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 classification and evaluation system for fund managers should be revised to urge the establishment of rational investment, value investment, and long-term investment concepts.
Recently, Zhongtai Chemical and its controlling shareholders have been investigated by the Securities Regulatory Commission. According to the announcement, Zhongtai Group, the controlling shareholder of Zhongtai Chemical, illegally occupied more than 8 billion yuan. In addition, from 2020 to 2022, Zhongtai Chemical's total inflated revenue exceeded 7 billion yuan.
According to the data, 12 products under Wells Fargo Fund held positions in Zhongtai Chemical at the end of 2023, holding a total of more than 20 million shares, and the shareholding compliance is doubtful.
Zhongtai Chemical: The financial report has been fraudulent for many years
On March 22, Zhongtai Group, the controlling shareholder of the company, received a notice from the China Securities Regulatory Commission. On suspicion of organizing and instructing listed companies to engage in illegal acts of information disclosure, the China Securities Regulatory Commission decided to file a case against Zhongtai Group.
On March 24, the Shenzhen Stock Exchange issued a letter of concern to Zhongtai Chemical. According to the announcement, Zhongtai Group, the controlling shareholder of Zhongtai Chemical, illegally occupied more than 8 billion yuan of funds, and in addition, from 2020 to 2022, Zhongtai Chemical's total inflated revenue exceeded 7 billion yuan.
On March 27, Zhongtai Chemical and the relevant responsible persons of the company received a prior notice of administrative punishment issued by the China Securities Regulatory Commission.
According to the announcement, Zhongtai Chemical failed to timely disclose the related party transactions occupied by the controlling shareholder and its related parties with non-operating funds, and there were major omissions in the 2021 annual report and 2022 annual report. In 2021 and 2022, Zhongtai Chemical and its subsidiaries had related party transactions with the controlling shareholder Zhongtai Group and its affiliates in the name of advance payment, return payment, collection and payment of freight, etc., directly or through a third-party company, with a total amount of RMB 7,718,058,292.55. Among them, the amount incurred in 2021 was RMB2,153,912,371.55, accounting for 8.54% of the audited net assets in 2021, and the amount incurred in 2022 was RMB5,564,145,921.00, accounting for 21.61% of the audited net assets in 2022
At the same time, Zhongtai Chemical's total inflated revenue in 2022 will be 4,248,474,643.06 yuan and inflated cost of 4,248,474,643.06 yuan, accounting for 7.60% and 7.75% of the total operating income and total operating cost disclosed in the 2022 Annual Report, respectively.
Zhongtai Chemical: A pre-loss of 2.7 billion to 2.98 billion in 2023
According to public information, Zhongtai Chemical's main business is the production and sales of chlor-alkali chemical products such as polyvinyl chloride resin, ion membrane caustic soda, viscose fiber and viscose yarn and other textile products.
According to the performance forecast, in 2023, the company expects a net profit loss attributable to shareholders of listed companies of 2.7 billion yuan to 2.98 billion yuan, a year-on-year decrease of 478.15% to 517.37%, which will be the first loss since listing.
For the large loss, the company explained that due to the impact of the industry cycle, the sales price of the company's main products PVC, caustic soda, viscose fiber and viscose yarn declined to varying degrees compared with the same period last year, and the profitability of the products decreased significantly; at the end of 2023, the company conducted an impairment test on assets with signs of impairment and incurred asset impairment losses;
In addition, the company is also involved in a high level of external guarantees. According to the announcement, the company's total external guarantees as of February 29, 2024 are about 21.548 billion yuan, accounting for 83.7% of the company's latest audited net assets.
In the secondary market, Zhongtai Chemical's share price has fallen by more than two percent since the beginning of this year.
Wells Fargo Fund: Its 12 products collectively stepped on the thunder
Bread Finance combed through public information and found that at the end of 2023, 12 products under Wells Fargo Fund held shares in Zhongtai Chemical, including Fuguo Xingyuan Preferred 12-month Holding, Wells Fargo Cultural and Sports Health, Wells Fargo Optimization and Enhancement, etc.
Among them, Fuguo Xingyuan prefers to hold a large number of shares for 12 months, holding 15.2276 million shares of Zhongtai Chemical at the end of 2023. As of April 17, 2024, the net value of the fund has fallen by 17.69% since the establishment of the 12-month Holding A.
In addition, the three products of Wells Fargo Fund, including Wells Fargo Cultural and Sports Health, Wells Fargo Optimization and Enhancement, and Wells Fargo Tianheng, hold more than 1 million shares of Zhongtai Chemical.
According to publicly disclosed information, Wells Fargo Fund was established in Beijing in 1999 and is one of the first ten fund management companies approved by the China Securities Regulatory Commission. The chairman of Wells Fargo Fund is Pei Changjiang, the general manager and director is Chen Ge, and the chief inspector is Zhao Ying.
The Measures for the Compliance Management of Securities Companies and Securities Investment Fund Management Companies stipulate that the board of directors of a securities fund operating institution shall decide on the compliance management objectives of the Company and shall be liable for the effectiveness of the compliance management; the senior management personnel of the securities fund operating institution shall be responsible for implementing the compliance management objectives and assume responsibility for the compliance operation; and the compliance officer shall review, supervise and inspect the compliance of the operation management and professional conduct of the Company and its staff.
For companies that have committed financial fraud in multiple product holdings and have been placed on file for investigation, are there any loopholes in the compliance and risk control of Wells Fargo Fund?
(Article Serial Number: 1780839198996172800)
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