The fewer words, the bigger the matter, and if you don't mention a word, then the knowledge may be more profound.
On the evening of April 10, the dust settled on the financial fraud of the listed company SIIC, and the China Securities Regulatory Commission issued the "Administrative Penalty Decision", but strangely, compared with the "Administrative Penalty Prior Notice" issued on March 19, there was an important content missing: the administrative punishment for the protagonist of the fraud incident was missing.
The protagonist's name is Cao Wenlong, and the following is the punishment for Cao Wenlong in the prior notice:
"A fine of 4 million and a 10-year ban on the securities market"
But when it came to the punishment decision, there was no mention of it.
As emphasized in the advance notice above, Cao Wenlong's circumstances are relatively serious and he is a "principal offender", and experience and common sense tell us that it is impossible for the "principal offender" to be exempt from punishment.
This thing is abnormal, and there must be a "demon" in it.
However, before "catching demons", it is necessary for us to briefly review the fraud of SIIC.
SIIC Development's main real estate business, which is subordinate to the sequence of local state-owned enterprises of Shanghai State-owned Assets Supervision and Administration Commission, has performed remarkably in this round of adjustment cycle, and has also doubled the public's trust in state-owned enterprises.
However, there will also be bad guys in the ranks of state-owned enterprises, and the financial fraud of SIIC Development was planned and implemented by the bad guys who were mixed in.
According to public information, SIIC Development was listed in 2003 through backdoor Shanghai Pudong Stainless Steel, and in 2015, it acquired a company called Shanghai Longchuang, and then changed its name to SIIC Longchuang.
Cao Wenlong did not sell all the shares of SIIC Longchuang and retained 15%, and at the same time subscribed for part of the non-public additional shares of SIIC, so that he could continue to serve as the chairman of SIIC.
That is, since 2016, Cao Wenlong has started a 6-year road of financial fraud, and from 2016 to 2021, he has fabricated a total of 4.7 billion revenue and more than 600 million profits.
It stands to reason that the company has been sold to others, and he is at best a part-time worker who holds shares, so where is the motive for fraud?
Of course, Cao Wenlong will not do things without a name, when SIIC Longchuang was acquired, it made a performance commitment, if it could not be reached, it would be necessary to come up with real money to compensate, so under Cao Wenlong's careful planning, SIIC Longchuang accurately and perfectly fulfilled the promise.
How accurate it is, just look at the data comparing the promised and actual non-net profits in 2015-2017:
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In 2015, 58 million were promised, and 59.53 million were actually completed.
In 2016, 68 million were promised, and 68.604 million were actually completed.
In 2017, 76.7 million were promised, and 77.6136 million were actually completed.
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Look, the overall deviation rate is only 1.5%, what Cao Wenlong did at the beginning was a performance commitment, which is simply to foresee the future.
Of course, such a result is a win-win situation, Cao Wenlong got what he wanted, and SIIC Development as the acquirer was also very happy, but the fake one can't be true, and he often walks by the river, and it is inevitable that his shoes will get wet.
Since the business is fake, there will naturally be accounts receivable, and every year it is fake, of course, there will be more and more accounts receivable, and everyone doesn't care when it is less, and it will be obvious once it is saved.
At the beginning of 2022, SIIC Development's self-examination found that the accounts receivable accumulated by SIIC Longchuang for many years of fraud had reached 2.6 billion, and it could not be recovered.
Cao Wenlong was not only immediately dismissed, but also involved in a criminal lawsuit, and in June 2022, Cao Wenlong was taken criminal coercive measures by the public security organs.
Since then, however, there has been no further news about Cao Wenlong.
The matter was done by Cao Wenlong, but it was SIIC Development that used fake data, and it was the shareholders who were blinded for 6 years, so in January 2023, the CSRC filed a case against SIIC Development, and then there was the previous administrative penalty.
At this point, the ins and outs of the matter are probably over, so why didn't the CSRC punish Cao Wenlong?
According to the relevant provisions of the Administrative Punishment Law of the People's Republic of China, if the illegal act is suspected of being a crime, it should be transferred to the judicial organ for criminal responsibility, and the administrative liability will not be pursued.
In other words, Cao Wenlong's mistake is no longer redeemable by "a fine of 4 million and a 10-year ban on the securities market", and since the CSRC has exempted from administrative punishment, it means that Cao Wenlong will most likely be held criminally responsible.
SIIC once disclosed that Cao Wenlong's fraudulent method was idling trade, that is, there was no substantive business, and he just used funds to run around several companies.
At the end of 2020, SIIC Longchuang sued the company that docked with itself for idling trade on the grounds of contract fraud.
However, it is difficult to determine who is right and wrong in this kind of thing, after all, everyone is not clean, but the money cannot be recovered, which is the loss of real GY assets.
Who is the main character? Cao Wenlong.
Therefore, the gray pigeon boldly guessed that Cao Wenlong probably went in.