The "counterfeiting" question was delayed in replying, and the three major violations of the enlightenment environment were ordered to be corrected by the regulator

Reporter | Wu Zhibang

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Since being questioned by the media about financial fraud, Enlightenment Environment (000826. SZ) has replied to the shenzhen stock exchange's inquiry letter again and again. On January 19, TusS Environment disclosed that on January 18, 2022, the Company received the Decision on Ordering Corrective Regulatory Measures against TusS Environment Technology Development Co., Ltd. (hereinafter referred to as the Decision) issued by the Hubei Regulatory Bureau of the Csrc.

According to the content of the decision, TusPark has been identified by the regulatory authorities as having committed the following illegal acts:

First, the information disclosure is inaccurate. On July 18, 2021, TusS Environment disclosed the implementation progress of 12 projects under construction in the "Reply Announcement on the Letter of Concern of the Shenzhen Stock Exchange", and found that there were differences between the description of the progress of some projects and the actual situation.

Second, the accounting is inaccurate. After investigation, it was found that the accounting basis of some of the company's projects under construction was not standardized and insufficient, and there were differences between the relevant accounting progress and the actual situation.

Third, related parties occupy the assets of listed companies. After investigation, it was found that the office buildings and dormitory buildings initially constructed by the company's Xiangtan project were continued by the related parties after the suspension of work, and were used by the related parties after completion. The two parties failed to go through the formalities for confirming and delivering and transferring rights in a timely manner. After the assets of the listed company were occupied, the disclosure obligations were not fulfilled, and the related parties did not provide compensation or pay consideration.

In this regard, the regulatory authorities require rectification: first, comprehensively self-examine the actual situation of the company's projects, comprehensively rectify the problems of inaccurate information disclosure and accounting, timely disclose the self-inspection and rectification and identify the relevant responsible persons; second, comprehensively self-examine the company's asset status, verify whether other related parties have encroached on the interests of listed companies, and take effective measures to safeguard the legitimate rights and interests of listed companies in a timely manner; third, comprehensively strengthen internal management, improve the internal governance structure, and effectively improve the level of accounting foundation. The company should complete the rectification before the disclosure of the 2021 annual report and report the rectification to the Hubei Securities Regulatory Bureau. The Hubei Securities Regulatory Bureau will record these measures in the integrity archives of listed companies in accordance with regulations, and carry out follow-up supervision work according to the rectification situation.

The interface news reporter noted that the project under construction for the enlightened environment was earlier questioned by the media about financial fraud. On October 22, 2021, TusS Environment received the "Letter of Concern about TusS Environmental Technology Development Co., Ltd." issued by the Shenzhen Stock Exchange. However, the Company has been slow to respond to the Letter of Concern, disclosing on October 29, 2021, November 5, 2021, November 12, 2021, November 19, 2021, November 26, 2021, December 3, 2021, December 10, 2021, December 17, 2021, December 24, 2021, December 31, 2021, and January 7, 2022. Announcement on the Extension of the Reply to the Letter of Concern of the Shenzhen Stock Exchange.

TusS Environment's 2021 semi-annual report shows that the company's operating income in the first half of the year was 3.864 billion yuan and net profit was -3.898 billion yuan. According to the first quarter of 2021, the company's shareholders' equity attributable to the parent company totaled 13.464 billion yuan, which means that TusPark lost about a quarter of the company's net assets in the first half of 2021. The company pointed out that the main reason was that the company comprehensively sorted out the existing assets and projects, some projects planned to be strategically withdrawn, and the company made an impairment of the relevant assets in accordance with the provisions of the Accounting Standards for Business Enterprises. Since then, investors have questioned the company's financial bath, and more related reports have accused Tuspark of financial fraud. Amid the skepticism, TusS Environment's stock price continued to plummet.

In addition to the above-mentioned impacts, TusPark has a relationship with another listed company, Chengfa Environment (000885. SZ) absorption merger has also been delayed.

On the evening of October 26, 2021, at the same time as the announcement of the change in the stock price of TusS Environment was disclosed, the WeChat public account named TusHoldings announced that the relevant doubts and reports led to the signing of the documents and the special board of directors of the audit institution that was originally scheduled to be held on October 22.

Judging from the decision letter received by TusPark from the Hubei Securities Regulatory Bureau, it may prove that there are information disclosure violations in the company. So, does the above situation affect the company's absorption and merger matters?