The CSRC website recently disclosed the “ticket” No. 1 in 2022
Image Source: website of China Securities Regulatory Commission
According to the decision on administrative punishment, the CSRC has filed a case for investigation and trial of Kim Jong Il’s violations of information disclosure. The CSRC has decided to order Kim Jong Il to make corrections, give a warning and impose a fine of 1.5 million yuan; Wan Lianbu, the actual controller, chairman and general manager of Kim Jong Il at that time, was given a warning and fined 2.4 million yuan; Li Jiguo, then deputy general manager and financial director of Kim Jong Il, was given a warning and fined 600000 yuan; Tang Yong, then manager of Kim Jong Il’s financial department and director of the financial center, was given a warning and fined 550000 yuan, as well as other parties.
According to the market entry prohibition decision disclosed on the same day, the CSRC decided to take 10-year market entry prohibition measures for WAN Lianbu, 5-year market entry prohibition measures for Li Jiguo and 3-year market entry prohibition measures for Tang Yong.
inflate income and profit through fictitious trade business
According to the investigation of the CSRC, from 2015 to the first half of 2018, Kim Jong Il and some of its subsidiaries within the scope of consolidated statements carried out fictitious trade business without real logistics transfer through fictitious contracts with their suppliers, customers and other external units, resulting in accumulated fictitious income of 23073.4506 million yuan, fictitious cost of 21083.8488 million yuan and total fictitious profit of 1989.6018 million yuan.
The above situation led to false records in the 2015 annual report, 2016 annual report, 2017 annual report and 2018 semi annual report disclosed by Kim Jong Il.
failure to disclose related parties and related transactions as required
According to the decision on administrative punishment, Kim Jong Il failed to disclose its connected relationship and connected transactions with nobefeng (China) Agriculture Co., Ltd. as required, and the disclosure of the connected relationship between Kim Jong Il and nobefeng (China) Agriculture Co., Ltd. was inaccurate; Kim Jong Il’s disclosure of related capital transactions between Kim Jong Il and nobefeng is inaccurate.
Kim Jong Il failed to disclose its related relationships and related transactions with Fulang (China) Biotechnology Co., Ltd. and nottel (China) Chemical Co., Ltd. According to relevant regulations, Kim Jong Il should truthfully disclose its related relationships and related transactions with nobefeng, Fulang and nottel in the 2018 annual report and 2019 annual report, but Kim Jong Il did not disclose them as required.
some asset and liability accounts have false records
According to the decision on administrative punishment, there are false records in most of Kim Jong Il’s assets and liabilities.
On the one hand, Kim Jong Il falsely reduced notes payable. From July 2018 to June 2019, Jin Zhengda, as the drawer and acceptor, issued commercial acceptance bills to 7 companies involved in the above fictional trade business, including Linyi Fangao Agricultural Materials Sales Co., Ltd., through four banks including subcontractor bank, China China Minsheng Banking Corp.Ltd(600016) , Hua Xia Bank Co.Limited(600015) , China Zheshang Bank Co.Ltd(601916) , with an accumulated amount of 1028 million yuan. Jin Zhengda failed to carry out accounting treatment for the above commercial acceptance bills issued by him, resulting in a false reduction of notes payable and other receivables of RMB 928 million in the 2018 annual report and RMB 1028 million in the 2019 semi annual report.
On the other hand, gold is increasing and goods are increasing. In order to solve the problem of large prepayment balance and false estimated inventory balance and digest the inventory loss, Kim Jong Il fictitious the production process by collecting the raw materials with false estimated warehousing and the inventory with actual inventory loss, fictitious electricity and labor costs, falsely increased the output of finished products by 2544128400 yuan, and included it in the issued goods account through the false delivery process. At the same time, Kim Jong Il also included the goods of 653023300 yuan falsely purchased and temporarily estimated to be warehoused from nobefeng into the issued goods account, resulting in 3197.1517 million yuan of issued goods. The above situation led to a false increase of 3197.1517 million yuan in inventory, 141.8126 million yuan in total profit and 14.3584 million yuan in liabilities (other payables / employee salaries payable) in Kim Jong Il’s 2019 annual report.
In conclusion, there are false records in the 2018 annual report, 2019 semi annual report and 2019 annual report disclosed by Kim Jong Il.
Kim Jong Il and relevant responsible persons were fined a total of 7.55 million yuan
The CSRC pointed out that Wan Lianbu made decisions on the aforementioned fictitious trade business and falsely increased the issuance of commodities; Know the real relationship between Kim Jong Il and nobefeng, Fulang and nottel; Participate in the decision-making, and Kim Jong Il transfers non operating funds to nobefeng; It is known that Kim Jong Il issued bills to some companies involved in fictitious trade business for financing.
