Three Gorges new materials involved in financial fraud: falsely increased the profit of billions

Recently, because of the Shanghai Stock Exchange of a paper announcement, Hubei Three Gorges New building Materials Co., Ltd. (hereinafter said: "Three Gorges new material", 600293.SH) to lift the forefront of public opinion. SSE found that the Three Gorges new materials have serious financial fraud, the Three Gorges new materials in 2011, 2012 cost accounting, through a small cost of virtual increase in profits near 100 million yuan. In addition, SSE also Xu Lin timely as Chairman of the Financial director Liu Yuchun to be publicly condemned, etc., that the Three Gorges new material financial Information "disclosure distortion, serious consequences, poor nature." Immediately, the Dangyang, an obscure company in Hubei province, was put on a "hat" of financial fraud. In fact, as early as last October, the Three Gorges new materials have been filed for investigation by the SFC, the announcement is clearly the investigation of the foregoing identified and informed. Three Gorges new material after punishment, in the Three Gorges new stock bar, the news is like a mountain pour, many retail investors are also ready to sue, Jiangsu a yellow surname shareholders told The Times weekly reporter, is currently consulting lawyers to prepare for the lawsuit, he said must claim losses. In this situation, the industry believes that the Three Gorges new materials have the possibility of reorganization, but if the litigation involved, restructuring will be postponed. In the middle of August, the time reporter in the local survey found that the use of petroleum coke as the main production of fuel, the new Three Gorges project of environmental pollution is becoming increasingly serious. According to people familiar with the situation, this year in the local government of the public practice line meeting, because the pollution problem has not been specific regulatory measures, was put forward after the agenda. It is noteworthy that the Three Gorges new material holding subsidiary of Yichang when the glass silicon Mining Limited liability company (hereinafter said: When the glass silicon Mine) for the local rock roof mining in the mining materials caused by the destruction of serious mountain, vegetation is difficult to recover, and was criticized by local villagers. August 19, Times weekly reporter to the Three Gorges new material to prove that the Three Gorges new Materials securities representative Fu said "interview must be through the Organization department", then the reporter to the secretary Zhang Guangchun sent an interview message, to the deadline did not receive a reply. Repeated environmental criticism relative to local support, the masses of the Three Gorges new materials using petroleum Jiaozuo fuel but detest. It is understood that petroleum coke is a by-product of oil production, generally as a cheap substitute for poor coal, but its pollution is more serious. August 16, in the name of the Station Road, the Three Gorges new material factory gate, the reporter saw far 5 tall chimney fly, constantly braved white smoke, coming and go. From the main city of Dangyang across the Dangyang Bridge, a taxi driver grumble about this, because of its emissions of dust, sometimes, a bridge the sky is foggy, hope that the Three Gorges new materials directly removed from the local. According to people familiar with the situation, this year in the local implementation of the mass line practice, there is a mass response, for a long time for the Three Gorges new material pollution problems have no specific measures, weak supervision. After the meeting, the issue had to be put on the agenda. July 25, the Dangyang Environmental Protection Agency made a commitment to it: "Speed up the Three Gorges new materials and other enterprises pollution control and environmental supervision." Delineation of smoke control areas. "Years ago, the new Three Gorges production of fuel, from heavy oil to natural gas, but in 2009, the company changed the fuel structureTo save costs. The annual report pointed out that the "modified petroleum coke, supplemented by natural gas", "not only to alleviate the pressure of natural gas reduction supply, but also effectively reduce production costs." In addition to the problem of fuel pollution, vegetation destruction is more worrisome. The Three Gorges new material has 30 million tons of silicon ore reserves of the Rock House Temple Mining Area, the mountain was destroyed more serious. August 17, Times weekly reporter drove in Yuquan village 4 groups to see, among the mountains were wantonly dug out, bare one. A few kilometers away from the glass silicon ore yard, filled with dug raw materials. The two-degree "Fangweising" of the new Three Gorges Project announced that the original chairman of the Xu Lin, May 12 this year has stepped down, not affected by the incident. and SSE only to Xu Lin and the original financial controller Liu Yuchun publicly denounced it. Insiders believe that openly two financial fraud, the above two people bear the responsibility of unshirkable. In fact, the financial clues should be derived from the routine inspection by the SEC. Last July, the SFC