Recently, Shanghai Electric Group Company Limited(601727) announced that some former executives of the subsidiary Shanghai Electric Group Company Limited(601727) Communication Technology Co., Ltd. were under investigation. Previously, was exposed that the subsidiary was involved in several debt disputes and more than 8 billion yuan of accounts receivable could not be recovered. As of today’s close, Shanghai Electric Group Company Limited(601727) shares closed at 4.93 yuan, down 7.5% during the year.
Three former executives of Shanghai Electric Group Company Limited(601727) subsidiaries were investigated for alleged violation of discipline and law
On November 17, Shanghai Electric Group Company Limited(601727) announced that according to the information of Shanghai Changning District Commission for Discipline Inspection and supervision, Shen Xin, the former general manager of Shanghai power communication, Mao Limin, the former chief financial officer, and Jin Hang, the former marketing director and Minister of Commerce, were suspected of serious violations of discipline and law. At present, they are undergoing discipline review, supervision and investigation by Shanghai Changning District Commission for Discipline Inspection and supervision.
The reporter learned that Shangdian communication is a subsidiary of Shanghai Electric Group Company Limited(601727) , of which Shanghai Electric Group Company Limited(601727) has a shareholding ratio of 40%. As early as May 31 this year, Shanghai Electric Group Company Limited(601727) issued a major risk warning announcement, saying that Shangdian communication, the holding subsidiary within the scope of consolidated statements, has a bad debt risk of up to 8.6 billion yuan. Then, Shanghai Electric Group Company Limited(601727) and its subsidiary management suffered a “big earthquake”.
In July this year, Shanghai Electric Group Company Limited(601727) was investigated by China Securities Regulatory Commission on suspicion of “violation of laws and regulations in information disclosure”. Zheng Jianhua, then chairman of Shanghai Electric Group Company Limited(601727) , was investigated on suspicion of serious violation of discipline and law, and then removed from office. In August, Huang ou, President of Shanghai Electric Group Company Limited(601727) , died unexpectedly. In September, the Secretary of the board of directors of Shanghai Electric Group Company Limited(601727) also changed his position.
Since the thunder explosion, nearly half a year has passed, and the problem of power on communication has not been effectively solved. This time, the three executives were investigated for suspected serious violations of discipline and law, the company’s management team left one after another, and the litigation involved is also increasing.
From the performance data, in the first three quarters of this year, Shanghai Electric Group Company Limited(601727) net profit loss exceeded 4.4 billion yuan, a year-on-year decrease of 289%. The expected credit loss of accounts receivable and inventory falling price reserves accrued by the subsidiary Shangdian communication totaled RMB 7.367 billion, resulting in a loss of RMB 6.574 billion to the net profit attributable to the parent company.
For the investigation of the three executives of power on communication, Shanghai Electric Group Company Limited(601727) said that this event will not affect the production and operation of the company. At present, the production and operation of the company is normal. The company has established a special working group to be responsible for the operation and management of the electric communication company, concentrate on dealing with the risk matters of the electric communication company, and will disclose the relevant progress and impact in time.
power on communication: doubtful prepayment sales model
accounts receivable of RMB 8.6 billion are pending
As a Shanghai Electric Group Company Limited(601727) subsidiary, why is there such a high overdue problem of accounts receivable of more than 8 billion yuan in Shangdian communication? Can it be recovered later? How should investors who suffer loss of interest protect their rights?
the sales mode of prepayment is the direct reason for the high bad debts of Shangdian Communication Co., Ltd. in other words, as an intermediary, power on communication prepays 100% of the so-called upstream suppliers and only 10% of the so-called downstream purchasers.
senior financial person Xia Chong: we will consider doing business normally, unless we say that this business is particularly profitable. The net interest rate of Shanghai Electric Group Company Limited(601727) subsidiary (power on Communication) is only about 3%. It doesn’t say how attractive this business is. It has to pay its own money in advance. In fact, there will be a big doubt from the commercial logic.
Legal experts said that power on communication, the business that triggered the explosion, may involve “financing trade”, and the relevant cases have characterized this transaction as “called trading, actually lending” . In 2018, the state owned assets supervision and Administration Commission of the State Council promulgated the measures for the implementation of accountability for illegal operation and investment of central enterprises (for Trial Implementation), which explicitly prohibits state-owned enterprises from carrying out financing trade business.
Wang Xin, lawyer of Jiuhui law firm: {23456} the biggest compliance loophole in this business model, is that it does not have a real goods flow, which is essentially a fund lending . When the upstream and downstream capital chain breaks, it can not return the capital as an intermediary, and there is no real goods, This amount becomes a bad debt.
From the perspective of the shareholder structure of Shangdian communication, in addition to Shanghai Electric Group Company Limited(601727) holding 40% of the shares, there are five enterprises such as Shanghai Naipan and Shanghai Xingditong. The shareholders of these five enterprises are closely related. It is still doubtful whether there is stock holding on behalf of others and whether the trading link involves violations of laws and regulations. At present, on the issue of accounts receivable, power on communication has filed a lawsuit to the relevant court, but there is still the possibility that the accounts can not be recovered .
Chen Jianmin, senior partner of Beijing deheheng (Shanghai) law firm: if the judicial authorities find illegal and criminal acts in the accounts receivable trading chain, or the illegal and criminal activities of relevant personnel, all contractual relationships in the whole trading chain will be penetrated by criminal law, power on communication may not be able to recover the payment or the payment in full.
In terms of share price, since the explosion on May 31, Shanghai Electric Group Company Limited(601727) share price has experienced a sharp decline and fell to the lowest price of 3.56 yuan per share on July 29. Experts say that in addition to being unable to recover its accounts, Shanghai Electric Group Company Limited(601727) may also be subject to class action by investors. at present, the CSRC has launched an investigation into this. Once the administrative punishment decision is issued subsequently, according to the provisions of the securities law, investors with damaged interests can claim against Shanghai Electric Group Company Limited(601727) .
(China Central Television Finance)
