Red Star Capital Bureau reported on May 14 that on May 13, the Jiangsu Securities Regulatory Bureau announced an administrative penalty decision, ordering Dahua Certified Public Accountants (Special General Partnership) (hereinafter referred to as "Dahua") to make corrections, confiscate business income of about 6.8868 million yuan, impose a fine of about 34.434 million yuan, and suspend securities service business for 6 months.
Screenshot from the official website of the China Securities Regulatory Commission
According to the administrative penalty decision, Dahua Law Firm imposed a penalty on Jin Tongling (300091. SZ) failed to exercise due diligence during the audit of its annual financial statements from 2017 to 2022, and the audit report issued by it contained false records.
Prior to this, UOB had been fined several times for audit issues in annual reports. On May 13, Dahua issued an apology statement saying that it would carry out comprehensive rectification as required. Red Star Capital Bureau noted that up to now, 17 listed company clients have cancelled their re-employment of Dahua.
Jin Tongling has been a financial fraud for 6 years
Dahua was fined more than 40 million yuan
According to the investigation of the Jiangsu Securities Regulatory Bureau, Jin Tongling's annual report from 2017 to 2022 has false records such as inflating or decreasing operating income and total profits.
In January this year, Jin Tongling received the "Administrative Penalty Decision" issued by the Jiangsu Securities Regulatory Bureau. According to the administrative penalty decision, in 2017, 2018, 2021, and 2022, Jin Tongling's inflated operating income was about 500 million yuan, 550 million yuan, 68.9307 million yuan, and 15.3085 million yuan respectively, and the total inflated profits were 146 million yuan, 148 million yuan, 73.9871 million yuan, and 43.3273 million yuan respectively; In 2019, Jin Tongling reduced its operating income by 197 million yuan and its total profit by 38.5277 million yuan, and in 2020, Jin Tongling reduced its operating income by 5.3768 million yuan and increased its total profit by 57.3008 million yuan.
From 2017 to 2022, the total inflated or inflated profits of Jintongling accounted for 103.06%, 133.10%, 31.35%, 101.55%, 5774.38% and 11.83% of the company's total disclosed profits (absolute value) in each year, respectively, resulting in false records in the company's corresponding annual annual reports.
However, Dahua provided audit services for Jin Tongling's 2017-2022 annual financial statements, and issued standard unqualified audit reports, with a total audit income of about 6.8868 million yuan (excluding tax) in 6 years.
In accordance with the relevant regulations, the Jiangsu Securities Regulatory Bureau decided to order Dahua to make corrections, confiscate business income of about 6.8868 million yuan, impose a fine of 34.434 million yuan, and suspend the securities service business for 6 months.
On May 13, Dahua issued an apology statement, saying that it sincerely accepted the penalty decision of the regulatory authorities, consciously accepted the supervision of various regulatory agencies, corporate customers and all parties in society, and carried out comprehensive rectification as required, and organized deep reflection throughout the firm.
Screenshot from Dahua's official WeChat public account
17 listed company clients cancelled their re-employment
After being punished for the audit of Jin Tongling's related annual reports, up to now, 17 customers of listed companies have cancelled their reappointments.
According to incomplete statistics from the Red Star Capital Bureau, as of now, Haixin Food (002702. SZ), Zhongyuan Internal Distribution (002448. SZ), Power Diamond (301071. SZ), Gan & Lee Pharmaceutical (603087. SH), Guoxin Energy (600617. SH), *ST Huichen (688500.SH), Songyang Resources (603863. SH), Jiahe Mekang (688246. SH), Kuncai Technology (603826. SH), Far East Transmission (002406. SZ), Jinming Precision Machinery (300281. SZ), ST Intercontinental (600759.SH), Boss Software (300525. SZ), Taiji Co., Ltd. (300046. SZ), Zhiyuan New Energy (300985. SZ), Shanxi Fenjiu (600809. SH), Huilong shares (002556. SZ) 17 listed companies have successively issued announcements to cancel the appointment of Dahua as the company's auditor in 2024.
It is worth noting that in recent years, UOB has been fined several times for annual report audit issues.
According to public information, the Changyuan Group (600525. SH) had false records in its 2016 and 2017 annual audit reports, and failed to exercise due diligence in the audit of Changyuan Group's 2016 and 2017 annual financial statements; Dahua failed to exercise due diligence in the audit of the 2017 financial statements of Dongfang Jinyu Co., Ltd., and the audit report of the 2017 financial statements issued by Dahua contained false records; Zhangzidao (002069. SZ) had false records in its 2016 annual audit report, and failed to exercise due diligence in the audit of Zhangzidao's 2016 annual financial statements.
Edited by Deng Lingyao
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