Another listed company was fined for participating in the virtual self-circulation business of private network communications.
May 20thFreemoneyslotsnodepositGuorui Science and Technology issued an announcement that the company received the administrative penalty decision of the CSRC, and the CSRC decided to file a case against the company because the company was suspected of violating the law and regulations in information disclosure. On the same day, Guorui Technology announced that the company will suspend trading for one day on May 20, and other risk warnings will be implemented from the opening of the market on May 21, and the short name of the stock will be changed to "ST Rico".
False record of annual report from participating in "special network communication project" false self-circulation business
In November 2022, the CSRC filed a case against Guorui Science and Technology for illegal disclosure of information. On May 17, the case was investigated and the trial was concluded.
The announcement shows that the illegal facts of Guorui science and technology include participating in the private network communication false self-circulation business and the false record of the 2020 annual report.
It has been found out that from 2019, Guorui Science and Technology began to carry out private network communication business. Among the upstream and downstream companies involved in carrying out private network communication business, some companies are controlled by Sui Tianli, and the private network communication business carried out by some companies is controlled by Sui Tianli. The private network communication business carried out by Guorui Technology adopts the mode of "ordering by sales" and "fixing production by sales and purchasing". According to the agreed gross profit margin in advance, the company signs purchase and sale contracts with upstream and downstream companies at the same time. The suppliers and customers are designated by Changshu Xinghongda Electronic Communication Technology Co., Ltd. (hereinafter referred to as Changshu Xinghongda), and the contract text is also provided by Changshu Xinghongda.
After investigation, the private network communication business led by Sui Tian Li, which Guorui Science and Technology participated in, is a false self-circulation business, which has no commercial essence, and the corresponding operating income, operating cost and profit should not be recognized.
Through the above actions, Guorui Technology reported a false increase in revenue in 2020. 2Freemoneyslotsnodeposit26 billion yuan, falsely increased operating costs by 186 million yuan, falsely increased profits by 4025.77 yuan, accounted for 39.61% of the disclosed revenue in that year, and accounted for 49.68% of the total profits disclosed in that year.
The CSRC believes that the 2020 annual report disclosed by Guorui Science and Technology has false records, is suspected of violating relevant regulations, and that the relevant responsible personnel have not done their duty diligently, ordered the company to correct, warned and fined 2 million yuan. And give warnings and fines to the relevant responsible persons.
Prior to this, on September 6, 2023, Guorui Science and Technology received the "advance notice of Administrative punishment" issued by the Securities Regulatory Commission.
In addition, Guorui Technology shares have been suspended for one day since the opening of the market on May 20, and resumed trading on May 21. Other risk warnings have been implemented since May 21, and the stock has been changed to "ST Rico" for short.
Performance deteriorates year by year
Looking back in time, Guorui's technology revenue reached 488 million yuan in 2018, declined from 2019 to 2021, and dropped to 220 million yuan in 2021. Although revenue rose to 274 million yuan in 2022, it fell again to 196 million yuan in 2023.
And the company's profitability continues to decline. Choice data show that Guorui Technology has lost money for three years in a row. In 2023, Guorui lost 23.1347 million yuan in net profit, compared with 465300 yuan in the same period last year.
It is worth mentioning that on May 20, Guorui Technology also issued an announcement that the controlling shareholders will increase their shares in the company. Zhejiang No.2 Light, the company's controlling shareholder, plans to increase its shareholdings by no less than 30 million yuan and no more than 50 million yuan in the next six months.
Aftershock of "special network communication case" * ST Zhongli and Aerospace Power were punished
The "Private Network Communication case" is a fraud involving a huge amount of money in 2021, involving more than 90 billion yuan, which is called "the biggest capital fraud in the history of A shares".
In May 2021, Shanghai Electric detonated a special network communications trade mine, and then a number of listed companies issued major risk warning announcements. In September of that year, a spokesman for the Securities Regulatory Commission mentioned for the first time in a reporter's question about the risks related to the private network communications business of the relevant listed companies, that this kind of business was suspected of false trade, and that individual listed companies were suspected of financial fraud. Hongda Xincai, Huaxun Ark, United thinking Zhuang, Kang Longda, Jiangsu Shuntian, Zhongli Group, Guorui Science and Technology, Aerospace Power and other enterprises have been put on file for investigation.
The core figure in this case is Sui Tian Li. Since 2013, in order to increase the flow and performance of the control company, Sui Tianli has begun to dominate the private network communication self-circulation business, which involves no final sale of private network communication products and no actual terminal application. In 2017, Sui Tianli's team disassembled the above-mentioned private network communication products into raw material motherboards in China, then assembled them, and, if necessary, replenished the loss of main materials through patches, and finally entered a new round of business self-cycle. In terms of specific operation, Shanghai Xingditong Communication Technology Co., Ltd., and Jiangsu Xinditong Communication Technology Co., Ltd. are the core companies of self-circulation business, which implement the functions of capital pool and product disassembly. New Generation Private Network Communication Technology Co., Ltd., Jiangsu Maiku Communication Technology Co., Ltd. and Shenzhen Tiantong Information Technology Co., Ltd. as business channel companies, participate in self-circular trade in the form of capital posting and contract document circulation, and charge 1.5%, 2% channel fee.
Through the above business model, the upstream and downstream chains of private network communication services are closed-loop, and all are mastered by Sui Tian Li's team. for listed companies, participating in it does not require too much technology, experience or even no business substance. You can falsely increase revenue or profits through this business.
With the gradual end of the investigation of the case, in addition to Guorui Science and Technology, previously * ST Zhongli and Aerospace Power were also fined for the "special network communication case".
On the evening of May 13, * ST Zhongli disclosed that it had received the "notice of Administrative punishment and Market entry" issued by the Securities Regulatory Commission. Due to its participation in the private network communications business, the CSRC planned to ban Wang Baixing, the then chairman and controller of the company, from entering the securities market.
Because * ST Zhongli participated in private network communication business and forged for five consecutive years, as well as a huge amount of non-operating occupation and illegal guarantee, Jiangsu Securities Regulatory Bureau imposed a fine of 15 million yuan on Wang Baixing, the actual controller of the company, and was banned from entering the securities market for life, of which the person in charge who was directly responsible for the illegal matters of information disclosure was fined 9 million yuan. The actual controller who organizes and instructs to engage in the occupation of non-operating funds and guarantees in violation of regulations shall be fined 6 million yuan. In addition, the company was fined 8 million yuan.
On the evening of March 25, Aerospace Power issued an announcement that the company received the "Administrative Penalty Decision" issued by the China Securities Regulatory Commission. After investigation, since 2016, Aerospace Power has continued to inflated its performance by serving as a fund channel for private network communication services, and in the following five years, it has inflated revenue by 3.8 billion yuan and inflated profits by 72.9 million yuan. Affected by this, Aerospace Power and its main responsible personnel were fined 11.8 million yuan, and the then general manager was banned from the market for 10 years. Two other people involved were held criminally responsible for accepting bribes.