Li Jiguo participated in the decision-making of the above-mentioned fictitious trade business, transfer of non operating funds to nobefeng, falsely increase the issuance of commodities, falsely reduce notes payable and other matters; Know or should know the true relationship between Kim Jong Il and nobefeng.
Tang Yong participated in the discussion and was responsible for organizing the implementation of Kim Jong Il’s fictitious trade business, transferring non operating funds to nobefeng, falsely increasing the issuance of commodities and other matters; Participate in the negotiation of falsely reducing notes payable; Know or should know the real relationship between Kim Jong Il and nobefeng, Fulang and nottel.
Cui bin, then director, Secretary of the board of directors and deputy general manager, participated in handling the industrial and commercial registration procedures of nobefeng, Fulang and nottel, participated in arranging the directors of nobefeng, Fulang and nottel, and failed to pay attention to and further verify the relationship between nobefeng, Fulang and nottel and Kim Jong Il; Participate in the decision-making on the issue of falsely increased commodities.
Gao Yiwu, then director and deputy general manager, served in the relevant Jinzhengda subsidiary involved in fictitious trade during the case, knew and participated in fictitious trade business matters, and knew that the data disclosed in Jinzhengda’s regular reports since 2015 were inconsistent with the actual data.
Yan Mingxiao, then deputy general manager, cooperated with the financial department to perform the relevant approval procedures for fictitious trade business and payment to nobefeng, participated in the approval procedures for external payment of Fulang and nottel, and failed to pay attention to and further verify the relationship between nobefeng, Fulang, nottel and Kim Jong Il.
Zheng Shulin, then deputy general manager, cooperated with the financial department to perform the approval procedures related to fictitious trade business; Responsible for the project construction of nobefeng, Fulang and nottel, participated in the approval procedures of external payment of nobefeng, Fulang and nottel, and failed to pay attention to and further verify the relationship between nobefeng, Fulang and nottel and Kim Jong Il.
Xu Hengjun, then deputy general manager, cooperated with the financial department to perform the approval procedures related to fictitious trade business.
The CSRC believes that there are false records in the 2015 annual report, 2016 annual report, 2017 annual report, 2018 annual report, 2019 annual report, 2018 semi annual report and 2019 semi annual report publicly disclosed by Kim Jong Il, Kim Jong Il’s above-mentioned behavior violates Paragraph 2 of Article 78 and the provisions of Article 79 on semi annual report and annual report of the securities law, and constitutes the situation described in paragraph 2 of article 197 of the securities law.
The above acts of relevant directors and senior managers of Kim Jong Il violate the provisions of paragraph 3 of Article 82 of the securities law and paragraphs 1 and 3 of Article 58 of the measures for the administration of information phi, which constitute the situation described in paragraph 2 of article 197 of the securities law. Among them, Wan Lianbu is fully responsible for decision-making and organizing the implementation of the above illegal acts. Li Jiguo and Tang Yong organize and participate in the above illegal acts and fail to fulfill their obligations of diligence and responsibility. They are directly in charge. The illegal circumstances of Wan Lianbu and Li Jiguo are relatively serious, and Tang Yong’s illegal circumstances are serious. Cui bin, Gao Yiwu, Yan Mingxiao, Zheng Shulin and Xu Hengjun are other persons directly responsible for knowing and participating in the above illegal acts and failing to fulfill their obligations of diligence and responsibility.
In addition, Wan Lianbu, as the actual controller of Kim Jong Il, makes decisions and instructs relevant personnel to make financial fraud and conceal related relationships and related transactions. His behavior also constitutes the relevant situation of the actual controller mentioned in paragraph 2 of article 197 of the securities law.
Finally, the CSRC decided to order Kim Jong Il to make corrections, give a warning and impose a fine of 1.5 million yuan; Wan Lianbu was given a warning and fined 2.4 million yuan, including 1.2 million yuan as the person in charge directly responsible and 1.2 million yuan as the actual controller; Give Li Jiguo a warning and impose a fine of 600000 yuan; Tang Yong was given a warning and fined 550000 yuan; Cui bin, Gao Yiwu, Yan Mingxiao, Zheng Shulin and Xu Hengjun were warned and fined 500000 yuan respectively.
According to the decision on banning market entry, the CSRC finally decided to take 10-year market entry banning measures for WAN Lianbu, 5-year market entry banning measures for Li Jiguo and 3-year market entry banning measures for Tang Yong.
