Recently, the CSRC disclosed the first written decision on administrative punishment in 2022. The object of punishment is Kingenta Ecological Engineering Group Co.Ltd(002470) (hereinafter referred to as Kim Jong Il), as well as Wan Lianbu, the actual controller of Kim Jong Il, and some senior executives.
The CSRC found out that the illegal facts of Kim Jong Il include: falsely increasing income and profits through fictitious trade business, failing to disclose related parties and related transactions as required, and false records in some asset and liability subjects.
Lawyer Liu Guohua, director of Guangdong Benzhen law firm, told the shell finance reporter of the Beijing News: according to relevant laws and regulations, the decision on administrative punishment, relevant announcements and other materials, the damaged investors can claim against St Jinzheng, the perpetrator of false statements. The claim conditions are tentatively determined as: buy St Jinzheng shares from March 29, 2016 to June 29, 2020, Damaged investors who sell or continue to hold St Jinzheng after June 30, 2020. The final claim conditions shall be determined by the effective judgment of the court.
in three and a half years, Kim Jong Il has falsely increased his income by about 23.1 billion yuan
Specifically, from 2015 to the first half of 2018, through fictitious contracts with its suppliers, customers and other external units, some subsidiaries within the scope of Kim Jong Il and its consolidated statements idled funds and carried out fictitious trade business without real logistics, accumulating a fictitious income of 23073.4506 million yuan, a fictitious cost of 21083.8488 million yuan and a 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.
Meanwhile, in the 2018 annual report and 2019 annual report, Kim Jong Il should truthfully disclose its related relationships and related transactions with nobefeng, Fulang and nottel, but Kim Jong Il did not disclose them as required.
In addition, Kim Jong Il also falsely reduced bills payable and falsely increased goods issued. For example, in order to solve the problem of large prepayment balance and false estimated inventory balance and digest the inventory loss, Kim Jong Il falsely increased the output of finished products by 2544128400 yuan by using the raw materials received by false estimation and the actual inventory loss, fictitious electricity and labor costs, etc, And through the false delivery process, it is included in the issued goods account.
The CSRC believes that Wan Lianbu is fully responsible for making decisions 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 the persons in charge directly. The illegal circumstances of Wan Lianbu and Li Jiguo are relatively serious, while those of Tang Yong 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.
Finally, the CSRC decided to impose a fine of 1.5 million yuan on Kim Jong Il; 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; Other persons involved in the case will also be fined in different amounts.
net profit has been losing for three years. Kim Jong Il lost more than 300 million last year
Kim Jong Il’s main business is the R & D, production and sales of a full range of products required for soil such as compound fertilizer, slow and controlled-release fertilizer, nitro fertilizer, water-soluble fertilizer, biological fertilizer and soil conditioner, as well as providing relevant planting solution services for growers.
As a leading enterprise of new compound fertilizer, Kim Jong Il has great leading advantages in technology, talents, capital, channels and resource integration, and is also known as the “fertilizer king” in the market.
However, in recent years, Kim Jong Il’s performance has been poor.
In 2019 and 2020, Kim Jong Il’s operating revenue was about 11.308 billion yuan and 9.355 billion yuan respectively; In the same period, the net profit attributable to the shareholders of the listed company was about -693 million yuan and -3.366 billion yuan respectively; In the same period, the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was about -737 million yuan and -3361 million yuan respectively.
“In 2019, China’s economic situation is still relatively severe. In agriculture, farmers’ planting enthusiasm continues to decline, and terminal consumption continues to be depressed. At the same time, affected by the sharp fluctuations of raw materials, the continuous improvement of environmental protection and safety production requirements, the sales volume and profit space of compound fertilizer enterprises are under pressure at the same time.”
\u3000\u3000 “In 2020, in order to increase the operating income, the company reduced the price of some products, the gross profit margin decreased, and the financial expenses increased, which affected the net profit of about – 900 million yuan in 2020. During the reporting period, the company implemented impairment test procedures for accounts receivable, other accounts receivable, other equity instrument investment and other assets, and accrued relevant asset impairment losses and credit impairment losses, which are expected to have an impact “The net profit in 2020 is about – 2.7 billion yuan to – 2.1 billion yuan.”
