On April 11, ST Jitang ( Xin Jiang Ready Health Industry Co.Ltd(600090) , SH; the previous closing price was 0.96 yuan) disclosed the final punishment results of the previous investigation and received the decision on market prohibition and the decision on administrative punishment issued by the CSRC.
The announcement disclosed that due to Xin Jiang Ready Health Industry Co.Ltd(600090) financial fraud, non operational occupation of funds by controlling shareholders and their related parties and other illegal acts, the CSRC imposed a lifelong market ban on Xin Jiang Ready Health Industry Co.Ltd(600090) actual controllers Zhang Meihua and Li Qing, with a total fine of 5 million yuan.
Due to financial fraud and other problems, Xin Jiang Ready Health Industry Co.Ltd(600090) faces the risk of major illegal delisting. In fact, Xin Jiang Ready Health Industry Co.Ltd(600090) faces more delisting risks than that. It also faces financial and transaction delisting risks.
consecutive 4 years of financial fraud
On April 11, Xin Jiang Ready Health Industry Co.Ltd(600090) disclosed that it had received the decision on banning market entry and the decision on administrative punishment issued by the CSRC, which represented the end of the investigation and trial of Xin Jiang Ready Health Industry Co.Ltd(600090) filed by the CSRC.
It is mentioned in the decision that Xin Jiang Ready Health Industry Co.Ltd(600090) has a number of violations.
In the annual report from 2016 to 2018, Xin Jiang Ready Health Industry Co.Ltd(600090) has falsely increased revenue by 20.735 billion yuan, falsely increased cost by 17.851 billion yuan and falsely increased total profit by 2.43 billion yuan for three consecutive years. In the 2019 annual report, Xin Jiang Ready Health Industry Co.Ltd(600090) also had illegal acts of false records, falsely increasing the total profit by 386 million yuan.
At the same time, Xin Jiang Ready Health Industry Co.Ltd(600090) there are related party transactions that are not disclosed in a timely manner and are not disclosed in the annual reports from 2016 to 2019. The amount involved is 2.592 billion yuan; Failed to disclose in time and failed to disclose the matters related to providing guarantees and major litigation for the controlling shareholders and their related parties in the annual reports of 2018 and 2019; Failing to truthfully disclose the deposit and actual use of the company’s raised funds.
Based on the above violations, the CSRC ordered Xin Jiang Ready Health Industry Co.Ltd(600090) to rectify, gave a warning and imposed a fine of 3 million yuan; Give a warning to Zhang Meihua and Li Qing and impose a combined fine of 5 million yuan; Wei Junqiao, the director, deputy general manager and chief financial officer of Xin Jiang Ready Health Industry Co.Ltd(600090) at that time, was given a warning and fined 1 million yuan. At the same time, the CSRC also banned Zhang Meihua and Li Qing from entering the market for life and Wei Junqiao from entering the market for 10 years.
In fact, in October last year, Xin Jiang Ready Health Industry Co.Ltd(600090) disclosed that it had received the prior notice of administrative punishment and market prohibition issued by the CSRC.
Since then, at the request of Zhang Meihua, Li Qing and Wei Junqiao, the CSRC held a hearing on December 6 last year. The three persons and their agents made statements and pleadings on relevant violations, and the CSRC reviewed them.
The review results further disclosed the details of Xin Jiang Ready Health Industry Co.Ltd(600090) financial fraud, non operational occupation of funds by controlling shareholders and their related parties, including significant differences between the company’s account capital flow transferred from the bank and the bank capital receipt and payment recorded in the company’s accounting books, the inconsistency between the actual visit data and the company’s accounting confirmation data, tax bookkeeping fraud, etc.
faces triple delisting risk
With the implementation of the decision on administrative punishment, on April 11, Xin Jiang Ready Health Industry Co.Ltd(600090) also received the supervision letter issued by Shanghai Stock Exchange.
The decision on administrative punishment mentioned that the company inflated its net profit from 2017 to 2019. After retroactive adjustment, the net profit of the company for three consecutive fiscal years from 2017 to 2019 was negative, and the net profit of the company in 2020 was also negative, and the accounting firm issued an audit report with no opinion. Based on the above facts, the financial indicators of 6 Xinyangfeng Agricultural Technology Co.Ltd(000902) 0172020 triggered major illegal delisting.
Misfortunes never come singly, Xin Jiang Ready Health Industry Co.Ltd(600090) faces more delisting risks than that.
Xin Jiang Ready Health Industry Co.Ltd(600090) received another regulatory letter, which mentioned that Shenzhen Lianchuang Lixin Certified Public Accountants (hereinafter referred to as “Lianchuang Lixin”), the 2021 annual audit accountant to be employed by the company, had sent a letter to inform the company that it could not complete all the audit work and issue the audit report before April 30, 2022. If the annual financial report cannot be disclosed on schedule, the delisting will be triggered.
Lianchuang Lixin is a new accounting firm hired by Xin Jiang Ready Health Industry Co.Ltd(600090) company. On April 6, Xin Jiang Ready Health Industry Co.Ltd(600090) announced that it planned to hire Lianchuang Lixin as the company’s 2021 financial report and internal control audit institution. At this time, it is less than one month from the disclosure time of Xin Jiang Ready Health Industry Co.Ltd(600090) original annual report on April 30.
In addition, the share price of Xin Jiang Ready Health Industry Co.Ltd(600090) in the secondary market is also “unspeakable”. On April 11, Xin Jiang Ready Health Industry Co.Ltd(600090) ‘s closing price was 0.96 yuan per share. According to the relevant regulations of Shanghai Stock Exchange, if the daily closing price of the company’s shares for 20 consecutive trading days is lower than 1 yuan, the company’s shares will be delisted and belong to trading compulsory delisting.
Xin Jiang Ready Health Industry Co.Ltd(600090) issued an announcement on the 11th, suggesting the risk of possible delisting The trading of Xin Jiang Ready Health Industry Co.Ltd(600090) shares will be suspended from April 12.