Hubei authority in the inspection of the Three Gorges new materials, found that the Three Gorges new materials in the cost of the cost of raw materials in the case of less. August 8, the Three Gorges new materials issued a notice that received SSE two "decision book", identified the Three Gorges new material financial fraud, but also to the parties responsible for public condemnation. October 15, the CSRC Wuhan Inspection Bureau to the Three Gorges new materials issued the "inspection Notice", pointed out that its suspected violation of relevant laws and regulations, decided to file an inspection. According to SSE data shows that the Three Gorges new materials in 2011, 2012 cost accounting, respectively, less than 75.82 million yuan of raw material costs, 15.68 million yuan. The Board of directors corrected the major accounting errors of 2011 and 2012, and reduced the net profit of 2011 attributable to the owner of the parent company by 64.44 million yuan, and reduced the net profit of 2012 to the parent company 13.33 million Yuan. In the current situation of bank credit contraction, real estate industry decline and construction slowdown, the Three Gorges new material of main glass products is blow. The above "decision book" shows that the Three Gorges new materials in 2013, the actual ownership of the listed company shareholders of the net profit of 31.04 million Yuan, its 2013 annual performance announcement (January 29, 2014) shows that the 2013 annual profit of 50 million yuan-60 million yuan, Grew 240% to 310% from a year earlier. But less than 3 months later, the Three Gorges new materials on the release of the 2013 annual performance Notice correction announcement, adjusted to reduce the profit growth, "the first year of trial accountants, the 2013 annual profit is expected to be about 33 million yuan, up from the same period of 120% per cent." "Why two false also and" Fangweising ", Three Gorges new material, Mr. Fu said" all see notice. " The Three Gorges new material in the announcement explained that the company in the disclosure of 2013 annual performance forecasts should be able to estimate the above related asset impairment, depreciation risk, and the accounting confirmation on the uncertainty can be disclosed, but the company did not fully estimate the risk, nor early disclosure does notCertainty, resulting in the company's performance forecasts, the final occurrence of large differences in the situation, its behavior is obviously not cautious. Nearly two years of financial costs are good for the capital market story of the Three Gorges new materials, in recent years to the capital market constantly bring the "surprise" is a ups and downs. 2011, after a series of maneuvers, the company's current chairman Xu Xizhong become the Three Gorges new material this listing more than 10 years of the actual control of the state-owned companies. Since then, the new Three Gorges project to participate in the development of anticancer drug resistance to mildew. According to media reports, the force of the project was the former Shanghai Kai Bao phase, but soon to be abandoned, the Three Gorges new materials to 3 times times more than the premium acquisition. In addition, in announcing the new anticancer drugs, the Three Gorges Project announced that the trusteeship of Xu Xizhong shareholding in the state of Chinese medicine, in custody, the state of Chinese medicine to the listed companies to pay the basic management fee of 10 million yuan. But it is worth pondering that, in the new anticancer drugs, single shareholder holdings, access to financial subsidies, custody of Chinese medicine and expansion of production capacity and other good sound, the Three Gorges stock price in 12 trading days fell more than half. Despite the above many maneuvers, but the decline of the Three Gorges new material has not been eased, the first half of 2014 reported that the company's operating income of 597 million yuan, an increase of 31.81%, but net profit is only 2.13 million yuan, down 66.45% year-on-year. It is noteworthy that the Three Gorges new materials have been high financial costs. According to the public data, the financial cost of the first half of 2014 was about 53.51 million yuan, the first half of 2013 was about 40.71 million yuan. Times weekly reporter found that, and in 2012, 2013, the Three Gorges new materials of the financial costs are basically maintained in the scale of over billion. Although the Three Gorges new material problems, but the local government's support for the new Three Gorges has been increasing, including the European debt crisis in the most serious 2012, has helped its fund-raising 160 million yuan. In April 2013 published in Hubei province Sasac official website of a manuscript show, on this, when the Three Gorges new material general manager Zhang Jinqui said, "Dangyang Finance Bureau, state-funded office to help us run the project, to policy, financing, is our enterprise development backbone, spokesperson, strong backing." According to the public information, 2013, the government subsidy amounted to 30 million yuan, 2012 is 17 million yuan, are included in the year's annual profit and loss, and the annual profit and loss has a positive impact.