These are the reasons for Kim Jong Il’s losses in 2019 and 2020. By 2021, Kim Jong Il will still lose money.
The performance forecast shows that Kim Jong Il expects the net profit attributable to the shareholders of the listed company to be – 680 million yuan to – 360 million yuan in 2021.
Jin Zhengda said: “in 2021, affected by the substantial increase of financial expenses and the provision for impairment of assets with possible signs of impairment in the current period, the company lost performance in 2021. The provision for impairment of assets with possible signs of impairment decreased compared with the same period, and the profit decreased year-on-year.”
Wan Lianbu has been subject to administrative punishment for many times in recent years, and the controlling shareholder of Kim Jong Il is in bankruptcy and reorganization
The shell finance reporter of the Beijing News noted that in addition to the fine, the CSRC decided to take a 10-year market entry ban on wanlianbu, a 5-year market entry ban on Li Jiguo and a 3-year market entry ban on Tang Yong.
According to public data, Wan Lianbu was born in July 1965 and has successively served as an agricultural technician of Linshu County commercial bureau, general manager of Linshu County Agricultural Development Company, chairman and general manager of Linyi Jindadi compound fertilizer Co., Ltd., chairman and general manager of Shandong Jinzhengda Ecological Engineering Co., Ltd.
Wan Lianbu also has many social positions, such as vice president of China Enterprise Federation and China Entrepreneur Association, vice president of China phosphate fertilizer industry association, vice president of China Agricultural Technology Extension Association, vice president of China Agricultural Risk Management Research Association, director of national slow and controlled release fertilizer engineering technology research center, member of national fertilizer and soil conditioner Standardization Technical Committee, etc.
Wan Lianbu has been subject to many administrative penalties in recent years.
On May 7, 2019, Wan Lianbu and others received the letter of decision on administrative supervision measures issued by Shandong regulatory bureau of China Securities Regulatory Commission on the decision on taking supervision conversation measures against Kingenta Ecological Engineering Group Co.Ltd(002470) chairman Wan Lianbu and other three people. Shandong Securities Regulatory Bureau decided to take supervision measures for the above-mentioned personnel and record them in the integrity file of securities and futures market.
On September 26, 2019, Wan Lianbu and others received the decision on Issuing warning letters to 11 personnel including Wan Lianbu issued by Shandong regulatory bureau of China Securities Regulatory Commission, decided to take regulatory measures to issue warning letters to the above personnel, and recorded the relevant information in the integrity archives of the securities and futures market.
On November 16, 2020, Wan Lianbu and Li Jiguo received the decision on giving disciplinary punishment to Kingenta Ecological Engineering Group Co.Ltd(002470) and relevant parties issued by Shenzhen Stock Exchange. Shenzhen Stock Exchange issued a notice of criticism to Wan Lianbu, chairman and general manager, and Li Jiguo, then financial director.
Meanwhile, Wan Lianbu has long been the person to be executed.
Enterprise investigation data show that the total amount of Wan Lianbu executed exceeds 1 billion yuan.
Behind Wan Lianbu’s lawsuit is the bankruptcy and reorganization of Linyi Jinzhengda Investment Holding Co., Ltd. (hereinafter referred to as Linyi Jinzhengda), the controlling shareholder of Jin Zhengda.
According to public information, on December 11, 2020, Jinzhengda received the notification letter from the controlling shareholder Linyi Jinzhengda and the forwarded civil ruling and decision of Linshu County People’s court. Linshu County People’s court accepted the reorganization application of Linyi Jinzhengda.
On January 21, 2022, Jin Zhengda received the notice on the progress of reorganization from the manager of Linyi Jinzhengda Investment Holding Co., Ltd., which showed that the fourth creditors’ meeting of Linyi Jinzhengda had been held, and there was one item to be voted at the meeting, that is, to vote on the amendment to the draft reorganization plan.
