On October 29, ST Bailong (002776) issued an announcement about the withholding of some of the company's raised funds. According to the announcement, in the early stage, some directors of the company (Chen Weixiong, Chen Nana, Huang Lifei, Li Yijiang, Pei Jiwei) violated the prescribed procedures to provide pledge guarantees for the company's 470 million yuan of bank wealth management products to other parties. As of the date of the announcement, due to the insufficient solvency of the guaranteed party, Haikou United Rural Commercial Bank has forcibly withheld 410 million yuan of the company's bank wealth management products, and the remaining 60 million yuan is currently frozen by the Guangzhou Tianhe People's Court.
In addition to the above matters, the progress of the incident in which ST Bailong was investigated by the Securities Regulatory Commission has also attracted market attention. On October 29, ST Bailong issued another announcement saying that it had received the CSRC's "Advance Notice of Administrative Penalties and Market Prohibition". Due to ST Bailong's suspected violation of laws and regulations on information disclosure, the CSRC intends to order ST Bailong to make corrections, give a warning, and impose a fine of 10 million yuan; Chen Weixiong, then chairman of the company, and Chen Nana, then vice chairman of the board, were banned from the market for life because of the particularly serious circumstances of the illegal acts, and the two were fined 5 million yuan respectively.
According to the CSRC' findings, ST Bailong was suspected of violating the law: (1) false records in the company's initial public offering prospectus, the 2016 non-public offering stock issuance report and listing announcement and the periodic report; (2) the company was suspected of not truthfully disclosing the "other non-current assets" statement items in the 2017-2019 annual report, and did not truthfully disclose the use of the raised funds in the 2018 annual report; (3) The Company is suspected of failing to perform the approval procedures and information disclosure obligations for external guarantees from 2018 to 2020.
Specifically, from 2013 to 2018, ST Bailong's cumulative inflated operating income was 1.276 billion yuan, and the cumulative inflated profit was 410 million yuan. Among them, from 2014 to 2016, the company's inflated profit accounted for more than half of the total profit of the year. In 2015, the inflated profit was 0.96 billion yuan, accounting for 68.25% of the total profit of the current period; From January to September 2016, the company inflated its operating income by 208 million yuan and inflated its total profit by 0.65 billion yuan, accounting for 69.43% of the total profit in the current period.
At the same time, ST Bailong is suspected of falsely recording bank deposits by forging account receipts, funds in and out of the account, etc., of which the end of 2012, the end of 2013, the end of 2014, the end of 2015, September 30, 2016, the end of 2018, and the end of 2019 falsely recorded that the proportion of bank deposits to the company's total assets at the end of the corresponding period was 16.84%, 20.63%, 39.07%, 20.80%, 29.26%, 24.38%, respectively. 34.93%。
Regarding the "Advance Notice of Administrative Penalties and Market Prohibition" issued by the CSRC, ST Bailong said in the announcement that the company and related parties will make statements, defenses and hearings to the CSRC on relevant matters.
Liu Peng, a lawyer at Shanghai Huzi Law Firm, said that the final result of ST Bailong still needs to wait for the confirmation of the Administrative Penalty Decision, and once it is determined that the listed company has been administratively punished by the CSRC for misrepresentation, investors whose rights and interests have been damaged can protect their rights according to law. According to the relevant judicial interpretations, the current claim range of the case can be clearly defined as investors who bought between June 10, 2015 and March 18, 2021, and sold or still held on or after March 19, 2021 and lost money, can register through the public account "Public Securities News" (feature code: 11011) to participate in the pre-collection of claims. After the CSRC's penalty decision is landed, the lawyer will file a claim lawsuit against the company on behalf of the investor.
In terms of performance, ST Bailong released the third quarter performance announcement on October 27, saying that it achieved revenue of 113 million yuan in the first three quarters of 2021, a year-on-year decrease of 81.07%; The net profit attributable to the mother was about a loss of 43.4247 million yuan, compared with a net profit of 140 million yuan in the same period last year, from profit to loss.
Reporter Li Yan
!["Illustrated Quarterly Report" ST Bailong: Net profit attributable to the mother in the first three quarters of 2021 turned from year to year, and gross profit margin decreased by 25.8%[fig]](data:image/gif;base64,R0lGODlhAQABAIAAAP///wAAACwAAAAAAQABAAACAkQBADs=)