The share price of the former 10 billion garden company in 2016 poured all the way down from a high of 29.92 yuan in 2016, decayed to 0.13 yuan per share and locked in delisting. On May 8, the closing price of ST Meishang's stock was below 1 yuan for 20 consecutive trading days, which has touched the trading delisting index stipulated by the Shenzhen Stock Exchange.
Recently, there have been many rumors surrounding Meishang Ecology, such as the actual controller running away from the immigration, and the staff publicly admitting fraud. Although Meishang Ecology has clarified some issues, over the past few years, Meishang Ecology has frequently fallen into the "whirlpool" of financial fraud, letter disclosure violations, fraudulent issuance, etc., coupled with the precipitous decline in stock prices, and now delisting is a certainty.
The revenue in the first quarter was only 780,000 yuan, and it had been a financial fraud for 9 consecutive years
According to the official website, Meishang Ecology was founded in 2001, headquartered in Shenzhen, and listed on the Shenzhen Stock Exchange in 2015. At present, it has 21 subsidiaries, more than 800 employees nationwide, 110 scientific research patents, and an average annual output value of more than 2 billion yuan in three years. Meishang Ecology's main business covers three major directions: ecological restoration, ecological landscape and eco-tourism, and has been responsible for many demonstration projects such as Shangxian River Wetland Project and Taihu Lake Wetland Ecological Restoration and Protection.
From its listing in 2015 to 2020, Meishang Ecology's performance seems to be quite smooth, and the company's financial reports have been issued year after year to show that it has remained profitable. But since 2020, Meishang Ecology has had a net loss of 5.7 million yuan. Since then, the truth about the company's financial fraud has continued to emerge.
According to the annual report, in 2021, Meishang Ecology achieved an operating income of 214 million yuan and a loss of 1.045 billion yuan attributable to the parent company, in 2022, it achieved an operating income of 133 million yuan and a loss of 687.5 million yuan in net profit attributable to the parent company, and in 2023, it achieved an operating income of 87.5 million yuan and a loss of 545 million yuan in net profit attributable to the parent company.
For the huge loss of 1.045 billion yuan in 2021, a disciplinary decision from the Shenzhen Stock Exchange gave a real answer. The fact is that from 2012 to 2019 and the first half of 2020, ST Meishang has inflated net profits, ranging from 7 million yuan to 148 million yuan, and the highest inflated net profit accounts for 60.52% of the disclosed net profit in the current period, which is the year of listing in 2015.
It is worth mentioning that the above-mentioned practices of Meishang Ecology have also been investigated by the regulatory authorities. In July 2023, the China Securities Regulatory Commission (CSRC) determined that Meishang Ecology and its then-chairman Wang Yingyan and director Xu Jing had five major illegal facts, including false records in information disclosure documents such as prospectuses and annual reports, and that the non-public issuance of shares constituted fraudulent issuance.
The China Securities Regulatory Commission decided to order Meishang Ecology to make corrections, give a warning, and impose a fine of 13.3 million yuan; Wang Yingyan was given a warning and fined 15.1 million yuan; Xu Jing was given a warning and fined 530,000 yuan. In addition, the China Securities Regulatory Commission also imposed a lifetime ban on Wang Yingyan from entering the securities market.
There were fraudulent acts in the first three years of listing, and the sponsor GF Securities was also implicated
China Youth Network found that Meishang Ecology had violated the rules of inflating net profits in the first three years of its listing, but GF Securities, as a sponsor, confirmed in its prospectus that "there are no false records in the issuer's financial and accounting documents in the last three years, and there are no other major illegal acts".
The Shenzhen Stock Exchange confirmed that in 2012, Meishang Ecology inflated its net profit by 11.7127 million yuan, accounting for 16.56% of the disclosed net profit in the current period; In 2013, Meishang Ecology inflated its net profit by 16.5233 million yuan, accounting for 16.31% of the disclosed net profit in the current period, and in 2013, Meishang Ecology inflated its net profit by 7.6715 million yuan, accounting for 7.12% of the disclosed net profit in the current period.
The China Securities Regulatory Commission (CSRC) found that Meishang Ecology inflated its net profit by a total of 457 million yuan from 2012 to June 2020, resulting in false records in relevant prospectuses, periodic reports, and issuance documents.
Since then, GF Securities has also been fined more than 10 million yuan by the China Securities Regulatory Commission for issuing a sponsorship letter with false records in the process of providing sponsorship services for the non-public issuance of shares by Meishang Ecology in 2018, and the two responsible persons were warned.
The China Securities Regulatory Commission said that GF Securities' verification procedures for large-amount bank deposit accounts were not in place, and the implementation of the deposit confirmation procedures of Meishang Ecological Bank was not in place; The confirmation procedures and due diligence procedures for accounts receivable are not in place; The inspection of the loan contracts of important banks of Meishang ecology is not in place.
Unfortunately, after indulging in financial fraud for many years, Meishang Ecology's performance is like a roller coaster. According to the data, the company's operating income in the first three quarters of 2023 was 45.8593 million yuan, but the operating income in the fourth quarter reached 41.64 million yuan. The report for the first quarter of this year shows that the company's operating income is only 784,800 yuan, and the net profit loss attributable to the parent company reaches 170 million yuan.
The new "National Nine Articles" proposes to further consolidate the primary responsibility of issuers and the "gatekeeper" responsibilities of intermediaries, establish a "blacklist" system for intermediaries, adhere to the principle of "reporting is responsible", and strictly investigate illegal issues such as fraudulent issuance.
Zheng Zhigang, a professor at the School of Finance of Chinese University, said in an interview with the media that one of the most important purposes of strict supervision of listed companies is to allow investors to get real returns, so as to ensure that investors are willing to invest further, so as to achieve the stability and prosperity of the capital market. (Synthesized from The Paper, National Business Daily, Southern Metropolis Daily, etc.)
Source: China Youth Network