Investigation of Anne shares suspected of illegal trust

On the evening of October 13, Annie shares (002235, SZ; yesterday’s closing price was 6.80 yuan) issued the announcement on the company’s receiving the investigation notice from the CSRC. According to the relevant provisions of the securities law, China Securities Regulatory Commission (CSRC) decided to file an investigation into the company for suspected illegal information disclosure. < p > < p > < p > the reporter of daily economic news noted that this is not the first time Annie shares has been put on file for investigation. In 2010, Annie shares received the “investigation notice” from Xiamen securities regulatory bureau. The investigation conclusion is that Annie shares falsely increased business income by about 69 million yuan and profits by about 16.09 million yuan in 2008. Annie shares were listed in 2008, and the accumulated net profit for more than ten years was negative. But the actual controllers, Lin XuXi and Zhang Jie, kept reducing their holdings. In addition, Annie shares have been involved in many fields through frequent mergers and acquisitions, and many media have questioned the merger and acquisition transactions of Annie shares. < p > < p > when Annie shares was listed, its products were mainly business information paper. With access to the capital market, Annie shares began to gradually intervene in a number of industries, including Internet marketing, copyright services, game distribution, game virtual currency, network traffic services, film and TV drama investment, big data system trade business, art sales, wine and food. < p > < p > an example can show the cross-border distance of Annie shares. In 2018, after learning that the salvor of the “black stone” (a sunken ship in the Tang Dynasty) wanted to transfer 189 pieces of “black stone” porcelain, Annie shares set a price of about 4.5 million yuan to buy these antiques. “The follow-up companies will continue to tap and give full play to the historical value, cultural value and artistic value of the” black stone “by taking the water relics of the” black stone “as the blueprint and elements, according to Annie shares With the development of cross industry, Annie shares have frequently carried out mergers and acquisitions. By the end of June 2020, the merger and acquisition has formed about 523 million yuan of goodwill on the balance sheet of Annie shares. The total assets of Annie shares are about 2.2 billion yuan, and goodwill accounts for about one fourth of the total assets. At the same time, Lin XuXi and Zhang Jie, the actual controllers of Annie shares, kept reducing their holdings of Annie shares. According to the 2008 annual report of Annie shares, at that time, Lin XuXi and Zhang Jie held 64.61% of Annie shares, but by 2019, their shareholding ratio had dropped to 21.8%. < p > < p > in the first half of 2020, the performance of Annie shares dropped sharply. According to the semi annual report, in the first half of this year, Annie’s operating income was about 167 million yuan, a decrease of 15.28% over the same period of last year. The net profit attributable to shareholders of listed companies was about – 9.93 million yuan, a decrease of 109.91% compared with the same period of last year. Novel coronavirus pneumonia, which was delayed by the new company’s pneumonia outbreak in the first half of 2020, has delayed the company’s upstream and downstream businesses, which has caused a great impact on the various businesses of the company:

Anne’s business has been postponed, and the production and sale of business information paper products has been reduced. Although the company has taken various measures to actively respond to the epidemic, its business performance in the first half of the year is still affected to a large extent. ” < p > < p > for a long time, the market has been questioning the information disclosure of Annie shares. Nine years ago, the results of a case filing investigation showed that Annie shares and related personnel had been warned and fined for financial fraud. < p > < p > this time, for the case filing investigation of the CSRC, Annie shares said: “during the filing and investigation period, the company will actively cooperate with the investigation work of Xiamen regulatory bureau of China Securities Regulatory Commission, and fulfill the obligation of information disclosure in strict accordance with regulatory requirements.” < p > < p > < p > the reporter of daily economic news noted that the exchange also paid high attention to Annie shares. From 2017 to 2019, Annie shares’ three-year annual reports were inquired, and goodwill was one of the important concerns. From 2016 to 2019, the goodwill of Annie shares was 1.104 billion yuan, 741 million yuan, 744 million yuan and 523 million yuan respectively. < p > < p > in the annual report inquiry letters of the exchange for three consecutive years, they all paid attention to Beijing Changyuan Guoxun Technology Co., Ltd. (hereinafter referred to as Changyuan Guoxun), a subsidiary of Annie Co., Ltd. In 2016, Annie shares acquired 100% equity of Changyuan Guoxun with a price of 1.138 billion yuan, and confirmed about 1.04 billion yuan of goodwill. The performance commitment Party of Changyuan Guoxun promises that the net profits of Changyuan Guoxun in 2016, 2017 and 2018 will not be less than 76 million yuan, 100 million yuan and 130 million yuan respectively. < / P > < p > since 2017, Changyuan Guoxun has been unable to fulfill its commitment. In 2017 and 2018, the net profit of Changyuan Guoxun was 61.5571 million yuan and 92.2969 million yuan respectively. By 2019, the net profit of Changyuan Guoxun will drop to 43574300 yuan. < p > < p > correspondingly, in 2017, Annie stock made a provision for impairment of Changyuan Guoxun’s goodwill by about 300 million yuan. In 2019, Annie Co., Ltd. made another provision for goodwill impairment of Changyuan Guoxun, about RMB 221 million. < p > < p > in the inquiry letter of the 2019 annual report, the exchange asked Annie shares: “explain the reasons for the sharp decline of Changyuan Guoxun’s business in recent years, the rationality of the subsequent expected growth rate, especially the growth rate in 2020, the sufficiency of goodwill impairment, and whether there is any artificial adjustment of profits.” < p > < p > < p > Annie shares replied: “based on the operation of the company in the past historical years, the contract signed by the company and the industry development trend of the company, the growth rate predicted by the company is reasonable, and the goodwill impairment based on the forecast is sufficient, and there is no case of artificially adjusting profits.” < p > < p > it is worth mentioning that on October 14, Annie shares opened at a limit price of 6.80 yuan, which rose to 8.97 yuan shortly after the opening, and then fell again soon. As of the end of the day, the company’s share price is still down. < / P > < p > Disclaimer: the purpose of this article reprinted by china.com finance and economics is to convey more information and 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. < p > < p > Chinanet is a national key news website under the leadership of the Information Office of the State Council and managed by China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website releases information 24 hours a day, which is an important window for China to carry out international communication and information exchange.