On October 29, ST Bolong went up and down again. In just one month since September 30, ST Bolong has gained 39% cumulatively, during which a total of 6 up and down boards have been harvested.
St. Bailong's three quarterly reports released yesterday evening showed that the company achieved a net profit of -22.24 million yuan in the third quarter, a year-on-year decrease of 185%; in the first three quarters, it achieved a net profit of -43.425 million yuan, a year-on-year decrease of 131%.
This evening, the company received a heavy fine from the Securities and Futures Commission! It was found that from 2013 to 2018, the company's cumulative operating income increased by 1.276 billion yuan and inflated profit by 400 million yuan. The company intends to be fined 10 million yuan; Chen Weixiong, then chairman, and Chen Nana, then vice chairman and general manager, are planned to be banned from the market for life.
Source: Wind
Inflated revenue by 1.276 billion yuan
Inflated profits exceeded 400 million yuan
On the evening of October 29, ST Bailong received the "Advance Notice of Administrative Penalties and Market Prohibition" from the CSRC. It was found that there were false records in the prospectus of The Initial Public Offering of Shares of Bo Baolong, the Report on the Issuance of Non-Public Shares in 2016 and the Listing Announcement and the Periodic Report.
The notice alleges that Bo Baolong inflated its total operating income and profit by fictitiously inflating its total operating income and profit by fictitiously designing and organizing production business with a company and its related parties, Wanjielong Group and its related party Wanjielong E-commerce. From 2013 to 2018, Bai Baolong's cumulative inflated operating income was 1.276 billion yuan, and the cumulative inflated profit was 410 million yuan.
What is even more shocking is that in the three years from 2014 to 2016, the proportion of the company's total inflated profits to the total profits of the year was as high as 50.83%, 68.25% and 56.86%, respectively, which means that more than half of the company's profits in the above three years were fabricated.
Not only is it crazy about cheating on the income statement, but the company is also making a big fuss on the balance sheet. From 2012 until 2019, Bo Baolong was suspected of falsely recording bank deposits by forging bills and not recording funds in and out of accounts. And as the amount of fraud becomes longer and longer, the amount of misrepresented bank deposits has increased significantly. From 74.18 million yuan at the end of 2012, it increased all the way to 1.098 billion yuan at the end of 2019, accounting for 34.93% of the company's total assets at the end of the year.
At the same time, the company is also suspected of failing to truthfully disclose the "other non-current assets" statement items in the 2017-2019 annual report, and failing to truthfully disclose the use of raised funds in the 2018 annual report. In addition, Bo Baolong is also suspected of failing to perform the approval procedures and information disclosure obligations for external guarantees from 2018 to 2020.
The company intends to be fined tens of millions
The actual controller couple may be banned for life
Based on the facts, nature, circumstances and degree of social harm of the parties' illegal acts, and in accordance with the relevant provisions of the Securities Law, the CSRC intends to decide to order Corrections to Bo Baolong, give a warning and impose a fine of 10 million yuan.
At the same time, the CSRC ascertained that Chen Weixiong, then chairman of Bai Baolong, Chen Nana, then vice chairman and general manager of Long, Wang Qi, then financial director, and Lin Xiaoru, then supervisor, knew of and participated in the company's financial fraud.
In this regard, the CSRC intends to give Chen Weixiong and Chen Nana a warning and impose a fine of 5 million yuan each; give a warning to the then financial director Wang Qi and impose a fine of 3 million yuan; and give a warning to lin Xiaoru, then supervisor, and impose a fine of 2 million yuan. Other relevant responsible persons were also given warnings and fined 500,000 to 1.5 million yuan.
Source: Company Announcement
In addition, due to the particularly serious illegal acts of the parties Chen Weixiong and Chen Nana, the CSRC intends to impose a lifetime market entry ban on the two, and at the same time take 5-10 years of market access ban measures against other relevant responsible persons.
According to ST Bolong's announcement on October 7, Chen Weixiong and Chen Nana are husband and wife, and are the controlling shareholders and actual controllers of the company.
Recently, the stock price has continued to rise sharply
Since being investigated by the CSRC, ST Bailong's stock price has fallen all the way. However, in only one month since September 30, ST Bailong has gained 39% cumulatively, during which a total of 6 up and down boards have been harvested.
But fundamentally, since the beginning of this year, the company's performance has turned from profit to loss. On the evening of October 28, ST Bailong disclosed the performance report showing that the company achieved a total operating income of 110 million yuan in the first three quarters of 2021, down 81.1% year-on-year, a decline of 81.1% over the same period last year; achieved a net profit attributable to the mother - 43.425 million yuan, compared with 140 million yuan in the same period last year, a year-on-year decrease of 131%. Among them, in the third quarter, the company achieved operating income of 14.44 million yuan, down 90.71% year-on-year; achieved net profit attributable to the mother - 22.24 million yuan, a year-on-year decrease of 185%.
The announcement also said that the main reason for the high loss was the impact of the epidemic and the strategic adjustment of clothing brand customers, and the sharp decline in the company's procurement volume, especially the decline in orders for the design business, resulting in a sharp decline in the performance of the clothing business in the current period. At the same time, the company's management made a mistake in judging the market of epidemic prevention products, resulting in a large backlog of epidemic prevention products of the company, a sharp decline in the market price of epidemic prevention products, and serious sales losses of epidemic prevention products.
Editor: Song Zhaoqing, Cao Shuai