The China Securities Regulatory Commission (CSRC) issued the “Investigation on Illegal Disclosure of Yihua Life Information”. (*ST appropriate health rights entrance)
According to the investigation, according to the clues found in the special inspection, in April 2020, China Securities Regulatory Commission filed an investigation on Yihua Life Technology Co., Ltd. (600978 for short) for suspected illegal information disclosure in accordance with the law. Now the CSRC preliminary verification, Yihua life from 2016 to 2019 periodic report there are serious false records. One is to increase profits by more than 2 billion yuan through fictitious sales business and fictitious sales volume; Second, by forging bank documents and other ways to falsely increase bank deposits of more than 8 billion yuan; Third, it failed to disclose more than 30 billion yuan of capital transactions with related parties as required. At present, the case has entered the administrative penalty trial procedure, the CSRC will strictly investigate the relevant subjects’ illegal responsibilities according to the law.
As we have learned, yi hua life appeared on the market in 2004, it is Shantou the first private enterprise that appears on the market, its basically be engaged in the research and development, design, production and sale of the household product such as furniture and wood floor.
Yihua life 2020 annual performance announcement, the company’s situation is worrying. Announcement shows that Yihua life in 2020 is expected to achieve attributable to the shareholders of the listed company’s net profit of about -1.918 billion yuan to -2.168 billion yuan; After deducting non-recurring gains and losses, the company is expected to achieve net profit attributable to shareholders of the listed company of about -1.924 billion yuan to -2.274 billion yuan. Under the influence of multiple external environmental uncertainties such as the company being placed on file and investigated, the sales revenue declined sharply, and the overall operation declined sharply. The annual sales revenue is expected to reach about RMB 650 million to RMB 750 million.
In addition to the overall business decline, Yihua life once faced delisting crisis. Since April 27, 2020, when Yihua Life was investigated by the China Securities Regulatory Commission, its share price has been falling all the way. It once fell to 0.76 yuan, and as of last Friday, Yihua Life closed at 0.91 yuan, and the stock price has been below 1 yuan for several consecutive trading days.
From the violations and the amount of view, Yihua life in recent years is only second to Kang De new listed companies serious violations of the case. It is expected that the CSRC on Yihua life “administrative penalty notice” will be issued soon, such as the company based on the facts of the administrative penalty decision, touch the “Shanghai Stock Exchange Stock Listing Rules” provisions of the major illegal forced delisting situation, the company’s stock will face the risk of major illegal forced delisting.
In the letter to the appropriate China life illegal investigation report, the CSRC said it will firmly implement the party central committee and state council on strictly in accordance with the law to crack down on illegal securities activities of the overall deployment, according to the “build system, not to interfere in, zero tolerance” work principle, the quick strictly in accordance with the law against the listed company’s fraud, fraud and other major violation behavior. Going forward, the CSRC will focus on the work requirements of improving the quality of listed companies and serving the development of the real economy, and continue to step up efforts to crack down on malicious illegal activities such as fraud and fraud in the capital market, so as to further shape a sound market ecology and effectively protect the legitimate rights and interests of investors.
Qi Chengjun, a lawyer with Wuxi Law Firm in Beijing (Yingke), said the claim could be opened after the China Securities Regulatory Commission issued a formal administrative penalty decision on Yihua Life. The current claim conditions are tentative: the damaged investors who bought *ST iishang (0.860, -0.05, -5.49%) (rights protection) shares on April 22, 2017 solstice during April 26, 2020, and sold or continued to hold the shares after April 27, 2020, can make preparations for the claim to protect their rights and interests.
Reprint indicated source：Shine Trader Limited Live information