Large maritime cruise rescue vessel "Haixun 06". The picture comes from the official website of China Heavy Industries
China Times (www.chinatimes.net.cn) reporters Yu Lili and Li Beibei report from Beijing
Recently, China Heavy Industry (SH601989) issued an announcement that the company was fined 1.5 million yuan for violating the law and violating the law, resulting in misstatement of annual reports for three consecutive years. At the same time, the then chairman and chief financial officer were also fined 600,000 yuan each. The reporter of this newspaper noted that the flush shows that China Heavy Industry currently has about 31,700 employees, with an average salary of 205,000 yuan.
China Heavy Industry Co., Ltd. was listed in 2009 with an issue price of 7.38 yuan, an increase of -5.28% since listing. Regarding the punishment by the Beijing Supervision Bureau of the China Securities Regulatory Commission, on December 22, the reporter of "China Times" called the phone number of China Heavy Industry several times, but the line seemed to be faulty, and the phone could not be connected, and there was no prompt waiting.
On the same day, Liu Peng, a lawyer from Shanghai Huzi Law Firm, told the China Times that shareholders who have suffered investment losses due to China Heavy Industry's illegal acts can file a civil lawsuit against the listed company. The reporter learned that the relevant lawyers are currently soliciting investors to initiate claims, and the lawyer's fees will be collected after the actual claim.
The then chairman was fined 600,000 yuan?
As early as July this year, China Heavy Industry has been filed by the China Securities Regulatory Commission. The time was postponed to December 20 this year, and China Heavy Industry issued an announcement, saying that it had received the "Prior Notice of Administrative Punishment" issued by the Beijing Supervision Bureau of the China Securities Regulatory Commission.
It is understood that the suspected illegal facts that China Heavy Industry has been identified are as follows: the inventory of the "subsidiary" was not "accurately provided for impairment" in the corresponding accounting period, resulting in an overstatement of 71.8124 million yuan in 2018, an overstatement of 107 million yuan in 2019, and an understatement of 122 million yuan in 2020. The above actions led to misstatement in China Heavy Industries' annual reports from 2018 to 2020.
According to the 2022 annual report of China Heavy Industries, from the perspective of business model, China Heavy Industries is a holding company, and its production and operation business is mainly carried out through its subsidiaries. The company's subsidiaries are mainly engaged in R&D, design, manufacturing and service business, and the main business model is a personalized order-based business model based on sales and production, and production is arranged according to the contract signed with customers.
Liu Zhigeng, a well-known financial and tax audit expert and chief consultant of Jiangsu Siwei Consulting Group, analyzed to the reporter of China Times that "impairment provision" is an important concept in accounting, which refers to a reserve fund that enterprises accrue in advance in order to cope with the possible risk of asset impairment, but after the impairment provision is made, the profits of the enterprise will be reduced accordingly.
Liu Zhigeng further analyzed that in the daily accounting of enterprises, the provision of "impairment provisions" requires the professional judgment of accountants. Accountants usually make a comprehensive judgment on whether there is a possibility of impairment of assets and the extent and impact of impairment based on the actual situation of the relevant assets of the enterprise and various factors such as the market environment.
Liu Zhigeng said that according to their own needs, some enterprises use the so-called "professional judgment" to judge whether the "impairment provision" should be mentioned when not mentioning, and when it should be mentioned more, it is not mentioned or even not mentioned, so as to adjust the possible adverse impact on profitability. If it is understandable that the "professional judgment" is wrong for one or even two years, but if the "professional judgment" is wrong for three consecutive years, it is very undesirable, and there is a great possibility of artificially and deliberately adjusting profits.
The reporter learned that on December 12 this year, China Heavy Industry issued the "Announcement on the Correction of Accounting Errors in the Previous Period" and took the initiative to correct the relevant annual report data.
