Gome Telecom Latest Claim News:
On April 15, 2024, GOME Communication Equipment Co., Ltd. received the "Advance Notice of Administrative Penalty and Market Prohibition" (Penalty Zi [2024] No. 52) issued by the China Securities Regulatory Commission.
After investigation, the facts of Gome Communication's suspected violation of the law are as follows:
1. There are false records in the 2020 annual report of GOME Communications
In 2020, GOME participated in the trade business of Apple mobile phones, Konka color TVs, and Huawei mobile phones carried out by related parties under the control of the same actual controller, and the trade business had a closed loop of contracts and funds, which was a false purchase and sales business. Gome Communications inflated its operating income of 578.2356 million yuan and operating cost of 574.5925 million yuan in 2020 through false trade business, accounting for 61.53% of the operating income and 62.18% of the operating cost of the year, respectively, and there were false records in Gome Communication's 2020 annual report.
2. Gome Communication's non-public issuance of shares in 2020 constituted a fraudulent issuance
According to the relevant documents of Gome Communication's 2020 non-public offering, the above-mentioned false trade business revenue data was cited, and the company's false trade business revenue recognized from January to September 2020 was 578.2356 million yuan, accounting for 86.21% of the current operating income. In March 2021, the China Securities Regulatory Commission approved Gome Communications' application for a non-public offering, that is, a directional issuance of shares to the controlling shareholder Shandong Longjidao Construction Co., Ltd., raising a total of 165.6001 million yuan, and the raised funds were mainly used for the transformation project of Jingmei Electronics' intelligent terminal production line. There were false records in the documents related to the non-public issuance of shares by GOME, which constituted a fraudulent issuance.
3. There are false records in Gome's 2021 annual report
Improper accounting treatment of deferred income tax asset recognition, right-of-use assets and lease liabilities in 2021. On April 29, 2023, GOME issued the "Reminder Announcement on the Correction of Accounting Errors and Retrospective Adjustments in the Previous Period" to correct and retrospectively adjust the accounting errors in the 2021 financial statements. In 2021, the misstated amount of GOME's net profit was 19.6298 million yuan, accounting for 38.35% of the net profit recorded in the current report, and there were false records in GOME's 2021 annual report.
The SFC intends to decide:
1. It is recommended that Gome Communication Equipment Co., Ltd. be ordered to make corrections, given a warning, and fined 21.56 million yuan;
2. Give warnings to Song Linlin, Song Huohong, and Guo Chen, and impose fines of 3 million yuan each;
3. Give warnings to Dong Xiaohong and Fang Wei, and impose fines of 2 million yuan each;
4. Shao Jie was given a warning and fined 1.8 million yuan.
According to the Securities Law and the Several Provisions of the Supreme People's Court on the Trial of Civil Compensation Cases Arising from False Statements in the Securities Market, listed companies shall be liable for civil compensation if their rights and interests are damaged due to illegal information disclosure and misrepresentation, and the injured investors have the right to claim compensation for losses.
The reference conditions for GOME's claim are as follows:
Claims can be made if one of the following applies:
1. Those who bought 600898 GOME between March 22, 2022 and April 28, 2023, and sold or continued to hold it after April 29, 2023 (inclusive).
2. Those who bought 600898 GOME Communications between April 29, 2021 and December 6, 2023, and sold or continued to hold it after December 7, 2023 (inclusive).
The above claim registration conditions only represent the views of Xie Baoping's lawyer team, and are not used as any securities investment decisions and trading suggestions, and are subject to the final determination of the court.
Basis for GOME's violation:
On April 15, 2024, GOME Communication Equipment Co., Ltd. received the "Advance Notice of Administrative Penalty and Market Prohibition" (Penalty Zi [2024] No. 52) issued by the China Securities Regulatory Commission.