South Spinning shares financial fraud by "settle scores" experts said that even six years to be returned to the city

South Spinning shares are now the focus of the market because of the five consecutive years of false increase in profits were fined. Affected by this news, the South textile shares May 19 Low prices opened low, and finally received 5.62 yuan/share, a decrease of 4.26%. As the company's shareholders say, "I am very worried about the future of the company's stock price trend, even if they have to go at a loss." According to the latest news, a company shareholder has applied to a lawyer for a claim for the South spinning stake. A number of lawyers have indicated that "the claim conditions are complete". False increase in profits, or claims, South spinning shares although the temporary avoidance of the crisis, but after the truth exposed, the company's future? Five consecutive years of virtual increase in profits of 340 million yuan recently, South textile shares issued a notice, the company has received the SFC administrative punishment decision. The decision book shows that the company in 2006, 2007, 2008, 2009 and 2010, respectively, fictitious profits of 31.0915 million yuan, 42.2333 million yuan, 151.9983 million yuan, 60.5318 million yuan and 58.6412 million yuan. Deduct fictitious profit, company 2006, 2007, 2008, 2009, 2010 profit loss 6.6865 million yuan, 14.3059 million yuan, 136.2047 million yuan, 44.704 million yuan and 59.6901 million yuan respectively. The SFC considers that the fictitious profit of the South spinning shares violates the 63rd article of the Securities Law concerning the disclosure of listed companies according to law must be true, accurate, complete, no false records, misleading statements or major omissions of the provisions, constitute the Securities Act 193th of the listed companies submitted reports have false records, Misleading statements or major omissions. In this respect, the SFC to the South textile shares and related responsible person to give the administrative penalty decision: to give the company warning, and sentenced to 500,000 yuan fine, to the former chairman of the company Tanxiaojong, former deputy general manager and financial Controller Ding, former deputy general manager Liu Shenning and other people warned, and sentenced to 30,000 yuan-200,000 yuan of fine In addition, the responsibility of Hu Haisu, Zhou Faliang, Chen Shan, Amy Yuexuan Wang Hall, Huang has been the limitation of administrative punishment, in accordance with the relevant provisions of the Law of administrative punishment, no longer give its administrative punishment. Five consecutive years of fictitious profits, the total amount of up to 340 million yuan, but only to give the company a fine of 500,000 yuan, the shareholders said the punishment is too low. More shareholders believe that the company should be traced back to the previous year's losses, so that the company back to market. In this connection, some analysts said that because there is no relevant regulations, so the company can not be traced to the previous year. According to the Securities Daily Reporter investigation, the South textile shares were investigated by the SFC, published in April 2012 on the 2010 and the previous year's financial data retroactive adjustment. And this adjustment, the company is still holding the pipa half cover, only the 2010 profit to negative, even to the recently announced 2006 to 2009 fictitious profits, the company did not mention at all. For a time, the original continuous loss of six years of South spinning shares through the way of deception to avoid the crisis of the retreat of the city. Although the marketRemarks in favor of South textile shares should be back, but some lawyers pointed out that the current domestic laws and regulations do not have a retrospective mechanism for the company's previous fraud, which is also the securities regulatory agencies did not take the South textile shares to make a retreat to deal with one of the reasons. However, the Beijing law firm Yang Chaoquan Lawyers have different views, he told the Securities Daily Reporter, six consecutive years of loss, in accordance with the current Securities Act must be returned to the market. "Even if it is concealed for many years the problem of inflated profits, as long as it is detected, and the performance of four consecutive years of loss, but also in line with the conditions of withdrawal." "Investors claim that although the South spinning shares for five consecutive years of fictitious profits to pay a fine of 500,000 yuan, but this does not mean that the full compensation has ended." There are reports that a number of lawyers expressed acceptance of the South spinning shares of investors in the company's claim application. Among them, Shanghai Oriental Cambridge law firm Securities Litigation lawyer Wu Lijun said that the SFC has found that the South spinning shares financial fraud is established, any in March 2012 23, April 27, 2012 or May 16, 2014 close to hold the shares of South spinning investors can claim. According to Wu Lijun, because the time span is too long, meet the above conditions of investors are not many. "The purpose of the claim is still to increase market restrictions on listed companies." In addition, Xu Feng, a lawyer at Shanghai Huarong law firm, said investors who sold or held shares in the company from March 31, 2007 to March 23, 2012 may participate in the claim. Yang Chaoquan to reporters that investors can apply for a false statement of action, the SFC's administrative penalty decision based on, therefore, the South spinning shares of the claim conditions, from March 31, 2007 to March 23, 2011 During the purchase, sell or continue to hold the investors, in line with the terms of the claim. "I have now received a claim from a number of investors," Xu Feng said. When the evidence is collected, the materials will be submitted to the Nanjing Chinese Academy as soon as possible. However, it is not possible to estimate the amount claimed. With respect to the claimed amount, Yang Chaoquan said that the price difference between the sale and purchase of the company's investors, plus commission and stamp duty, was calculated. The court of claim lawsuit should be in Fujian province Fuzhou Intermediate People's courts. In addition to the above investors to apply for a claim, Xu Feng also believes that the relevant persons responsible for the criminal case investigation, to investigate criminal responsibility. "The company may be held criminally responsible, but also should be held criminally responsible, which is a number of false increase in profits more than 30%, many conditions are in line with the standards of criminal filing." "Main business losses by" extra money "noteworthy is that the reporter found that even if the South spinning shares through fictitious profits and temporarily escaped the crisis, but from the company's main businesses continue to lose the situation can be seen, the company's future performance is also very worrying. In the 2013 annual report, the South textile shares listed the plight of the industry: the global economy is still under policy-stimulated fragile recovery phase, the overall situation is relatively stable, maintaining a weak growth pattern. At the same time, the domestic market, labor and other factor costs continue to rise, labor-intensive products export competitiveness further decline,Commodity markets are still in a slump. For the company's market dilemma, South spinning shares said, the main business aspects, the company actively implement the "stable import and export, open up the bulk of business," The main business development strategy, relying on existing resources, depth of potential integration, the three main business sectors to implement a comprehensive budget management, dynamic tracking of the main business Strengthen business risk control, the main business development trend is good. Data show that 2013 the company to achieve sales scale of 5.166 billion yuan, an increase of 15.99% per cent, the overall completion of the early set up the main business income of 4.8 billion yuan target. Among them, the import and export trade sales income of 2.922 billion yuan, an increase of 21.31% per cent, the realization of domestic trade sales income of 1.959 billion yuan, up 11.42% year-on-year. From the above-mentioned South spinning shares in the annual report of the description, South spinning shares of the main business operation is good, but also growth. However, the securities daily Reporter found that hidden in the sales volume of growth of 15.99% per cent is attributable to the shareholders of the listed companies deducted Non-recurrent profit and loss of the net profit loss of 110 million yuan. The annual report shows that in 2013, the total non-recurrent profit and loss of South spinning shares amounted to 228 million yuan, which is nearly twice times the net profit of 119 million yuan. Among them, non-mobile assets disposal profit and loss contribution is great, the amount is as high as 244 million yuan. It is understood that the non-mobile assets disposal profit and loss mainly from the "Company to sell South Thailand exhibition 51% Equity to achieve investment income of about 210 million yuan."