Li Delin: CSRC attacks to clean up the black sheep

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Opinion Leader | Li Delin

I warn you that if you wear the ST hat, you will be fined 5 million yuan. On the evening of May 17, star stocks Zhongtai Chemical Received the Letter of Decision on Administrative Punishment issued by Xinjiang Securities Regulatory Bureau. Zhongtai Chemical is not the first. At present, more than 450 companies will delist or wear the ST hat due to financial, dividend, market value, price, audit opinion and other risks. Wu Qing, chairman of the CSRC, proposed to resolutely remove the black sheep from the market. Now, the regulation is attacking in an all-round way, and the black sheep have no future.

According to the investigation of the CSRC, in order to achieve the operating revenue target issued by the controlling shareholder, Zhongtai Chemical and its controlled subsidiaries will account for the businesses that do not have control or act as agents according to the total amount method. In 2022, the total false revenue will be 4.248 billion yuan, and the false cost will be 4.248 billion yuan, accounting for 7.6% and 7.75% of the total operating revenue and total operating cost disclosed in the 2022 report respectively. The survey also found that the total amount of non operating funds occupied by the controlling shareholders and related parties of Zhongtai Chemical was 7.718 billion, accounting for 21.61% of the net assets at the highest level in a single year. The annual report disclosed during the issuance of bonds in 2023 and the duration of its existence has major omissions of false records.

Although the falsely increased income and cost of Zhongtai Chemical accounted for less than 8% of the total income, from the chairman to the general manager, from the chief financial officer to the general financial manager, they were directly responsible for the falsely increased income scale of Zhongtai Chemical and its subsidiaries, and the occupation of non operating funds. The CSRC issued a fine of 5 million yuan to Zhongtai Chemical, and a total of 6.8 million yuan to 7 persons in charge from the chairman to the chief financial officer. The controlling shareholder was fined 5 million yuan and the financial director of the controlling shareholder was fined 2 million yuan.

In 2022, when Zhongtai Chemical was subject to regulatory investigation, it had 45 wholly-owned and holding subsidiaries and 47 joint-stock companies, with total assets of 80.3 billion yuan at that time. By 2023, the revenue will be 37.118 billion yuan, a year-on-year decrease of 28.15%, and the net profit will be 2.865 billion yuan, compared with 776 million yuan in the same period last year. The business condition of Zhongtai Chemical has not improved in 2024, with the revenue of 7.78 billion yuan in the first quarter, down 27.33% year on year. The share price of this listed company, which was once as high as 18 yuan, is now less than 5 yuan, down 70%.

Wu Qing said at the activity of "5.15 National Investor Protection Publicity Day" in 2024 that listed companies are the foundation of the market and the source of investment value. From the entrance of listed companies to continuous supervision and export, more strict institutional arrangements should be established. Illegal and criminal acts such as fraudulent issuance, financial fraud, insider trading and market manipulation are the cancer of the capital market, To seriously infringe upon the legitimate rights and interests of investors, we must resolutely keep counterfeiters out of the market, and resolutely remove zombie enterprises and black sheep from the market.

Whether it is a star enterprise or a local leader, as long as the regulatory red line is involved, it will become a key regulatory object. If Zhongtai Chemical is fined, warned, put on the ST hat, or even fined the controlling shareholders of key minorities, it is not an example. In order to improve the quality of listed companies, the CSRC investigated and punished one illegal act. So far, more than 450 listed companies have been delisted or put on ST hats due to financial, share price, dividend, audit opinion, market value and other risks.

At present, more than 80 listed companies have financial delisting risks, among which typical ones are *ST Zuojiang Financial fraud for many years. In the AI boom, hundreds of chips were used to fry into the most expensive ST stock, which fooled tens of thousands of investors into a pit. *ST Meishang Since the fraud started before listing, so that the bosses feel too tired of fraud. They colluded with private placement to set up their own stocks, with a trading volume of nearly 80 billion yuan, and apparently lost more than two billion yuan. In fact, the bosses cashed out more than 4.5 billion yuan. The real purpose of their business is to protect the bosses from cashing out.

There are more than 60 listed companies with audit opinion risk. such as *ST Sansheng In a few months, three accounting firms were changed, because their financial reports could not be compiled anymore, and their annual reports could not be produced. What is more eye opening is the bad guys who are responsible for the occupation of funds. Even the supervision can't stand it. Why do they still stay in the listed company? Such a person, acting like a villain recommending a gatekeeper, unexpectedly recommended a new audit institution to the listed company, which increased the audit fees, but the new comer still abandoned his job.

Now, in addition to being severely punished for financial fraud, the iron rooster will also wear the ST hat. There are 220 A-share companies that have not paid cash dividends for 10 consecutive years, 91 companies that have not paid dividends for 20 consecutive years, and 4 companies that have not paid cash dividends for 30 consecutive years or more. They are Jinbei Auto 、 Zhongyida 、 Yangmei Chemical 、 University education , definitely a fighter of the iron rooster. The new dividend distribution rules come out, and the company has made profits for five consecutive years without paying dividends Jilin Expressway It was immediately said that the plan of no dividend before the modification was more than 170 million dividends.

Many listed companies in the A-share market falsify their performance and manipulate their share prices. All day long, they are thinking about cashing in and trying to make money. When the share prices of some listed companies are lower than 1 yuan, it is not because investors are illiterate, because their companies are no different from zombies, only their share prices are still beating. Of course, what is the significance of listing those who have been listed for many years and have never shared the company's development dividends with investors? The regulator should now clean up those zombie listed companies and remove the black sheep from the market, such as fraudulent issuance, financial fraud, and stock price manipulation.

Now the CSRC has launched an attack to strictly supervise the violators. In addition to the difficulty in entering the market, the export is also speeding up its clean-up. Major violations such as financial fraud will be severely punished. On May 17, the CSRC, the Supreme People's Court, the Supreme People's Procuratorate, and the Ministry of Public Security jointly issued a document to strengthen the investigation and punishment of the black sheep. The black sheep should be removed, arrested when they are caught, and sued when they are sued, so that they have no future. In the face of the black sheep cleared by the CSRC, perhaps, ordinary people They will say that the old goblin will become a bodhisattva, depending on how you pretend.

(The author of this article introduces: scale business, value based, investment oriented perspective, observation and insight into commercial civilization, scientific and technological innovation, official WeChat official account: delinshe)