The Paper reporter Tian Zhongfang

  For 6 consecutive years of financial fraud and other illegal acts, Netcom Securities Co., Ltd. (hereinafter referred to as "Netcom Securities") and its chairman, general manager, chief financial officer and other senior executives were warned by the China Securities Regulatory Commission and imposed fines of different amounts. .

  A few days ago, the administrative penalty decision disclosed on the official website of the China Securities Regulatory Commission showed that it was found that from 2012 to 2017, Netcom Securities failed to account for its buyout repurchase transactions in accordance with relevant regulations.

Netcom Securities derecognized the financial assets it sold and repurchased when it sold bonds in an outright repurchase transaction, and did not recognize the corresponding financial liabilities for its repurchase obligations, nor did it accrue interest, Changes in fair value gains and losses.

  "The above behavior resulted in false amounts of financial assets, financial liabilities, gains and losses from changes in fair value, financial expenses, investment income, and total profits in the 2012-2017 annual report financial statements submitted by Netcom Securities to the China Securities Regulatory Commission." will point out.

  The surging journalists calculated that in the past 6 years, the total amount of fraudulent profits of Netcom Securities has reached more than 6.3 billion yuan.

  Therefore, the China Securities Regulatory Commission decided to issue a warning to Netcom Securities and impose a fine of 300,000 yuan.

At the same time, the then chairman Liu Ping, the then director, general manager and legal representative Wang Yu, and the then deputy general manager and financial director Zhang Jiajun were warned and fined 30,000 yuan respectively.

In addition, Jia Xiangan, then deputy general manager of Netcom Securities, and Zhang Songqi, then compliance director, were warned and fined 20,000 yuan respectively.

  On April 29 this year, Netcom Securities officially launched its bankruptcy and reorganization.

The China Securities Regulatory Commission officially approved Beijing Compass Technology Development Co., Ltd. (300803, hereinafter referred to as "Compass") as the major shareholder of Netcom Securities.

Financial fraud for 6 consecutive years, with a total profit of more than 6.3 billion yuan

  The China Securities Regulatory Commission stated that, in accordance with relevant regulations, I have filed an investigation and trial on the case of Netcom Securities violating securities laws and regulations, and informed the parties of the facts, reasons, and basis for administrative penalties and the rights of the parties in accordance with the law.

Neither party made a statement or defense, nor requested a hearing. The investigation and trial of this case have now been concluded.

  Specifically, the China Securities Regulatory Commission pointed out that the illegal facts of Netcom Securities lasted for six consecutive years from 2012 to 2017.

  "From 2012 to 2017, Netcom Securities did not comply with Articles 24 and 25 of "Accounting Standards for Business Enterprises No. 22 - Recognition and Measurement of Financial Instruments" (2006 Edition) for its outright repurchase transaction business. Article 32, Article 33, Article 38 and Article 11 of "Accounting Standards for Business Enterprises No. 23 - Transfer of Financial Assets" (2006 Version) When selling bonds in an outright repurchase transaction, the financial assets it sold and repurchased were derecognized, and the corresponding financial liabilities were not recognized for its repurchase obligations, nor was it accrued interest or gains and losses from changes in fair value at the end of the year. ” said the SFC.

  The CSRC stated that the above behavior resulted in false amounts of financial assets, financial liabilities, gains and losses from changes in fair value, financial expenses, investment income, and total profits in the financial statements of the 2012-2017 annual report submitted by Netcom Securities to the CSRC. .

  "In 2012, the total inflated profits were 152,500 yuan. In 2013, the inflated profits totaled 347 million yuan. In 2014, the inflated profits totaled 256 million yuan. In 2015, the inflated profits totaled 359 million yuan. In 2016, the inflated profits were 359 million yuan. The total profit was 2.260 billion yuan. In 2017, the total inflated profit was 3.125 billion yuan." The China Securities Regulatory Commission further pointed out.

  The surging journalists calculated that in the past 6 years, the total amount of fraudulent profits of Netcom Securities has reached more than 6.3 billion yuan.

  The CSRC emphasized that the above-mentioned illegal facts include the annual report of Netcom Securities from 2012 to 2017, financial information, relevant internal systems of the company, details of relevant bond transactions, relevant bond business settlement data, relevant bond valuation data, and relevant bond repurchase transactions. Evidence such as the master agreement, relevant information, relevant contracts, relevant bank account information, bank statements, and records of inquiries from relevant personnel are sufficient for determination.

Netcom Securities and senior executives were fined

  Regarding the above behavior of Netcom Securities, the CSRC stated that it violated the second paragraph of Article 148 of the "Securities Law" in 2005, "Securities companies and their shareholders and actual controllers shall submit or provide to the securities regulatory agency of the State Council. The information and materials must be true, accurate and complete", which constitutes the "securities company or its shareholders or actual controllers violate the regulations, submit, The business management information and materials provided contain false records, misleading statements or major omissions.”