According to the Beijing Supervision Bureau of the China Securities Regulatory Commission, considering that some of the illegal acts occurred during the implementation of the Securities Law in 2005, the misstatement of the annual report in this case was mainly caused by accounting problems, and China Heavy Industries took the initiative to correct it, and the penalty range was determined in accordance with the law in combination with the above circumstances.
The Beijing Supervision Bureau of the China Securities Regulatory Commission issued a warning to China Heavy Industry and imposed a fine of 1.5 million yuan, Wang Liang, then chairman and general manager, and 600,000 yuan, and Yao Zuhui, then deputy general manager (presiding over the work) and chief financial officer, and Yao Zuhui, then deputy general manager (presiding over the work) and chief financial officer, was warned and fined 600,000 yuan.
The reporter learned from the 2022 annual report of China Heavy Industry that from February 24, 2023, Wang Liang will no longer serve as the chairman of China Heavy Industry and will retire. At the same time, the chairman of China Heavy Industry has been changed to 57-year-old Wang Yongliang. Wang Liang, who was 60 years old at the time, received a pre-tax remuneration of about 890,000 yuan from China Heavy Industry in 2022. Yao Zuhui, who was 56 years old at the time, received a pre-tax remuneration of about 900,000 yuan from China Heavy Industry in the same year.
The reporter of this newspaper noted that as of the end of April this year, among the 18 senior executives of China Heavy Industry, except for the 45-year-old director Fu Xiangzhao, the rest of the executives are over 50 years old.
Shareholders lose money due to letter approval violations, and lawyers raise investors to protect their rights
Listed on the Shanghai Stock Exchange in 2009, China Heavy Industry Co., Ltd. (SBS) is a listed company engaged in the R&D, design and manufacture of ships, and its main business covers five major business segments: marine defense and marine development equipment, marine transportation equipment, deep-sea equipment and ship repair and modification, ship supporting and mechanical and electrical equipment, strategic emerging industries and others.
According to the official website, as a major supplier of naval equipment, China Heavy Industry's military business areas mainly include: aircraft carriers, submarines, large, medium and small surface combat ships, large amphibious assault ships, military auxiliary ships, etc. The company's civilian business areas mainly include: bulk carriers, container ships, oil tankers, gas tankers, offshore ships, scientific research ships and other equipment.
Flush shows that China Heavy Industry currently has 31,740 people, with an average salary of 205,000 yuan. In 2022, China Heavy Industry's revenue will be 30.3 billion yuan, an increase of 16.72% year-on-year. The net profit attributable to the parent company was -2.212 billion yuan, a year-on-year decrease of 1106.06%.
Judging from the first three quarters of this year, China's heavy industry economy is running steadily and improving, achieving operating income of 30.302 billion yuan, a year-on-year increase of 16.72%. In the first three quarters of this year, the company deeply implemented "cost engineering", continued to reduce manufacturing costs, strengthened lean management, improved production efficiency, and increased operating gross profit margin by 3.22 percentage points year-on-year in the reporting period.
On December 22, the reporter of this newspaper called China Heavy Industry several times, but could not get through. On the same day, Liu Peng, a lawyer from Shanghai Huzi Law Firm, told a reporter from China Times, "China Heavy Industry will have a huge net profit loss of 2.2 billion yuan in 2022 and a net profit loss of 111 million yuan in the third quarter of 2023, narrowing the year-on-year loss and reducing the loss, which shows that the company is developing for the better." Shareholders of China Heavy Industries who have suffered investment losses due to violations of laws and regulations can file a civil lawsuit against the listed company, but investors also need to meet some conditions. ”
"According to relevant laws and regulations, investors who bought between April 27, 2019 and July 12, 2023, and sold or still held after July 13, 2023 and lost money are eligible for compensation," said lawyer Liu Peng. Shareholders who meet the above conditions can independently sign up to participate in rights protection through the official account of 'Shareholder Claim Treasure' or the official website, and the lawyer's fee will be collected after the actual compensation. ”