Shenzhen Stock Exchange Supervision letter directly points to Guangzhou Langqi “four cases of crime” naming annual review institution

On December 10, Zhongxin Jingwei client made a series of bizarre “farce” against Guangzhou Langqi by electro acupuncture, and Shenzhen Stock Exchange issued two supervision letters in the morning of December 10. < p > < p > in its regulatory letter to Guangzhou Langqi, Shenzhen Stock Exchange said that after investigation, the company and its related parties Zhao biqiu, Zhong Lianjun, Tan Xiaopeng and Li Yanmei committed a number of information disclosure violations. < / P > < p > according to the regulatory letter, Guangzhou Langqi did not disclose the default of failing to pay off the due major debts in time. In March, August and September 2020, some commercial acceptance bills and factoring accounts payable of Guangzhou Langqi were overdue. As of September 24, there were 10 overdue debts with an amount of 395 million yuan. However, the company did not disclose the above overdue debt until September 25, and the relevant information was not disclosed in time. < / P > < p > the risk involved in the relevant inventory was not fully disclosed in a timely manner. Guangzhou Langqi, knowing that Huifeng company’s reply denies that it has signed a storage contract with the company, confirms that Huifeng warehouse has no company’s storage goods, and the legal representative of Hongshen company denies that it has kept and transported the company’s goods, and that there are significant risks in the relevant inventory, fails to perform the obligation of information disclosure in time and fully disclose the relevant risks. In addition, the confirmation of land transfer was not disclosed in time. On November 14, 2020, Guangzhou Langqi disclosed the announcement on the progress of land acquisition and storage and accounting treatment instructions of Guangzhou headquarters. It said that the company had obtained the confirmation of land transfer from Guangzhou land development center on October 29, but the company disclosed the above information until November 14 and failed to fulfill the obligation of information disclosure in time. It is also mentioned in the regulatory letter that the information disclosure of Guangzhou Langqi before and after the accounting treatment of land acquisition and storage is inconsistent, which has a significant impact on the company’s profits and misleads investors’ decision-making. At the same time, Zhao biqiu, chairman of the board of directors, Zhong Lianjun, general manager and Li Yanmei, chief financial officer of the company, failed to fulfill their duties and duties of honesty and diligence; Tan Xiaopeng, Secretary of the board of directors of the company, failed to fulfill their duties and duties of honesty and diligence, violating the relevant regulations of Shenzhen Stock Exchange. < p > < p > in the regulatory letter, SZSE stressed that it hoped that the company and all directors, supervisors and senior managers would learn from the lessons, strictly abide by the securities law, company law and other laws and regulations, and the stock listing rules, and truly, accurately, completely, timely and fairly perform the obligation of information disclosure, so as to prevent such incidents. < / P > < p > in another regulatory letter to Zhongshen Zhonghuan Certified Public Accountants (special general partnership), the annual audit institution of Guangzhou Langqi in 2019, Shenzhen Stock Exchange mentioned that in its reply to the inquiry letter on the annual report of Guangzhou Langqi Industrial Co., Ltd. on May 13, 2020, the Institute said that the accounting treatment related to the land acquisition and storage of Guangzhou Langqi was in line with the accounting standards for business enterprises It’s settled. < p > < p > on November 14, 2020, Guangzhou Langqi disclosed the announcement on the progress of land acquisition and storage and accounting treatment instructions of Guangzhou headquarters, which said that on the basis of referring to relevant accounting standards and market cases, Guangzhou Langqi fully communicated with the accountants of the Institute on the accounting treatment of the transaction, and confirmed by the accountants of the Institute, Guangzhou Langqi is expected to make up the land in 2020 The net amount of compensation and reward for early land delivery after deducting employees’ expenses is recognized as income from asset disposal. According to the preliminary calculation of Guangzhou Langqi finance, the company is expected to achieve a pre tax income of about 2.247 billion yuan, which will have a significant impact on the current operating performance of Guangzhou Langqi. < p > < p > on November 25, 2020, the Institute replied to the “letter of concern to Guangzhou Langqi Industrial Co., Ltd.” that the accounting treatment of Guangzhou Langqi’s change of land acquisition and storage is more in line with the “accounting standards for Business Enterprises No. 16 – government subsidies”; (Application Guide) (revised in 2018) and case 7-03 of case analysis of listed companies’ implementation of accounting standards for business enterprises (2020) for relocation compensation. < p > < p > Shenzhen Stock Exchange pointed out that Guangzhou Langqi land acquisition and storage involved a huge amount of money. As an audit institution employed by a listed company, it failed to maintain due practice prudence in the verification process of the accounting treatment basis of the company’s land acquisition and storage, and then failed to be fully diligent and responsible, in violation of the relevant provisions of Shenzhen Stock Exchange. It is hoped that the exchange can learn from the lessons and strictly abide by the securities law, company law and other laws and regulations, as well as the stock listing rules, so as to prevent such incidents. < p > < p > previously, Guangzhou Langqi financial and trade “black hole” caused market attention. On the evening of November 16, Shenzhen Stock Exchange issued a letter of concern to Guangzhou Langqi. It is required to explain whether the disclosure of relevant information is likely to mislead investors and whether the accounting treatment and changes are prudent in combination with the amount of land purchase and storage and its impact on the company. It is also required to ask zhongaudit Zhonghuan to explain whether its practice process has maintained due practice prudence. < / P > < p > Disclaimer: the purpose of this article reprinted by CNFC is to convey more information, and it does not represent the opinions and positions of CNFC. The content of this article is for reference only, and does not constitute an investment proposal. Investors operate on this basis at their own risk. < p > < p > Chinanet is a state key news website under the leadership of the Information Office of the State Council and the management of China foreign language publishing and Distribution Bureau. Through 11 versions in 10 languages, the website publishes information 24 hours a day. It is an important window for China to carry out international communication and information exchange.