"Electric Eel Finance" electric eel number/text
Shilong Industry is a comprehensive chemical enterprise focusing on chlor-alkali and downstream products, mainly engaged in the research and development, production and sales of chemical products such as AC foaming agent, thionyl chloride, chlor-alkali, hydrazine hydrate and hydrogen peroxide.
Shilong Industrial
Recently, Shilong Industrial released the latest annual report, in 2023, the company's main products AC foaming agent, caustic soda, hydrogen peroxide and thionyl chloride and other production and sales increased year-on-year, but due to the large year-on-year decline in the price of the main products, and the decline in the cost of raw materials and energy procurement is smaller than the decline in the sales price of the main products, the company's operating performance decreased year-on-year. The annual sales revenue was 2090.8069 million yuan, a year-on-year decrease of 19.33%; The net profit attributable to shareholders of the listed company was 18.2911 million yuan, a year-on-year decrease of 89.85%.
Announcement on the receipt of the administrative punishment decision
On May 15, 2024, Shilong Industrial issued an announcement on the receipt of the administrative penalty decision. It is reported that Shilong Industrial received the "Notice of Case Filing" from the CSRC on May 29, 2023. Due to the company's suspected illegal information disclosure, in accordance with the Securities Law of the People's Republic of China, the Administrative Punishment Law of the People's Republic of China and other laws and regulations, the CSRC decided to file a case against the company for investigation.
On March 12, 2024, Shilong Industrial received the "Prior Notice of Administrative Punishment" issued by the Jiangxi Securities Regulatory Bureau. On May 15, 2024, the company received the "Administrative Penalty Decision" issued by the Jiangxi Securities Regulatory Bureau.
According to the "Administrative Penalty Decision", the parties include Shilong Industry; At that time, he was the general manager of Shilong Industry, and served as the legal representative and executive director of Jiangxi Shilong Supply Chain Management Co., Ltd. (hereinafter referred to as Shilong Supply Chain) Zhang Haiqing; Wang Dazhong, then deputy general manager of Shilong Industry and general manager of Shilong supply chain; Liu Yiyun, then chairman and director of Shilong Industrial; Hu Dunguo, then chief financial officer of Shilong Industrial; Feng Jianhua, assistant general manager and deputy general manager of Shilong Supply Chain at that time; At that time, Che Yougen, the financial director of Shilong Supply Chain.
It was found that from 2019 to 2020, Shilong Supply Chain, a wholly-owned subsidiary of Shilong Industrial, inflated its operating income, operating costs and profits by carrying out false trading business with relevant customers that had no physical circulation and no commercial substance. As a result of the above, there were false records in the 2019 and 2020 annual reports of Shilong Industrial.
The above-mentioned acts of Shilong Industrial violated the provisions of the second paragraph of Article 78 of the Securities Law and constituted an illegal act under the second paragraph of Article 197 of the Securities Law. According to the facts, nature, circumstances and degree of social harm of the parties' illegal acts, and in accordance with the provisions of Article 197, Paragraph 2 of the Securities Law, the Jiangxi Securities Regulatory Bureau decided to order Shilong Industrial to make corrections, give a warning, and impose a fine of 2.8 million yuan; Zhang Haiqing and Wang Dazhong were given warnings and fined 1.4 million yuan each; Liu Yiyun was given a warning and fined $1 million; Hu Dunguo and Feng Jianhua were given warnings and fined 600,000 yuan each; Che Yougen was given a warning and fined $500,000.
Shilong Industrial pointed out that as of the disclosure date of the announcement, the company's various production and operation activities were carried out normally. According to the circumstances identified in the Administrative Penalty Decision, the Company has not touched the circumstances of material illegal forced delisting as stipulated in Articles 9.5.1, 9.5.2 and 9.5.3 of the Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange (revised in August 2023).
Announcement on the implementation of other risk warnings and stock suspension of the company's shares
However, on the same day, Shilong Industrial issued an announcement on the implementation of other risk warnings and stock suspension of the company's shares, and according to Article 7 of the bridging arrangement for the application of the new and old rules in the "Shenzhen Stock Exchange Stock Listing Rules" (hereinafter referred to as the "Stock Listing Rules") issued and implemented by the Shenzhen Stock Exchange on April 30, 2024, the company's shares will be subject to other risk warnings.
In accordance with the relevant provisions of the Stock Listing Rules, the trading of Shilong Industrial shares will be suspended for one day from the market open on May 16, 2024, and trading will resume trading from the market open on May 17, 2024 and other risk warnings will be implemented. After the implementation of other risk warnings, the company's stock abbreviation was changed from "Shilong Industrial" to "ST Shilong", the stock code was still "002748", and the daily rise and fall limit of the company's stock trading was changed from 10% to 5% after the implementation of other risk warnings.
Industry insiders pointed out that the development of enterprises is inseparable from a good credit environment, and financial fraud not only indicates that there are problems in the company's operation and management, but also a major blow to the reputation of the enterprise. Investors must remain rational when making investment decisions, fully understand the fundamentals of the company, and make prudent choices. In addition, a good market environment needs to be maintained by every market participant.
"Electric Eel Finance" will keep an eye on the future performance changes of Shilong Industrial and its stock price trend after the implementation of other risk warnings.