On March 21, the website of Shenzhen Stock Exchange showed that it had received many complaints from investors, and no one answered the external consultation call of Shandong Sinobioway Biomedicine Co.Ltd(002581) ( Shandong Sinobioway Biomedicine Co.Ltd(002581) , SZ). At the same time, due to the imminent release of the company’s annual report, but the 2021 annual audit accountant has not been hired, the Shenzhen Stock Exchange said that if the audited annual report is not disclosed within the statutory time limit, the company’s shares will have the risk of delisting.
On March 25, Shandong Sinobioway Biomedicine Co.Ltd(002581) ( Shandong Sinobioway Biomedicine Co.Ltd(002581) ) replied to the letter of concern of Shenzhen Stock Exchange, saying that due to the particularity of the asset inventory of Jilin unnamed ginseng, a wholly-owned subsidiary of the company, and the risk factors that the company has been issued with qualified opinion audit reports for four consecutive years, no accounting firm has been invited to cooperate with the company’s annual audit.
In addition, on the night of the disclosure of the performance forecast, Shandong Sinobioway Biomedicine Co.Ltd(002581) also announced the collective resignation of several senior executives, and now the positions of general manager, deputy general manager, Secretary of the board of directors, chief financial officer and securities affairs representative of the company are vacant.
Shandong Sinobioway Biomedicine Co.Ltd(002581) reply to the letter of concern of Shenzhen Stock Exchange: it is difficult to count and no one is willing to review the annual report
Recently, due to several unanswered calls for external consultation, Shandong Sinobioway Biomedicine Co.Ltd(002581) received a letter of concern from the Shenzhen Stock Exchange. At the same time, due to the imminent release of the annual report, Shandong Sinobioway Biomedicine Co.Ltd(002581) has not yet hired an audit accountant in 2021. The Shenzhen Stock Exchange said that if the audited annual report is not disclosed within the statutory time limit, there will be a risk of delisting the company’s shares. In this regard, the Shenzhen stock exchange requires Shandong Sinobioway Biomedicine Co.Ltd(002581) to conduct a self-examination and explain the problem of answering the consultation telephone on March 25, and explain the progress of employing the 2021 annual audit accountant and fully remind the riskP align = “center” Shandong Sinobioway Biomedicine Co.Ltd(002581) concern letter
According to the requirements of the stock listing rules of Shenzhen Stock Exchange, listed companies shall be equipped with communication equipment necessary for information disclosure and ensure the smooth flow of external consultation telephone Shandong Sinobioway Biomedicine Co.Ltd(002581) replied that the office of the board of directors of the company had carried out the handover of new and old work due to personnel changes and adjustments some time ago, and the relevant personnel were still in the process of adapting and getting familiar with the business. Therefore, there were individual missed calls from investors. Now the company has carefully reviewed and actively answered the investor consultation calls. The office of the board of directors of the company will be equipped with and enrich professional technical management personnel, continue to strengthen the management of investor relations, and keep the communication channels of investors smooth.
With regard to the fact that no accounting firm is willing to participate in the annual audit, Shandong Sinobioway Biomedicine Co.Ltd(002581) explained that the company has been actively promoting the selection and employment of accounting firms in 2021. The management of the company has invited more than 10 accounting firms and actively carried out preliminary investigation, business communication, negotiation and commercial due diligence with various accounting firms. However, due to the particularity of ginseng asset inventory of Jilin Weiming Tianren traditional Chinese Medicine Technology Development Co., Ltd. (hereinafter referred to as “Jilin Weiming”), a wholly-owned subsidiary of the company, and the risk factors that the company has been issued with qualified opinion audit reports for four consecutive years, no accounting firm has been invited to cooperate with the company on annual audit matters. The details are as follows:
First of all, the main asset of Jilin Weiming is ginseng. Jilin ginseng is a valuable medicinal material. It is in the frozen soil of snow capped mountains for nearly half a year (November to May of the next year). During this period, the thickness of snow is more than 30 cm, the soil is in the state of frozen soil, and the thickness of frozen soil layer is about 40-50 cm. Ginseng usually grows in this part of frozen soil. At this time, it is impossible to observe ginseng seedlings from the surface or dig from the frozen soil. Therefore, the audit and inventory of ginseng cannot be carried out at this stage. Ginseng seedlings only grow on the ground from June to October every year, which is the most suitable time for stock inventory of ginseng seedlings.
