bestblockchaingames2021| *ST Xinfang was fined 4 million yuan +10 years and banned from the market for board secretary and chief financial officer for nearly 20 years

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Source: Dong Mi Xue Yuan

In 2024, the heaviest punishment for Secretary Dong and the Chief Financial Officer has come! On the evening of April twenty _ eighthBestblockchaingames2021* ST Xinfang (Rights Protection) notice received the "advance notice of Administrative punishment and Market ban" issued by Henan Securities Regulatory Bureau. The company and related responsible persons were severely punished for financial fraud for seven consecutive years, among which Xu Qinzhi, the then treasurer and secretary of the board, was given an administrative penalty of 4 million yuan.

According to the investigation, from 2016 to 2022, Xinye Textile and its subsidiaries falsely increased operating income and operating costs through false trade with external business entities that did not have commercial substance and did not meet the conditions for income recognition.

From 2020 to 2022, Xinye Textile recognized the revenue of part of the sales business in advance when it did not meet the conditions for revenue recognition, and re-recognized revenue when it met the conditions for revenue recognition, resulting in a false increase in operating income and a false increase or decrease in total profits. (revenue is repeatedly recognized by a business)

Between Xinye Textile and its subsidiaries, the invoices issued by the purchase and sale of cotton and cotton yarn business are used as the basis for revenue recognition, which is not in line with the actual situation, and the merger set-off between the parent and subsidiary companies is not accurate, resulting in a false increase in business income.

From 2016 to 2021, Xinye Textile falsely reduced operating costs by adjusting the amount, amount or vouchers of raw materials, and falsely increasing the number of finished products.

From 2016 to 2022, Xinye Textile inflated inventory due to the false reduction of operating costs and other factors.

From 2016 to 2022, Xinye Textile falsely increased its R & D expenditure by splitting production costs into R & D expenses.

The amount of income, cost, inventory and R & D expenses mentioned above are all very large. The highest false increase in income and cost in a fiscal year is more than 1.3 billion yuan, and the inventory increase is 2.5 billion yuan in 2021, accounting for 23% of the total assets at the end of the reporting period of the year.Bestblockchaingames2021.71%, and the false increase in R & D expenses is more than 100 million.

In short, financial fraud is very serious.

Xinye Textile is a listed company controlled by the local Finance Bureau, and the responsible person is identified as:

1. Henan Xinye Textile Co., Ltd. was ordered to make corrections, given a warning and fined 10 million yuan.

2. Wei Xuezhu, then chairman of the company, assumed the overall management responsibility of the company during the period involved in the case, and was the main planner, organizer and implementer of the illegal acts of information disclosure involved in the case. Wei Xuezhu was given a warning, fined 5 million yuan and banned from the securities market for life.

3. Xu Qinzhi, director, deputy general manager, then chief financial officer and secretary of the board of directors, has been responsible for financial management for a long time, organizing financial departments and coordinating relevant departments to implement illegal financial fraud. Xu Qinzhi was given a warning, fined 4 million yuan and banned from the securities market for 10 years.

4. Tao Guoding, vice chairman and general manager, has served in the company for a long time, knowing that the company's financial fraud has failed to take effective corrective, reporting and other measures, but still signs and ensures the truthfulness, accuracy and completeness of the annual report; give Tao Guoding a warning and impose a fine of 3 million yuan

5. Wu Qinxia, the then director and executive deputy general manager, was in charge of the production work of the company for a long time, organized and implemented illegal matters related to false increases in R & D expenses, and did not pay necessary attention and verification to matters related to production data during the examination of the company's periodic report. There is no due caution in the disclosure of relevant information. Wu Qinxia was given a warning and fined 3 million yuan.

6. Wang Feng, director and deputy general manager, promptly appointed deputy general manager Lu Xiping and the departments in charge of Song Rui to cooperate to participate in financial fraud and be aware of relevant financial fraud matters. Wang Feng, Lu Xiping and Song Rui were warned and fined 3 million yuan respectively.

7. Han Zhenping, deputy general manager, has long been in charge of the production management of the company and knows the real production data of the company; Bai Pu, then deputy general manager, has long been in charge of the subsidiary as one of the main bodies of counterfeiting, and has been the general manager of the subsidiary for a long time. Zhao Na, director, deputy general manager and supervisor at that time, was involved in drafting R & D materials related to inflated R & D expenses. During the examination of the periodic report of the company, the above personnel did not pay necessary attention to and verify the relevant matters, did not be prudent in the disclosure of relevant information, and signed written confirmation opinions in the periodic report involved. Han Zhenping, Bai Pu and Zhao Na were warned and fined 2 million yuan respectively.

8. Wan Huanan and Xiao Xinzhai, the then Chief Financial Officer, both knew that the company's financial fraud was still in the periodic report involved in the case and signed written confirmation opinions, gave a warning to Wan Huanan and Xiao Xinzhai, and imposed a fine of 1 million yuan respectively.

9. Chairman Zheng Junhui (who took office in March 2023) failed to effectively identify the company's financial fraud in 2022. Zheng Junhui was given a warning and fined 500000 yuan.

All of a sudden, he was fined 4 million + 10 years to ban the market, which is a very heavy penalty for individuals.

According to the data, Xu Qinzhi, then Chief Financial Officer and Secretary of the Board of Directors, was already in the company before the company went public. According to the company's prospectus, Xu Qinzhi successively served as assistant minister, vice minister, finance minister and director of the accounting department of the company. IPO served as the director, assistant general manager and finance minister of the company. The company went public in 2006 and served as the general manager and secretary of the board for many years after the company went public.

According to the prospectus and annual report disclosed by the company in the past, Xu Qinzhi received a total salary of 3.49 million yuan in the company from 2005 to 2022, and it is estimated that the salary in 2003, 2004 and 2023 should not be 4 million, and the salary in the annual report does not include tax. In this way, a penalty can be said to be 20 years for nothing, and it has been banned from the market for 10 years. * ST Xinfang is about to be delisted, paying a heavy price.

This punishment case can be said to be the most typical case in which Dong Secretary and Chief Financial Officer were punished in recent years. Knowing and participating in fraud, taking a low salary, and finally destroying everything with a penalty, the Chief Executive and Chief Financial Officer should sound the alarm and fear the rule of law.

At present, it is still in the stage of prior notice, and the relevant responsible persons can still make a plea, and after the completion of the defense, the supervision will issue a final decision.