Sino-Singapore Jingwei, June 30. Hong Kong stock Shanghai Industrial Holdings announced on the 29th that the company received a notice from SIIC Development that Cao Wenlong, the former chairman of SIIC Longchuang, was recently taken criminal compulsory measures by the Shanghai Public Security Bureau.To the best of the Directors' knowledge, information and belief, the criminal enforcement measures were largely due to SI Longchuang's outstanding receivables and certain criminal offences related to its past business operations.
According to the 2021 annual report of SIIC Development, Shanghai Industrial Holdings is its controlling shareholder, and SIIC Longchuang is its subsidiary.On January 17, 2022, the 20th meeting of the 3rd Board of Directors of SILD reviewed and approved the "Proposal on the Replacement of the Chairman", agreeing to remove Cao Wenlong from the position of chairman of SILD.
On January 11 this year, SIIC Development announced that after preliminary self-examination by the company, as of December 31, 2021, the unaudited receivables of SIIC Longchuang totaled about 2.615 billion yuan, some of which may involve financing. Trade, the accounts receivable involved in this type of business may have irrecoverable risks, and the company is stepping up further verification of the specific amount involved.
On June 28, SI Development further stated in its reply announcement to the inquiry letter from the Shanghai Stock Exchange that during the verification process, the company found that some senior managers of SI Longchuang had used their positions to facilitate illegal and illegal transactions in fictitious transactions. Whether there are other illegal and criminal activities in fictitious transactions is also under investigation and review by judicial authorities.The company has corrected accounting errors and retrospectively adjusted the financial statements of SI Longchuang over the years, reducing the operating income from 2016 to 2020 by RMB 1.704 billion and the operating cost from 2016 to 2020 by RMB 1.266 billion.
SI Development also stated that it has reported the suspected illegal and criminal acts of some senior executives of SI Longchuang to the Economic Investigation Corps of the Shanghai Public Security Bureau.The company's dispatched directors, supervisors and senior executives at SIHL have performed their duties, participated in the daily business activities of SIHL, and the company's specific management, control and supervision of SIHL. The company's superior discipline inspection and supervision department has launched a responsibility investigation and accountability mechanism. Conduct surveys on relevant situations and conduct inquiries and conversations with relevant personnel.(Sino-Singapore Jingwei APP)
(Editor in charge: Han Yijia)
