777pubwin| Supervision takes action! Measures were taken against CITIC Securities and Dongguan Securities
Source: China Fund Daily
Nan Shen, a reporter from China Fund News.
May 10th777pubwinIssued by Guangdong Securities Regulatory Bureau777pubwinTwo decisions on administrative supervision measures have been issued, involving Dongguan Securities and CITIC Securities. The two brokerages and related personnel have been taken to issue warning letters of regulatory measures.
From the point of view of the subject matter, Dongguan Securities, as the listed sponsor of Quanwei Technology, and CITIC Securities, as the continuous supervision institution of Quanwei Technology, are all involved in the financial fraud of Quanwei Technology's trade business from 2019 to the first half of 2020.
In November 2023, Quanwei Technology announced that it received the Administrative penalty decision of Guangdong Securities Regulatory Bureau. After investigation, the company falsely increased its business income in 2019.777pubwin.57 billion yuan, operating cost 5777pubwin52 billion yuan, accounting for 21.4% and 23.36% of the operating income and operating costs recorded in the current report, respectively; the falsely increased business income of 344 million yuan and operating costs of 340 million yuan in the first half of 2020, accounting for 28.97% and 33.33% of the operating income and operating costs recorded in the current report, respectively.
Two brokerages received warning letters at the same time.
After investigation, Dongguan Securities, as a sponsor for the initial public offering of Guangdong Quanwei Science and Technology Co., Ltd. (former Guangdong National Science and Technology Co., Ltd.), there are the following violations in the process of continuous supervision and performance: first, the authenticity of large capital transactions of listed companies has not been carefully verified; second, it has not completed the 2019 on-site inspection report as required.
The above actions of Dongguan Securities violate the provisions of item 6 of Article 31 of the measures for the Administration of recommendation Business of Securities issuance and listing (CSRC order No. 137). As representatives of sponsors, Yao Genfa and Yang Na bear the main responsibility for the above violations. In accordance with Article 62 of the measures for the Administration of Securities issuance and listing sponsor Business (Securities Regulatory Commission order No. 137), Guangdong Securities Regulatory Bureau decided to take administrative supervision measures of issuing warning letters to Dongguan Securities, Yao Genfa and Yang Na.
After investigation, Citic Securities, as a continuous supervision institution for the initial public offering of shares of Quanwei Technology, has committed the following violations in the process of continuous supervision:
First, the verification of the relationship between customers and suppliers of p-xylene trade business is insufficient; second, the verification of the authenticity of p-xylene trade business is insufficient; third, in the examination of p-xylene business documents, it does not pay attention to the obvious difference between the shipping companies corresponding to the transport contract and the cabin measurement report; fourth, in the examination of p-xylene business documents, it does not pay attention to the obvious anomalies in the loading port stipulated in the sales contract and charter party.
The above actions of CITIC Securities violate the provisions of item 6 of Article 28 of the measures for the Administration of Securities issuance and listing sponsor Business (Securities Regulatory Commission order No. 170). As sponsor representatives, Ling Peng and Pu Ruihang bear the main responsibility for the above violations. According to the provisions of Article 65 of the measures for the Administration of Securities issuance and listing sponsor Business (CSRC order No. 170), Guangdong Securities Regulatory Bureau decided to take administrative supervision measures of issuing warning letters to CITIC Securities, Ling Peng and Pusui Airlines.
Quan falsely added 900 million yuan to science and technology in one and a half years.
Quanwei Technology previously announced that the company received the notice of filing a case by the China Securities Regulatory Commission on June 15, 2023, received a notice of punishment in advance on August 23, 2023, and officially landed on November 3, 2023.
The supervision found out that from August 2019 to June 2020, Quan was the national supply chain of the former holding subsidiary of science and technology, carrying out xylene trading business by shipping, introduced by Ke Yongjin and others. Xylene procurement contracts were signed with eight suppliers, including Maonan Diamond, Shanghai Bangyao, Zhongqian Petrochemical, Maoming Fidelity, Shanghai Yikuang, Shenzhen Qianhai Jinxin Silver Exchange, Zhuhai Runshengda, and carried out 38 batches of transactions.
On the day of signing the procurement contract, the national supply chain signed xylene sales contracts with five customers, including Guanxing Petrochemical (Hainan), Guangdong Puda, Guangxi Yellow River Energy, Guangxi Liuqi Investment and Fangyu Petrochemical (Hainan). The goods and quantity are completely consistent with the corresponding purchase contract, and the goods are agreed to be delivered by the above-mentioned customers. On the same day, the national supply chain, as the shipper and the supplier as the payer, signed a charter party with the relevant shipping companies, and the goods purchased and sold were carried out by the same shipping company on the same voyage.
There is an obvious abnormal relationship between the above-mentioned suppliers and customers, the charter party and transport documents are false, there is no actual delivery of goods for shipping and transportation in the procurement and sales links, and there is a capital circulation in the purchase and sale payment. When the national supply chain carried out the above-mentioned business, the business scope did not include dangerous chemicals, and took the initiative to ask Ke Yongjin to provide guarantees for both suppliers and customers, knowing that many links of the relevant transactions were obviously abnormal. Still recognize the operating income in full according to the domestic product sales business model, falsely increasing operating income and operating costs.
Quanwei Technology included the above false increase in business income and operating cost into the scope of the consolidated statement, with a false increase of 557 million yuan in business income and 552 million yuan in operating cost in 2019, accounting for 21.4% and 23.36% of the operating income and operating cost recorded in the current report respectively. In the first half of 2020, there was a false increase of 344 million yuan in business income and 340 million yuan in operating cost, accounting for 28.97% and 33.33% of the operating income and operating cost recorded in the current report, respectively.
To this end, Quan received the penalty of "ordering correction, giving a warning, and imposing a fine of 2 million yuan." Shao Jiantang, then the actual controller and chairman of the board, and senior executives such as Li Peihuan, Huang Xi, Zhong Hongbiao, and so on, also received warnings and imposed fines ranging from 500000 yuan to 800000 yuan.