The risk of delisting or the cancellation of the environment of financial industry received the prior notice of administrative punishment from the CSRC

On October 14, Kerong environment announced that the company and relevant personnel received the prior notice of administrative punishment issued by the CSRC on October 13. The announcement shows that according to the investigation of the CSRC, Kerong environment changed the reporting date of 21 projects from the previous year to 2017, and confirmed the mode income in 2017, which was suspected of falsely increasing the profit of 2017 by 7.1788 million yuan. < / P > < p > according to the confirmation of the notice in advance, Kerong environment has made a preliminary estimate on the main financial data of 2017. According to Kerong environment, the punishment result does not affect the nature of the company’s profit and loss in 2017 and does not touch the delisting index of losses in consecutive accounting years. In an interview with the Securities Daily reporter, Dong mi zongran of Kerong environment said: “because this is only a notice in advance, the company will make preparations for self-examination and correction according to the contents of the notice. After the final result is obtained, it will cooperate with the improvement of the letter work as soon as possible, such as the data correction of the statement.” < / P > < p > looking back, on August 7, 2019, Kerong environment received the investigation notice issued by the CSRC. Due to suspected illegal information disclosure, according to the relevant provisions, the CSRC decided to file a case to investigate Kerong environment. < p > < p > the financial data shows that the net profits of the parent company’s owners realized by Kerong environment from 2016 to 2018 were – 292 million yuan, 10.32 million yuan and – 476 million yuan respectively. < / P > < p > from the financial data of the above three years, if the final investigation results of the CSRC lead to the change of the nature of the profits and losses of Kerong environment in 2017, the shares of Kerong environment will touch the relevant provisions of the Listing Rules of GEM stocks, and the company has “continuous losses in the last three years”, and there is a risk of compulsory delisting of Kerong environment shares. < / P > < p > according to the confirmation of the notice in advance, Kerong environment falsely increased the profit of 2017 by 7.1788 million yuan by altering the date of commissioning report, which led to the suspected existence of false records in the updated 2017 annual report. < / P > < p > after receiving the notice in advance, Kerong environment has made a preliminary estimate on the main financial data in 2017. The estimated net profit is adjusted from 2.7253 million yuan to – 3.3767 million yuan, and the net profit attributable to the shareholders of the parent company is adjusted from 10.32 million yuan to 4.218 million yuan. The punishment result does not affect the nature of the company’s profit and loss in 2017, does not touch the delisting index of losses in consecutive accounting years, and delisting risk is temporarily lifted. < p > < p > although the delisting risk has been temporarily lifted, the CSRC believes that the above-mentioned behaviors of Kerong environment are suspected of violating the illegal information disclosure activities mentioned in the first paragraph of Article 193 of the securities law. The CSRC intends to decide to give a warning and impose a fine on the environment and related personnel of Kerong. In response, pan Helin, executive director and professor of Digital Economy Research Institute of Central South University of Finance and law, told Securities Daily: “this is a heavy blow to the credibility of Kerong environment.” Hu Qimu, a senior researcher at Sinosteel Economic Research Institute, who was interviewed by the Securities Daily reporter, said: “although the punishment result does not affect the company’s profit and loss nature in 2017, it does not touch the delisting index of losses in consecutive accounting years. However, the company’s behavior has damaged investors’ confidence in the management team of listed companies and disrupted the order of the securities market. From the perspective of investors, in order to avoid some uncertainties brought about by administrative punishment on listed companies, they may choose to reduce the allocation of punished listed companies in the short term. From the business level, the related enterprises of related businesses of listed companies may also take certain measures to avoid the possible risks at the business level. ” With regard to the notice of administrative penalty received by the company in advance and how to implement the contents of the opinions on further improving the quality of listed companies (hereinafter referred to as the opinions) recently issued by the State Council, zongran said to reporters: “this case filing investigation is aimed at the business and financial management of subsidiaries. In terms of improving the company’s quality in the implementation of the” opinions “, zongran told reporters It’s how to avoid the occurrence of violations when the subsidiary has performance pressure, which requires increasing the training of personnel and more scientific management of financial confirmation basis, which is also the place where the company is striving to improve and improve. ” According to Hu Qimu, “at present, a key system of China’s securities market reform is the securities issuance registration system with information disclosure as the core. Objective, accurate and timely information disclosure can improve the operation efficiency of the securities market and optimize the allocation of resources. On the one hand, the core of improving the quality of listed companies is to clarify the main responsibility of enterprises from their own perspective. On the one hand, listed companies should be better and stronger in business and cultivate core competitiveness; on the other hand, corporate governance should be improved and various internal control systems should be effectively operated. ” Zongran said: “in view of the above problems, the company will carry out comprehensive self inspection and actively rectify in accordance with the regulatory requirements, strengthen and improve the internal control of related businesses, and at the same time, carefully check and make up for deficiencies, draw inferences from one instance, continuously and comprehensively improve the company’s internal control and compliance management, comprehensively improve the company’s compliance management and internal control level, and resolutely put an end to similar problems To accelerate the construction of a new development pattern and improve the quality of listed companies. ” “If the listed companies take the opportunity of this rectification to continuously improve the corporate governance and improve and standardize information disclosure, it will be beneficial to the healthy development of the company in the future,” Hu Qimu said < / 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. 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