The Victorious Escape of the Promoters Behind the Scenes? The Counterfeiter Xilong Science Will Face...
Value Line | produce
Hotspot | Column
Bian Jiang| author
Value line guide
I finally can't stand it anymore!
The demon stocks with 8 daily limits in 9 trading days received a letter of concern from the exchange last night, and a number of sharp questions pointed directly to the "key point".
Today, the company's stock price finally fell by 7.75%.
A few days ago, Xilong Science was on the hot search of various stock information platforms, on the one hand, its stock price rose sharply in the short term, and on the other hand, it was the unbearable history of its fraud.
Waiting for such a company that is famous for its huge fraud and has a bad track record is not a severe punishment for delisting, but a boom in the stock price.
Who is "making the tide", and what is it reflecting?
2.8 billion for fraud and a fine of 3.9 million
In the past three years, a company with a market value of several billion yuan has been involved in the fraud of 2.8 billion yuan in revenue.
On July 7 this year, the Guangdong Regulatory Bureau imposed a penalty on Xilong Science for inflating revenue and profits through fictitious trading businesses such as ethylene glycol and methanol from 2020 to the first half of 2022 in order to increase the scale of trade to facilitate financing.
The specific inflated data is as follows:
In 2020, the inflated operating income was 598 million yuan, the operating cost was 596 million yuan, and the total profit was 1.6587 million yuan, accounting for 9.57%, 10.34%, and 2.04% of the total operating income, cost, and profit for the current period, respectively.
In 2021, the inflated operating income was 1.458 billion yuan, the operating cost was 1.444 billion yuan, and the total profit was 13.4805 million yuan, accounting for 21.32%, 22.98%, and 5.93% of the total operating income, cost, and profit in the current period, respectively.
In the first half of 2022, the inflated operating income was 785 million yuan, the operating cost was 777 million yuan, and the total profit was 8.1249 million yuan, accounting for 22.94%, 22.97%, and 8.98% of the total operating income, cost, and profit in the current period, respectively.
Xilong Science has inflated its revenue by 2.8 billion in two and a half years, which is almost catching up with the circulating market value before the stock price was speculated, which can be described as bold.
It can be seen that Xilong Science is getting bolder and bigger: the company's three inflated data in 2021 are much larger than those in 2020, and it will still not converge in the first half of 2022 and continue to inflate data on a large scale.
However, the company and its executives were fined a total of 3.9 million yuan, of which the company was fined 1.2 million yuan.
Specifically, Huang Shaoqun was given a warning and fined 800,000 yuan, Huang Weipeng was given a warning and fined 800,000 yuan, Zhang Jianguo was given a warning and fined 600,000 yuan, and Wang Qingdong was given a warning and fined 500,000 yuan.
Among them, Huang Shaoqun is the chairman of the board of directors and Huang Weipeng is a non-independent director. In early November, the company announced that the parties involved had been publicly reprimanded.
It has to be said that the amount of the penalty is really very different from the inflated amount.
It is worth mentioning that the inflated financial data is essentially financial fraud, but Xilong Science does not say so, the company issued a correction announcement on the above errors on April 29, 2023, and the company has changed 3 financial directors in the past 5 years.
In addition, between 2020 and 2022, the actual controller illegally occupied 185 million of the company's funds. According to the statistics of choice, since the listing, the actual controller's family has cashed out more than 1 billion, and the company has earned a total of 1.025 billion over the years, which may be more than the company has earned in so many years.
Historically, good at catering to hype
The Shenzhen Stock Exchange issued another letter of concern
In addition to performance fraud, Xilong Science has historically been a master of catering to the hype of the theme.
Founded in 1994, Xilong Science was the first to engage in the research, production and sales of chemical reagents, and was listed on the Shenzhen Stock Exchange in 2011.
Since its listing, Xilong Science has begun to make large-scale mergers and acquisitions, crossing over to hot medical fields such as in vitro diagnostics, medical devices, and gene sequencing.
