The total amount of compensation for the company’s in-service directors in the trial of Guangzhou Zhongkang Pharmaceutical Co., Ltd. was about RMB 2.45 billion, including the maximum amount of compensation for the false statements made by the company’s in-service directors in the trial of Guangzhou Zhongkang Pharmaceutical Co., Ltd. last year, which was about RMB 2.45 billion. Among them, many independent directors who once worked in Kangmei pharmaceutical were severely fined more than 100 million yuan, which aroused great attention from all walks of life to the ecology of A-share independent directors. The tide of resignation and salary rise of independent directors also emerged one after another.
Now, the announcement of Fujian Start Group Co.Ltd(600734) ( Fujian Start Group Co.Ltd(600734) , SH; previous closing price of 4.15 yuan) may once again trigger a heated discussion on the ecology of independent directors Fujian Start Group Co.Ltd(600734) 48 disclosed that there were false records in the company’s 2018 and 2019 annual financial reports. After investigation, Fujian Securities Regulatory Bureau believed that the relevant parties failed to fulfill their obligations of diligence and planned to warn and fine them.
It is worth mentioning that five independent directors were among the punished, with a total fine of 1.84 million yuan. One of the independent directors signed to ensure the authenticity, accuracy and completeness of the company’s annual report after taking office only eight days. As a result, he was accused of failing to fulfill his duty of diligence and was fined up to 500000 yuan.
financial fraud fined 1.6 million yuan
According to Fujian Start Group Co.Ltd(600734) disclosure, recently, the company received the advance notice of administrative punishment issued by Fujian securities regulatory bureau. It is pointed out that the case of Fujian Start Group Co.Ltd(600734) suspected of illegal information disclosure has been investigated and tried by Fujian securities regulatory bureau, which plans to impose administrative penalties on the company and related persons according to law.
Fujian securities regulatory bureau pointed out that there were false records in Fujian Start Group Co.Ltd(600734) 2018 annual financial report. First, the company has inflated revenue and costs in related businesses with smart Shanghai Technology Co., Ltd. (hereinafter referred to as smart Shanghai). This led to a false increase of 694 million yuan in operating revenue and 694 million yuan in operating costs in Fujian Start Group Co.Ltd(600734) 2018; Second, the company invented the circular purchase and sales business related to ZTE Development Co., Ltd. (hereinafter referred to as ZTE Development), falsely increasing income and costs. This fictitious business led to a false increase of 312 million yuan in operating revenue, 311 million yuan in operating costs and 1.9646 million yuan in financial expenses in Fujian Start Group Co.Ltd(600734) 2018; Third, the company’s export service business has falsely increased income and costs. This led to a false increase of 244 million yuan in operating revenue and 244 million yuan in operating costs 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.
At the same time, there are also false records in the financial report of Fujian Start Group Co.Ltd(600734) 2019. The company falsely increased the net profit of 2019 by 878856 million yuan and the net assets of 2019 by 878856 million yuan.
Fujian Securities Regulatory Bureau believes that the false recording of Fujian Start Group Co.Ltd(600734) 2018 and 2019 annual reports violates the relevant provisions of the securities law. It plans to give Fujian Start Group Co.Ltd(600734) a warning and impose a fine of 1.6 million yuan.
independent director accused of failing to fulfill his duty of diligence
It is worth mentioning that in view of the financial fraud in Fujian Start Group Co.Ltd(600734) 2018 and 2019, the relevant responsible persons also received fines respectively.
Fujian Securities Regulatory Bureau believes that there are illegal acts of false records in the annual report of Fujian Start Group Co.Ltd(600734) 2018. 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 the 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.
Fujian Start Group Co.Ltd(600734) director and chairman of Shenzhen Xingfei, Chen Feng, decided that Shenzhen Xingfei and its subsidiaries should carry out relevant businesses involved in the case and was the person in charge directly. Wang Qing, Guo Weilong and Zang Xiaohan, the directors at that time, Cai Jinliang, he Heping, Chen Guohong and Wu Weiming, the independent directors at that time, Wu Bo and Su Jian, the senior managers at that time, signed to ensure that the 2018 annual report was true, accurate and complete, failed to fulfill their obligations of diligence, and were other persons directly responsible. Zhang Jian, Li Lina and fan shuizhao, the supervisors at that time, also failed to fulfill their obligations of diligence and were other persons directly responsible.
The annual report of the chairman of the board of directors is false, and the director of the board of directors is directly responsible for the violation of the law. Chen Feng, Huang Fengying and Zang Xiaohan, the then directors, Cai Jinliang, Chen Guohong and Zhou Yun, the then independent directors, Wu Bo, Li Lina and fan shuizhao, the then supervisors, and Wang Qing and Zhao Yonghong, the then senior managers, signed to ensure that the 2019 annual report was true, accurate and complete without due diligence. They were other persons directly responsible.
Based on the facts, nature, circumstances and degree of social harm of the illegal acts of the above parties, Fujian securities regulatory bureau plans to give Jing Baifu a warning and impose a fine of 2.3 million yuan; Give Chen Feng a warning and impose a fine of 900000 yuan; Wang Qing, Zang Xiaohan, Cai Jinliang, Wu Bo and Li Lina were warned and fined 690000 yuan respectively; Give a warning to Huang Fengying and Zhao Yonghong and impose a fine of Shanghai Pudong Development Bank Co.Ltd(600000) yuan respectively; Give a warning to fan shuizhao and Chen Guohong and impose a fine of 530000 yuan respectively; Zhou Yun was given a warning and fined 500000 yuan; Give a warning to Wang Yikun and Zhuang Ling and impose a fine of 300000 yuan respectively; Guo Weilong, he Heping, Zhang Jian and Su Jian were warned and fined 90000 yuan respectively; Wu Weiming was given a warning and fined 30000 yuan.
In total, the fines of the five independent directors Cai Jinliang, he Heping, Chen Guohong, Wu Weiming and Zhou Yun totaled about 1.84 million yuan.
According to Fujian Start Group Co.Ltd(600734) periodic report, the company gives an annual allowance of 90000 yuan (before tax) to independent directors. Among them, Zhou Yun was officially appointed as Fujian Start Group Co.Ltd(600734) independent director on June 5, 2020, and did not receive allowance from the company in 2019. About one week after Zhou Yun became an independent director, Fujian Start Group Co.Ltd(600734) disclosed the 2019 annual report.
