Financial fraud occurs every year, and this year there are a lot! On November 1, Aerospace Communications (600677) issued a risk warning announcement stating that the company received the Securities Regulatory Commission's "Investigation Notice" and that the China Securities Regu

Financial fraud occurs every year, and this year there are a lot!

On November 1, Aerospace Communications (600677) issued a risk warning announcement stating that the company received the Securities Regulatory Commission's "Investigation Notice" and that was suspected of illegal and irregular information disclosure, and the China Securities Regulatory Commission decided to investigate the company. The company's stocks will face the risk of major violations of forced delisting.

According to Wind data, Aerospace Communications is a pilot unit of the National Defense Science and Technology Commission's reform and is also the first listed company to have a missile assembly system. The controlling shareholder is China Aerospace Science and Technology Group Co., Ltd.

Announcement shows that the investigation was caused by the risk of large overdue payments receivables of subsidiary Zhihui Haipai Technology Co., Ltd. (hereinafter referred to as "Smart Haipai") being transmitted to the company by risks such as large-scale overdue payments, broken capital chain, insufficient operating rate, and false performance in previous years of .

. Some data shows that there were clues before being investigated. In the audit opinion in 2016, the company was issued a non-standard opinion. But since then, the company changed its audit firm and was "green light all the way."

Large central enterprises are investigated for financial fraud

Recently, Aerospace Communications issued a risk warning saying that the company received the "Investigation Notice" from the China Securities Regulatory Commission on October 31, 2019. is suspected of illegal and irregular information disclosure. According to the relevant provisions of the " Securities Law of the People's Republic of China ", the China Securities Regulatory Commission decided to file a case for investigation against the company.

This announcement can be said to be the latest progress in the incident after the previous inquiry by the Shanghai Stock Exchange.

On the evening of October 14, Aerospace Communications issued an announcement. The company received an inquiry letter from the Shanghai Stock Exchange, requiring the company to verify as soon as possible major risks such as broken capital chain of the subsidiary, debt default, illegal guarantees, and false performance in previous years.

After publishing the Shanghai Stock Exchange's inquiry letter, the spokesperson of Aerospace Communications then stated that Aerospace Communications is a listed company controlled by a central enterprise. The company has a highly responsible attitude and dares to face problems directly and does not avoid contradictions. Regarding the risks that a smart Shanghai School has emerged, Aerospace Communications has problems such as insufficient control over the smart Shanghai School and failure to effectively implement various supervision measures.

However, more importantly, Smart Haipai is suspected of using false performance to cover up actual losses.

Aerospace Communications stated that the relevant responsible persons have been transferred to judicial authorities for further verification of relevant issues. The company strives to verify them as soon as possible and disclose the relevant verification results to investors in a timely manner in accordance with the law. According to the announcement, Zou Yonghang, the former general manager of Zhihui Haipai, has been approved for arrest by the People's Procuratorate of Nanchang Economic and Technological Development Zone on suspicion of contract fraud.

But this storm has also involved the parent company Aerospace Communications .

According to the inquiry content, the Shanghai Stock Exchange issued a post-review inquiry letter to the company's annual report for three consecutive years from 2015 to 2017, and issued another regulatory work letter in 2018, repeatedly requiring the company and directors, supervisors, senior managers, accountants, reorganized financial consultants and other relevant intermediary institutions to verify the actual situation of smart Haipai business, control and consolidation, financial indicators such as receivables and cash flow, and the authenticity of performance risks such as internal control. According to the reply letters from previous years, all the above parties in confirmed the authenticity and accuracy of the financial data of each period, which was a significant contrast with the verification of this reply letter, causing major misleading.

Aerospace Communications has not discovered the financial problems of Smart Haipai for four consecutive years, and there is an unshirkable responsibility.

The capital chain of the subsidiary has broken down and exploded

This time, " burst " is likely to cause Aerospace Communications to suffer huge losses in performance in 2019. The fuse of the thunder is that Zhihui Haipai, a subsidiary of Aerospace Communications, is suspected of financial fraud, and 4.4 billion accounts receivable are overdue!

Not long ago, a "Notice" signed by Shenzhen Haipai Communication Technology Co., Ltd. (hereinafter referred to as 'Haipai Communication')" was circulated online. The notice stated that the company has been in production and operation for a long time and is unable to continue its operation. The company has studied and decided to close the Guanlan production base of Longhua Branch on November 15, 2019. From October 14, 2019, all employees of the base will be officially suspended.

notice also stated that the company will divert and place all personnel or negotiate to terminate the contract. All personnel must complete the transfer or resignation procedures before November 15, 2019; the company will negotiate and determine the economic compensation matters in batches with all employees and relevant personnel.

Subsequently, a local media reporter from Shenzhen discovered the factory and confirmed that the base had been shut down and closed.