Secondly, the inventory of ginseng assets can only be carried out by means of seedling inspection or digging and sampling inspection. The inventory method has very high professional requirements. The accounting firm must carry professional national forest map, compass, satellite positioning device, Bluetooth camera Professional equipment such as 5-meter iron bar shall be reinstalled in combination with Ovi software and acgis software, so as to ensure that real and effective audit inventory data are obtained.
Finally, the company has been issued with qualified annual audit reports for four consecutive years since 2017. Therefore, the vast majority of invited accounting firms rejected the company’s annual audit invitation out of prudence and risk considerations.
In conclusion, due to the natural conditions, time window, professional methods and the impact of accounting firms on the company’s risk assessment, no accounting firm has been invited to the company’s annual audit. At present, on the one hand, the company is still expanding the scope of the invited firms. On the other hand, the company is in-depth communication with the accounting firms that have participated in the on-site audit and inventory of the company’s assets, and expects them to accept the invitation of the company and complete the annual audit of the company.
why has no audit institution “received orders” so far
According to Tianmu news, Shandong Sinobioway Biomedicine Co.Ltd(002581) has received the attention letter from the exchange as early as January 27 about the company’s failure to hire the 2021 annual audit accountant. This problem can be traced back to November 10, 2021. Because the original audit institution zhongxingcai Guanghua Certified Public Accountants (special general partnership) was filed for investigation by the CSRC, which affected the development of Shandong Sinobioway Biomedicine Co.Ltd(002581) audit affairs, Shandong Sinobioway Biomedicine Co.Ltd(002581) decided to appoint Shenzhen Jiu’An Certified Public Accountants (special general partnership) as the audit institution of the company in 2021.
However, in the process of changing the accounting firm, the Directors voted against it, and the Shenzhen Stock Exchange asked the company to explain the relevant situation. Although the company replied to the letter of concern of Shenzhen Stock Exchange as scheduled, in the extraordinary general meeting of shareholders held on November 24 of that year, the proposal of Shandong Sinobioway Biomedicine Co.Ltd(002581) employment was finally rejected due to the veto of shareholders.
Therefore, the Shenzhen stock exchange sent another attention letter on January 27 this year, requesting Shandong Sinobioway Biomedicine Co.Ltd(002581) to accelerate the preparation and disclosure of the 2021 annual report and hire an annual audit accountant as soon as possible.
It is worth noting that the type of audit opinion in the audit report of Shandong Sinobioway Biomedicine Co.Ltd(002581) 2020 is qualified opinion, which mainly involves the confirmation of the company’s long-term equity investment and investment income of the joint-stock company Beijing Kexing Biological Products Co., Ltd., the determination of the price of debt paying assets of the controlling shareholder of the company and the legitimacy of debt paying asset transactions. The matters involved occurred in 2017 and 2019 respectively.
The types of opinions in the audit reports of Shandong Sinobioway Biomedicine Co.Ltd(002581) 2017 and 2019 are also qualified.
Wang Chuanhao, managing partner of huabixin certified public accountants, told Tianmu news that for listed companies, after accepting the entrustment of the auditee, certified public accountants need to issue audit reports according to law within the agreed time and disclose the existing risks and problems of the enterprise from the perspective of fairness; Its role is also to issue reports with different audit opinions from the perspective of fairness and fairness as a third party, and also to supervise and supervise the practices of enterprises such as favoritism and fraud, so as to standardize the operation of enterprises.
