The former "king of artificial diamonds" *ST King Kong has a new trend. The legal representative and chairman of the company, Guo Liuxi, was taken by the public security organs according to law for the crime of non-disclosure of important information in violation of regulations.
Previously, Guo Liuxi had been banned from the market for life.
On the evening of the 18th, the company held an emergency meeting of the board of directors, and the participating directors unanimously agreed to remove Chairman Guo Liuxi and no longer act as the secretary of the board of directors.
It is worth noting that in recent days, the company has issued risk warnings several times, saying that the company's stocks have the risk of major illegal and forced delisting.
As of the close on February 18, the company's stock price was reported at 1.49 yuan, and the current market value was 1.8 billion yuan.
According to the company's disclosure, as of February 10, 2022, the number of shareholders of the company was 30,146.
The chairman of the company was taken coercive measures
*ST King Kong (300064) announced on the evening of February 20 that the company received a notice on February 18, 2022 that Guo Liuxi, the legal representative and chairman of the company, was subject to compulsory measures by the public security organs in accordance with the law for the crime of non-disclosure of important information in violation of regulations. The matter is yet to be further investigated by the public security organs.
So far, the company's business is operating normally.
The company held an emergency meeting of the board of directors on the night of February 18, 2022. The participating directors unanimously agreed to remove Chairman Guo Liuxi and no longer act as the secretary of the board of directors. Director Liu Miao was elected as the chairman of the board and acted as the secretary of the board of directors.
The management of the company will strengthen the operation management to ensure the normal operation of the company's business activities.
According to the disclosure of *ST King Kong, the twenty-seventh meeting of the fourth board of directors of the company reviewed and approved the company's "Proposal on Removing Guo Liuxi Zhengzhou Huajing Diamond Co., Ltd. Chairman".
The announcement pointed out that because Guo Liuxi failed to perform his duties and perform his duty of diligence and due diligence, failed to ensure the independent operation of the company, abused his position of control over the company, and misappropriated the company's funds and assets by illegally occupying funds and accepting guarantees in violation of regulations, seriously damaging the company and other companies. The legitimate rights and interests of shareholders have seriously violated relevant laws and regulations. On November 12, 2021, the Shenzhen Stock Exchange imposed disciplinary action of "unsuitable to serve as a director, supervisor or senior manager of a listed company within ten years", and is now suspected of the crime of non-disclosure of important information in violation of regulations The public security organs took coercive measures in accordance with the law and could no longer perform their duties normally.
At the same time, the board of directors reviewed and approved that Mr. Guo Liuxi would no longer act as the secretary of the company's board of directors.
Previously, Guo Liuxi had been punished by a lifetime market ban.
On August 13, 2021, the "Advance Notice of Administrative Penalty and Market Prohibition" issued by the China Securities Regulatory Commission pointed out that Guo Liuxi, as the actual controller, then chairman and secretary of the board of directors of Yu Diamond, organized, planned and participated in the illegal activities involved. Controlling and making decisions about the flow of large amounts of funds in Henan Diamond, the non-operational use of funds of the listed company involved in the case flows into the accounts controlled by it, and at the same time, it leads the resolution of the board of directors on the guarantees involved, knows and conceals the guarantees involved, and plays a major role in the illegal acts involved. , the time involved in the case is long, the amount involved is particularly huge, and the illegal circumstances are particularly serious.
According to relevant regulations, the China Securities Regulatory Commission plans to decide to impose a lifetime market ban on Guo Liuxi.
From the date of announcement of the decision, during the prohibition period, except for continuing to engage in securities business in the original institution or serving as a director, supervisor or senior executive of the original listed company or unlisted public company, nor engaging in securities business in any other institution Or serve as a director, supervisor or senior executive of other listed companies or unlisted public companies.
The company may be delisted
* The 2021 annual performance forecast disclosed by ST King Kong recently shows that the company expects that the net profit attributable to shareholders of listed companies will be a loss of 1 billion to 1.5 billion yuan, compared with a loss of 1.236 billion yuan in the same period of the previous period.
Regarding the reasons for the losses, the company pointed out that during the reporting period, the company, in accordance with the "Accounting Standards for Business Enterprises" and the relevant provisions of the company's accounting policies, combined with the progress of litigation matters and judgments, accrued litigation losses and estimated liabilities included in non-operating expenses. 650 million yuan, resulting in an increase in non-operating expenses compared with the same period of the previous year.
In addition, the impact of non-recurring gains and losses on the company's net profit is expected to be about -700 million to -600 million.
Recently, *ST King Kong has repeatedly reminded that the company's stock may be delisted due to major violations of law.
The company's announcement pointed out that on April 7, 2020, the China Securities Regulatory Commission filed a case against the company for suspected information disclosure violations.
