Hong Kong Accounting and Finance Bureau: Investigating the content of PwC's whistleblower letter for auditing China Evergrande
On April 19, market news showed that the Hong Kong Accounting and Financial Reporting Council made it clear for the third time that it was investigating the responsibility of PricewaterhouseCoopers in auditing the accounts of China Evergrande Group in response to the recently circulated anonymous report letter from PricewaterhouseCoopers.
The AFRC pointed out that the report letter expressed serious concerns about potential deficiencies in PwC's quality management system and China Evergrande's audit quality, and that based on the seriousness of the allegations, the AFRC has a responsibility to investigate in order to protect the public interest and maintain public confidence in the integrity of the accounting profession.
The AFRC emphasises that it will not hesitate to take stringent enforcement action against the firms and individuals involved if misconduct or contravention of the AFRCO is found.
According to the data, China Evergrande has been listed in Hong Kong since 2009, and PricewaterhouseCoopers has been its auditor from 2008 to early 2023. The anonymous letter pointed directly at PwC Asia Pacific and China Chairman Patrick Chiu, accusing the firm of an imbalance of power.
PwC has previously issued a statement saying that the content of the anonymous letter is clearly inconsistent with the facts, seriously damaging business reputation and legal rights, and has reported the case to law enforcement.
CITIC Securities received the "Prior Notice of Administrative Punishment" involving the provision of CNNC titanium dioxide arbitrage plan
On April 19, CITIC Securities Co., Ltd. issued an announcement on receiving the "Advance Notice of Administrative Punishment" from the China Securities Regulatory Commission.
According to the announcement, CITIC Securities received the "Prior Notice of Administrative Punishment" (Penalty Zi [2024] No. 56) from the China Securities Regulatory Commission, which shows that Wang Zelong, Hong Haowei, CITIC China Securities Capital Management Co., Ltd. (hereinafter referred to as CITIC Securities), CITIC Securities Co., Ltd. (hereinafter referred to as CITIC Securities), Haitong Securities Co., Ltd. (hereinafter referred to as Haitong Securities), and Han Yuchen are suspected of transferring shares in violation of restrictive regulations, which has been investigated by the CSRC, and the CSRC intends to impose administrative penalties on you in accordance with the law. The facts, reasons, and basis of the violation on which you are based, as well as the relevant rights you enjoy, are hereby informed.
CITIC Securities said that for the problems and penalties identified in the above-mentioned "Advance Notice of Administrative Punishment", the company and its grandson company, CITIC Securities Capital, sincerely accept the punishment, and will deeply reflect on it, conscientiously implement rectification, further improve ideological understanding, actively implement regulatory requirements, draw inferences from one another, comprehensively and systematically investigate the shortcomings of various business management, carry out in-depth construction of financial culture with Chinese characteristics, and effectively improve the level of compliance and sound operation. The Company and CITIC CSI Capital will conscientiously study and actively implement the new "National Nine Measures" of the capital market, adhere to the main responsibilities and main business, return to the origin of business, give full play to their own functions, effectively protect the legitimate rights and interests of investors, and better serve the high-quality development of the capital market. The illegal acts involved in the "Advance Notice of Administrative Penalty" received by the Company this time did not touch the material illegal forced delisting stipulated in Articles 9.5.1, 9.5.2, 9.5.3 and 9.5.4 of the Shanghai Stock Exchange Stock Listing Rules (2023 Revision). The company will fulfill its information disclosure obligations in strict accordance with the requirements of laws and regulations, and the company's current business situation is normal.
Haitong Securities received a prior notice of administrative punishment from the China Securities Regulatory Commission (CSRC) for arbitrage related to CNNC's titanium dioxide
On April 19, Haitong Securities Co., Ltd. issued an announcement that it received an announcement from the China Securities Regulatory Commission (CSRC) regarding the prior notice of administrative penalties.
According to the announcement, Wang Zelong, Hong Haowei, CITIC China Securities Capital Management Co., Ltd. (hereinafter referred to as CITIC Securities), CITIC Securities Co., Ltd. (hereinafter referred to as CITIC Securities), Haitong Securities, and Han Yuchen are suspected of violating the restrictive provisions of the transfer of shares, and the CSRC has completed the investigation, and it intends to impose administrative penalties on you in accordance with the law. The facts, reasons, and basis for the violation, as well as the relevant rights enjoyed, are hereby informed.
Haitong Securities said that the company sincerely accepts the punishment, and will deeply reflect on it, learn lessons, conscientiously implement various rectification requirements, further optimize the compliance and internal control mechanism, continuously improve the awareness and level of standardized operation, insist on drawing inferences from one example, comply with laws and regulations, and steadily and prudently promote the company's various businesses. The company will fulfill its information disclosure obligations in strict accordance with the requirements of laws and regulations, and the company's current business situation is normal.
China Shipping plans to issue the first phase of corporate bonds in 2024 with a scale of 3 billion yuan
On April 19, China Overseas Enterprise Development Group Co., Ltd. announced the issuance of corporate bonds (Phase I) for professional investors in 2024.
