By the end of the year, a number of listed companies were investigated by the CSRC on suspicion of violating laws and regulations.
On December 10, Fujian Start Group Co.Ltd(600734) (600734. SH), which is in the critical period of reorganization, announced that the company had received the notice of filing a case from the CSRC. The CSRC decided to file a case against the company due to suspected illegal information disclosure.
According to the previous announcement, if the reorganization is completed, Fujian big data company (hereinafter referred to as “big data company”) 100% controlled by Fujian SASAC will become the controlling shareholder of Fujian Start Group Co.Ltd(600734) .
The restructuring prospect of the state-owned shareholders’ takeover order Fujian Start Group Co.Ltd(600734) was expected by the market. From November 26 to December 8, the company’s share price recorded nine consecutive boards. Before the announcement of being filed for investigation by the CSRC, Fujian Start Group Co.Ltd(600734) share prices fell by the limit in large quantities for two consecutive days.
According to the announcement data as of December 11, the first financial reporter found that 74 A-share listed companies have been filed for investigation by the CSRC, including 47 companies suspected of violating laws and regulations. The problem of letter phi is still the main reason for the investigation of listed companies.
reorganization entered the substantive stage, but Fujian Start Group Co.Ltd(600734) was filed for investigation
At present, the reorganization of Fujian Start Group Co.Ltd(600734) has made substantial progress, but the company did not explain in the announcement whether being filed by the CSRC for investigation will affect the reorganization procedure, and it is not known why it is suspected of violating the rules of information disclosure.
According to the announcement, the company, the manager and the industrial investor National People’s Congress data company signed the restructuring investment agreement. Big data company is the industrial investor of Fujian Start Group Co.Ltd(600734) and 11 such as Quzhou dongkun Technology Service Center (limited partnership) are financial investors.
Specifically, as for the rights and interests of investors, Fujian Start Group Co.Ltd(600734) based on the existing total share capital of 622 million shares, the capital reserve was converted into share capital at the proportion of 25 shares per 10 shares, with a total of 1.556 billion shares, all of which were transferred free of charge for the introduction of restructuring investment.
Among them, big data company transferred about 545 million shares and financial investors transferred about 1011 million shares. If the reorganization is completed, big data company will become the controlling shareholder of the listed company. The former is 100% owned by the state owned assets supervision and Administration Commission of Fujian Provincial People’s government.
Over the past 20 years since its listing, Fujian Start Group Co.Ltd(600734) has had a net loss in 10 years and a negative deduction of non net profit in 14 years. Due to the perennial loss of performance, the company has struggled to “protect the shell” for several times.
In recent years, the Fujian Start Group Co.Ltd(600734) with high debt has become a “shell company” and does not have real business ability. According to the financial report, from 2018 to 2020, Fujian Start Group Co.Ltd(600734) net profit attributable to the parent company suffered losses for three consecutive years, namely – 267 million yuan, – 3.135 billion yuan and – 591 million yuan respectively; The net profit attributable to the parent company after deducting non profits was -331 million yuan, – 3.058 billion yuan and – 554 million yuan respectively.
In the first three quarters of this year, Fujian Start Group Co.Ltd(600734) fundamentals did not improve. During the reporting period, the operating revenue was 676 million yuan and the net profit attributable to the parent company was 236 million yuan.
As of the third quarter of 2021, Fujian Start Group Co.Ltd(600734) owner’s equity attributable to the shareholders of the listed company was -1.396 billion yuan. If the company’s net assets at the end of 2021 were still negative, or the company’s 2021 financial accounting report was issued with qualified opinions or audit reports that could not express opinions, the company’s shares would trigger the termination of financial compulsory delisting indicators.
The reporter combed past financial reports and found that Fujian Start Group Co.Ltd(600734) was suspected of violating laws and regulations or related to major retrospective adjustments involved in multiple financial reports in previous periods. The company’s semi annual reports from 2017 to 2020 and 2021 involve the correction of accounting errors, which mainly include the adjustment and reduction of accounting subjects such as revenue, net profit and net assets.
