According to the administrative punishment decision updated and disclosed on the CSRC’s website a few days ago, the CSRC investigated and tried Wang Shuqing, Luo Zhenghua and Liu Hongyu’s insider trading of Suzhou Victory Precision Manufacture Co.Ltd(002426) shares, decided to confiscate Wang Shuqing’s illegal income of 7.4584 million yuan and impose a fine of 14.9168 million yuan; Luo Zhenghua’s illegal income of 1549500 yuan shall be confiscated and a fine of 3099000 yuan shall be imposed; Liu Hongyu’s illegal income of 2.026 million yuan was confiscated and a fine of 4.0519 million yuan was imposed.
before the disclosure of goodwill impairment and other information, it is insider information
According to the investigation of the CSRC, Suzhou Victory Precision Manufacture Co.Ltd(002426) had a loss in 2018, and the operation was poor in the first three quarters of 2019. In May 2019, after obtaining the government’s rescue funds, the government asked the company to slim down and reduce the overall debt ratio. In the fourth quarter of the same year, Suzhou Victory Precision Manufacture Co.Ltd(002426) suffered serious operating losses and faced delisting risk. Therefore, the company decided to restructure its assets, mainly considering the impairment of relevant assets and the sale of Nanjing Dele, Fuqing Fujie Plastic Co., Ltd., shuonor and other assets.
From 2015 to 2018, Suzhou Victory Precision Manufacture Co.Ltd(002426) successively acquired Fuqiang technology and other companies, forming a large amount of goodwill. From November to December 2019, Anhui Zhisheng 2.5D cover glass has been discontinued, and Anhui Shengli 3D cover glass is in a semi discontinued state. At the request of Gao, then chairman and general manager of Suzhou Victory Precision Manufacture Co.Ltd(002426) , the listed company considered withdrawing most of the goodwill and the asset impairment of 2.5D and 3D cover glass. Gao instructed Zhang moulong, then executive deputy general manager (in charge of financial work), and Cheng, then financial director, to be specifically responsible for matters related to asset impairment. On December 5, 2019, Suzhou Victory Precision Manufacture Co.Ltd(002426) signed the asset appraisal entrustment contract with Zhongwei Zhengxin (Beijing) Asset Appraisal Co., Ltd. the appraisal objects are the value of Fuqiang technology, Nanjing Dele and shuonor asset groups, and the appraisal scope includes various long-term assets of asset groups related to goodwill.
On December 14, 2019, Suzhou Victory Precision Manufacture Co.Ltd(002426) Xu mouhong, the then treasurer, sent the preliminarily calculated annual financial data to the “three persons of financial Statutory statements” wechat group with Zhang moulong, Cheng and Xu mouhong as members. The forecast results are as follows: first, the impairment of goodwill is expected to be fully accrued; Second, it is estimated that the amount of asset impairment other than goodwill impairment is RMB 1.73 billion. The impairment of 2.5D and 3D cover glass stripping and the inventory impairment of Fuqiang technology have been considered. On December 16, Gao sent the prediction results to Yin, then Secretary of the board of directors of the company, through wechat.
At the end of December 2019, Suzhou Victory Precision Manufacture Co.Ltd(002426) Zhou, the then senior manager of the securities department, asked Cheng about the performance of a listed company in 2019. After learning about the bad performance, the securities department judged that the disclosure of performance advance loss may be involved.
On January 10, 2020, the finance department further calculated that the goodwill impairment of the company in 2019 was about 1.312 billion yuan and the asset impairment was about 1.941 billion yuan according to the operation data of Suzhou Victory Precision Manufacture Co.Ltd(002426) 2019. At 18:12 on the same day, Cheng sent the excel table of asset impairment classification of subsidiaries in 2019 containing the above data to Xie moubin of Tianheng certified public accountants through wechat. On January 13, Gao Mou gen, Zhang Mou long, Cheng Mou, Yin Mou and Xu Mou Hong held a meeting with Tan Mou Zhong and Xie Mou bin of Tianheng certified public accountants at Suzhou Victory Precision Manufacture Co.Ltd(002426) to discuss the impairment of the company’s relevant assets, the reasons and rationality of the “face change” of the performance of subsidiaries after the gambling period, the repurchase and sale of relevant subsidiaries and assets. The accountant suggested that the company hire a professional evaluation agency to evaluate the impairment of cover glass business. On January 18, Suzhou Victory Precision Manufacture Co.Ltd(002426) signed the asset appraisal entrustment contract with Anhui Branch of Kunyuan Asset Appraisal Co., Ltd. the appraisal object is the recoverable value of Anhui Zhisheng and Anhui Shengli cover glass, and the appraisal scope is the asset value of Anhui Zhisheng 2.5D and Anhui Shengli 3D cover glass equipment.