The bonds are divided into two varieties, the first is referred to as "24 Zhonghai 01" with the bond code 148713, and the second is referred to as "24 Zhonghai 02" with the bond code 148714. The issuance size of the bonds shall not exceed RMB3 billion (including RMB3 billion), with a face value of RMB100 each, and the number of bonds to be issued shall not exceed 30 million, and the issue price shall be RMB100 per bond.
Variety 1 is a 3-year fixed interest rate, and variety 2 is a 5-year fixed interest rate. The two varieties can be called back to each other, and the callback ratio is not limited. The coupon rate inquiry range of variety 1 is 2.30%-3.30%, and the coupon rate inquiry range of variety 2 is 2.50%-3.50%.
According to the comprehensive assessment of United Credit Rating Co., Ltd., the issuer's main rating is AAA, the rating outlook is stable, and the current bond rating is AAA. Before the issuance and listing of this bond, the issuer's net assets as of the end of September 2023 were RMB223.207 billion (owner's equity in the issuer's consolidated statements as of September 30, 2023), the consolidated asset-liability ratio was 65.94%, and the parent company's asset-liability ratio was 76.77%;
The average annual distributable profit realized by the issuer in the last three fiscal years is 22.135 billion yuan (the average of the net profit attributable to the owners of the parent company of 22.873 billion yuan, 24.129 billion yuan and 19.403 billion yuan realized in 2020, 2021 and 2022), which is expected to be no less than 1 times the one-year interest of the current bonds. The issuer's financial indicators before the issuance of this issue are in line with the relevant regulations.
CICC SCPG Consumer REIT Infrastructure Project Co., Ltd. completed the registration of ownership change
On April 19, CICC SCPG Consumer REIT issued an announcement announcing that its infrastructure project company has completed the registration of ownership change.
According to the announcement, CICC SCP Consumer REIT has successfully subscribed for the entire share of the "CICC-SCP Consumer Infrastructure Asset-Backed Special Plan". Through this special plan, China International Capital Corporation Limited, as the manager, has acquired the entire equity interest in Hangzhou Runhui Commercial Management Co., Ltd. (SPV) on behalf of the special plan. Further, the SPV company has also acquired the entire equity interest in Hangzhou Runheng Real Estate Co., Ltd. (an infrastructure project company).
At present, all relevant business registration procedures for change of ownership have been completed.
Wanda Investment, the controlling shareholder of Wanda Film, pledged 222 million shares, accounting for 51% of its shares
On April 19, Wanda Film Co., Ltd. issued an announcement on the pledge of part of the shares of the controlling shareholder.
According to the announcement, Beijing Wanda Investment Co., Ltd., the controlling shareholder of Wanda Film, has pledged part of the company's shares held by it, and the number of shares pledged this time is 222,295,619 shares, accounting for 51.00% of its shares and 10.20% of the total share capital of Wanda Film. The pledge start date is April 18, 2024, and the pledge expiration date is the date of release of the pledge registration. The pledgee is Bank of China Co., Ltd., Shanghai Hongqiao Business District Branch, and the purpose of the pledge is clearly equity investment.
As of the disclosure date of the announcement, the cumulative number of pledged shares of Wanda Investment remained at 222,295,619 shares, accounting for 51.00% of its shares and 10.20% of the company's total share capital. At present, the number of unpledged shares of Wanda Investment is 0, and the number of pledged shares restricted and frozen is also 0.
Wanda Film emphasized in the announcement that Wanda Investment has a good credit status, has the ability to repay funds, and has a controllable risk of pledged shares. The company made it clear that there is no risk of liquidation at present, and this pledge will not have an impact on the production and operation of Wanda Film, corporate governance, etc.
POS machine manufacturer Rongta Technology submitted a listing application in Hong Kong with a revenue of 349 million in 2023
On April 19, Rongta Hezhong (Xiamen) Technology Group Co., Ltd. issued a prospectus to be listed on the Hong Kong Stock Exchange.
Rongta Technology is a provider of Automatic Identification Data Collection (AIDC) devices and solutions, engaged in the R&D, design, manufacturing and marketing of specialized printers, scales, POS terminals and PDAs.
On 20 December 2010, Xu Kaiming and his brother Xu Kaihe (executive director and controlling shareholder of Rongta Technology) founded Rongta Technology in the PRC.
In 2011, Rongta Technology began to launch products. With a decade of dedicated R&D, the product portfolio has expanded from printing equipment (including specialized printers) to scales, POS terminals and PDAs.
During the Track Record Period, the products were sold to more than 140 countries, including but not limited to the United States, Malaysia, Spain, France, Argentina, Brazil and the United Arab Emirates, as well as not less than 30 provinces, municipalities and autonomous regions in the PRC.
In FY2021, FY2022 and FY2023, Rongta Technology's revenue was RMB380 million, RMB393 million and RMB349 million, respectively, and gross profit was RMB89.2 million, RMB89.9 million and RMB85.5 million, respectively.
In FY2021, FY2022 and FY2023, adjusted net profit (non-IFRS measure) was RMB33.3 million, RMB45.6 million and RMB36.2 million, respectively.
![Industrial Securities: Net profit has declined for two consecutive years, and net profit in the first quarter fell by more than 60% year-on-year[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)