The interim reports of listed companies shall be disclosed regularly in accordance with the provisions of the measures for the administration of information disclosure of listed companies. All information that has a significant impact on investors’ value judgment and investment decision-making shall be disclosed. The financial and accounting reports in the annual report shall be audited by an accounting firm that complies with the provisions of the securities law. The annual report shall be prepared and disclosed within four months from the end of each fiscal year.
Wang Chuanhao said that , if the accounting firm does not actively perform its obligations or help the enterprise to practice favoritism and fraud and falsify evidence, once verified, if the circumstances are serious, the license of the firm will be revoked, the license will be fined, or the practice will be suspended, and the relevant certified public accountants will also be subject to administrative treatment.
subsidiary has nothing to do with “Kexing vaccine”
general manager, board secretary and other vacancies
Shandong Sinobioway Biomedicine Co.Ltd(002581) official website shows that the company, founded in December 1998, is a core enterprise in the biopharmaceutical field under Peking University Weiming group and was listed in 2015. The company owns Beijing Kexing Biological Products Co., Ltd., Tianjin Weiming biomedical Co., Ltd. and other enterprises, and has developed into the leading biopharmaceutical enterprise in Fujian Province, ranking among the top 30 Biopharmaceutical Enterprises in China.
As a covid-19 vaccine concept stock in the A-share market, Shandong Sinobioway Biomedicine Co.Ltd(002581) was hyped by market funds in the first half of 2020, and its share price increased by 207% in the first half of 2020. The New Coronavirus inactivated vaccine (Vero cell) produced by Beijing Kexing Zhong Wei Sheng Biotechnology Co., which is known as the Kexing vaccine, is not related to Shandong Sinobioway Biomedicine Co.Ltd(002581) .
In fact, according to the announcement of Shandong Sinobioway Biomedicine Co.Ltd(002581) , the company has no equity participation in Beijing Kexing Zhongwei Biological Technology Co., Ltd. the company’s equity participation company is Beijing Kexing Biological Products Co., Ltd. Shandong Sinobioway Biomedicine Co.Ltd(002581) directly holds 26.91% of the shares of Kexing biology, while Beijing Kexing biological products Co., Ltd. is not the same company as Beijing Kexing Zhongwei Biological Technology Co., Ltd.
According to China Economic Net, on the evening of January 26, Shandong Sinobioway Biomedicine Co.Ltd(002581) disclosed the performance forecast for 2021. The company expects to realize a net profit of 235 million yuan to 352 million yuan attributable to shareholders of Listed Companies in 2021, turning losses into profits. However, the company also said that since the company has not determined the accounting firm to audit the 2021 annual report, it has not pre communicated with the accounting firm on matters related to the performance forecast.
It is worth mentioning that on the night of disclosing the performance forecast, Shandong Sinobioway Biomedicine Co.Ltd(002581) also announced the collective resignation of several senior executives, including Wang Lijun, then deputy general manager, Zhang Yinuo, then director and Secretary of the board, Lai Wenbo, then chief financial officer, and Yang Yichen, then representative of securities affairs, who left for personal reasons. Meanwhile, on January 2, 2020, Wang Wanling resigned as the deputy general manager of the company. On April 13, 2021, the board of directors removed Ding XueGuo from the post of general manager. At present, the positions of general manager, deputy general manager, Secretary of the board of directors, chief financial officer and securities affairs representative of the company are vacant.
However, in order for the company to operate normally, Shandong Sinobioway Biomedicine Co.Ltd(002581) hurried to “supplement” senior executives. At the board meeting held in Shandong Sinobioway Biomedicine Co.Ltd(002581) on January 26, the company approved the appointment of Shuhong Han (Han Shuhong) as the general manager, Shi Xuezhong as the deputy general manager and acting as the Secretary of the board of directors, and Li Zhen as the deputy general manager and chief financial officer. However, one member of the board of directors cast a negative vote on the grounds that the board of directors arrived at the session and the ownership structure had changed significantly, so it was inappropriate to make major decisions at this time.
As of March 25, Shandong Sinobioway Biomedicine Co.Ltd(002581) closed down 1.68% to 18.12 yuan / share, with a market value of 11.95 billion yuan.
