Guangzhou Langqi lost more than 800 million yuan in the first three quarters, and the authenticity of past financial data attracted attention

Guangzhou Langqi has become the focus of public opinion for a time due to the strange disappearance of valuable inventory. “Securities Daily” reporter found that in the interview, the market parties generally doubt the authenticity of Guangzhou Langqi’s statement, believing that its probability exists financial fraud. Kuang Yuqing, the research founder of lens company, told the Securities Daily that if Guangzhou Langqi did have financial fraud, not only inventory, but also receivables, costs and expenses might have problems. “At present, it is hard to say how much reference value the financial report data disclosed by the company has. I hope the CSRC can quickly file a case for investigation and restore the truth of the matter. It is not enough to rely solely on enterprise self-examination.” On the evening of October 14, Guangzhou Langqi disclosed the performance forecast of the first three quarters, saying that the company had an advance loss of 800 million to 1 billion yuan during the reporting period. According to the announcement, there are three main reasons for the performance change: first, the company has made inventory falling price reserves for the inventory located in Huifeng warehouse and Ruili warehouse, with an amount of 572 million yuan; second, due to the dispute over the sales contract, the company plans to make a provision of 142 million yuan for the accounts receivable of Asia Pacific huasang company; third, as of the end of the report period, the company received the payment from Guangzhou land development center The total compensation was 1.294 billion yuan. < / P > < p > according to the reporter’s calculation, the inventory falling price reserve is 572 million yuan, the bad debt provision is 142 million yuan, plus the performance loss of the first half of the year is 115 million yuan, the total loss is 829 million yuan, which is in line with the amount of advance loss disclosed by the company. However, the calculation does not include land compensation of 1.294 billion yuan. If the compensation has been included in the company’s disclosed loss of 800 million to 1 billion yuan, it means that Guangzhou Langqi still has a huge financial loophole. According to the semi annual report previously disclosed by the company, the company realized a net profit loss of 115 million yuan belonging to shareholders of Listed Companies in the first half of this year, a sharp decrease of 538.66% year-on-year. In this regard, Guangzhou Langqi attributed the main reason to the epidemic situation and the impact of the overall economic situation. < / P > < p > “Guangzhou Langqi is lack of innovation and growth.” According to Wu Daiqi, CEO of Shenzhen siqisheng Culture Communication Co., Ltd., although the daily chemical industry has been affected by the epidemic, disinfection and sterilization washing products have increased greatly. Therefore, Guangzhou Langqi’s business problems mainly come from the internal, such as the adaptation to external market trends, the company’s product innovation and marketing capabilities. < p > < p > < p > < p > in the interview, the reporter of Securities Daily found that all parties in the market did not buy the statement that Guangzhou Langqi’s inventory was lost. He Qiang, a lawyer of Weiheng law firm in Beijing, said: “judging from the reactions of all parties after the inventory disappearance incident was exposed, the probability of financial fraud and operating profit of Guangzhou Langqi is relatively high.” Kuang Yuqing also told reporters: “the appearance of this inventory on Guangzhou Langqi’s balance sheet was highly suspicious, which obviously violated the normal business logic.” < / P > < p > according to the financial data disclosed by the company, Guangzhou Langqi achieved an operating revenue of 11.974 billion yuan in 2018, which was nearly stagnant compared with the previous year’s 11.811 billion yuan. At the same time, at the end of 2018, the inventory amount increased sharply from 350 million yuan at the end of 2017 to 1261 million yuan, with an increase of 911 million yuan. < / P > < p > “in the state of stagnant revenue growth, the substantial increase in inventory of Guangzhou Langqi is contrary to common sense.” Kuang Yuqing explained, “in 2018, the company’s sales expansion was extremely difficult, and the normal practice of enterprises should be to appropriately reduce the inventory scale and increase the inventory turnover speed, so as to avoid the risk of asset impairment. But the company not only did not do so, but took the huge risk of inventory falling price to expand crazily against the trend. What is the logic of its management to do so? ” Generally speaking, the three most likely destinations of income and profit of listed companies through financial fraud in the balance sheet are receivables, inventory and fixed assets. < / P > < p > if the market conjecture is true and Guangzhou Langqi does have financial fraud, it is not only fictitious inventory, but also the authenticity of other financial data. Kuang Yuqing told the Securities Daily: “from an audit point of view, counterfeiting accounts receivable is more secretive than counterfeiting inventory. Because the audit of inventory can find problems through on-site inventory, while the audit of receivables can only be checked through various documents. Therefore, it is not ruled out that the company also has the suspicion of false receivables. ” According to the data of < / P > < p > in recent years, the amount of receivables of Langqi in Guangzhou is high. As of June 30, 2020, the book balance of accounts receivable and notes receivable of Guangzhou Langqi totaled 3.694 billion yuan, which was more than twice the book inventory of the same period, and almost equivalent to the total operating income of the company in the first half of the year. < p > < p > under the crest of the storm, the stock price of Guangzhou Langqi has been falling all the way recently. From September 28 to October 15, the share price has dropped by nearly 30%, and the market value has evaporated by more than 1 billion yuan. In this regard, he qiangcao told the Securities Daily that financial fraud will not only cause significant economic losses to investors holding stocks, but also challenge market rules. “If the fraud is true, small and medium-sized investors can sue Guangzhou Langqi for damages according to law, but it’s still too early to conclude the punishment conclusion of the CSRC.” In addition, Shenzhen stock exchange is concerned about the completion of Longqi’s notice before October 31, 2020. Perhaps by then, the truth about the company’s inventory loss and financial black hole will emerge one by one. < p > < p > the purpose of this article reprinted by China net finance and economics is to convey more information, which does not represent the views and positions of the website. The content of this paper is for reference only and does not constitute investment advice. Investors operate accordingly and bear their own risks.