After the four year financial fraud case was exposed, the latest annual report was "totally naked", and the company's 2023 annual report received an inquiry letter.
On the evening of May 22, 2024, Jilin Liyuan Refining Co., Ltd. (002501, Liyuan Shares) announced that the Shenzhen Stock Exchange sent a letter of inquiry to it that day. SZSE noted that the Company's financial statements were issued with an audit report with emphasized items and unqualified opinions.
The Shenzhen Stock Exchange said that as of April 25, 2024, the company had received 925 shareholders' litigation materials, which were mainly cases of investors suing the company for liability disputes for misrepresentation, involving a total litigation amount of 294 million yuan.
Liyuan Shares was founded in November 2000 and listed in Shenzhen Stock Exchange in November 2010. This is a comprehensive production enterprise integrating casting, extrusion, surface treatment and deep processing of aluminum products, providing products and services for auto parts, building decoration, rail transit and other industries.
The stock abbreviation of the company was originally Liyuan Refining. On the evening of May 18 this year, Liyuan Refining announced that, in order to further strengthen the corporate image and brand value, the company's securities abbreviation is planned to be changed to "Liyuan Shares" from May 19.
SZSE noted that the financial statements of Liyuan Shares have been issued with an audit report with emphasized items and unqualified opinions. The main issues involved are: as of April 25, 2024, the company has received 925 shareholders' litigation materials, which are mainly cases of investors suing the company for liability disputes of misrepresentation, involving a total litigation amount of 294 million yuan.
The regulatory authorities require Liyuan Shares to explain the specific situation of the above litigation as of the date of the reply, including but not limited to the cause of the case, the type of the case, the progress of the case, the amount involved, the judgment result and the implementation, the amount of compensation paid, whether the recovery is involved and the specific recovery object, etc., the current progress of the hearing of the above cases, and whether the obligation of information disclosure is fulfilled in a timely manner.
Shenzhen Stock Exchange said that Liyuan Shares had been issued with unqualified audit reports with emphasized items for three consecutive years, so the company was required to add the specific reasons for the failure to eliminate the impact of related items and the countermeasures taken or proposed to be taken.
The 2023 annual report shows that during the reporting period, Liyuan shares achieved an operating revenue of 477 million yuan, down 6.14% year on year. After deducting 26 million yuan from the operating revenue, the operating revenue after deducting 451 million yuan.
Shenzhen Stock Exchange requires Liyuan Shares to supplement the business essence and revenue recognition method of business income deduction, and to explain whether there are other business income unrelated to the main business and income without business essence, and whether there are other circumstances that should be deducted or not.
Why are hundreds of investors suing listed companies?
On the evening of January 12, 2023, Liyuan Refinery announced that the company and related persons had received disciplinary punishment from the exchange. The reason is that, according to the previous verification of Jilin Supervision Bureau of CSRC, Liyuan Refining has many false records in its financial statements.
The announcement shows that there are false records in the operating income disclosed in the annual reports of Liyuan Refining in 2015, 2016 and 2017; The balance of construction in progress, balance of fixed assets and depreciation of fixed assets disclosed in the annual reports of Liyuan Refining in 2015, 2016, 2017 and 2018 have false records; The total profits disclosed in the annual reports of Liyuan Refining in 2015, 2016, 2017 and 2018 are false; The monetary fund balance disclosed in the annual reports of Liyuan Refining in 2015, 2016 and 2017 has false records.
From 2015 to 2017, Liyuan Refinery fabricated the sales business by forging the sales documents related to the business settlement and delivery orders, falsely issuing the sales invoices, and at the same time, fabricated the sales collection by forging the bank receipt vouchers.
In 2017, Shenyang Liyuan Rail Transit Equipment Co., Ltd. (hereinafter referred to as Shenyang Liyuan), a wholly-owned subsidiary of Liyuan Refining, fabricated sales business by forging sales documents related to business settlement and delivery orders, falsely issuing sales invoices, and fabricated sales receipts by forging bank receipt vouchers.
The profit source refining method is to falsely increase the operating revenue and depreciation of fixed assets. In 2015, the falsely increased total profits accounted for 36.97% of the total profits disclosed in the current period; The total unrealized profits in 2016 accounted for 41.57% of the total profits disclosed in the current period; The total unrealized profits in 2017 accounted for 30.45% of the total profits disclosed in the current period; The total unrealized profits in 2018 accounted for 2.77% of the total profits disclosed in the current period.
After the four year long case of financial fraud was exposed, the 2023 annual report will no longer have any modified "naked running", resulting in huge losses.
The first quarterly report of this year disclosed on the same day continued to lose money. The first quarter report of 2024 shows that the revenue in the first quarter of 2024 is about 95.81 million yuan, a year-on-year decrease of 26.35%; The net profit loss attributable to the shareholders of the listed company is about 37.55 million yuan; The loss of basic earnings per share is 0.01 yuan; The revenue of the same period last year was about 130 million yuan; The net profit loss attributable to the shareholders of the listed company is about 41.54 million yuan; The loss of basic earnings per share is 0.01 yuan.
Special statement: The above content (including pictures or videos, if any) is uploaded and released by users of "Netease" on our media platform, and this platform only provides information storage services.
Notice: The content above (including the pictures and videos if any) is uploaded and posted by a user of NetEase Hao, which is a social media platform and only provides information storage services.
