Shanghai Industrial Development Co.Ltd(600748) ( Shanghai Industrial Development Co.Ltd(600748) ) subsidiary’s mine explosion has not been completed. On April 8, Shanghai Industrial Development Co.Ltd(600748) again received the regulatory inquiry letter, and the exchange required it to fully disclose the basic information of the fictitious trade business of its subsidiary shangshilongchuang.
On January 11 this year, a supervision letter made the financial “black hole” of Shanghai shilongchuang come to the surface. Shanghai Industrial Development Co.Ltd(600748) announced that it had recently received the supervision letter from Shanghai Stock Exchange and carried out self inspection on the accounts receivable of Shanghai shilongchuang according to the requirements of the supervision letter. By the end of 2021, the unaudited accounts receivable of Shangshi longchuang totaled about 2.615 billion yuan, some of which may involve financing trade.
Subsequently, on January 28, Shanghai Industrial Development Co.Ltd(600748) replied that the business essence and goods circulation of Shangshi longchuang are still being verified, but some of its business models may lead to the risk that the receivables may not be fully recovered. The next day, the exchange sent a second letter asking Shanghai Industrial Development Co.Ltd(600748) to respond in detail to the specific capital flow and commercial essence of Shangshi longchuang’s financing trade business, and urged it to speed up the progress of self inspection, but the company did not reply to this.
Until Shanghai Industrial Development Co.Ltd(600748) disclosed the annual report a few days ago, the accounting error correction items announced at the same time showed that after the internal verification jointly carried out by the company and the annual audit accountant Shanghui accounting firm, it was found that some senior managers of shangshilongchuang had taken advantage of their positions to carry out illegal acts of fictitious transactions since 2014, resulting in the company’s financial statements from 2016 to 2020, the first quarter of 2021 There are accounting errors in the accounting of operating income and operating cost in the financial statements of the half year and the third quarter. Whether there are other violations and crimes in some fictitious transactions is under investigation and review by judicial organs.
Affected by the mine explosion of subsidiaries, in the 2021 annual report, Shanghai accounting firm issued an audit report with qualified opinions on the company, and the type of opinion in the internal control audit report is an unqualified opinion with emphasized items.
According to the data, Shangshi longchuang is a consolidated subsidiary of Shanghai Industrial Development Co.Ltd(600748) subordinate company. The company holds 697849% equity of Shangshi longchuang, and Shangshi Chuang investment, a wholly-owned subsidiary of Shanghai Shangshi group, the concerted action of the actual controller of the company, holds 102151% equity. The company and related parties jointly hold 80% equity of Shangshi longchuang.
According to the announcement of accounting error correction, Shanghai Industrial Development Co.Ltd(600748) made error correction and corresponding retroactive adjustment to the financial statements of previous years. Among them, the operating revenue and net profit attributable to the parent company in 20162020 were reduced by 1.704 billion yuan and 1.118 billion yuan.
For the correction of the above accounting errors, the exchange issued another inquiry on April 8. Shanghai Industrial Development Co.Ltd(600748) is required to fully disclose the basic information of the fictitious trade business of Shangshi longchuang, including but not limited to the business volume of fictitious trade in each period, the corresponding upstream and downstream, etc., and on this basis, explain the calculation process and recognition basis of the reduction of operating income, net profit, assets and liabilities in each period from 2016 to 2020 and 2021. At the same time, it is necessary to quantitatively evaluate and disclose the impact and proportion of the financial misstatement formed by the above fictitious trade on the assets, liabilities, income and profits of the listed company in 20162020 and 2021, and invite the annual audit accountant to give opinions.
In addition, the Shanghai Stock Exchange also paid attention to the problems of Shanghai Industrial Development Co.Ltd(600748) in non-standard audit opinions, performance commitments and goodwill, and mentioned that the company’s previous inquiry letter has not been replied so far. The company is requested to disclose the reasons for the failure to reply in time, verify relevant matters as soon as possible in combination with the annual report, correction of accounting errors and other matters, and reply to the inquiry and disclose to the public in time.
