Editor's note: The State Council's "Several Opinions on Strengthening Supervision and Preventing Risks and Promoting the High-quality Development of the Capital Market" pointed out that the joint crackdown on securities and futures violations and crimes should be strengthened. Complete mechanisms such as for the discovery of clues and rewards for reporting. Improve the judicial system and mechanism for securities law enforcement, and improve the efficiency of the connection between administrative and criminal cases. Strengthen efficient coordination between administrative supervision, administrative adjudication, and administrative procuratorates. Increase the force of three-dimensional accountability in administrative, civil, and criminal cases, and strictly investigate and deal with all kinds of violations of laws and regulations in accordance with the law.
On April 17, Soochow Securities was investigated by the China Securities Regulatory Commission on suspicion of failing to be diligent and conscientious in sponsoring the non-public issuance of shares of Gome Communications and Zixin Pharmaceutical.
On April 15, GOME received the "Prior Notice of Administrative Penalty and Market Ban" issued by the China Securities Regulatory Commission. The 2020 and 2021 annual reports disclosed by the company were seriously falsified, and there were false records in the 2020 non-public offering documents, which constituted an illegal act of fraudulent issuance. The company and related personnel were fined by the China Securities Regulatory Commission (CSRC) and banned from entering the market.
Zixin Pharmaceutical's announcement shows that the company was delisted from the Shenzhen Stock Exchange on August 4, 2023. Previously, the company had also been filed by the China Securities Regulatory Commission for violating the letter disclosure regulations.
Gome Communication: Financial fraud, fraudulent issuance of shares
On April 15, Gome Communications announced that the company received the "Prior Notice of Administrative Punishment and Market Prohibition" (Penalty Zi [2024] No. 52) issued by the China Securities Regulatory Commission.
After investigation, the facts of Gome Communication's suspected violations are as follows: 1. There were false records in Gome Communication's 2020 annual report, and the operating income and operating costs of 578.2356 million yuan and operating costs of 574.5925 million yuan in 2020 were falsely inflated through false trade business, accounting for 61.53% of the operating income and 62.18% of the operating costs of the year, respectively; The relevant documents of the 2020 non-public offering cited the above-mentioned false trade business revenue data, and the false trade business revenue recognized by the company from January to September 2020 was 578.2356 million yuan, accounting for 86.21% of the current operating income, which constituted a fraudulent issuance; In 2021, the misstatement of Gome's net profit was 19.6298 million yuan, accounting for 38.35% of the net profit recorded in the current report.
In the secondary market, Gome Communications has become an ST share, and its share price has fallen all the way from the high point of 9.92 yuan/share in April 2022, and as of the close of trading on April 18, the company's share price is only 1.24 yuan/share.
Zixin Pharmaceutical: The company has been delisted and has been filed for violating the letter disclosure regulations
Zixin Pharmaceutical's announcement shows that the company was delisted from the Shenzhen Stock Exchange on August 4, 2023.
In July 2023, Zixin Pharmaceutical issued the "Announcement on the Progress of Case Filing and Investigation Matters and Risk Warning", which shows that the company was investigated by the China Securities Regulatory Commission for suspected violations of information disclosure laws and regulations.
If the company is subject to administrative punishment by the China Securities Regulatory Commission and the illegal act falls under the "Implementation Measures for Compulsory Delisting of Listed Companies with Major Violations on the Shenzhen Stock Exchange", the company's shares may be terminated from listing.
Soochow Securities: Violations involving non-public issuance of shares were filed by the China Securities Regulatory Commission
On April 17, Soochow Securities announced that it had received a notice from the China Securities Regulatory Commission.
According to the announcement, due to the suspected failure of Gome Communications and Zixin Pharmaceutical to sponsor non-public shares diligently, in accordance with the Securities Law of the People's Republic of China, the Administrative Punishment Law of the People's Republic of China and other laws and regulations, on April 8, 2024, the China Securities Regulatory Commission decided to file a case against Soochow Securities.
According to the public information reviewed by Bread Finance, in May 2023, the "Sponsorship Summary Report of Soochow Securities Co., Ltd. on the Non-public Offering of Shares by Gome Communications" released by Gome Communications shows that Gome Communications issued 32,857,166 RMB ordinary shares (A shares) in a non-public manner, raising a total of 165,600,116.64 yuan.
The concluding opinion of the underwriting sponsor Soochow Securities on the review of the information disclosure of listed companies is: the sponsor has reviewed the information disclosure documents during the company's continuous supervision before or after the fact, verified the content and format of the information disclosure documents and the relevant procedures performed, and the company has disclosed information in accordance with the relevant provisions of the regulatory authorities, and publicly released various announcements in accordance with the law to ensure that the disclosure of material information is timely, accurate, true and complete, and there are no false records, misleading statements or major omissions.
In this regard, Soochow Securities said that the company will actively cooperate with the relevant work of the China Securities Regulatory Commission and strictly fulfill its information disclosure obligations in accordance with regulatory requirements.
When the non-public issuance of shares was investigated for violations, did Soochow Securities' risk control and compliance team be diligent and conscientious, and whether the company's internal control was compliant?
(Article Serial Number: 1780859172934520832)
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