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Radar Finance | Edited by Xiao Wenzhu | Deep Sea
In the evening of July 3, * ST Bailong disclosed a suggestive announcement on the progress of other risk warning related matters in the company's stock.
The announcement said that the company had provided pledge guarantee for supplier loans with 470 million yuan of bank financial products in violation of regulations in the early stage. As of the disclosure date of this announcement, Haikou United Rural Commercial Bank has deducted all the company's bank financial products, and the company has fully fulfilled its guarantee responsibilities. According to the Special Statement on Non operating Capital Occupation and Other Related Capital Transactions, Illegal Guarantees and Cancellation in 2022 (ZXCGHSZ (2023) No. 211028) issued by Zhongxing Finance Guanghua Certified Public Accountants, as of February 24, 2023, the Company had fully fulfilled its guarantee obligations and the remaining guarantee amount on that day was completely relieved. At the same time, the company has confirmed the creditor's rights to the guaranteed party. Because the guaranteed party's debt paying ability is insufficient, the company based on the principle of prudence makes full provision for credit impairment losses on relevant creditor's rights. The impact of the illegal guarantee has been eliminated, and the situation that the company touches the provisions of Article 9.8.1 of the Stock Listing Rules has been eliminated. The Company will apply to Shenzhen Stock Exchange for cancellation of other risk warnings for the Company's stock trading, and the final application for cancellation shall be subject to the review opinions of Shenzhen Stock Exchange.
However, the company has an internal control audit report with negative opinions issued in the last year. According to the relevant provisions of Article 9.8.1 of the Stock Listing Rules, the company's shares were subject to other risk warnings. The audited net assets of the Company at the end of 2022 are negative. According to Item (2), Paragraph 1 of Article 9.3.1 of the Stock Listing Rules, "the audited net assets in the latest accounting year are negative, or the net assets at the end of the latest accounting year after retroactive restatement are negative", the company's stock trading is subject to delisting risk warning.
Therefore, if the cancellation application of some other risk warnings of the company is approved by Shenzhen Stock Exchange, the company still has other risk warnings, and the company's shares are continued to implement delisting risk warnings and other risk warnings, which are referred to as "* ST Bailong" for short.
Radar Finance noted that in April 2022 * ST Bailong issued an announcement, and the company and relevant personnel received the Administrative Punishment Decision and the Market Access Prohibition Decision issued by the CSRC. The CSRC found that there were false records in the company's initial public offering prospectus, 2016 non-public offering report, listing announcement and regular reports. From 2013 to 2018, the accumulated falsely increased operating revenue was 1.276 billion yuan, and the accumulated falsely increased total profit was 410 million yuan.
Based on the above violation facts, * ST Bailong was ordered to correct, given a warning and fined 10 million yuan; Chen Weixiong and Chen Nana were warned, fined 5 million yuan and banned from entering the market for life after they learned of and participated in financial fraud.
It is worth mentioning that on June 27 this year * ST Bailong received the Notice of Arrest issued by Jieyang Public Security Bureau (Jieyang Captong Zi [2003] No. 00091) from Chen Weixiong, the actual controller of the company, and Chen Nana's family members. It was learned that with the approval of the People's Procuratorate of Jieyang City, Chen Weixiong and Chen Nana had been arrested on June 19, 2023 on suspicion of fraud in issuing shares, illegal disclosure and non disclosure of important information.
*ST Bailong said that Chen Weixiong and Chen Nana had resigned since April 2022. They did not serve as directors, supervisors and senior managers of the company and did not participate in the company's operation and management. The above matters would not affect the company's daily production and operation activities. At present, the company's production and operation are normal, and all work is carried out in an orderly manner.
According to Tianyan, * ST Bailong was founded in 2006 with a registered capital of 538 million yuan. The company is a professional design enterprise focusing on garment design and providing supporting organization and production services for the company's design styles according to customer requirements. The operating revenue comes from clothing design and production organization business, and the operating profit mainly comes from design business.