For many years, cross-border medical care has been a bamboo basket for nothing, like a dream.
Until November 19, 2021, an article on the WeChat public account of Xilong Science "Breaking the barrier, Xilong Science 3HP is coming!", which mentions: 3HP with enhanced anti-new coronavirus activity can be produced by Xilong Science!
(Source: Xilong Science Public Account)
Then, investors asked about Xilong Science's 3HP products on the interactive easy, and the reply of the secretary of the board of directors was very profound.
Every time this voice is spoken, the stock price of listed companies will usher in a wave of rise, from 6.11 yuan / share to 13.74 yuan / share in less than two months, more than doubled.
This matter naturally attracted the attention of the Shenzhen Stock Exchange, but the listed company was quite quick to coax, and the sentence "The company is not involved in the new crown drug business, and the relevant description is objectively quoted from the paper" picked itself cleanly.
(Source: Xilong Science Bulletin 20220129)
Recently, Xilong Science has rubbed on the concept of photoresist again, and the stock price has taken off again.
In a record of investor relations activities disclosed by Xilong Science in September this year, investors have repeatedly asked about the topic of photoresist. The company has said that the company's current products include photoresist supporting reagents, such as stripping solution, developer solution, etching solution, cleaning solution, etc., and customer information is a commercial secret.
In response to the question raised by investors "is the company still investing in R&D in chip photoresist", Xilong Science has said that "the company will adjust R&D investment in a timely manner according to market changes and demand", and then there was a recent wave of crazy hype.
After the Shenzhen Stock Exchange issued a letter of concern last night mentioning a number of specific and acute issues, the company's stock price fell 7.75% today.
The Shenzhen Stock Exchange requires the company to explain the specific impact of relevant concepts on the company's production and operation based on the industrial chain pattern of photoresist supporting reagent related products and the proportion of relevant income in operating income, and fully indicate the risks.
In addition, we will provide sufficient risk warnings for the recent sharp fluctuations in stock prices, check whether there is material information that should be disclosed but has not been disclosed, and whether there is any situation of actively catering to market hotspots and speculating on the company's stock price.
Who is the "driver" of the stock price?
In recent trading days, Xilong Science has repeatedly appeared on the Dragon and Tiger list, and many top tour capitals have entered the market, beating drums and passing flowers. And just yesterday, the establishment also fled in victory!
On November 9, 12.37 million people entered Liyang Road in Shanghai
On November 10, 41.68 million people entered Zhongguancun in Beijing
On November 14, Fang Xinxia entered 23.06 million
On November 15, Shangtang Road and Fang Xinxia entered 35.38 million and 27.44 million respectively
On November 17, Ningbo Sangtian Road entered 25.18 million
On November 20, the Dongcai retail investor brigade bought many seats, while three institutions sold aggressively.
Of course, this is only what everyone can see on the surface, and those hands behind that are broken up and cannot be seen may be more terrifying and have more dominant power.
In a game of drumming and passing flowers, someone will always eat meat and someone will pay!
Finally, let's take a look at the price of the 4 billion fraud in the US stock market:
1. Enron was fined $500 million by the U.S. Securities and Exchange Commission, the stock was delisted, and the company declared bankruptcy.
2. Enron CEO Jeffrey Skiling was sentenced to 24 years in prison and fined $45 million, financial fraud mastermind Festo was sentenced to six years in prison and fined $23.8 million, and company founder Kenneth Lane was fined $12 million despite his death.
3. Arthur Andersen, which provided the audit for Enron, was fined $500,000 by the U.S. District Court for the District of Houston and banned from engaging in business for five years, which eventually led to bankruptcy, and the world's five largest accounting firms became the "Big Four".
4. The three major investment banks responsible for Enron's listing were heavily fined, with Citigroup, JPMorgan Chase, and Bank of America convicted of alleged financial fraud, and paid $2 billion, $2.2 billion, and $69 million in compensation to Enron's bankruptcy victims, respectively.
5. In the end, the shareholders received a settlement compensation of 7.14 billion US dollars.