V View Financial Report | The latest development of the "lost contact" of the chief financial officer!

Supervision takes action, Fucheng shares receive a fine

  Sino-Singapore Jingwei, May 18th, Fucheng Co., Ltd. issued an announcement on the evening of the 17th, saying that the Hebei Securities Regulatory Bureau issued the "Advance Notice of Administrative Supervision Measures" to the company's actual controller Li Fucheng and financial director Cheng Jing, and plans to take the above-mentioned personnel identified as Regulatory measures against unfit persons.

Fucheng Co., Ltd. and the company's chairman and general manager Li Liang, and board secretary Deng Chonghui also received warning letters.

  Screenshot source: Announcement of Fucheng Shares

The actual controller and the chief financial officer intend to be identified as inappropriate candidates

  Specifically, the Hebei Securities Regulatory Bureau stated that Li Fucheng, as the actual controller of Fucheng, interfered with the production and operation management, financial and accounting activities of Fucheng in violation of regulations, resulting in defects in the independence and internal control of Fucheng. Opinions on the Quality of the Company" (Guo Fa [2020] No. 14) "actual controllers must perform their fiduciary duties and maintain the independence of listed companies" and the "Governance Guidelines for Listed Companies" (CSRC Announcement [2018] No. 29) No. 70 Article 2, Article 72.

  In addition, as the actual controller of Fucheng Co., Ltd., Li Fucheng failed to effectively maintain the independence of the listed company, which had a bad impact on the market.

According to the second paragraph of Article 170 of the "Securities Law", Hebei Securities Regulatory Bureau plans to take

administrative supervision measures to order him to make corrections and identify him as an inappropriate candidate

, and he shall not act as a candidate for 60 months from the date of the decision. The positions of directors, supervisors and senior management personnel of listed companies or the actual performance of the above-mentioned duties shall be recorded in the integrity file of the securities and futures market.

  As for Cheng Jing, the financial director who "lost contact" and refused to sign the 2021 annual report and then re-signed, the Hebei Securities Regulatory Bureau stated that, as the financial director of Fucheng Co., Ltd., he did not sign the written confirmation of the company's regular report, and there was a problem of failing to perform legal obligations.

  The Hebei Securities Regulatory Bureau pointed out that on April 28, 2022, Cheng Jing did not sign the company's 2021 annual report and 2022 first quarterly report during the period when the board of directors reviewed the company's periodic report.

The above behavior violated the relevant regulations of Article 82, paragraphs 1 and 4 of the Securities Law, and Article 16, paragraphs 2 and 5 of the Administrative Measures for Information Disclosure of Listed Companies.

  The Hebei Securities Regulatory Bureau stated that Cheng Jing, as a senior manager of a listed company, failed to perform the statutory obligation to sign a written confirmation opinion on the regular report, violated the law, violated professional ethics, seriously neglected his duties, and had a bad impact on the market.

According to the second paragraph of Article 170 of the Securities Law and Article 52 of the Measures for the Administration of Information Disclosure of Listed Companies, it

is proposed to take regulatory measures against Cheng Jing as an inappropriate candidate

. Within 36 months from the date of commencement, they shall not serve as directors, supervisors and senior managers of listed companies or actually perform the above-mentioned duties, and shall be recorded in the integrity file of the securities and futures market.

  Sino-Singapore Jingwei noted that previously, the Shanghai Stock Exchange stated in its regulatory work letter on annual report matters, "After the market close on April 28, 2022, the 2021 annual report and related announcements submitted by Fucheng Co., Ltd. showed that the company's chief financial officer did not sign the company's financial report. , did not sign a written confirmation opinion on the company's periodic report, and did not express any dissenting opinion, the annual audit accountant issued an unqualified audit report with a paragraph on emphasized items. According to the regulations, the company is required to carefully self-examine and verify the relevant situation, and fully disclose relevant information ."

  In this regard, Fucheng Co., Ltd. stated on May 11 that Cheng Jing, the chief financial officer, "lost contact" after leaving a statement. After the regular report was disclosed on April 29, the company contacted Cheng Jing, the chief financial officer, and did not sign the in-depth communication with him. The company regularly reports the real reasons for the written confirmation opinion.

Cheng Jing agreed to supplement the written confirmation of the company's periodic reports and financial statements.

Fucheng Co., Ltd. and its executives receive a warning letter

  In addition to the situation of the above two persons, Hebei Securities Regulatory Bureau also stated that it found that Fucheng Co., Ltd. failed to truthfully disclose major defects in internal control in its 2021 annual report and internal control evaluation report.

  The Hebei Securities Regulatory Bureau pointed out that Li Fucheng, the actual controller of Fucheng Co., Ltd., interfered with the production, operation and management, financial and accounting activities of the listed company in violation of regulations. There are major defects in the independence of internal control and internal control, but Fucheng Co., Ltd. did not disclose it truthfully in the 2021 annual report and the "2021 Internal Control Evaluation Report".

The above behavior violated the provisions of Article 3, paragraph 1, of the Administrative Measures for Information Disclosure of Listed Companies (hereinafter referred to as the Measures).

Li Liang, chairman and general manager of the company, and Deng Chonghui, secretary of the board of directors, violated Article 4 of the "Measures", and in accordance with the provisions of Article 51, paragraph 1, of the "Measures", bear the main responsibility for the above-mentioned violations.

  In this regard,

Hebei Securities Regulatory Bureau decided to take administrative supervision measures of issuing warning letters to Fucheng Co., Ltd., Li Liang and Deng Chonghui, and record the relevant violations in the integrity file.

  Public information shows that Fucheng's main business involves livestock breeding and slaughtering, food processing, and is also known as the "first share of funerals" because of its participation in the funeral business.

  The financial report shows that in 2021, Fucheng Co., Ltd. will achieve an operating income of 1.269 billion yuan and a net profit of 150 million yuan attributable to shareholders of listed companies, a year-on-year increase of 16.77% and 24.49%, respectively.

In the first quarter of 2022, the company's operating income was 320 million yuan, a year-on-year increase of 11.17%; net profit was 53.3871 million yuan, a year-on-year increase of 61.93%.

(Sino-Singapore Jingwei APP)

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