On the evening of April 16, Hesheng Silicon Industry (603260. SH) issued the "Announcement on Partial Replies to the Regulatory Work Letter on Whistleblowing Matters", which replied to some of the questions in the regulatory letter issued by the Shanghai Stock Exchange to the company on January 28. On January 29, Fang Hongcheng, the former general manager of Hesheng Silicon Industry, was suspected of accepting bribes and embezzlement by non-state employees in the Pinghu Municipal People's Court.
At the same time, Hesheng Silicon issued the verification opinions of Shanghai AllBright Law Firm (hereinafter referred to as "AllBright Law Firm") and CITIC Securities, as the listing sponsor, on the reported incident, and responded to the reported matters, emphasizing that "due to objective reasons such as limited verification means, it is currently impossible to obtain sufficient materials and evidence", and it is not possible to draw conclusions on some of the reported matters, but the total production capacity of organic silicon monomers claimed by the company at the time of listing is 200,000 tons/year.
At the same time, Silver Persimmon Finance learned from Fang Hongcheng's family that as of April 16, the trial had reached the 22nd day, and the prosecution's evidence was nearing completion.
"Employee Fails to Report Punishment to the Company"
According to the reply announcement, according to the report, Hesheng Silicon Industry had been issued the "Tax Administrative Penalty Decision" (Zhejia Di Shui Ji Ji [2015] No. 95) by the Inspection Bureau of the Jiaxing Local Taxation Bureau on November 9, 2015, and in the process of the company's listing, the company forged the official document of the Jiaxing Municipal Tax Department, falsely claiming that the administrative penalty "has been decided to be revoked". The SSE requires the company to verify the relevant circumstances, and provide additional explanations on the specific reasons and status of the administrative penalty, and whether there is any forgery of official documents.
In this regard, Hesheng Silicon replied that according to the "Tax Administrative Penalty Decision" (Zhejia Di Shui Ji Zhi [2015] No. 95), the specific reasons for the punishment were: (1) the failure to withhold and pay the "other income" individual income tax in 2012 and 2013 totaling 18,724.80 yuan in 2012 and 2013 and 26,988 yuan in 2013 were all personal gifts for customers from other units, and the "other income" was not withheld and paid in accordance with the regulations Individual income tax, of which 3,744.96 yuan was withheld from "other income" in 2012 and 5,397.60 yuan from "other income" in 2013. (2) The underpayment of the 2011 and 2012 real estate tax calculated the land value through the projection area of the house, resulting in the inaccurate calculation of the original value of the real estate, and the underpayment of the 2011 and 2012 real estate tax, of which the underpayment of real estate tax in 2011 was 46,677.54 yuan, and the underpayment of real estate tax in 2012 was 18,566.57 yuan. Based on the above situation, the Inspection Bureau of Jiaxing Local Taxation Bureau imposed a total fine of 50,242.16 yuan on the company. After self-inspection, the employees of the company's finance department were worried about affecting the work appraisal after receiving the above-mentioned penalty decision, so they did not report the penalty to the company, and they paid the fine.
"The company does not have the subjective intention to forge official documents"
As for whether the tax certificate is forged, Hesheng Silicon said that according to the company's listing preparation mechanism, the issuance of legal compliance certificates of local companies will be carried out by the heads of each region, and will be summarized to the headquarters after completion. In September 2017, some media reported that reporters found the above-mentioned tax penalties through online searches. According to the division of labor, the relevant certificates of the Jiaxing headquarters are coordinated and issued by the person in charge, and the specific contact person will contact him. Based on the basic trust in senior management and the fact that the company has obtained the compliance certificate of the competent tax bureau during the reporting period, the company accepted the certificate, and the company did not have the subjective intention of forging official documents. The company is still in the process of further verification of the tax certification matters, and will fulfill the information disclosure obligations in a timely manner in accordance with the law if there is any progress.
In the verification opinions of AllBright Law Firm and CITIC Securities, it was mentioned that the punishment of the Jiaxing tax department did exist, but during the reporting period, Hesheng Silicon had obtained a compliance certificate from the competent tax bureau, confirming that Hesheng Silicon complied with various tax management laws and regulations, declared and paid various taxes on time and in full, fulfilled tax obligations in accordance with the law, and was not subject to major tax-related administrative penalties by the competent authorities. "Due to objective reasons such as limited verification methods, it is currently impossible to obtain sufficient materials and evidence, and it is currently impossible to confirm the authenticity of the evidence claimed in the report. ”
Fang Hongcheng's family did not approve of Hesheng Silicon's reply, and told Silver Persimmon Finance that it had submitted evidence including screenshots of chat records to the Zhejiang Securities Regulatory Bureau.
