On November 15, the official website of Shanghai Stock Exchange showed that Shanghai Electric Hu Kang, Zheng Jianhua and its subsidiary Shanghai Electric Communication Technology Co., Ltd. (Hereinafter referred to as Communication Company) Mao Limin and Shen Xin were given disciplinary sanctions by Shanghai Stock Exchange for violating regulations in information disclosure and standardized operation.
At present, four people have left Shanghai Electric. Before that, Zheng Jianhua was the legal representative and chairman of Shanghai Electric; Hu Kang was the chief financial officer of the company; Shen Xin was the legal representative and general manager of the communication company; Mao Limin was the chief financial officer of the communication company at that time.
Source: Shanghai Stock Exchange
On May 30, 2021, Shanghai Electric suddenly revealed that under extreme circumstances, the company's net profit attributable to its parent company may suffer a loss of 8.3 billion yuan. The reason is that the accounts receivable of Shanghai Electric Communication Technology Co., Ltd. , a 40% shareholder of the company, is generally overdue , and the book value of the company's shareholders'rights and interests in the communication company is 526 million yuan . In addition, the company provided a shareholder loan of 7.766 billion yuan. Once
the news broke, it immediately triggered personnel turmoil in Shanghai Electric. In July
2021, Zheng Jianhua, then chairman of Shanghai Electric, was subject to disciplinary review and supervision and investigation by the Shanghai Discipline Commission for suspected serious violations of discipline and law. In August, Huang Ou, president of Shanghai Electric, died in an accident. At the same time, Shen Xin, then general manager of the telecommunications company, Mao Limin, financial director, marketing director and Jin Hang, Minister of Ministry of Commerce, are also undergoing disciplinary review and supervision and investigation by the Discipline Commission of Changning District, Shanghai.
In 2021, the communication company made a total impairment loss of 9.222 billion yuan, which affected the net profit attributable to the parent company of Shanghai Electric's consolidated financial statements in 2021 by 8.354 billion yuan .
After more than two years of investigation, the Shanghai Stock Exchange believes that as early as April 30, 2021, Shanghai Electric has been aware of major risks in telecommunications companies, and according to relevant regulations, the company should disclose the above major events no later than May 7, 2021. However, it did not issue the "Prompt Announcement on Major Risks of the Company" until May 30, 2021, announcing the major risks that may cause a loss of 8.3 billion yuan to the company's net return to its mother, such as the unrecoverable accounts receivable of electrical communications and the unrealizable inventory. Suspected of failing to fulfill the obligation of information disclosure in a timely manner.
For communication companies, the Shanghai Stock Exchange believes that there are false records in the annual report of the company in 2020.
It is estimated that the provision for bad debts of the aforementioned accounts receivable in the annual report of Shanghai Electric in 2020 is less than 518 million yuan, resulting in a total profit of 518 million yuan, accounting for 8.16% of the total profit of Shanghai Electric in the current period.
To sum up, the Shanghai Stock Exchange found that Shanghai Electric did not disclose relevant major events in time and that there were false records in its annual report for 2020. It has seriously violated the provisions of the Securities Law of the People's Republic of China (Revised in 2019), the Standards for the Contents and Forms of Information Disclosure by Companies Offering Securities to the Public No.2-Contents and Forms of Annual Reports, and the Listing Rules of Shanghai Stock Exchange (Revised in 2020).
According to the provisions of Rule 16.3 of the Stock Listing Rules, the Shanghai Stock Exchange was responsible for Zheng Jianhua, the then legal representative and chairman of Shanghai Electric Group Co., Ltd., Hu Kang, the then chief financial officer, Shen Xin, the then legal representative and general manager of the company's subsidiary Electric Communications. Mao Limin , then the financial director of the company's subsidiary, publicly condemned it and notified the China Securities Regulatory Commission and the Shanghai Local Financial Supervision and Administration Bureau. And recorded in the integrity files of listed companies.
Prior to this, the Shanghai Securities Regulatory Bureau has issued warnings to six responsible persons, including Zheng Jianhua and Shen Xin, and imposed fines ranging from 200,000 yuan to 1.4 million yuan. The first trial of Zheng Jianhua 's bribery, embezzlement, misappropriation of public funds and abuse of power by personnel of state-owned companies was also held in the First Intermediate People's Court of Shanghai on April 19 this year.
Zheng Jianhua