before, a subsidiary’s jewelry market was out of control, and now a subsidiary’s Millennium jewelry issued nearly 200 million yuan invoices in violation of regulations. What happened to the jewelry enterprise Fujian Ideal Jewellery Industrial Co.Ltd(002740) (002740)?
On February 8, Shenzhen Stock Exchange issued a letter of concern to Fujian Ideal Jewellery Industrial Co.Ltd(002740) , asking the company to explain whether there is financial fraud in fictitious business.
letter of concern for illegal invoicing of Millennium jewelry
On February 7, Fujian Ideal Jewellery Industrial Co.Ltd(002740) announced that Jiangsu Millennium Jewelry Co., Ltd. (hereinafter referred to as “Millennium jewelry”), a wholly-owned subsidiary of the company, recently received the decision on tax administrative punishment issued by the third Inspection Bureau of Nanjing Taxation Bureau of the State Administration of taxation.
Specifically, Millennium jewelry issued a total invoice of 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. The tax was 25225300 yuan and the illegal profit was 262800 yuan. The above illegal income was confiscated by the third inspection Bureau of Nanjing Taxation Bureau of the State Administration of Taxation and fined 500000 yuan. Fujian Ideal Jewellery Industrial Co.Ltd(002740) said that the tax administrative punishment did not touch the major illegal compulsory delisting stipulated in the stock listing rules of Shenzhen Stock Exchange (revised in 2022), and would not have a significant adverse impact on the continuous operation of the company.
After the disclosure of the above matters, on February 8, Fujian Ideal Jewellery Industrial Co.Ltd(002740) received a letter of concern from the Shenzhen Stock Exchange. Shenzhen Stock Exchange said that in the announcement on reply to the inquiry letter of Shenzhen Stock Exchange disclosed on September 18, 2021, the company said that on May 25, 2020, Millennium jewelry received the notice on tax matters issued by the tax bureau. On May 13, 2021, Millennium jewelry submitted relevant written statements, defense reports and other materials to the tax bureau. As of the reply date, Millennium jewelry has not received the follow-up notice requirements and situation feedback from the tax bureau, and the company has not received the investigation results or punishment decisions from relevant regulatory and law enforcement departments. Shenzhen stock exchange is concerned about this.
Shenzhen stock exchange requires Fujian Ideal Jewellery Industrial Co.Ltd(002740) to supplement the specific time when the company receives the prior notice of relevant administrative punishment and the decision of administrative punishment, whether it is consistent with the reply of the company’s inquiry letter, and whether Fujian Ideal Jewellery Industrial Co.Ltd(002740) has timely fulfilled the obligation of information disclosure on matters related to this administrative punishment (if applicable).
In addition, the Shenzhen stock exchange requires the company to supplement whether the two new energy Co., Ltd. in Jiangxi Province and their major shareholders involved in the decision on tax administrative punishment are associated with Fujian Ideal Jewellery Industrial Co.Ltd(002740) and its directors, supervisors and senior managers, or with your controlling shareholder, actual controller, shareholders holding more than 5% shares and their directors, supervisors and senior managers. If so, Please specify.
The Shenzhen Stock Exchange also said that the specific circumstances of Millennium jewelry’s illegal issuance of 194 million yuan invoices to the two companies include but are not limited to: the main reasons and purposes for the illegal issuance of 194 million yuan invoices, whether there is a real transaction, whether the business involved is related to the main business of Millennium jewelry, and the accounting treatment and treatment basis in the early stage of Millennium jewelry. In addition, based on the answers to the above questions, explain whether Millennium jewelry has financial fraud in fictitious business, whether accounting errors should be corrected in previous annual financial reports, and calculate the impact of changes in relevant financial data on the achievement of Millennium jewelry’s performance commitments from 2017 to 2020, as well as the impact on the financial data of Listed Companies in each year.
“whether there are similar matters in other subsidiaries of your company. If so, please disclose the relevant information.” The Shenzhen Stock Exchange’s attention letter also pointed out that.
The market jewelry of subsidiary was out of control
It is not groundless for the Shenzhen Stock Exchange to ask Fujian Ideal Jewellery Industrial Co.Ltd(002740) other subsidiaries whether there are similar matters. Previously, Fujian Ideal Jewellery Industrial Co.Ltd(002740) had announced that the company had lost effective control of Shenzhen Taipan Jewelry Co., Ltd. (hereinafter referred to as “Taipan jewelry”) since August 2020. It planned to “sell” the taipan jewelry it bought four years ago at a price of 1 million yuan, and attracted an inquiry letter from the Shenzhen Stock Exchange.
On January 7, 2022, Fujian Ideal Jewellery Industrial Co.Ltd(002740) announced that on January 6, 2022, the company learned through the national enterprise bankruptcy and reorganization case information network that on December 14, 2021, Shenzhen chaopai Jewelry Co., Ltd. applied to Shenzhen intermediate people’s court for bankruptcy and reorganization, with case No. (2021) Yue 03 Po Shen No. 1017. As of the announcement date of the company on January 7, 2022, Fujian Ideal Jewellery Industrial Co.Ltd(002740) has not received any report on the above bankruptcy and reorganization of large-scale jewelry, so it is impossible to know the specific situation of its application for bankruptcy and reorganization.
Fujian Ideal Jewellery Industrial Co.Ltd(002740) is a well-known jewelry brand enterprise integrating jewelry product design and development, production and processing and brand chain. It mainly adopts the business model of the combination of franchisee sales and non franchisee distribution sales.
On January 28, 2022, Fujian Ideal Jewellery Industrial Co.Ltd(002740) announced that the company is expected to lose 600 million yuan to 785 million yuan in 2021, compared with 1.571 billion yuan in the same period of last year. The first reason for the loss was the sharp decline in the operating performance of the parent company and its wholly-owned subsidiary Shenzhen Fujian Ideal Jewellery Industrial Co.Ltd(002740) jewelry Operation Management Co., Ltd., and the provision of bad debt losses for accounts receivable; Second, the wholly-owned subsidiaries of Fujian Ideal Jewellery Industrial Co.Ltd(002740) Jiangsu Millennium Jewelry Co., Ltd. and Chengdu Shumao diamond Co., Ltd. failed to meet the expectations due to the epidemic and other reasons in 2021, and the future performance is greatly uncertain due to the epidemic and other factors. The financial forecast fully accrued the consolidated goodwill.
