After a series of storms, such as the refusal of the chief financial officer to sign the annual report, the loss of contact and the release of supervision, Fortune Ng Fung Food (Hebei) Co.Ltd(600965) ( Fortune Ng Fung Food (Hebei) Co.Ltd(600965) , SH) completed a new round of replacement on May 19.
After the change of office, Cheng Jing, the “lost” chief financial officer, refused to sign the annual report and the first quarterly report due to financial verification and financial independence of listed companies. Cheng Jing, the newly appointed chief financial officer, served as the financial manager of Fortune Ng Fung Food (Hebei) Co.Ltd(600965) controlling shareholder Fucheng Investment Group Co., Ltd. (hereinafter referred to as “Fucheng group”).
In addition, Yu Weihong was appointed as Fortune Ng Fung Food (Hebei) Co.Ltd(600965) vice chairman. The new executive last appeared in the announcement issued by Fortune Ng Fung Food (Hebei) Co.Ltd(600965) on May 12. When replying to the reasons for not signing, Cheng Jing, then chief financial officer, mentioned: Fortune Ng Fung Food (Hebei) Co.Ltd(600965) all payments must be approved by Yu Weihong, general manager of Finance Department of Fucheng group. The chief financial supervisor of listed companies has no signing right and is only responsible for consolidated statements.
chief financial officer replaced after the storm
On May 19, Fortune Ng Fung Food (Hebei) Co.Ltd(600965) issued the announcement of the resolution of the annual general meeting of shareholders and the announcement of the resolution of the first meeting of the eighth board of directors.
The reporter of the daily economic news noted that after the change of office, Cheng Jing, the chief financial officer, will no longer serve as Fortune Ng Fung Food (Hebei) Co.Ltd(600965) chief financial officer. Previously, Cheng Jing refused to sign the annual report and the first quarterly report due to financial verification and the financial independence of listed companies, and then “lost contact” and the company called the police.
On May 17, Fortune Ng Fung Food (Hebei) Co.Ltd(600965) announced that it had received the advance notice of administrative supervision measures and the decision of administrative supervision measures from Hebei securities regulatory bureau. Among them, Cheng Jing, the chief financial officer, failed to fulfill the legal obligation to sign a written confirmation opinion on the periodic report and planned to take regulatory measures to identify Cheng Jing as an inappropriate candidate in accordance with the administrative measures for information disclosure of listed companies and other provisions.
The newly appointed Vice Chairman and chief financial officer after the change of office all have working experience in Fortune Ng Fung Food (Hebei) Co.Ltd(600965) controlling shareholder Fucheng group.
Fortune Ng Fung Food (Hebei) Co.Ltd(600965) the new chief financial officer is Zhen Lanlan. According to the announcement of the resolution of the board of directors, Zhen Lanlan once served as the financial manager of Fucheng group, the chief financial officer of Beijing lechuang Jiye Technology Co., Ltd., the financial manager of Beijing Jinhui Xiangyu Technology Co., Ltd., Beijing Dabeinong Technology Group Co.Ltd(002385) group – green Nonghua finance and the accountant of Beijing huizhongcheng certified public accountants.
At the same time, the announcement of the resolution of the board of directors also shows that Yu Weihong, general financial manager of Fucheng group, was elected as Fortune Ng Fung Food (Hebei) Co.Ltd(600965) vice chairman.
In the announcement issued by Fortune Ng Fung Food (Hebei) Co.Ltd(600965) on May 12, Cheng Jing, then chief financial officer, said in reply to the reasons for not signing: Fortune Ng Fung Food (Hebei) Co.Ltd(600965) all payments must be approved by Yu Weihong, general manager of Finance Department of Fucheng group. The chief financial officer of listed companies has no signing right and is only responsible for the consolidated statements, requiring Fortune Ng Fung Food (Hebei) Co.Ltd(600965) accountant and cashier to issue a letter of guarantee and promise that “if the payment is not signed by Yu Weihong, it will be treated as embezzled public funds”.
Li Liang continued to serve as Fortune Ng Fung Food (Hebei) Co.Ltd(600965) chairman and general manager. In March 2021, Li Gaosheng announced his resignation as Fortune Ng Fung Food (Hebei) Co.Ltd(600965) chairman and general manager, and then Li Liang was elected chairman Fortune Ng Fung Food (Hebei) Co.Ltd(600965) prospectus and 2021 financial report show that Li Gaosheng and Li Gaoqi are the sons of Li Fucheng and Li Liang is the son of Li Gaosheng.
Judging from the results of the change of office after the storm, Fortune Ng Fung Food (Hebei) Co.Ltd(600965) among the senior executives, there are many figures of the controlling shareholder Fucheng group.
actual control of human heart cattle business
The “lost contact farce” of Fortune Ng Fung Food (Hebei) Co.Ltd(600965) , originated from Li Fucheng’s cattle raising business.
After Li Fucheng announced his retirement, his son Li Gaosheng took over. According to the financial data of Li Gaosheng during his term of office, the live cow business has been in a state of loss, and Li Fucheng seems not satisfied with it.
