According to the revelations, Fang Hongcheng's family revealed that in order to help Hesheng Silicon Industry successfully go public, Luo Liguo, chairman of the company, was suspected of forging the official seal of the state administrative organ and defrauding the approval and verification of the China Securities Regulatory Commission. At the same time, in the process of listing, there are a large number of projects that have not been approved and built first, which contain huge potential safety hazards, but these hidden dangers have not been disclosed in accordance with the law
文 / NE-SALON新能荟小编团
On January 26, Sun Lichen, the wife of Fang Hongcheng, the former general manager of Hesheng Silicon, issued a public document again (hereinafter referred to as the whistleblower letter), reporting in real name that Luo Liguo, chairman of Hesheng Silicon, had forged official documents, concealed hazardous waste disposal and fraudulent listing.
According to the revelations, Fang Hongcheng's family revealed that in order to help Hesheng Silicon Industry successfully go public, Luo Liguo, chairman of the company, was suspected of forging the official seal of the state administrative organ and defrauding the approval and verification of the China Securities Regulatory Commission. At the same time, in the process of listing, there are a large number of projects that have not been approved and built first, which contain huge potential safety hazards, but these hidden dangers have not been disclosed in accordance with the law.
Falsifying a "Statement of Facts" to Fool the CSRC's Approval?
In the report letter, Fang Hongcheng's family said that in 2011 and 2012, Hesheng Silicon Industry falsely declared the original value of the real estate involved in the real estate tax, and was punished by the Jiaxing Local Taxation Bureau and made a "Tax Administrative Penalty Decision". When the media exposed the matter, the person in charge of the sponsor CITIC Securities' Hesheng (Silicon) IPO project and the issuer's lawyer proposed that the administrative penalty should be revoked before the verification opinion could be issued.
After the communication between Fang Hongcheng and others and the tax department of Jiaxing City, although the tax department agreed to issue a document, the secretary of the board of directors of Hesheng Silicon Industry at that time issued a document in the WeChat group
(Source: WeChat public account of Fang Hongcheng's family)
Based on the forged Fact Sheet, the issuer's lawyer issued a so-called "verification opinion", claiming that the penalty had been reconsidered and successfully had the tax authorities revoke the penalty.
Regarding the above Sun Lichen's elaboration in the letter, some media called the Jiaxing Municipal Taxation Bureau as soon as possible. According to the staff of the tax office
Illegal production of low-boiling hydrolyzed oil?
In the letter, Sun Lichen also reported that the output of low-boiling matter, which is a by-product of organic silicon produced by Hesheng Silicon, accounts for about 1-1.5% of organic silicon monomer. Low boiling substances are tricky to deal with because they have low boiling point, low flash point, flammable, explosive and corrosive. Prior to 2011, the Hesheng Jiaxing plant had violated regulations by treating low-boiling substances in wastewater ponds. However, with the continuous expansion of production capacity and increasingly strict environmental protection supervision, this illegal handling method can no longer meet the production demand. For more than a decade, the production activity has not been officially approved by the relevant safety and environmental protection authorities.
Under the instructions of Luo Liguo and others, Hesheng Silicon will not treat the low boiling matter as hazardous waste, in order to ensure the smooth production of Hesheng Silicon,
Build before approval, conceal safety production problems?
In the letter, Sun Lichen also reported that the organic silicon monomer disclosed in the prospectus of Hesheng Silicon Industry involved production capacity and actual inconsistencies.
Many graphite electrode production plants and their gas generator units emit large amounts of pollutants, but their exhaust gases, waste water and solid waste are not disclosed.
The above is a rough overview of the contents of the report, and the following is a background review.
The professional manager was arrested, and the wife cried out for her husband on the Internet
Fang Hongcheng, from October 2009 to December 2018, successively served as the deputy general manager and general manager of Hesheng Silicon, and in December 2018, Fang Hongcheng applied for resignation from all positions in Hesheng Silicon due to personal reasons, including the company's director, general manager and member of the strategy committee of the board of directors.
In November 2022, he was transferred to the procuratorate for review and prosecution, and the cause of the case was suspected of embezzlement during his tenure in Hesheng Silicon Industry, and his younger brother Fang Hongxing was also involved.
At that time, Hesheng Silicon announced that although Fang Hongcheng had resigned from the company in December 2018, after his resignation, he learned from the public security organ that Fang Hongcheng, the former director and general manager of the company, had been investigated by the public security organs and transferred to the procuratorate for review and prosecution on suspicion of embezzlement.
On November 12, 2023, Sun Lichen, the wife of Fang Hongcheng, the former head of Hesheng Silicon Industry, released a 4,000-word report letter through a WeChat account named "Fang Hongcheng's family in the unjust case". In the letter,
In addition, the whistleblower also detailed the criminal case involving Fang Hongcheng and his brother, as well as the dispute over the illegal production safety of Hesheng Silicon. In order to prove his point, the whistleblower also cited a number of evidences such as public security organ documents and announcements of listed companies.
Subsequently, Hesheng Silicon responded to the content of the report letter one by one. Regarding the issue of equity disputes, Luo Liguo, chairman of the company, believes that he refused to give dividends, so the two sides went to court.
As for the plan to relocate the company, Halcyon Silicon explained that it was because the original office space could no longer meet the company's management needs, but in order to.
Even if there is pressure from public opinion, it has not stopped the pace of making money in Hesheng Silicon.
Rely on silicon materials to make a fortune, tens of billions of photovoltaics
In 2021, Hesheng Silicon Industry performed impressively, with a net profit of 8.176 billion yuan, a year-on-year increase of 507%, closely following LONGi (8.827 billion yuan), which is inseparable from the rapid development of the photovoltaic market, which has led to a surge in demand for silicon materials. In the same year, the industrial silicon and organic silicon production capacity of Hesheng Silicon ranked first in the world, and the share price of Hesheng Silicon also soared to 257.41 yuan, with a market value of nearly 300 billion yuan.
However, in the face of today's industry winter, polysilicon has also fallen into a downturn. In 2023 alone, polysilicon prices have dropped sharply from a record high of 200,000 yuan/mt to less than 70,000 yuan/mt, which has also led to a significant reduction in the profits of Hesheng Silicon. According to the data, in the first three quarters of 2023, the net profit attributable to the parent company of Hesheng Silicon Industry was 2.185 billion yuan, a year-on-year decrease of 52.3%.
Hesheng Silicon is still quite optimistic about the future of the photovoltaic industry. In 2022, Hesheng Silicon decided to invest 85 billion yuan to build a global silicon-based industry chain, especially focusing on the photovoltaic industry. In April 2023, another large investment was announced: 42.585 billion yuan for the construction of a project in Xinjiang with an annual output of 20 GW of photovoltaic modules, 500,000 tons of photovoltaic glass production for new energy equipment, and an annual output of 200,000 tons of high-purity crystalline silicon.
Epilogue:
In the dilemma of "chicken feathers in one place", Hesheng Silicon decided to expand production against the trend in the cold winter of the photovoltaic industry and implement an integrated strategy. Whether this is a wise move remains to be seen. In the face of this new round of reporting, it is not yet known how Hesheng Silicon Industry will face it, so stay tuned for what will happen next!
来源：NE-SALON新能荟 LY