 31.48 billion yuan. The profits of the joint ventures invested by the company declined. At the same time, the company's subsidiaries' business development was restricted and losses increased.
For this performance forecast, the Shenzhen Stock Exchange issued a letter of concern to CITIC Guoan , requiring detailed explanation of the relevant situation of asset impairment provisions and the specific reasons for the loss.
On May 17, 2020, the CITIC Guoan announcement was filed by the China Securities Regulatory Commission. On May 18, the company's stock price fell to the limit as soon as it resumed trading. In the following trading days, the stock price continued to fall, falling to a low of 2.26 yuan per share on May 25.
As of the latest data, the share price of CITIC Guoan was 2.22 yuan per share, with a market value of 8.7 billion yuan. From 2016 to the present, the overall stock price of CITIC Guoan has shown a downward trend. From nearly 30 yuan in July 2016 to 2.2 yuan, a drop of up to 90%.
and CITIC Guoan has 190,000 shareholders behind it.
In the past seven years, the same audit organization
is all standard unreserved
0 From 2009 to 2015, the company's financial reports from 2009 to 2011 were audited by Kyoto Tianhua accounting firm , and in the next four years, the audited by Zhitong accounting firm, all of which gave standard unreserved opinions.
It is worth mentioning that Zhitong's predecessor was Kyoto Tianhua. In 2011, Kyoto Tianhua absorbed and merged Tianjian Zhengxin Accounting Firm, and finally changed its name to Zhitong.
In addition, since , CITIC Guoan was launched, it has used four accounting firms. In fact, the same accounting firm has been transformed and renamed.
Editor: Huang Xin | Reviewer: Li Zhen | Director: Wan Junwei
(Source: China Fund News)