  The administrative penalty decision shows that Netcom Securities was the chairman Liu Ping at the time, Wang Yu was the director, general manager and legal representative at the time, Zhang Jiajun, then the deputy general manager and chief financial officer, Jia Xiangan, then the deputy general manager of Netcom Securities, and Any compliance director Zhang Songqi and others were warned and fined by the China Securities Regulatory Commission.

  Specifically, the China Securities Regulatory Commission pointed out that Wang Yu, the then director, general manager and legal representative of Netcom Securities, was in charge of the company's daily business activities. Sign the annual report to be submitted.

  "Zhang Jiajun, the then deputy general manager and chief financial officer, was in charge of the company's financial work, and he signed the annual report submitted to our association. Both of them ensured the truthfulness, accuracy, and veracity of the content of the annual report in the annual report from 2012 to 2017. It is complete, without false records, misleading statements or major omissions, and is the person in charge directly responsible for the above-mentioned illegal acts of Netcom Securities.” The CSRC further pointed out.

  According to the announcement, Wang Ying and Zhang Jiajun were both warned by the China Securities Regulatory Commission and fined 30,000 yuan.

  The CSRC also pointed out that the then chairman Liu Ping was fully responsible for the company's work. He signed the resolution of the board of directors that reviewed and approved the 2015-2017 annual report, and signed the 2015-2017 annual report submitted to the CSRC. , and ensure that the content of the annual report is true, accurate and complete, and that there are no false records, misleading statements or major omissions, and is the person in charge directly responsible for the above-mentioned illegal acts of Netcom Securities.

  According to the announcement, Liu Ping was also warned by the China Securities Regulatory Commission and fined 30,000 yuan.

  In addition, the CSRC stated that Zhang Songqi, the then director of compliance, signed the 2012, 2014 to 2017 annual reports submitted to the CSRC to ensure that the contents of the annual reports are true, accurate and complete, and that there are no false records or misleading statements. Or there is a major omission. Jia Xiangan, the then deputy general manager, was in charge of the corporate bond trading business. The above two persons are other persons directly responsible for the above-mentioned illegal acts of Netcom Securities.

  According to the announcement, Zhang Songqi and Jia Xiangan were both warned by the China Securities Regulatory Commission and fined 20,000 yuan each.

  In addition, the China Securities Regulatory Commission also issued a warning to Netcom Securities and imposed a fine of 300,000 yuan.

The reorganization of Netcom Securities was officially launched, and Compass was approved as a major shareholder

  On April 29, the official website of the China Securities Regulatory Commission issued the "Reply on Approving the Change of Major Shareholders of Netcom Securities Co., Ltd.".

The announcement stated that in accordance with relevant regulations, Compass was approved to become the major shareholder of Netcom Securities.

  On February 10 this year, the Compass issued an announcement stating that the company was identified as an investor in the restructuring of Netcom Securities.

Compass registered to participate in the recruitment and selection of investors in the bankruptcy and reorganization of Netcom Securities as early as September 2021.

More than seven months later, the reorganization of Netcom Securities officially landed.

  Compass stated in its 2021 annual report that if the company is determined to be the final restructuring investor, it will use its rich experience in financial-related business matching securities companies to give full play to business synergy and create one-stop comprehensive financial services. Layout the company's future business development.

  Wind data shows that Compass is China's first joint-stock enterprise targeting financial services for individual investors, providing individual investors with advanced investment tools and solutions.

The business covers four major fields of securities, futures, foreign exchange and funds.

It is the first financial service enterprise to obtain the data authoritative authorization of the National Bureau of Statistics, Shanghai Stock Exchange, Shenzhen Stock Exchange and Dalian Commodity Exchange at the same time.

  In 2007, Compass was listed on the New Third Board.

In 2019, Compass was successfully listed on the Growth Enterprise Market.

  According to public information, Netcom Securities was established on April 18, 1995.

In terms of business, Netcom Securities has obtained relevant business qualifications such as securities brokerage, securities proprietary business, securities investment consulting, securities investment fund sales, securities asset management, securities underwriting, agency sales of financial products, securities sponsorship, and margin financing and securities lending.

  As the CSRC found in the daily supervision that the financial situation of Netcom Securities continued to deteriorate, the net capital and other risk control indicators did not meet the prescribed requirements, and there were major hidden risks.

Since May 5, 2019, the Liaoning Regulatory Bureau of the China Securities Regulatory Commission has sent a risk monitoring on-site working group to the company to conduct special inspections and monitor the company's operations and management activities.