If I'm not mistaken, this should be the actual controller of a listed company at the god level, and the three major violations are not only the same, but also give full play to each of them.
Recently, the China Securities Regulatory Commission announced the results of the investigation into the listed company *ST Zhongli and the actual controller Wang Baixing, a total of three major crimes.
First, financial fraud of 9.6 billion.
In the five years from 2016 to 2020, Wang Baixing co-directed a self-circulating drama with outsiders, making up 8 billion revenue and 1.6 billion profits out of thin air, and the methods were quite rough.
In the past five years of fraud, the inflated profits have almost completely affected the profits and losses of listed companies, people make money by strength and hard work, and Wang Baixing makes money by "acting skills".
In particular, it is worth mentioning that the proportion of inflated profits every year is more than 100%, or even more than 200%.
Gray Pigeon vaguely remembers that Article 161 of the Criminal Law has this description:
"Where the inflated or inflated profits reach more than 30 percent of the total profits disclosed for the current period, it constitutes a criminal offense and a case shall be filed for prosecution."
Wang Baixing's fraud exceeded this standard by 3-7 times, and the gray pigeon couldn't help but sweat for him, whether the administrative punishment of the CSRC was just a warm-up, and there would be bigger actions in the future.
Second, it occupies 10.9 billion.
The so-called occupation, the official text description is called non-operating capital occupation, in fact, it is to draw out the money of the listed company and spend it on the affiliated companies controlled by the actual controller.
Of course, it is also legal to occupy the funds of listed companies, depending on the way of drawing, if you borrow it in a bright way, disclose it first, take the money later, and then pay the interest on time and return it on time, it is legal, otherwise, it is a violation.
Wang Baixing obviously belongs to the category of "vice versa", although it was also disclosed, but he "cut corners", in 2020 and 2021, it obviously occupied more than 6 billion, but the announcement only disclosed more than 4 billion, and erased 2 billion.
In 2018 and 2019, they simply did not disclose it, occupying more than 4 billion, but did not mention it to the outside world.
The most important thing is that even if you use it quietly, you can return it quietly, but some of the funds occupied by Boss Wang are gone.
As of the end of December 2023, Wang Baixing and his related parties still have 1.7 billion occupied funds that have not been returned.
Third, the illegal guarantee is 3 billion.
The guarantee refers to the external guarantee, that is, someone else borrows money from the bank, and the listed company *ST Zhongli Group serves as a guarantee, and if others can't pay it back, *ST Zhongli will become a debtor.
It is worth mentioning that *ST Zhongli guarantees also have Wang Baixing's company.
In fact, the guarantee is the same as the occupation of funds, and there is also a legal way of operation, that is, it is deliberated and approved by the shareholders' meeting, and then disclosed to the public, and *ST Zhongli has not done any of these actions.
According to common sense, what you dare not tell others must be something that cannot be seen, and it can be seen that behind the 3 billion guarantee, I don't know how many "touching" stories are hidden.
The three major crimes, involving 23.5 billion, are really crazy, is there still Wang Fa in the eyes of Boss Wang?
Of course, the administrative stick of the China Securities Regulatory Commission is not light, Wang Baixing was fined 15 million and banned from the securities market for life, but this just sentence came a little late, and Wang Baixing has already cashed out.
Historical announcements show that in 2017, Wang Baixing transferred more than 40 million shares directly held by himself to a limited liability company controlled by himself.
Although the announcement said that the equity transfer under the same controller, Wang Baixing's shareholding ratio has not changed, but in fact, Wang Baixing has cashed out.
The money of the limited liability company cannot be put into the pocket of the individual, and Wang Baixing sold the equity to the limited liability company, and received 500 million yuan in cash, which is really in the pocket.
Since then, although Wang Baixing has no active cash-out record, he has never stopped passively reducing his holdings, all of which are due to personal debts that lead to judicial auction of equity or direct debt payment.
According to incomplete statistics, Wang Baixing's judicially disposed of equity is at least 800 million personal debts.
plus the previous 500 million, that is to say, Wang Baixing cashed out at least 1.3 billion, and the fine of 15 million is much weaker in comparison.
As for the ban on entering the securities market, *ST Zhongli is currently being filed for bankruptcy reorganization, and it can already be said that it will no longer belong to Wang Baixing, and the listed companies are gone, so what are you doing in the securities market.