The company received the "Advance Notice" issued by the China Securities Regulatory Commission on August 13, 2021. According to the "Advance Notice", the facts of suspected violations were identified. At the end of 2019, the net assets were inflated by 1.856 billion yuan. The annual report shows that the company's 2019 The net assets on December 31 were 1.721 billion yuan, and the loss in 2020 was 1.236 billion yuan. The retrospectively adjusted net assets on December 31, 2019 and December 31, 2020 may be negative, which may touch the "Listing on the Shenzhen Stock Exchange". Under the circumstance of forced delisting of major violations stipulated in Item (3) of Article 4 of the Measures for the Implementation of Compulsory Delisting of Companies with Major Violations, the company's shares may be subject to compulsory delisting of major violations.
The company is verifying the facts and financial data that the "Advance Notice" is suspected of being illegal .
Up to now, the company has not obtained confirmed major accounting errors or false records, and has not retroactively adjusted previous annual periodic reports. The company will continue to pay attention and disclose relevant information in a timely manner after receiving a formal punishment decision.
In addition, the company also reminded that the 2020 financial statements and the notes to the financial statements were issued with an "audit report" that could not express an opinion. The matter has not yet been eliminated.
The company still has the following delisting risks:
1. The company estimates that the owner's equity attributable to shareholders of the listed company at the end of 2021 is -100,000,000 to -500,000,000 yuan.
If the audited net assets at the end of 2021 are negative, or the net assets in 2021 after the retrospective restatement are negative, according to the second item of Article 10.3.10 of the "Shenzhen Stock Exchange GEM Listing Rules", the company's stock will be terminated from listing.
2. If the company’s 2021 financial report is issued with an audit report with a qualified opinion, disclaimer of opinion or negative opinion, the company’s shares will be terminated from listing in accordance with the provisions of Article 10.3.10 Item 3 of the Listing Rules.
3. At present, the company has not appointed an audit institution for 2021. The company will select an audit institution for 2021 as soon as possible to promote the audit work in 2021.
If the company fails to disclose the true, accurate and complete annual report guaranteed by more than half of the directors before April 30, 2022, the company's shares will be terminated from listing in accordance with the provisions of item 4 of Article 10.3.10 of the Listing Rules.
4. As of February 18, 2022, the closing price of the company's stock is 1.49 yuan per share, and the daily rise and fall of the company's stock trading is limited to 20%.
If the daily closing price of the company's shares for 20 consecutive trading days is lower than 1 yuan, the company's shares will be terminated from listing according to the provisions of Article 10.2.1 Item 1 of the "Listing Rules".
According to Article 10.1.5 of the Listing Rules, if a listed company has two or more circumstances of termination of listing, the stock will be terminated from listing on a first-touch, first-applicable basis.
involved in multiple lawsuits
The company is listed as a dishonest person subject to execution
The company disclosed on the evening of February 15 that as of the date of the announcement, the company has involved a total of 89 lawsuits/arbitration cases, with a total amount of about 6,061,260,400 yuan, of which the company and its controlled subsidiaries were involved in 81 lawsuits as defendants, with a total amount of about 6,061,260,400 yuan. RMB 5,753,628,100; the company and its holding subsidiaries were involved in 8 lawsuits as plaintiffs, with an amount of approximately RMB 307,632,300.
The company was listed as a dishonest person subject to execution.
In recent years, some cooperative banks and non-bank financial institutions have cut off or withdrawn loans, and the company's financing channels have been blocked. At the same time, due to lawsuits, most of the company's bank account funds, land, and foreign investment equity have been frozen and sealed. The company's capital chain is tight and The ability to continue as a going concern is at risk.
As of the end of January 2022, the company has a balance of available monetary funds of about 8 million yuan.
Previously, because the company provided funds to Henan Huajing Superhard Materials Co., Ltd. or its affiliates, or violated the prescribed procedures to provide external guarantees and the situation was serious, the company's shares were issued other risk warnings since the market opened on November 4, 2020.
It is worth mentioning that the company recently answered questions from investors on the interactive platform of the Shenzhen Stock Exchange, saying that in response to the current difficulties, on the one hand, the company makes overall planning, focuses on its main business, improves product quality, strengthens marketing and marketing efforts, and leans management. Control costs and make every effort to promote the company's continuous production and stable operation; on the other hand, the company strengthens risk control, improves internal control, actively responds to lawsuits, urges relevant parties to solve capital occupation, promotes debt restructuring and reorganization according to court rulings, and strives for an early To resolve the risk, there are significant uncertainties as to whether the Henan Higher People's Court agrees to file the case, the time required for the trial after filing, and the result of the ruling after the trial.
At present, the company is reporting to the government for instructions, actively promoting communication and negotiation with major shareholders and creditors, and striving to seek solutions.