A-share "the worst company" *st Hongsheng is how to refine into: Longchang trial direct hit

*st Hongsheng Original Chairman Longchang Court trial direct hit: A A-share of the worst company is how to make the June 3 9:30 A.M., one hand manufacturing 2008 A-share of the largest loss of listed companies *st Hongsheng (600817.SH) former chairman Longchang Court.　　The case lasted more than a year, and now the game to the localized but also the suspense overlap. April 21, 2009, the first branch of Shanghai People's Procuratorate of the Longchang and *st Hongsheng, *st Acer International Development (Shanghai) Co., Ltd. (hereinafter called Acer International) and Amman Electronics (Shanghai) Co., Ltd. (hereinafter referred to as Amman electronic) prosecuted.　　The date of the original May 15 trial was postponed to June 3.　　With the presiding judge "to preach the accused Longchang in court", has disappeared in the public view for more than a year *st the original chairman Longchang appeared in the Shanghai First Intermediate people's courts. On that day, the defendants organized a large group of lawyers to sue. Many media and investors are also sitting in the gallery.　　The court Longchang tone but calm, but was asked the passport number, slightly hesitant. As a director of *st Hongsheng for 10 years, the Dragon has developed a new export business model of "supply chain management" under his hands.　　*st Hongsheng's main business income, also from 1999 less than 100 million yuan to the 2007 annual report of 5.1 billion yuan. But since then Longchang's struggling trade chain has broken down, its main distributor in the United States has filed for bankruptcy, while IRC, another distributor, has broken ties with the company and left up to $960 million trillion of offshore receivables.　　Dragon himself also suspected of evasion, false capital, the crime of withdrawing capital, by the Shanghai Municipal Public Security Bureau to execute the arrest.　　With the release of the 2008 Annual report, *st Hongsheng per share losses as high as 21.86 yuan, so that a A-share the name of the worst listed companies carry on it. "Supply chain management" evasion "all we do this time is to plead guilty." "June 3 Noon, Shanghai First People's Court seventh court recess, Longchang case defense lawyer Guyongzhong to reporters."　　GU is a ph. D. Supervisor at China University of Political Science and law, and is also a Longchang advocate. In the trial of the day, Longchang denied the two charges charged by the prosecution-false contributions, capital flight and evasion.　　The business model of "supply chain management", which is based on the letter of credit, is the focus of the prosecution and defense. I also acknowledge the fact that at the end of this trade chain of *st Hongsheng, whether it is Hong Kong's long International Group Limited (hereinafter referred to as "Long international"), or far away in the United States, the dealer International Connaught Sheng Technology (International norcent Technology, hereinafter called INT) and the International Company (International Reliance Corporation, hereinafter called IRC), Longchang himselfHave a strong control, although in the equity relationship Longchang and its family in two companies do not have direct arrangements.　　Prosecutors believe that it is under the cover of these companies, Longchang controlled *st Hongsheng, as well as Acer International, Amman Electronics to long International to provide 407 single false bills of lading to accept, resulting in foreign exchange of 485 million U.S. dollars, constituted evasion crime. According to the prosecution's statement, from July 2003 to September 2007, Longchang directed Long International to Acer International and Amman Electronics to provide 407 single false bills of lading, while Acer International, Amman Electronic to Shanghai Bank, Bank of China, Bank of Communications and Citic Bank to open an import letter of credit, the acceptance of it, Resulting in 485 million of dollars in foreign exchange payments.　　Most of the products in these orders were sent directly from Hong Kong to the United States and did not pass through Shanghai.　　Longchang and his defence counsel, that *st Hongsheng and its holding company is "in the form of import credit to support entrepot trade", and the two companies involved in the Waigaoqiao bonded area, "entrepot trade does not exist evasion."　　Trade chain puzzle On the other hand, the "supply chain management", which brings the great leap of business revenue to *st, is more like the dragon himself and his family's own play. The core of this supply chain is *st Hongsheng, which is long international and int, IRC respectively.　　Long Long international to provide products to *st Hongsheng, INT, IRC is responsible for the sale of products in the United States, according to Longchang, its customers include Wal-Mart, Best Buy and other retail giants.　　