Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) on the evening of February 20, it was announced that the company received a notice on February 18 that Guo Liuxi, the legal representative and chairman of the company, was taken compulsory measures by the public security organ according to law on suspicion of failing to disclose important information in violation of regulations, and the relevant matters remain to be further investigated by the public security organ.
Previously, Guo Liuxi was severely punished by the regulatory authorities for financial fraud. On August 13, 2021, the prior notice of administrative punishment and market prohibition issued by the CSRC to Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) shows that Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) has carried out long-term systematic fraud from 2015 to 2020. Guo Liuxi played a major role in the illegal acts involved. The time involved was long, the amount involved was particularly huge, and the illegal circumstances were particularly serious. The CSRC planned to take lifelong market access ban measures and impose a fine of 15 million yuan.
Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) on the night of February 18, an emergency meeting of the board of directors was held and agreed to remove Guo Liuxi from the post of chairman of the board of directors. Liu Miao, a resident director of Henan Agricultural Investment Financial Holding Co., Ltd. (hereinafter referred to as “Henan agricultural investment financial holding”), a state-owned shareholder, was replaced.
led the company’s financial fraud
According to Article 161 of the criminal law of the people’s Republic of China, the crime of illegal disclosure or non disclosure of important information refers to the company and enterprise that have the obligation of information disclosure according to law, providing false or concealing important facts to shareholders and the public, or failing to disclose other important information that should be disclosed according to law, Acts that seriously harm the interests of shareholders or others.
Some analysts believe that Guo Liuxi’s compulsory measures taken by the public security organ this time may be related to the earlier financial fraud.
According to the prior notice on administrative punishment and market prohibition issued by the CSRC, from 2016 to 2019, Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) was suspected of providing funds to the actual controller and its related parties in the form of fictitious procurement business, payment of procurement funds, off account loans and issuance of commercial bills, respectively forming non operational occupation funds (all new occupation amounts in the current year) of 137 million yuan 601 million yuan, 2162 million yuan and 270 million yuan; Suspected of not disclosing the total guarantee amount of up to 4.132 billion yuan; It is suspected that by falsely increasing inventories, fixed assets and non current assets, the net assets increased by 1.856 billion yuan at the end of 2019.
In addition, the notice shows that Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) is suspected of falsely increasing operating revenue and total profits through fictitious sales transactions and equity transfer transactions, resulting in false records in the annual report from 2017 to 2019; Failure to disclose estimated liabilities and contingent liabilities as required, resulting in false records and major omissions in the 2018 annual report and false records in the 2019 annual report; The disclosed 2019 annual performance forecast and 2019 annual performance express are suspected of false records.
The CSRC plans to impose administrative penalties on the company and its senior executives according to law: order Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) to make corrections, give a warning and impose a fine of 5 million yuan; Guo Liuxi was warned and fined 15 million yuan. Guo Liuxi played a major role in the illegal acts involved. The time involved was long, the amount involved was particularly huge, and the illegal circumstances were particularly serious. The CSRC took lifelong measures to ban him from entering the market.
the company has the risk of delisting
The latest share price of Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) , known as the “king of artificial diamonds”, was 1.49 yuan / share, with a total market value of 1.796 billion yuan.
On February 10, Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) said on the investor interaction platform that the company had the risk of terminating the listing. According to the performance forecast, Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) 2021 is expected to lose 1-1.5 billion yuan.
Public information shows that Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) landed on the gem in 2010. The company’s main business includes superhard materials and superhard material products. Superhard materials are divided into artificial diamond single crystal (ordinary single crystal) and large single crystal diamond. Superhard material products include cultivated diamond jewelry, micron diamond wire and superhard grinding tool (grinding wheel).
Since the 2020 financial report and notes to the financial report were issued with an audit report that could not express an opinion, the delisting risk warning of the company’s shares was implemented since the opening of the market on April 28, 2021.
Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) is currently in the quagmire of “protecting the shell”. Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) it is estimated that the owner’s equity attributable to the shareholders of the listed company will be – 500 million yuan to – 1 billion yuan by the end of 2021. If the audited net assets at the end of 2021 are negative, or the net assets in 2021 are negative after retroactive restatement, the listing of the company’s shares will be terminated in accordance with the relevant provisions of the listing rules.
For “shell preservation”, Guo Liuxi once pinned his hopes on bankruptcy reorganization. “Now we want to keep the enterprise. We have plans to introduce war investment, and have had in-depth communication with well-known law firms in China. I clean my body and leave the house and transfer my shift smoothly.” In an interview with the media in August 2021, Guo Liuxi said that if there were still non-standard opinions in 2021, the company would be delisted and hoped that the reorganization could be carried out before that.
Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) on December 2, 2021, it was disclosed that the Zhengzhou intermediate people’s court would not accept the reorganization application filed by the creditor Henan Linchuan construction engineering Co., Ltd. The creditor Lin Chuan appealed to the higher people’s Court of Henan Province after construction, but so far there has been no substantive progress.
state owned shareholders’
After Guo Liuxi was removed from the post of chairman, his successor received attention.
Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) disclosed that the board of directors deliberated and approved the election of director Liu Miao as the chairman of the company. Liu Miao is currently the deputy general manager of Henan agricultural investment financial holding. Henan agricultural investment financial holding is the fourth largest shareholder of Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) and holds 7.42% of the shares of the company. Tianyan inspection shows that the actual controller of Henan agricultural investment financial holding is Henan Provincial Department of finance.
It is worth noting that in December 2021, Henan agricultural investment financial holding and Shanghai Xinghan Asset Management Co., Ltd. (on behalf of Xinghan asset management – xingkaiyuan No. 8 single customer special asset management plan, referred to as Xinghan asset management, holding 26.70% of the company’s shares) proposed to the company’s board of directors and board of supervisors to convene an extraordinary general meeting to consider the re-election of the board of directors and board of supervisors, trying to seek control.
The above proposal was blocked by individual investors. Zhengzhou Sino-Crystal Diamond Co.Ltd(300064) disclosed that Xu Keqin, a minority shareholder, filed a lawsuit, saying that Xinghan asset management’s illegal purchase should be recognized as an invalid civil act, and its illegal increase of some equity should not enjoy the right to vote. Finally, the aforesaid reorganization proposal was suspended.
