Log in to Sina Finance APP to search [Xinpi] to see more evaluation levels.
Special topic: Dahua's money and psychic financial fraud case was suspended for 6 months and fined 41.32 million.
Interface News reporter | Guo Jingjing
After trading on May 15, Yili shares (600887FluffybingoAccording to the announcement, the annual general meeting of shareholders in 2023 will cancel the re-employment of accounting firms.FluffybingoThe bill. Yili shares said that in view of the fact that the recent relevant matters of the proposed accounting firm have yet to be further verified by the company, based on the principle of prudence, the company intends to cancel the re-employment of Dahua Accounting firm (Special General Partnership) (referred to as "Dahua Institute") as the company's external audit agency in 2024, and communicated with it in advance on the cancellation of re-employment. Dahua has no objection to the cancellation of the re-employment of accounting firms this time.
On the same day, 300049.SZ also announced that in view of the fact that the company's proposed Dahua Institute had recently received an administrative penalty from the Jiangsu Regulatory Administration of the China Securities Regulatory Commission, the company had been suspended from engaging in securities service business for 6 months, and in accordance with relevant laws and regulations, the company decided to cancel the seventh proposal on the re-employment of Dahua Accounting firm as the company's 2024 audit institution, which was originally scheduled to be submitted to the 2023 annual general meeting for consideration.
On the same day, Huayi Brothers (300027.SZ), Chengdu Road Bridge (002628.SZ), Jiugang Hongxing (600307.SH), 300618.SZ and other A-share listed companies all announced the proposal to cancel the appointment of Dahua Institute. So far, interface news rough statistics show that since May 13, more than 40 listed companies have announced the suspension of cooperation with Dahua Institute.
On May 13, as the financial statement audit institution of Jin Tongling (Rights Protection) (300091.SZ) from 2017 to 2022, Dahua was issued a written decision on administrative penalty by Jiangsu Securities Regulatory Bureau. The Jiangsu Securities Regulatory Bureau found out that there were false records in Jin Tongling's annual report from 2017 to 2022, such as falsely increasing or decreasing business income and total profits; Dahua provided audit services for Jin Tongling's annual financial statements from 2017 to 2022, all issued audit reports with standard and unqualified opinions, and signed certified public accountants Fan Rong, Yan Lisheng, Hu Zhigang, with a total audit income of 6.8868 million yuan (excluding tax).
Jiangsu Securities Regulatory Bureau believes that when Dahua audited Jin Tongling's financial statements for the period from 2017 to 2022, there were major defects in risk assessment and internal control testing procedures, failure to take appropriate audit measures to deal with fraud risks, and major defects in substantive procedures. In violation of the provisions of the relevant practice standards, failed to perform due diligence obligations, and the audit reports issued have false records, which constitute the illegal acts mentioned in the Securities Law. The bureau decided to order Dahua Institute to make corrections, confiscate 6.8868 million yuan of business income, impose a fine of 34.434 million yuan, and suspend securities service business for six months; Fan Rong, Yan Lisheng, and Hu Zhigang were all given a warning and fined 1.5 million yuan, 800000 yuan and 400000 yuan respectively.
Xu Feng, a lawyer at Shanghai Jiucheng Law firm, told Interface News that the punishment imposed on Dahua by the regulatory authorities was rarely severe in recent years, and he personally believed that he should be held jointly and severally responsible for the losses of investors. "the high probability is to decide to bear joint and several liability, and we need to pay attention to the proportion of joint and several liability in the specific judgment."
After the above punishment was "confirmed", the official Wechat of Dahua Institute issued a statement in response, saying that our institute sincerely accepts the punishment decision of the regulatory authorities, consciously accepts the supervision of various regulatory agencies, corporate customers and all sectors of society, and carries out comprehensive rectification and reform as required. Organize deep introspection throughout the institute. "We are deeply saddened and ashamed, and apologize to the customers and partners who have been affected."
In recent years, Dahua Institute has been punished by regulators many times. In March 2023, Dahua Institute was fined 3.6792 million yuan and two certified public accountants were warned and fined 50, 000 yuan because of false records in the 2016 annual audit report and failure to perform their duties diligently in 002069.SZ.
Prior to this, Dahua Institute was punished by the CSRC for the Oriental Jinyu project in 2022. The CSRC investigation found that Dongfang Jinyu did not do its duty diligently in the audit of the 2017 financial statements, and there were false records in the audit report of the 2017 financial statements issued by Dahua. The CSRC ordered Dahua Institute to make corrections, confiscated 1.1 million yuan of business income and imposed a fine of 2.2 million yuan.
In addition, according to the information of the Chinese Institute of Certified Public Accountants, Dahua Institute has also been punished by Beijing Securities Supervision Bureau, Guangdong Securities Supervision Bureau, Shenzhen Securities Supervision Bureau and so on in the last three years. In addition, Dahua Institute also involved in practice violations in projects such as 002638.SZ and 300050.SZ, and was punished by the regulatory authorities.
According to the official website of Dahua Institute, founded in 1985, it is one of the largest large accounting firms in China, the first batch of firms approved to engage in H-share listing audit qualifications, and the Ministry of Finance large-scale accounting firms group development pilot firm. Dahua has more than 8000 employees in China, including more than 1500 certified public accountants. The institute serves more than 10000 customers all the year round, including nearly 500 listed companies, more than 70 central enterprises, more than 300 provincial enterprise groups and more than 500 foreign-funded enterprises.
According to the official website of Dahuasuo, in the field of IPO services listed in 2023, Dahuasuo helped 30 enterprises successfully enter the capital market, including 8 on the main board, 8 on Science and Technology Innovation Board, 9 on the gem and 5 on the Beijing Stock Exchange.
Interface News according to Oriental Fortune Choice statistics, as of May 16, 2024, there are still 516 listed companies in the Shanghai Stock Exchange, Shenzhen Stock Exchange, Beijing Stock Exchange and other capital markets that employ Dahua as auditors. At the same time, equity financing projects that are queuing for review may be affected. Rough statistics show that as of May 14, Dahua Institute has a total of 50 projects waiting in line for review, of which 38 are IPO projects, 10 are refinancing projects, and 2 are M & A projects.
On April 30, the newly revised rules for the examination and approval of Stock issuance and listing proposed that if "if the sponsor or securities service institution of the issuer is subject to regulatory measures such as restricting business activities, ordering suspension of business for rectification, appointing other institutions to trusteeship or take over by the CSRC in accordance with the law," the issuer, sponsor and securities service institution shall promptly inform the exchange. The exchange will suspend the examination and approval of the issuance and listing and notify the issuer and its sponsors.
On May 15, the China Securities Regulatory Commission once again issued a document emphasizing that we should pay close attention to lack of diligence and failure to fulfill our duties, tighten the responsibilities of "gatekeepers", and urge and guide intermediary agencies to improve the quality of their practice. Among them, we insist on "multiple investigations in one case". On the basis of investigating and handling cases of information disclosure violations such as fraudulent issuance and financial fraud in accordance with the law, we comprehensively check the performance of the intermediary institutions involved in the case, and deal with those suspected of illegal crimes seriously and will never tolerate them. At the same time, we adhere to the "double penalty system", severely punish intermediary agencies that fail to perform their duties properly, and impose "double penalties" on institutions and personnel in accordance with the law; in addition to applying "property penalties" in accordance with the law, we should make full use of legal empowerment and explore the application of "qualification penalties".