The matter of "hydrolyzed oil" has not yet been conclusively concluded
The Shanghai Stock Exchange pointed out that according to the report, the company did not truthfully disclose the disposal of "low boiling matter" and "hydrolyzed oil", and processed low boiling material into "hydrolyzed oil" without safety and environmental protection approval and illegally sold it to the outside world.
Hesheng Silicon replied: "Hydrolysis oil" related matters involve Fang Hongcheng's suspected crime of accepting bribes and embezzlement by non-state functionaries, and the relevant departments and judicial organs have not yet made a final conclusion. According to the company's self-examination and preliminary calculation, the revenue of "hydrolyzed oil" related business accounts for less than 0.5% of the company's operating income. The Company will continue to pay attention to the progress of the case and fulfill its information disclosure obligations in a timely manner in accordance with the law.
AllBright Law Offices and CITIC Securities also stated that the "low boiling matter" and "hydrolyzed oil" of Hesheng Silicon Industry are not the company's separate business, but are one of the by-products of organic silicon production, and the sales revenue of "hydrolyzed oil" accounted for less than 0.5% of the company's operating income during the initial public offering and listing period, which is not the company's main business; Due to objective reasons such as limited verification methods, it is currently impossible to obtain sufficient materials and evidence", and will pay close attention to the progress in the future, and urge the company to fulfill its information disclosure obligations in a timely manner in accordance with laws and regulations.
"There is no serious overproduction as reported in the report"
The Shanghai Stock Exchange pointed out that according to the report, there are a large number of unapproved projects in Hesheng Silicon, which have hidden dangers in production safety and environmental protection and have not been disclosed in accordance with the law, such as the first and second phases of organic silicon monomer have seriously exceeded the approved production capacity for many years, and the exhaust gas, wastewater and solid waste of the western Hesheng graphite electrode production unit and its attached gas generator device have not been disclosed. In this regard, the Shanghai Stock Exchange requires the company to self-check whether its production and operation meet the requirements of safe production and environmental protection, and focus on responding to whether the projects listed in the report have any problems alleged in the report.
Hesheng Silicon replied that the total development and reform record capacity of the company's organic silicon monomer projects in the first and second phases is 200,000 tons/year, which is accurately disclosed in the company's prospectus, and the pollutant discharge of the headquarters of Hesheng Silicon meets the local environmental protection requirements. The waste from the Western Halcyon graphite electrode production unit and its ancillary gas generator unit has been disclosed in the prospectus.
Specifically, according to the record notice of the enterprise investment project in Jiaxing Port Area, the total production capacity of the first and second phases of the organic silicon monomer project disclosed in the company's prospectus has been increased to 200,000 tons/year, and the production capacity disclosure information is accurate. The company's "prospectus" disclosed the company's organic silicon production capacity and capacity utilization rate, and there was no serious overproduction as reported in the report.
Regarding environmental protection issues, Hesheng Silicon said that the company's production projects have handled environmental impact assessment reports and applied for pollutant discharge permits, and the main pollutants controlled are CODcr and SO2. According to the total amount of the company's annual flow meter reading data and the environmental protection verification report issued by Zhejiang Environmental Consulting Co., Ltd., the total pollutant discharge of the headquarters of Hesheng Silicon Industry meets the requirements of the environmental protection department. At the time of the initial public offering and listing, the company had obtained the "Certificate" issued by the Jiaxing Port Environmental Protection Bureau, stating that the company had not had any major environmental accidents since 2013 and had not been punished by the bureau for serious violations of environmental laws, regulations and rules.
Regarding the safety production issue, Hesheng Silicon Industry said that the company has established a perfect safety production system according to the characteristics of its own business, set up a safety and environmental protection department and corresponding personnel to be responsible for safety production management, and handled a safety production license. The company has purchased the corresponding safety facilities and operated them effectively. At the time of the initial public offering and listing, Hesheng Silicon had obtained the "Certificate" issued by the Jiaxing Port Safety Supervision Bureau, which stated that since 2013, there had been no major production safety accidents, and there was no administrative punishment in the port area for serious violations of safety production laws, regulations and rules.
AllBright Law Firm and CITIC Securities stated in their verification opinions that during the initial public offering and listing of Hesheng Silicon, the production capacity of organic silicon monomer has been increased to 200,000 tons/year by the management committee, and the company's "prospectus" has a basis for disclosing that the total production capacity of organic silicon monomer is 200,000 tons/year; There is no relevant situation as described in the report, and the company's production and operation during the reporting period of listing generally meet the requirements of safe production and environmental protection.