Until the evening of January 22, 2020, Suzhou Victory Precision Manufacture Co.Ltd(002426) issued the 2019 performance forecast, which was insider information before it was released.
On December 5, 2019, Suzhou Victory Precision Manufacture Co.Ltd(002426) signed the asset appraisal entrustment contract with Zhongwei Zhengxin to start the asset appraisal related to goodwill.
The CSRC determined that the starting point of the sensitive period of insider information in this case shall not be later than December 5, 2019, and the information will be released on the evening of January 22, 2020, which is the end point of the sensitive period of insider information. Gao Mou gen, Yin Mou and Zhou Mou are insiders of inside information, and the time of knowing the inside information shall be no later than December 5, 2019, December 16, 2019 and January 21, 2020 respectively.
disclosure by more than executives
According to the decision on administrative punishment, Suzhou Victory Precision Manufacture Co.Ltd(002426) several executives leaked the secret.
In terms of the trading ” Suzhou Victory Precision Manufacture Co.Ltd(002426) ” during the sensitive period of Wang Shuqing’s insider information, at 11:39 on December 26, 2019, Wang Shuqing talked to Gao twice for 12 seconds. At 13:24 on December 30, Wang Shuqing talked with Yin for 6 minutes and 33 seconds. At 15:57 on December 31, Wang Shuqing talked with Gao for 11 seconds. On the afternoon of January 10, 2020, Wang Shuqing met with Gao mougen. From January 16 to January 22, 2020, “Wang Shuqing” securities account transactions sold a total of 11.5 million shares ” Suzhou Victory Precision Manufacture Co.Ltd(002426) “, with a sales amount of 26.673 million yuan and a loss avoidance amount of 7.458 million yuan. From January 21 to February 7, 2020, Wang Shuqing successively transferred a total of 30.75 million yuan to the account of Soochow Huizhi No. 7 collective asset management plan. Its trading behavior is highly consistent with the inside information, obviously different from the trading habits, and highly related to the contact time point. The CSRC decided to confiscate Wang Shuqing’s illegal income of 7.4584 million yuan and impose a fine of 14.9168 million yuan.
On January 21, 2020, Luo Zhenghua went to Suzhou Victory Precision Manufacture Co.Ltd(002426) to sign relevant agreements and visited Gao mougen. On January 22, 2020, the securities account of Luo Zhenghua’s spouse “Liu mouyan” sold a total of 2582000 shares ” Suzhou Victory Precision Manufacture Co.Ltd(002426) “, with a sales amount of 5.8638 million yuan and a loss avoidance amount of 1.5495 million yuan, accounting for 100% of the number of shares that can be sold. On January 23, 2020, Luo Zhenghua transferred 2.5 million yuan to shuonor account. Its trading behavior is highly consistent with the inside information, obviously different from the trading habits, and highly related to the contact time point. Finally, the CSRC decided to confiscate Luo Zhenghua’s illegal income of 1549500 yuan and impose a fine of 3099000 yuan.
In terms of the trading ” Suzhou Victory Precision Manufacture Co.Ltd(002426) ” during the sensitive period of Liu Hongyu’s insider information, on January 21, 2020, Liu Hongyu and Yin talked for 3 minutes 01 seconds and 5 minutes 40 seconds at 13:17 and 14:37 respectively, and Zhou talked for 1 minute 10 seconds and 31 seconds at 16:10 and 20:03 respectively. At about 21:00 on the evening of January 21, Liu Hongyu met Zhou and completed the signing of relevant agreements. On January 21 and 22, 2020, the “Liu Hongyu” securities account sold a total of 3.6 million shares, with a sales amount of 8.041 million yuan and a loss avoidance amount of 2.026 million yuan, accounting for 90.21% of the number of shares it can sell. On January 23, 2020, Liu Hongyu transferred 2.5 million yuan to shuonor account. Its trading behavior is highly consistent with the inside information, obviously different from the trading habits, and highly related to the contact time point. The CSRC considered that the above acts constituted insider trading and decided to confiscate Liu Hongyu’s illegal income of 2.026 million yuan and impose a fine of 4.0519 million yuan.
(China Securities Journal)
