On February 7, Fujian Ideal Jewellery Industrial Co.Ltd(002740) (002740, SZ) announced that its wholly-owned subsidiary Jiangsu Millennium Jewelry Co., Ltd. (hereinafter referred to as Millennium jewelry) recently received the decision on tax administrative punishment issued by the third Inspection Bureau of Nanjing Taxation Bureau of the State Administration of taxation.
The reporter of the daily economic news noted that Millennium jewelry issued invoices totaling about 194 million yuan to two new energy Co., Ltd. in Jiangxi Province in violation of the relevant provisions of the invoice management measures of the people’s Republic of China, and illegally gained about 260000 yuan.
Previously, Fujian Ideal Jewellery Industrial Co.Ltd(002740) released the performance forecast for 2021. It is estimated that the net profit loss attributable to shareholders of Listed Companies in 2021 will be about 600 million yuan to 785 million yuan, mainly due to the provision of impairment loss for corresponding assets. Subsequently, the exchange issued a “letter of concern” to Fujian Ideal Jewellery Industrial Co.Ltd(002740) .
invoice 194 million yuan to two new energy companies
According to the Fujian Ideal Jewellery Industrial Co.Ltd(002740) announcement, Millennium jewelry issued 194 million yuan invoices to two new energy Co., Ltd. in Jiangxi Province in violation of the relevant provisions of the invoice management measures of the people’s Republic of China, with a tax of about 25.23 million yuan and an illegal profit of about 260000 yuan.
Millennium jewelry was also confiscated by the third Inspection Bureau of Nanjing Taxation Bureau of the State Administration of Taxation for its illegal income of more than 260000 yuan and fined 500000 yuan.
The reporter of the daily economic news noted that as early as may 2020, Millennium jewelry received the notice on tax matters issued by the third Inspection Bureau of Nanjing Taxation Bureau, asking for an inspection of its tax related situation.
On April 30 last year, Fujian Ideal Jewellery Industrial Co.Ltd(002740) said in reply to the “letter of concern” of Shenzhen Stock Exchange: “Millennium jewelry, as an upstream supplier of alloy business, has real business in all links and complete procedures. It has timely provided relevant information to the tax bureau and made a detailed explanation and reply on the relevant situation.”
Similarly, in the reply announcement, Wang BINKANG, then the independent director of Fujian Ideal Jewellery Industrial Co.Ltd(002740) , gave another statement about the Millennium jewelry invoice.
Wang BINKANG believes that his exercise of the functions and powers of independent directors has been hindered. Wang BINKANG said that in my on-site speech, I directly asked Comrade Li Yong why he didn’t report the case related to a false VAT invoice related to Jiangsu Millennium jewelry to Fujian Ideal Jewellery Industrial Co.Ltd(002740) company. Comrade Li Yong asked me on the spot: “to whom?” I immediately replied, “give it to me.” Independent directors have the right to know the important information of the company when performing their duties normally. Up to now, Comrade Li Yong has not submitted any materials related to the case to the independent directors.
Wang BINKANG refers to Li Yong, the chairman of Fujian Ideal Jewellery Industrial Co.Ltd(002740) . Before Fujian Ideal Jewellery Industrial Co.Ltd(002740) acquired Millennium jewelry, Li Yong was the actual controller of Millennium jewelry.
“Therefore, I cannot guarantee the authenticity of the company’s 2020 annual report and 2020 annual report summary, and the authenticity of the company’s 2021 first quarter report. Due to my recent business trip in Beijing, I . the signing confirmation opinion of the written confirmation opinion of the company’s report for the first quarter of 2021 is a misoperation. ” Wang BINKANG said.
internal problems of the company continue
Last September, Fujian Ideal Jewellery Industrial Co.Ltd(002740) issued a “notice on receiving the application of the company’s shareholders for convening an extraordinary general meeting”. Fujian Ideal Jewellery Industrial Co.Ltd(002740) the extraordinary general meeting of shareholders was proposed by Su riming, more than 10% of its shareholders, and the relevant proposals were full of gunpowder.
Su riming said in the request letter that the third Inspection Bureau of Nanjing Taxation Bureau has basically found out the suspected false value-added tax invoice of Millennium jewelry, and the tax inspection organ has transferred the case to the public security organ and is investigating Millennium jewelry and its legal representative, chairman Li Yong, in accordance with criminal procedures.
“Li Yong is suspected of violating the company’s interests, shareholders’ interests and other illegal crimes, and gambling identity conflicts. There are many situations where he is not suitable to serve as a director, chairman, President and legal representative of the company.” Fujian Ideal Jewellery Industrial Co.Ltd(002740) the announcement quoted Su riming’s request letter.
According to the announcement of Fujian Ideal Jewellery Industrial Co.Ltd(002740) , at that time, the board of directors of Fujian Ideal Jewellery Industrial Co.Ltd(002740) believed that “the tax inspection organ has transferred the case to the public security organ and is investigating the Millennium jewelry and the legal representative chairman Li Yong in accordance with the criminal procedure” as mentioned by Su riming lacked official authoritative evidence, so the basis for requesting the dismissal of Li Yong was insufficient.
Finally, the board of directors of Fujian Ideal Jewellery Industrial Co.Ltd(002740) did not agree to hold the extraordinary general meeting of shareholders, and Li Yong is still the chairman of Fujian Ideal Jewellery Industrial Co.Ltd(002740) .
Last September, Fujian Ideal Jewellery Industrial Co.Ltd(002740) was also sued by Wang Junxia, one of the original shareholders of Millennium jewelry. According to the previous Fujian Ideal Jewellery Industrial Co.Ltd(002740) announcement, Li Yong and Wang Junxia are husband and wife. The main content of Wang Junxia’s lawsuit Fujian Ideal Jewellery Industrial Co.Ltd(002740) is to reduce the cumulative committed net profit of Millennium jewelry from 2017 to 2020 in the profit compensation agreement signed between Wang Junxia and Li Yong by 35 million yuan.
Fujian Ideal Jewellery Industrial Co.Ltd(002740) said in the announcement that the cumulative net profit promised by Millennium jewelry from 2017 to 2020 was no less than 297 million yuan, about 264 million yuan was actually completed, and the performance commitment was not completed.
According to Fujian Ideal Jewellery Industrial Co.Ltd(002740) , Wang Junxia’s lawsuit reason is that “since the equity transfer of Millennium jewelry was completed, part of the equity transfer has not been paid, Fujian Ideal Jewellery Industrial Co.Ltd(002740) due to its own debt crisis, a large number of lawsuits have led to a serious impact on the financing ability and brand image of Millennium jewelry. In addition, the continuous superposition impact of covid-19 epidemic in 2020 has led to the failure of Millennium jewelry to achieve the expected performance in 2020.”
According to the performance forecast of the previous Fujian Ideal Jewellery Industrial Co.Ltd(002740) 2021 year, one of the reasons for the loss in advance is the full impairment of Millennium jewelry goodwill. The Shenzhen Stock Exchange also issued a “letter of concern” on this issue, requiring Fujian Ideal Jewellery Industrial Co.Ltd(002740) to explain the specific reasons for the large loss in 2021 and the calculation of the affected amount, itemize the asset scope, impairment reasons and estimated impairment amount of the provision for impairment, and whether the accounting policy and determination basis for the provision for impairment of assets have changed significantly compared with the same period of last year, Whether the impairment of relevant assets complies with the relevant provisions of the accounting standards for business enterprises.
