Lotus msg for four years in a row, the false increase of profit is punished

China Certificate Net Lotus msg (600186) June 13 Night Notice, the company earlier because of suspected violations of securities laws and regulations by the SFC [micro-BO] filed for investigation, the company recently received the SFC, "Administrative penalty decision", as the company from 2006-2009 consecutive information disclosure violations of illegal matters, The SFC decided to give the Lotus msg warning, and fined 500,000 yuan, the company chairman and other related personnel fines. "Administrative penalty decision book" said that the company 2006, 2008 years did not disclose a number of litigation matters, including the 2007 ICBC City branch of the Lotus monosodium glutamate four overdue loans filed lawsuit, the lawsuit marked a total of 296 million yuan. 2008, Shanghai Pudong Development Bank Zhengzhou City East Road branch, Zhengzhou branch, Guangdong Yue Choi v. Lotus monosodium glutamate case, the lawsuit marked a total of 380 million yuan, for the above lawsuit, Lotus msg neither temporarily disclosed, nor in the 2008 annual report disclosed, but in the 2009-year report in the disclosure. 2007, 2008 consecutive two years will not be in place in the government subsidy 194.4 million yuan, 300 million yuan accounted for, 2007 virtual increase in profits 194.4 million, 2008 virtual increase in profits of 300 million yuan, so that two years of profit are turned into surplus. In 2008 and 2009, the government subsidy which should be credited to the non-operating income will directly reduce the production cost. June 2008-December, Lotus monosodium glutamate received the environmental protection related subsidy amount of 18.98 million yuan, the government eliminated the backward capacity compensation fund 22.72 million yuan. Lotus msg A total of 41.67 million yuan of government subsidy which should be taken into account of non-operating income directly reduce production cost. 2009, the company will be counted into the operating income of various types of government subsidies 1.8769 million yuan directly reduce the cost of the main business. As the monosodium glutamate industry overcapacity, competition, resulting in a decline in product gross profit, the company's history heavy burden, high fixed costs. Lotus monosodium glutamate performance in recent years continued to slump, 2013 net profit loss of 326 million yuan, down 991.41% year-on-year. In 2007, the company disclosed the net profit of 26.5134 million Yuan, 2008 the company publicly disclosed net profit of 12.4053 million yuan. If it is not the company 2007, 2008 continuous false increase in profits of 300 million yuan, so that two years of profit are turned into surplus, the company will be due to the loss of two consecutive years to be returned to the city special treatment. Meanwhile, companies have been plagued by lawsuits and debt in recent years. And the company was punished by the SFC, the future of the company will be more uncertain.