China Times (www.chinatimes.net.cn) reporter Wang Yongfei ran Xuedong reported in Beijing
On August 9, China Railway Emergency (603300.SH) closed down at 10.3 yuan. The cause is that on August 8, Hu Dong, chairman of the US-stock bitcoin mining company Ebang International, reported the Huatie emergency under his real name at a press conference held, including serious financial fraud, serious information violation disclosure, and serious violations of the law such as the actual controller Hu Danfeng and his spouse Pan Qian suspected of embezzling and hollowing out the assets of listed companies in a huge amount of positions, and published a report of more than 100 pages.
In this regard, the Shanghai Securities Regulatory Commission issued a regulatory work letter to it today, and Huatie Emergency issued a number of statements to clarify it. Huatie Emergency confirmed to the "China Times" reporter that at present, Huatie Emergency has reported the case to the Public Security Organ of Hangzhou City, requesting that Ebang International and its chairman Hu Dong be held legally responsible.
Both sides have their own opinions
In response to the real-name report of Hu Dong, chairman of Ebang International, on August 9, Huatie emergency replied that after verification by the company and confirmation with the actual controller Hu Danfeng and his spouse Pan Qian, the company did not have any violations such as suspected serious financial fraud, serious information disclosure violations, and the actual controller Hu Danfeng and his spouse Pan Qian were suspected of embezzling and hollowing out the assets of the listed company with a huge amount of position.
At the same time, the latest statement of Huatie Emergency said that before Ebang Company spread false information, it had repeatedly reported and accused the relevant departments, and after verification by the relevant departments, the relevant facts did not exist.
Of the more than 100 pages of reporting material, there are several points worth noting.
Regarding the situation related to serious financial fraud, the reporting materials show that Xinjiang Huatie Heng'an (a wholly-owned subsidiary of Huatie Emergency) actually paid 86.3548 million yuan to its custody company and some of the core personnel of the list of incentive recipients in the name of custody fees, while the external disclosure was only 54.6379 million yuan, and the cost was 31.7169 million yuan, which was suspected of financial fraud.
Huatie Emergency said in the statement that the company has held the 18th meeting of the third board of directors on March 26, 2019 to deliberate and pass the "Proposal on equity transfer of subsidiaries and provision for impairment of fixed assets", transfer 100% of the equity of Huatie Heng'an to Mr. Chen Wanlong, an independent third party, at a price of 12.28 million yuan, and complete the registration procedures for the change of industrial and commercial change of equity transfer at the Market Supervision and Administration Bureau of Kashgar City, Xinjiang on April 24, 2019, and the company has no relationship with Xinjiang Huatie Heng'an.
Regarding the relevant circumstances of serious information disclosure violations, the reporting materials show that in the case of the dispute between Ebang International and Xinjiang Huatie Heng'an, Zhejiang Huatie Emergency and Hu Danfeng on March 15, 2021, the Hangzhou Intermediate People's Court has frozen 6 accounts of Huatie Emergency, and has been ruled to preserve the total amount of 320 million yuan, and the actual frozen amount is 3.3088 million yuan; and Xinjiang Huatie Heng'an has been frozen for 80% of the shares several times. Ebang International believes that the above-mentioned cases and property preservation have affected the ability of Huatie Emergency to continue to operate, huatie emergency has not disclosed, and Xinjiang Huatie Hengan has also disclosed the freezing of its equity.
Regarding the actual controller Hu Danfeng and his spouse Pan Qian' suspected huge position embezzlement and hollowing out the assets of listed companies and other violations, Hu Dong showed at the press conference the mobile phone number corresponding to the 5 Bitcoin wallet addresses corresponding to the mobile phone number of Pan Qian, the wife of Huatie Emergency Chairman Hu Danfeng, as well as specific sub-accounts, payment times and payment addresses. According to the bitcoin price on August 3, 2021, Hu Danfeng, chairman of Huatie Emergency, and his wife Pan Qian were suspected of a huge financial embezzlement value of 1.08 billion yuan, hollowing out the assets of listed companies. Hu Dong said that according to the relevant investigation evidence issued by the Economic Crime Investigation Brigade of the Yuhang District Bureau of the Hangzhou Municipal Public Security Bureau, one of the bitcoin mining pools, miner numbers, bitcoin proceeds and bitcoin wallet addresses corresponding to the mining machine purchased by Xinjiang Huatie all belonged to Pan Qian's mobile phone number.
