Securities Times reporter Tan Chudan

  LeTV's fake shock wave is over!

LeTV founder Jia Yueting once called out "Let us suffocate our dreams together" - it is not only the majority of small and medium investors who are "suffocated" by dreams, but now the investment banking industry also feels the same way and "suffocates for dreams", because in LeTV.com The sponsorship business on the project is suspected of violating the law, and the two securities firms will face varying degrees of punishment in the near future.

  The Securities Times reporter learned from relevant persons close to the regulatory authorities that the Shenzhen Securities Regulatory Bureau plans to suspend the qualification of sponsors for Ping An Securities for three months; the China Securities Regulatory Commission plans to fine Zhongde Securities nearly 17 million yuan.

In addition, the relevant sponsor representatives and the person in charge of the sponsor business at the time will also be punished.

  Ping An Securities Sponsorship

  will be suspended for 3 months

  The impact of the LeTV fraud case is still ongoing, and penalties for relevant intermediaries will soon be implemented.

The Securities Times reporter learned that the Shenzhen Securities Regulatory Bureau has recently issued an advance notice of administrative supervision measures to Ping An Securities, and plans to order Ping An Securities to make corrections and suspend the qualification of a sponsor for three months.

  The Shenzhen Securities Regulatory Bureau also identified the sponsor representatives and the then-in-charge of the sponsorship business of LeTV as inappropriate persons for 5 to 10 years, and other relevant personnel in the corresponding compliance business were taken measures such as supervisory talks.

  As early as 2010, Ping An Securities sponsored LeTV's listing, raising 730 million yuan in its initial offering.

Ten years later, according to the "Decision on Administrative Punishment" issued by the Beijing Securities Regulatory Bureau in April 2021, the regulatory authorities discovered that LeTV had made financial frauds from 2007 to 2016, and its submitted and disclosed applications for initial public offering of stocks and listing related documents and There are false records in the 2010-2016 annual report.

At that time, the Beijing Securities Regulatory Bureau fined LeTV a total of 240 million yuan and Jia Yueting 241 million yuan.

  According to relevant persons close to the regulatory authorities, for intermediaries such as Ping An Securities, the regulatory authorities are currently in the process of informing them in advance, and the corresponding administrative supervision measures will be officially issued after the completion of the procedures.

  For Ping An Securities, the company suffered setbacks from its LeTV-era business model and paid the price for it.

Relevant persons of the company said that after the incident, they continued to promote internal rectification, rebuild the management team and professional team, and have been working hard to overcome difficulties and pay close attention to compliance and risk control in the past ten years.

On the one hand, the management organization structure was comprehensively changed; on the other hand, a large amount of fresh blood was supplied from external institutions to improve the quality of personnel.

At the same time, the company rebuilt the internal control system of investment banking, and established an internal control management system for investment banking business with investment banking business department, quality control, core/compliance/risk management as the "three lines of defense" in accordance with the "Guidelines for Internal Control of Investment Banking" issued by the China Securities Regulatory Commission.

  How much impact will the suspension of sponsor business qualifications have on securities companies?

According to industry insiders, in accordance with relevant laws and regulations, sponsors can carry out uninterrupted substantive due diligence work on IPO/refinancing projects, and arrange project teams to update financial data and prepare feedback for each project as planned. .

  Sino-German Securities fined 17 million yuan

  Not only the IPO sponsor of LeTV was punished, but also the relevant institutions of its fixed increase project.

  In January of this year, a number of intermediaries, including Zhongde Securities, were investigated for their involvement in the LeTV fraud case.

On March 20, Shanxi Securities announced that Yang Lijun and Wang Xin, the representative sponsors of the 2016 non-public offering project of the holding subsidiary Sino-German Securities and LeTV, received the "Advance Notice of Administrative Penalty" from the China Securities Regulatory Commission.

  In August 2016, LeTV went public through a non-public offering of shares. At that time, the company raised 4.799 billion yuan from four subscribers.

According to the above-mentioned administrative penalty decision issued by the Beijing Securities Regulatory Bureau, the regulators determined that LeTV's non-public offering of stocks in 2016 constituted a fraudulent offering.

  The China Securities Regulatory Commission found out that the financial data of the non-public issuance application documents of LeTV has been inflated for ten consecutive years from 2012 to 2014 and from January to June 2015.

From 2012 to 2014, LeTV has inflated revenue by 89.6533 million yuan, nearly 200 million yuan and 352 million yuan respectively, and inflated profits by 84.451 million yuan, 193 million yuan and 343 million yuan, accounting for 37.04%, 78.49% and 37.04% of the total disclosed profits for the current period. 470.11%.

  The China Securities Regulatory Commission stated that Zhongde Securities had two problems in the non-public offering sponsorship business of LeTV in 2016, and was suspected of failing to perform its duties diligently.

First, the sales information of the top ten customers has not been fully obtained and compiled; second, the authenticity of the business occurrence has not been effectively verified.

The above acts are suspected of violating the "Guidelines for Sponsor Due Diligence" and the "Securities Law of the People's Republic of China" revised in 2005.

  According to the facts, nature, circumstances and degree of social harm of the illegal acts of the parties and the relevant provisions of the Securities Law, the China Securities Regulatory Commission plans to order Sino-German Securities to make corrections, issue a warning, confiscate business income of 5.6604 million yuan, and impose a fine of 11.3208 million yuan; Yang Lijun and Wang Xin were given a warning and fined 150,000 yuan respectively.

With respect to the administrative punishment proposed by the China Securities Regulatory Commission, Zhongde Securities, Yang Lijun and Wang Xin have the right to state, defend and request a hearing.

  Shanxi Securities stated that the "Advance Notice of Administrative Penalty" received by the company's holding subsidiary Zhongde Securities this time involved illegal acts, and did not touch the major illegal compulsion stipulated in the "Shenzhen Stock Exchange Listing Rules (Revised in 2022)" delisting situation.

At present, the company is operating normally.

  (Our reporter Cheng Dan also contributed to this article.)