On January 26, Lead Eastern Investment Co.Ltd(000673) and Hunan Tianrun Digital Entertainment & Cultural Media Co.Ltd(002113) received the attention letter from Shenzhen Stock Exchange. Shenzhen Stock Exchange expressed concern that Lead Eastern Investment Co.Ltd(000673) and Hunan Tianrun Digital Entertainment & Cultural Media Co.Ltd(002113) have not hired 2021 annual audit accountants so far. The Shenzhen Stock Exchange said that the exchange attaches great importance to the preparation and disclosure of the 2021 annual report, urges the two companies to hire audit institutions as soon as possible, actively cooperate and disclose the annual report on schedule.
According to the data of China stock market news choice, from January 15 to January 26, Shanghai Stock Exchange and Shenzhen Stock Exchange have sent inquiry letters to 10 listed companies, including Xiamen Overseas Chinese Electronic Co.Ltd(600870) , Hna Innovation Co.Ltd(600555) ( Hna Innovation Co.Ltd(600555) b), Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) , Xin Jiang Ready Health Industry Co.Ltd(600090) , Shangying Global Co.Ltd(600146) , Cred Holding Co.Ltd(600890) , Henan Kedi Dairy Co.Ltd(002770) , * Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) , Hunan Tianrun Digital Entertainment & Cultural Media Co.Ltd(002113) , Lead Eastern Investment Co.Ltd(000673) , setting a new high in recent years. Among them, Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) has received inquiry letters for three consecutive years because it has not hired an annual audit accountant.
The exchange said that according to the stock listing rules, listed companies should disclose their annual reports within four months after the end of each fiscal year, and the financial and accounting reports should be audited by accounting firms. If the audited annual report is not disclosed within the statutory time limit, the company’s shares may be subject to the risk of delisting.
It is very rare for listed companies to fail to hire annual audit accountants in time. Zhang Yi, CEO and chief analyst of AI media consulting group, told the Securities Daily, “most of these listed companies have chaotic internal management, infighting among senior executives or the company is unable to hire annual audit accountants. If they can’t turn around the decline in time and effectively and get rid of the crisis, they will face business risks and even survival risks.”
Without exception, these 10 companies have been subject to risk warning, of which 9 companies have been subject to delisting risk warning. So far, seven listed companies have not made the latest progress.
Hna Innovation Co.Ltd(600555) ( Hna Innovation Co.Ltd(600555) b) promptly hired China Audit Asia Pacific Certified Public Accountants as the auditor in 2021 after receiving the inquiry letter.
Henan Kedi Dairy Co.Ltd(002770) said in the reply to the Shenzhen stock exchange that the proposed annual audit accounting firm has entered the company for business undertaking due diligence. After the accounting firm completes the internal process of business undertaking, the company will perform the legal procedures as soon as possible, complete the appointment of the annual audit accounting firm and disclose it in time.
* Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) originally issued an announcement on changing the accounting firm to zhongxinghua accounting firm on January 8, but on the eve of the discussion of this issue at the company’s extraordinary general meeting, the company issued an announcement on January 22 that due to the internal careful discussion of zhongxinghua accounting firm, some auditors were unable to work normally due to the epidemic, It is expected that the audit of the company cannot be completed within the specified time, so the matters that become the audit institution of the company have not been approved* Zhongxing Tianheng Energy Technology (Beijing)Co.Ltd(600856) said it would appoint an audit institution as soon as possible.
“Since the implementation of the new securities law, the crackdown of regulators and judicial organs on illegal and criminal acts in the securities market has increased sharply, and the corresponding civil and criminal liability risks faced by counterfeiters and intermediaries have increased sharply. Many audit institutions no longer undertake high-risk projects out of the consideration of stopping losses or avoiding risks.” Kuang Yuqing, the founder of lens research, told the Securities Daily, “Any listed company that cannot hire an audit institution should be focused by the regulatory authorities. Delisting is not a way to evade criminal and civil liability. For such companies, it is best to file a case for investigation, or consider that the regulatory authorities, investor rights and interests protection organizations and industry associations will forcibly designate an audit institution to settle in and clarify the problem.”