In a press release entitled “intraday limit for doubling the performance of Fortune Ng Fung Food (Hebei) Co.Ltd(600965) semi annual report” published on Fortune Ng Fung Food (Hebei) Co.Ltd(600965) official website in August 2021, it was mentioned that “Mr. Li Gaosheng is not optimistic about the development prospect of cattle industry, and Mr. Li Fucheng has criticized for many times, but the effect is poor. In 2018, the company sold its cattle raising and slaughtering business.”
In the sale announcement in 2018, Fortune Ng Fung Food (Hebei) Co.Ltd(600965) said that the reason for the sale was that the environment of the company’s animal husbandry and slaughtering processing industry had changed, and the industry was in a state of continuous loss, its weakness had affected the further improvement of the company’s performance, and the company’s main business had changed greatly, especially the funeral service industry was the main source of profit.
However, the business was not sold to others in the end. According to Fortune Ng Fung Food (Hebei) Co.Ltd(600965) announcement, in 2018, the company signed the entrustment contract for non-state-owned property rights transaction with Beijing property rights exchange to transfer the relevant objects involved in the above business through public listing and bidding on the Beijing stock exchange. Finally, an intended transferee was recruited, namely the controlling shareholder Fucheng group. The transaction was finally announced to be completed in August 2021, with a total transaction price of 641 million yuan.
However, as soon as the money was sold, Fortune Ng Fung Food (Hebei) Co.Ltd(600965) announced that it would resume beef cattle breeding and slaughtering business. In July 2021, Fortune Ng Fung Food (Hebei) Co.Ltd(600965) announced that it planned to restart beef cattle breeding, slaughtering and processing business.
In 2021, Li Gaosheng resigned as chairman of Fortune Ng Fung Food (Hebei) Co.Ltd(600965) and his son Li Liang took over. The post-90s “three generations of enterprises” took over. The first thing is to restart the cattle raising business that Grandpa cherished. Cattle raising is Li Fucheng’s “old line”. Before becoming “Li Jiacheng in Yanjiao”, Li Fucheng’s most well-known name was “China’s ox king”. If the company wants to restart beef cattle breeding business, Li Fucheng “naturally” needs to give some guidance to his grandson.
It was also in the above press release that a conversation between the Lord and the sun was mentioned: “he (Li Liang) humbly asked his grandfather, Mr. Li Fucheng: ‘how can we lead the Fortune Ng Fung Food (Hebei) Co.Ltd(600965) rapid development?’ Mr. Li Fucheng told him: ‘in order to do a good job in the company, we must restore the beef cattle breeding and slaughtering business we sold before.'”
In Fortune Ng Fung Food (Hebei) Co.Ltd(600965) another article entitled Fortune Ng Fung Food (Hebei) Co.Ltd(600965) restart beef cattle breeding and beef cattle slaughtering and processing business, Li Liang wrote: after capturing the opportunity and outlet of “cattle breeding”, he repeatedly asked his grandfather, Li Fucheng, the former “king of Chinese cattle”, to help him rebuild Fortune Ng Fung Food (Hebei) Co.Ltd(600965) beef cattle breeding factory and slaughtering business.
In Fortune Ng Fung Food (Hebei) Co.Ltd(600965) , the narrative of this story is: regardless of his 76 year old age, Lao Niu Wang gave full help and guidance to Chairman Li Liang to start the construction of beef cattle farm at the end of April.
Combined with the recent storm of Fortune Ng Fung Food (Hebei) Co.Ltd(600965) project, from the perspective of the chief financial officer, “the production and operation management of the company has been seriously affected by major shareholders in recent years”.
From May to December 2021, Fortune Ng Fung Food (Hebei) Co.Ltd(600965) purchased live cattle. “The accumulated capital expenditure of this live cattle procurement exceeded 160 million yuan. Before the company verified the procurement materials and original vouchers, there was a risk of untrue procurement price and falsely high cost of biological assets, which had a great impact on the company’s regular financial data report.” Fortune Ng Fung Food (Hebei) Co.Ltd(600965) wrote in the announcement in reply to the supervision letter on May 11.
In addition, Cheng Jing mentioned in the reason why she did not sign the confirmation opinions of the annual report and the first quarterly report that in the process of purchasing live cattle, Fucheng group directly arranged group personnel to participate in the payment approval of Fortune Ng Fung Food (Hebei) Co.Ltd(600965) procurement business of listed companies; On March 10, 2022, Li Fucheng requested that the payment of meat products, instant food, slaughtering and cattle raising branches be stripped from the fund center of Fortune Ng Fung Food (Hebei) Co.Ltd(600965) financial management system. Xu Ping, who was seconded by Li Fucheng from other subsidiaries of the group, was in charge of financial work and no longer implemented the unified fund management system; At the meeting on April 21, 2022, it was announced that the listed company is the “son” of Fucheng group. All payments must be approved by Yu Weihong, general manager of the Finance Department of Fucheng group. The chief financial officer of the listed company has no signing right and is only responsible for the consolidated statements. Fortune Ng Fung Food (Hebei) Co.Ltd(600965) accountant and cashier are required to issue a letter of guarantee.
At present, the “lost contact farce” caused by the actual controller’s intervention in the independence of listed companies seems to have ended. On May 17, Fortune Ng Fung Food (Hebei) Co.Ltd(600965) received the advance notice of administrative supervision measures and the decision of administrative supervision measures from Hebei securities regulatory bureau, and the actual controller, chairman, secretary and chief financial officer of the company will be punished.
