On June 28, ST Furen issued an announcement stating that due to difficulties encountered in carrying out the company's financial audit work and the preparation of periodic reports, the company's annual report audit progress did not meet expectations, and the 2021 annual report could not be disclosed within the statutory period. and the first quarter report of 2022.
The above announcement is the third delisting risk warning announcement issued by ST Furen.
Wang Kuixing, a practicing lawyer at Haoyunduo Law Firm, told the Securities Daily reporter: "The company's annual report must be disclosed within 4 months from the suspension of trading, otherwise it may be forcibly delisted."
Trading in the company's shares has been suspended on May 5, 2022.
Regarding the issue of when to disclose the 2021 annual report, a reporter from "Securities Daily" called ST Furen as an investor, and the staff of its board secretary office said: "At present, the preparation of the company's 2021 annual report is progressing in an orderly manner, and the progress is relatively smooth. The progress is inconvenient to disclose.”
Letters and disclosure violations were filed
Looking back at the company's annual report disclosure schedule, it can be seen that ST Furen was originally scheduled to disclose the company's 2021 annual report and 2022 first quarter report on April 30, 2022.However, before the annual report was disclosed, the company issued an announcement on April 24 stating that "Beijing Xinghua Certified Public Accountants, the previous audit institution, resigned on December 18, 2021 due to the inability to continue to undertake work arrangements."
It is worth mentioning that the company hired Shenzhen Xutai Certified Public Accountants as the audit institution as early as March 21, 2022, but due to the impact of the epidemic and the arrangement of the audit work, Shenzhen Xutai Certified Public Accountants failed to complete the audit work.
In this regard, Wang Kuixing analyzed to the reporter of "Securities Daily": "If the annual report cannot be disclosed within the statutory time, the listed company will not only violate the laws and regulations of information disclosure, but may even face delisting in more serious cases."
In fact, due to the failure to disclose the 2021 annual report within the prescribed time limit and suspected violations of laws and regulations in information disclosure, ST Furen has received the corrective measures ordered by the Henan Securities Regulatory Bureau and the China Securities Regulatory Commission on May 7 and June 1, 2022 respectively. Decision letter and case filing notice.
False records in the annual report for 4 consecutive years
Although ST Fu Jen explained that "the reason for the failure to disclose the annual report is because of the change of accounting firms and the impact of the epidemic", there are other concerns in the market.
Wang Kuixing told reporters: "In addition to the impact of the epidemic on the progress of the audit, it cannot be ruled out that ST Furen has certain problems in terms of finance and continuing operations. Audit evidence; on the other hand, in the face of these issues, auditors and ST Fu Jenne need to communicate more.”
The market's doubts about ST Furen's annual report are mainly due to the problems in the company's annual report disclosure in multiple years.
Combing through the previous annual reports of ST Furen, it can be seen that the company has received the announcement of the "Decision on Administrative Punishment" and "Decision on Market Entry" from the China Securities Regulatory Commission due to false records and major omissions in the annual report from 2015 to 2018.
The China Securities Regulatory Commission believes that the company's 2015-2018 annual report inflated monetary funds, did not disclose the non-operating capital occupation of the controlling shareholder and its related parties, and did not disclose related party guarantees in the 2018 annual report, resulting in false records in the periodic report. , Major omissions.Among them, Zhu Wenchen, as the actual controller, chairman and general manager of the company, was banned from entering the securities market for 10 years.
In addition, in the annual reports of ST Furen in 2019 and 2020, the accounting firm has issued audit reports with disclaimer of opinion and qualified opinion respectively.
It is worth mentioning that many risks involved in ST Furen, such as capital occupation, illegal guarantees, estimated liabilities, accounts receivable, and ability to continue operations, have not been eliminated so far.Data shows that in 2020, ST Furen’s net profit will lose 1.293 billion yuan. According to the 2021 and first quarter performance reports in 2022, the company’s net profit will lose about 1.796 billion yuan and 177 million yuan, respectively.
In addition to the risk of delisting, Cao Yanyan, a partner of Gongjin Enterprise Management Consulting Co., Ltd., told the "Securities Daily" reporter: "In the context of being placed on file for investigation, ST Furen is also facing legal risks. The information disclosure violations of Furen will be investigated. If there is indeed a violation of the Securities Law, an administrative penalty decision will be issued to ST Furen; secondly, due to the illegal guarantee and the illegal occupation of funds by the controlling shareholder, ST Furen will flow Sexual imbalance, which eventually led to its huge losses, and the failure to disclose the annual report in a timely manner is also a violation of investors' right to know, and investors can claim that ST Furen and its controlling shareholders bear the corresponding civil liability."
Regarding the future development of ST Furen, company law lawyer Wang Chaoran of Henan Zhongpeng Law Firm said: "Liquidity is the biggest problem facing ST Furen at present. ST Fu Jen has embarked on an important path to rebirth. However, ST Fu Jen faces a huge funding gap, and it will face challenges whether it can find suitable investors.”
Our reporter Jiao Yue Zhang Wenjuan
(Editor in charge: Jiang Ninglu)