This reporter learned that on June 10, 2020, the Disciplinary Decision of the Shanghai Stock Exchange issued the "Decision on Notifying and Criticizing Zhejiang Huatie Emergency Equipment Technology Co., Ltd. and Relevant Responsible Persons", because it did not disclose the procurement of Bitcoin mining machines in a timely manner and the inaccurate information disclosure, did not conduct in-depth research on the rise and fall of the industry related to the project in the process of major decision-making, and only executed the project according to its previous industry experience, the feasibility report analysis was simple, and the risk control was weak As well as the existence of inconsistencies in the company's establishment of a special account for raising funds without the resolution of the board of directors, the disclosure of relevant information.
This reporter learned that at 19:00 on August 9, the China Railway Emergency Committee held a press conference on this matter, and the reporter of this newspaper will further track the relevant situation.
The contract dispute between the parties has been heard
According to Tianyancha information, on June 28 and June 29, 2021, the Hangzhou Intermediate People's Court held a hearing on the (2020) Zhejiang 01 Min Chu No. 3042 "Zhejiang Yibang Communication Technology Co., Ltd. and Zhejiang Qirui Machinery Equipment Co., Ltd., Zhejiang Huatie Emergency Equipment Technology Co., Ltd. and other related sales contract disputes". The plaintiffs are Zhejiang Ebang Communication Technology Co., Ltd., the defendants are Zhejiang Qirui Machinery Equipment Co., Ltd., Zhejiang Huatie Emergency Equipment Technology Co., Ltd. and Hu Danfeng.
In response to the case, the two sides have their own opinions. Ebang International claims to have delivered 80,000 mining machines to Xinjiang Huatie Heng'an in multiple batches, with a total price of 403.2 million yuan, which had been fully fulfilled before July 2018. However, only 24,000 units of 120.96 million yuan have been received, and the remaining 56,000 mining machines have been paid for 282.24 million yuan, and have not been paid at present.
However, Xinjiang Huatie Heng'an denied that it had signed the remaining 56,000 units.
According to Huatie Emergency Disclosure, at present, the case has been heard but has not yet been decided, and the company and other defendants have submitted to the court the core evidence rejecting all the plaintiffs' litigation claims.
Huatie Emergency will further disclose the situation related to the sale contract dispute case of Ebang Technology. The 100% equity interest in some of the company's bank accounts and subsidiary Zhejiang Huatie Yushuo Construction Support Equipment Co., Ltd. (formerly known as Xinjiang Huatie Heng'an) (as of December 31, 2020, the audited net assets were 29,817,825.34 yuan) frozen in the case, involving total assets of 33,126,586.94 yuan, accounting for 0.99% of the company's latest audited net assets, which will not have a significant impact on the company's daily operations.
According to Huatie Emergency Disclosure, according to the "Capital Verification Report of Xinjiang Huatie Hengan Construction Safety Technology Co., Ltd." issued by Lixin Certified Public Accountants (Special General Partnership), Huatie Heng'an's registered capital of 170 million yuan is in place and the assets are completely independent, which can be clearly distinguished from Huatie's emergency assets. Therefore, the two companies are independent of each other, and Huatie Emergency should not bear joint and several liability for Huatie Heng'an; the Company has held the 18th meeting of the third board of directors on March 26, 2019 to deliberate and pass the "Proposal on the Equity Transfer of Subsidiaries and provision for impairment of fixed assets", transfer 100% of the equity of Huatie Heng'an to Mr. Chen Wanlong, an independent third party, at a price of 12.28 million yuan, and complete the registration procedures for the change of industrial and commercial changes in equity transfer at the Kashgar Market Supervision and Administration Bureau in Xinjiang on April 24, 2019. The company has no relationship with Huatie Hengan.
In 2019, Hu Danfeng, the controlling shareholder of the Company, issued a commitment in the "Reply Announcement of Zhejiang Huatie Construction Safety Technology Co., Ltd. to the Post-audit Inquiry Letter of the 2018 Annual Report" (Announcement No. 2019-086) to bear joint and several liability for the losses that the above-mentioned contract disputes may cause to the company, and if Huatie Hengan requires Ebang Technology to continue to perform or exercise the economic losses caused by huatie's emergency in the process of terminating the contract, Hu Danfeng will bear joint and several liability for compensation. In summary, the case will not have a significant impact on the overall operation of the listed company.