On the evening of April 22, The Great Wall Of Culture Group Holding Co.Ltd.Guangdong(300089) announced that it is expected that the net profit in 2021 will be negative, the operating income will be less than 100 million yuan, and the net assets at the end of 2021 will be negative. According to relevant regulations, the company’s shares may be subject to delisting risk warning.
Just two days ago, the company, the original actual controller and the then chairman received disciplinary sanctions from the Shenzhen Stock Exchange. In addition, due to a number of violations in the company’s 2020 audit project, Guangdong securities regulatory bureau also issued a warning letter to ZTE caiguanghua certified public accountants and relevant responsible persons.
Source: company announcement
“Dai Xing” risk approaching
On the evening of April 22, The Great Wall Of Culture Group Holding Co.Ltd.Guangdong(300089) issued a risk warning announcement that the company expects the net profit attributable to the shareholders of the listed company to be negative in 2021, the operating income to be less than 100 million yuan and the net assets to be negative at the end of 2021. According to relevant regulations, the company’s shares may be subject to delisting risk warning by Shenzhen Stock Exchange.
The net loss of the listed company in 2020 is estimated to be RMB 6.29 billion, and the net profit attributable to shareholders in 2020 is estimated to be RMB 30.02 billion; The operating revenue is expected to be 89.71 million yuan to 134 million yuan; The net assets at the end of the period ranged from -271 million yuan to -181 million yuan. This means that The Great Wall Of Culture Group Holding Co.Ltd.Guangdong(300089) will probably become The Great Wall Of Culture Group Holding Co.Ltd.Guangdong(300089) after the official announcement of the next annual report The Great Wall Of Culture Group Holding Co.Ltd.Guangdong(300089) will disclose the 2021 annual report on April 29.
Public information shows that in 2010, the great wall of culture landed on the gem and became the “first share of cultural ceramics” of a shares. After listing, the company entered the field of education on a large scale, but the acquisition targets were “out of control” one after another, either “people left the building empty” suddenly disappeared, or “withholding the official seal” refused to hand over. In recent years, the company has been deeply involved in a series of negative events such as illegal guarantee, occupation of large amount of funds and debt crisis. The company’s operation is in trouble, the bank account is frozen and the company’s debt is also in default.
In March last year, The Great Wall Of Culture Group Holding Co.Ltd.Guangdong(300089) finally ushered in a new actual controller, and the development of the company also ushered in a turnaround. However, Cai Tingxiang, the former actual controller and then chairman, refused to “delegate power” for various reasons, and the company’s seal, business license and other relevant materials were “out of control”. Finally, the two sides reached a settlement and the relevant licenses were successfully handed over, but the operation has not improved.
Source: company announcement
original actual controllers and others were given disciplinary sanctions
On April 20, the Shenzhen Stock Exchange announced the decision to impose disciplinary sanctions on The Great Wall Of Culture Group Holding Co.Ltd.Guangdong(300089) , former actual controllers and other relevant parties. It was found that the company failed to establish, improve and effectively implement internal control, and there were a number of violations, such as large amount of funds being occupied by non operating related parties such as controlling shareholders, illegal provision of external guarantees, false records in the 2018 annual report and so on, involving large amount of money and bad market impact.
According to relevant regulations, the Shenzhen Stock Exchange decided to publicly condemn the company, and publicly condemn the former actual controller, Cai Tingxiang, then chairman and general manager, Wu Danzhu, then director and deputy general manager, who acted in concert with the original actual controller, Xu gaolei, then director, Ren Feng, then director and Secretary of the board of directors, Luo Chenpeng, then chief financial officer, and CAI Xuekai, then deputy chief financial officer.
In addition, the Shenzhen Stock Exchange also gave Cai Tingxiang the punishment of publicly determining that he was not suitable to serve as a director, supervisor and senior manager of a listed company within ten years, and Xu gaolei, the then director, the punishment of publicly determining that he was not suitable to serve as a director, supervisor and senior manager of a listed company within five years.
Source: website of China Securities Regulatory Commission
accounting firms and parties warned
On April 22, Guangdong securities regulatory bureau announced the decision to issue a warning letter to ZTE caiguanghua Certified Public Accountants (special general partnership), Zhao Haibin and Fu Lizheng.
It has been found that in the 2020 audit project of the great wall of culture, ZTE caiguanghua certified public accountants, Zhao Haibin and Fu Lizheng had a number of violations, including failure to obtain sufficient and appropriate audit evidence to determine whether there are major uncertainties in matters or situations that may lead to major doubts about the going concern ability of the auditee; Inadequate implementation of audit procedures related to monetary funds and failure to obtain sufficient and appropriate audit evidence for the rationality of the expected credit loss rate of overseas accounts receivable.
According to relevant regulations, Guangdong securities regulatory bureau decided to take administrative supervision measures to issue warning letters to ZTE caiguanghua certified public accountants, Zhao Haibin and Fu Lizheng, and required to do a good job of rectification in accordance with the regulations, conduct internal accountability to relevant responsible persons, and submit rectification reports and internal accountability within 30 days.