Haipai Communications was acquired by the listed company Aerospace Communications in 2015, and later renamed Smart Haipai.

(Smart Haipai Chengdu Production Base)

Its official website shows that the company is a core partner and manufacturer of operators such as China Mobile , China Unicom, China Telecom, and Lenovo , ZTE , Hikvision , Dahua and other globally renowned brands.

In addition to Shenzhen, it also has manufacturing bases in Hangzhou, Nanchang, Chengdu and India, and high-end R&D centers in Beijing, Shanghai, Shenzhen, Nanchang, Hangzhou and Taipei.

Red Star News On October 17th, according to the contact information of the official website, I called the company and the Guanlan production base of Longhua Branch, and found that the public phone number had been shut down due to unpaid phone bills; no one answered the phone number of the phone number of the Aerospace Communications Securities Department.

. At the Smart Haipai Chengdu base, Red Star News found that the company still has employees at work. According to a company employee, he already knew about the closure of the Guanlan base in Shenzhen, and it is still unclear where the staff in Chengdu base will go. In addition, in response to employees' reports that the wage arrears in Chengdu base were arrears, Red Star News verified with several employees, saying that due to the wage arrears, many employees have resigned this year.

is Ruihua accounting firm again!

Aerospace Communications is not a sudden incident, but in fact there have been clues. In the audit opinion in 2016, the company was issued a non-standard opinion. But then, Aerospace Communications replaced the audit agency and passed the test smoothly.

In 2017, Tianzhi International, an accounting firm of Aerospace Communications , issued a non-standard opinion on the 2016 annual report. 2016 is also the first time that Smart Haipai has merged to Aerospace Communications , with a net profit of 329 million that year.

However, for the beautiful report card of Smart Haipai, Tianzhi International issued a report of "non-standard and unreserved opinions" - " We believe that the determination of the upstream and downstream of its supply chain is significantly affected by Smart Haipai, and the relevant internal control is lacking, so it is impossible to accurately judge..."

Tianzhi International questioned the upstream and downstream customers of Smart Haipai under their control. In layman's terms, it is related transactions.

But less than 4 months after Tianzhi International issued a non-standard opinion, it was replaced by Aerospace Communications . The new audit agency is Ruihua Accounting Firm. Subsequently, the 2017 annual report and the 2018 annual report were both standard without reservations, and the "green light" was the way.

combined with the companies currently audited by Ruihua, there have been many financial problems. Therefore, the financial authenticity of Aerospace Communications has also caused concerns in the market.

Company reminds: The possibility of delisting is not ruled out

In this risk warning, Aerospace Communications announced three risks that the company is facing, two of which involve the risks of forced delisting:

1. The company provides a guarantee of 450 million yuan for Smart Haipai loans. If Smart Haipai loans are unable to be repaid after maturity, the company will assume the guarantee liability; the company also provides 813 million yuan of internal loans to Smart Haipai, and 209 million yuan of receivable for Smart Haipai business transactions, which poses a risk that it cannot be recovered.

2. The company is organizing relevant personnel and intermediary institutions to verify the false performance of Smart Haipai. According to the results of the intermediary institutions' verification of Smart Haipai, the company must correct the previous accounting errors and re-state the previous statements. may cause the company to lose its previous performance and there is a risk of suspending or delisting.

3. Due to the company's suspected illegal and irregular information disclosure, according to the relevant provisions of the Securities Law of the People's Republic of China, the China Securities Regulatory Commission decided to file a case for investigation of the company. If the company is subject to administrative penalties by the China Securities Regulatory Commission for the above-mentioned investigation matters, and based on the facts determined by the administrative penalty decision, it touches the situation of major illegal forced delisting stipulated in the "Implementation Measures for Major Illegal Illegal Forced Delisting of Companies on Listed Companies on the Shanghai Stock Exchange", the company's stocks will face the risk of major illegal forced delisting.

data shows that from 2016 to 2018, the net profit of Smart Haipai was 329 million, 356 million and 403 million, respectively, and Aerospace Communications Holdings 58.68%, and the consolidated profits were 193 million, 209 million and 236 million, respectively. In the past three years, the company's net profit was 75 million, 100 million and 210 million respectively. If the share of Smart Haipai is reduced, its performance is all negative!

Due to Ruihua's "escort", the risks were covered up again and again, and it was not until today that it suddenly exploded.

After the problem broke out, the stock price of Aerospace Communications fell sharply. From around 15 yuan per share in mid-September, it fell to 6.84 yuan per share today's closing price, a drop of more than 50%. The number of shareholders holding the company's shares is nearly 97,000.

At present, the China Securities Regulatory Commission has officially filed an investigation. Once the performance of Smart Haipai is false, it may lead to continuous losses in Aerospace Communications due to retrospective adjustments or involve major violations, which is undoubtedly very fatal to the company. Listed companies also remind investors: The possibility of delisting is not ruled out!