In addition, the audited institutions have issued qualified audit reports on the financial statements of 2019 and 2020, in which the problem of overseas inventory in India and Hong Kong, China has been frequently mentioned. Among them, Fujian Start Group Co.Ltd(600734) in 2019, the inventory deposited in Hong Kong, China and India totaled 1.377 billion yuan, and the provision for inventory falling price was 1.215 billion yuan, which was one of the main reasons for the huge loss of net profit attributable to parent company.
so far this month, 7 companies have been filed for investigation due to the letter Phi problem
Illegal information disclosure is common in the A-share market. Only this year, “illegal information disclosure” is the main reason why listed companies and relevant subjects are investigated.
Reporter statistics show that up to now, a total of 74 listed companies have been investigated by the CSRC during the year, of which 47 are suspected of illegal information disclosure. Since December, seven listed companies have been filed for investigation on suspicion of violating laws and regulations.
In addition to Fujian Start Group Co.Ltd(600734) , Tempus Global Business Service Group Holding Ltd(300178) (300178. SZ), Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) (603876. SH), Zhejiang Busen Garments Co.Ltd(002569) (002569. SZ), Whole Easy Internet Technology Co.Ltd(002464) (002464. SZ), Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) (600078. SH), Jiangxi Special Electric Motor Co.Ltd(002176) (002176. SZ) and other six listed companies have also been filed for investigation. Among them, the chairmen of Jiangsu Dingsheng New Material Joint-Stock Co.Ltd(603876) and Whole Easy Internet Technology Co.Ltd(002464) 2 companies are also within the scope of case filing and investigation.
According to the data, as of the latest closing date, the total number of shareholders of the seven companies was 370300, and Jiangxi Special Electric Motor Co.Ltd(002176) had the largest number of shareholders, reaching 209500.
Among the above seven companies, there are some “bull stocks” that have doubled or even quadrupled their annual growth. Some stocks have achieved the same performance and share price rise due to catching up with the popular track, and there is no change in the fundamentals after the speculation of ST shares.
As of the latest closing date, Jiangxi Special Electric Motor Co.Ltd(002176) shares had risen 477.75% in the year, ranking seventh in all a shares. Since this year, lithium batteries have been the hottest plate in the two cities, Jiangxi Special Electric Motor Co.Ltd(002176) which had been hyped before. It was also due to the booming production and sales of lithium carbonate products, which promoted the sharp rise of performance.
In the first three quarters, Jiangxi Special Electric Motor Co.Ltd(002176) achieved an operating revenue of 2.030 billion yuan, a year-on-year increase of 44.66%; The net profit attributable to the parent company was 249 million yuan, a year-on-year increase of 1066.33%.
In contrast, the Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) with 65 limit increases during the year is more like the profit seeking speculation of funds. As of the latest closing day, phosphorus chemical concept stocks Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) rose 183.29% during the year, with an increase of up to six times. According to the after hours capital data in November, the business department of securities companies mainly buys and sells Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) stocks.
What is not commensurate with the stock price performance is Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) problematic fundamentals. Up to now, the cumulative amount of the company involved in litigation (Arbitration) is 2.267 billion yuan. In addition, Jiangyin building decoration products factory, the creditor of Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) , applied to Wuxi intermediate people’s court for bankruptcy reorganization on the grounds that the company could not pay off its due debts and its assets were insufficient to pay off all its debts. So far, there has been no latest progress.
In terms of delisting risk, if Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) the audited net assets are negative at the end of 2021 or the audit institution is unable to issue a standard unqualified audit report, the listing of the company’s shares will be terminated.
It should be noted that this is not the first time Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) has been checked. In December 2015, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) was investigated by the CSRC for allegedly failing to disclose information as required. According to the administrative punishment decision in 2019, Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) non operating capital transactions with controlling shareholders and their related parties were not disclosed as required from 2011 to 2014.
(First Finance)
