On September 8, 2023, Changshu Guorui Technology Co., Ltd. (hereinafter referred to as the Company or Guorui Technology) announced that it had received the Notice of Administrative Punishment in Advance from the CSRC.
Upon investigation, Guorui Technology is suspected of participating in the false self circulation business of private network communication, resulting in false records in the 2020 annual report.
From 2019, Guorui Technology began to carry out private network communication business. Among the upstream and downstream companies involved in the private network communication business of Guorui Technology, some companies are controlled by Sui Tianli, and some companies carry out private network communication business controlled by Sui Tianli, The company synchronously signed purchase and sales contracts with upstream and downstream companies. Suppliers and customers were designated by the upstream channel company, Changshu Star Hongda for short, and the contract text was also provided by Changshu Star Hongda.
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After investigation, the private network communication business led by Sui Tianli, which was participated by Guorui Technology, was a false self circulation business, without commercial substance, and the corresponding operating revenue, operating costs and profits should not be recognized.
In the process of developing the private network communication business, Guorui Technology found that the business was abnormal in product quality and inspection standards, main material quality, production process and other aspects, and knew that the private network communication business was significantly different from other military products business of the company in terms of qualification and contract acquisition. When the downstream customer fails to pay the payment for goods on time, Guorui Technology first urged the downstream customer to make payment through the person in charge of Changshu Xinghongda, and then the downstream customer asked Guorui Technology to negotiate with Sui Tianli. In the process of recovering the arrears from Sui Tianli, Guorui Technology learned that the private network communication business was controlled by Sui Tianli, and should know that the private network communication business was a false self recycling business.
By participating in the private network communication self circulation business, Guorui Technology's annual report in 2020 falsely increased operating revenue by 225875443.97 yuan, operating costs by 185617728.60 yuan, and total profits by 40257715.37 yuan.
On April 26, 2022, the company disclosed the Announcement on the Correction of Accounting Errors in the Earlier Period of the Company. Through self inspection, the company's private network communication business in 2020 is essentially to provide entrusted processing services for customers, and the company's private network communication business revenue recognized by the total amount method in 2020 needs to be retroactively adjusted.
According to the fact, nature, circumstances and social harm degree of the illegal act of the party concerned, the CSRC intends to order Guorui Technology to correct, give a warning and impose a fine of 2 million yuan.
According to the Securities Law and the judicial interpretation of the Supreme People's Court, if a listed company is punished by the CSRC due to illegal information disclosure, the injured investor can sue for compensation according to law, and the scope of compensation includes: investment balance, commission, stamp duty.
As for the claim conditions, Guangzhou Yangsen's lawyer team believes that, provisionally, investors who buy Guorui Technology (300600) from April 26, 2021 to July 12, 2021, and sell or continue to hold the company's shares after July 13, 2021, resulting in losses, may consider suing for claims.
Of course, this is just the right of action of investors. Whether there is causality and whether it can be supported still needs to be determined by the court.
According to the public information, Glory Technology is registered in Jiangsu, and its main business is engaged in the research, development, production, sales and comprehensive technical services of electrical and automation systems and their system integration for ships and marine engineering.
