On the evening of April 8, Fujian Start Group Co.Ltd(600734) announced that the company had recently received the advance notice of administrative punishment issued by Fujian securities regulatory bureau. Due to the false records in the annual financial reports of the company in 2018 and 2019, Fujian securities regulatory bureau plans to give a warning to Fujian Start Group Co.Ltd(600734) and 19 persons in charge of the then director and supervisor in accordance with relevant regulations, and impose a total fine of 12 million yuan.
On the secondary market, Fujian Start Group Co.Ltd(600734) continued to rise, with the limit rising for 25 consecutive days from February 11 to March 30, and the intraday limit rising on March 31, closing up 4.53%. Due to the excessive short-term increase, since March, Fujian Start Group Co.Ltd(600734) 3 times of emergency suspension, which is still under suspension verification.
Source: company announcement
financial fraud for two consecutive years
Back last year, Fujian Start Group Co.Ltd(600734) received the notice of filing a case from the CSRC on December 9. The CSRC decided to file a case for suspected illegal information disclosure. Fujian Securities Regulatory Bureau found that there were false records in the annual financial reports of Fujian Start Group Co.Ltd(600734) 2018 and 2019.
The survey results show that in April 2018, the Fujian Start Group Co.Ltd(600734) subsidiary Shenzhen Xingfei Technology Co., Ltd. (hereinafter referred to as Shenzhen Xingfei) signed the strategic cooperation agreement with smart Haipai Technology Co., Ltd., but the sales of “goods” in the relevant cooperation business are actually collection and payment, and the income should be recognized according to the net amount of collection and payment, but Shenzhen Xingfei still recognizes the above business as the processing and sales business model and fully recognizes the operating income, As a result, the operating income of Fujian Start Group Co.Ltd(600734) 2018 was falsely increased by 694 million yuan and the operating cost was falsely increased by 694 million yuan.
At the same time, Shenzhen Xingfei also fictitious the circular purchase and sales business related to ZTE Development Co., Ltd., falsely increasing the operating revenue and costs, resulting in a false increase of 312 million yuan in Fujian Start Group Co.Ltd(600734) 2018, 311 million yuan in operating costs and 1.9646 million yuan in financial expenses. In addition, the company’s export service business also inflated revenue and costs, resulting in a inflated operating revenue of 244 million yuan and a inflated operating cost of 244 million yuan in Fujian Start Group Co.Ltd(600734) 2018.
On the whole, Fujian Start Group Co.Ltd(600734) 2018 falsely increased the operating revenue by 1.25 billion yuan, accounting for 18.49% of the current operating revenue; Falsely increased the operating cost by 1.248 billion yuan, understated the financial expenses by 1.9646 million yuan, and falsely increased the net profit by 3.2671 million yuan.
Meanwhile, there are also false records in the financial report of Fujian Start Group Co.Ltd(600734) 2019, which falsely increased the net profit of that year by 878856 million yuan and the net assets of 2019 by 878856 million yuan.
involving 19 persons in charge of the then director and supervisor
Fujian Securities Regulatory Bureau believes that for the illegal acts of false records in Fujian Start Group Co.Ltd(600734) 2018 annual report, Jing Baifu, the then chairman of the company, Wang Yikun, the president and Zhuang Ling, the financial person in charge, failed to organize Fujian Start Group Co.Ltd(600734) to take necessary and effective control over its subsidiary Shenzhen Xingfei, failed to find and prevent the illegal acts of Fujian Start Group Co.Ltd(600734) information disclosure, and were the directly responsible executives.
At the same time, Chen Feng, director of Fujian Start Group Co.Ltd(600734) and chairman of Shenzhen Xingfei, decided that Shenzhen Xingfei and its subsidiaries should carry out relevant businesses involved in the case and was the person in charge directly; The other 12 directors and supervisors at that time failed to fulfill their obligations of diligence and were other directly responsible personnel.
In addition, Jing Baifu, as the then chairman of Fujian Start Group Co.Ltd(600734) board of directors, was directly responsible for the illegal acts of false records in Fujian Start Group Co.Ltd(600734) 2019 annual report; Chen Feng and other 11 directors, supervisors and senior managers at that time were other directly responsible personnel.
impose a total fine of 12 million yuan on the company and relevant responsible persons
According to the notice, Fujian Start Group Co.Ltd(600734) the false record in the annual reports of 2018 and 2019 violates the relevant provisions of the securities law. Fujian securities regulatory bureau plans to give a warning to Fujian Start Group Co.Ltd(600734) and impose a fine of 1.6 million yuan.
Fujian securities regulatory bureau said that based on the facts, nature, circumstances and social harm of the illegal acts of the relevant parties, it planned to give a warning to the then chairman Jing Baifu and impose a fine of 2.3 million yuan; Chen Feng, the then director, was given a warning and fined 900000 yuan.
Fujian securities regulatory bureau also warned Cai Jinliang, Chen Guohong, Zhou Yun and other five then independent directors and imposed a total fine of 1.84 million yuan. In addition, 12 other responsible persons were warned and fined 90000 yuan to 690000 yuan respectively.
