Heilongjiang Interchina Water Treatment Co.Ltd(600187) recently, it was required to rectify by the regulatory authority because of the letter phi.
Heilongjiang Interchina Water Treatment Co.Ltd(600187) disclosed the announcement on foreign investment and related party transactions on March 31, 2020. On April 20, 2020, the company and the related party Shanghai Pengdu Health Technology Development Co., Ltd. (hereinafter referred to as “Pengdu health”) jointly funded the establishment of Shanghai Pengdu Health Technology Development Co., Ltd. (hereinafter referred to as “Pengdu health”), with a registered capital of 1 billion yuan, Among them, Pengdu health and the company invested 800 million yuan and 200 million yuan respectively in cash. After investigation, Pengdu health did not really pay the registered capital of 800 million yuan in cash, the company did not accurately verify the actual contribution of Pengdu health, and the disclosure of related party transactions was inaccurate. The reporter noted that Heilongjiang Interchina Water Treatment Co.Ltd(600187) also mentioned this issue in the reply to the letter of supervision of the 2020 annual report. Strangely, Heilongjiang Interchina Water Treatment Co.Ltd(600187) said at that time that it would use 1 billion capital in the form of advance payment to promote relevant pension projects. Since there is no actual contribution, where does the project fund come from?
inaccurate information of related party transactions
Today, Heilongjiang Interchina Water Treatment Co.Ltd(600187) disclosed the announcement on the rectification report of Heilongjiang Securities Regulatory Bureau on ordering the company to take corrective measures. The company was asked to rectify because of an old investment.
Heilongjiang Interchina Water Treatment Co.Ltd(600187) disclosed the announcement on foreign investment and related party transactions on March 31, 2020. On April 20, 2020, the company and the related party Shanghai Pengdu Health Technology Development Co., Ltd. (hereinafter referred to as “Pengdu health”) jointly funded the establishment of Shanghai Pengdu Health Technology Development Co., Ltd. (hereinafter referred to as “Pengdu health”), with a registered capital of 1 billion yuan, Among them, Pengdu health and the company respectively contributed 800 million yuan and 200 million yuan in cash, which were paid in full on April 23, 2020. The company disclosed this matter in relevant periodic reports.
According to the investigation, Pengdu health did not really pay the registered capital of 800 million yuan in cash, the company did not accurately verify the actual contribution of Pengdu health, and the disclosure of related party transactions was inaccurate, which violated the provisions of Article 3 of the letter Phi measures.
The reporter of the daily economic news inquired about Article 3 of the letter Phi measures, which stipulates that the information disclosure obligor shall timely perform the information disclosure obligation according to law, and the information disclosed shall be true, accurate, complete, concise, clear and easy to understand, without false records, misleading statements or major omissions.
Why did Heilongjiang Interchina Water Treatment Co.Ltd(600187) find that Pengdu health did not really pay the registered capital after investing two years ago. Heilongjiang Interchina Water Treatment Co.Ltd(600187) did not disclose the discovery process, but mentioned in its disclosure of the progress announcement on the termination of joint foreign investment with related parties that as of February 22, 2022, the company had received part of the investment funds returned by the joint venture of RMB 100 million and capital interest of RMB 8.84 million.
It is worth mentioning that Heilongjiang Interchina Water Treatment Co.Ltd(600187) has not recovered all its investment.
According to the joint venture’s statement on the progress of returning Heilongjiang Interchina Water Treatment Co.Ltd(600187) funds to shareholders, “According to the resolution of the company’s shareholders’ meeting on December 24, 2021, our company plans to return your company’s original capital of 200 million yuan and corresponding interest. Since some funds are still in relevant assets and project companies, it will take some time to raise them, our company will return your company’s original capital of 100 million yuan and corresponding interest on February 22, 2022, and the remaining 100 million yuan of principal and corresponding interest will be completed before March 21, 2022 “Return”.
Heilongjiang Interchina Water Treatment Co.Ltd(600187) said that the company is actively urging the remaining investment funds and interest through various channels to safeguard the legitimate rights and interests of listed companies.
where does the advance payment for projects that have not been funded come from?
In fact, 100 million yuan is not a small amount for Heilongjiang Interchina Water Treatment Co.Ltd(600187) . In 2020, the company’s revenue is only 379 million yuan. The reporter searched the industrial and commercial data of Pengdu Yiyang and found that since July 29, 2021, Shanghai Pengdu Health Technology Development Co., Ltd. has withdrawn from the list of shareholders of Pengdu Yiyang.
The reporter of the daily economic news noted that the maintenance of Pengdu has always been the focus of supervision.
Just last year, Heilongjiang Interchina Water Treatment Co.Ltd(600187) 2020 annual report letter Phi regulatory work letter was also asked this question. The Shanghai stock exchange requires it to make supplementary disclosure on the use of funds of Pengdu Yiyang since its establishment, including but not limited to foreign investment, purchase of financial management, deposits, etc.
In the reply at that time, Heilongjiang Interchina Water Treatment Co.Ltd(600187) said that Pengdu health actually paid 800 million yuan on April 23, 2020, accounting for 80% of the registered capital. Heilongjiang Interchina Water Treatment Co.Ltd(600187) actually paid 200 million yuan on April 23, 2020, accounting for 20.00% of the registered capital.
Pengdu Yiyang new joint venture company will advance 500 million yuan to Pengxin group in the form of advance payment from the controlling shareholder Pengdu health’s paid in capital of 800 million yuan and Heilongjiang Interchina Water Treatment Co.Ltd(600187) paid in capital of 1 billion yuan, so as to accelerate the construction of Cherry Blossom Taiwan Japanese style elderly care CCRC series products and cultivate relevant health care operation management teams and business assets; Advance 500 million yuan to Pengxin real estate to promote the incubation of Yunnan Jiuxi Lake health tourism series products and cultivate relevant health care teams and business assets. At present, the above-mentioned high-end health care products are in the process of incubation and construction, and the relevant ownership still belongs to the entrusted party. The relevant delivery procedures will be handled after the assets are mature. The relevant agreement was signed on April 22, 2020, and the advance payment of RMB 1 billion has been fully paid according to the agreement.
So the question is, since Pengdu health has not really paid 800 million yuan of registered capital in cash, how does the advance payment project described above operate?
Heilongjiang Interchina Water Treatment Co.Ltd(600187) also mentioned the rectification measures, including internal accountability, strengthening follow-up training and strengthening internal control. The company also said that it is deeply aware of the deficiencies in corporate governance, fund management and information disclosure, and will seriously and continuously improve its standardized operation ability, strengthen the supervision and inspection of internal control, and further improve and improve the level of governance and the quality of information disclosure.