Longchang himself admits that long queues international, the company under its own control, was sold to a Taiwanese businessman in 2003 at a price of HK $15 million, and long International became *st Hong Kong's trading platform and was responsible for organizing sourcing.　　The dragon himself also admits that it has strong control over long queues, including the purchase of products, prices, specifications and so on, but denies that it has a stake in the company.　　However, it is quite strange that the long Line international business in 2004 revenue of 3.9 billion Hong Kong dollars, net profit of more than 100 million Hong Kong dollars, but was Longchang only a year ago, only 15 million Hong Kong dollars transfer.　　Moreover, the int and IRC at the other end of the supply chain is also closely related to the Dragon Clan.　　According to the information provided by the prosecution, INT, IRC, belong to a company named Norcent Holding (hereinafter referred to as "Connaught Holding"), Longchang's sister long Changhong and mother Shihuchi in the company has 50% of the equity. On top of the court, Longchang and his defenders have repeatedly stressed that the majority of the products covered by their 407 single false bills of lading are real trade, but the products are shipped directly from Hong Kong to the United States and are not re-exported through Shanghai. "The main reason is that the customs inspection, if the goods come to Shanghai, it will be difficult to fulfill the contract on time."　　"On the other hand, the issuing bank of the domestic letter of credit takes a long time, which makes it have to illegally choose to direct the United States, thereby making a false bill of lading for re-export to Shanghai." But the trialWhen asked about the Longchang, he referred to a case in 2005 in which the product was sent to the United States by *st Hongsheng.　　In these products, including a large number of chip chips and 16M pseudo 1G USB disk.　　This immediately begs the question, *st to the United States, whether it is a real product? Longchang argues that this batch of products supplied by suppliers of samples and semi-finished products, "is accidentally wrong, after the value of 70 million of dollars of product, customs full inspection is no problem." "Another suspicious place, then, is 2004, 2005 onwards, *st major export products such as chips, such as chip price unilateral sharp decline, but *st Hongsheng export prices" has been stable at high prices. The dragon himself claimed that this was mainly due to the contract price locked by the dealer's orders.　　But the bargaining power of *st, Wal-Mart and Best Buy, is questionable.　　With the deepening of the investigation, the capital crime of Longchang and his family reorganization *st the original sin also surfaced. September 1998, Longchang and his family for the acquisition of *st Hongsheng predecessor-Shanghai Liang Wah Industrial Co., Ltd., decided to set up the Czech investment.　　Longchang's mother Shihuchi, sister long Changhong respectively holding a strong Czech company 25% of the shares.　　Public data show that the Czech capital Holdings Shanghai Hong Pu Industrial Investment Co., Ltd. (hereinafter called Acer Industrial) 48.93% of the equity, Acer Industrial Department *st Grand shareholder, holding a 31.65% of the listed company's equity. Prosecutors believe that in the company's registration, Longchang in the name of a personal loan of 50 million yuan, the use of repeated accounting methods to obtain a registered capital of 100 million yuan business registration. After the establishment of the company immediately took away 15 million yuan.　　This constitutes the false contribution and the crime of withdrawing funds.　　As for the remaining $35 million, of which $30 million is used to reorganize listed companies and 5 million to return bank loans and interest.　　Longchang did not deny that, but argued that because of the age, do not remember the source of 50 million of borrowings.　　In *st macro event, February 13, 2008 and 14th, Acer industry through the two-level market reduction *st Hongsheng 10.45 million shares, set is now about 100 million yuan.　　Prior to that, China's export Credit insurance Company (hereinafter referred to as CITIC) because of the *st to provide credit guarantee is also mired in, a false bill of lading opened by the letter of credit has 104 failed to pay, involving the amount of 115 million U.S. dollars, by Citic Guarantee on behalf of the advance.　　Subsequently, CITIC Insurance will Acer Industrial Court, Shanghai, Huangpu District Court in the case after accepting the matter will be Acer Industrial holding St Hongsheng 31.65% of the equity freeze. In this respect, Longchang said, *st Hongsheng has signed a settlement agreement with CITIC, will be held by the 140 million shares of Everbright Bank equity transfer to CITIC, "this can be fully covered by the risk of CITIC Insurance."