According to the accounting law of the people’s Republic of China, the Ministry of finance has organized a series of measures against lucky coffee since May 6 The accounting information quality of Ruixing coffee (China) Co., Ltd. and Ruixing coffee (Beijing) Co., Ltd. have been inspected since their establishment, and 23 affiliated enterprises and financial institutions have been inspected. So far, the inspection has been basically completed.
It is found that from April 2019 to the end of 2019, Ruixing coffee company increased the trading volume by 2.246 billion yuan (RMB, the same below), the false increase of income was 2.119 billion yuan (accounting for 41.16% of the disclosed revenue of 5.15 billion yuan), the virtual cost of 1.211 billion yuan and the virtual profit of 908 million yuan.
In the next step, the Ministry of finance will give administrative punishment to the financial fraud of main operation entities of lucky coffee in accordance with the law, and handle the punishment results to the public in a timely manner.
The snack generation noticed that on July 1, lucky coffee released the results of an internal investigation into financial fraud. According to the company, the special committee of its board of directors (the “special committee”) with the assistance of consultants Kirkland & Ellis international LLP and FTI consulting, has basically completed an independent internal investigation into the issues disclosed in the press release issued by the company on April 2, 2020.
The special committee, which was established on March 19 this year, was authorized by the board of directors to visit the company’s documents, records and information, and interviewed employees, senior executives and directors. In the course of the internal investigation, the special commission and its advisers have looked through 550000 documents, interviewed more than 60 witnesses and conducted extensive forensic, accounting and data analysis tests.
The special committee found that lucky’s fabrication of the transaction started in April 2019, and as a result, the company’s net income in 2019 was overstated by about RMB 2.12 billion (including RMB 250 million in the second quarter, RMB 700 million in the third quarter and RMB 1.17 billion in the fourth quarter). In addition, lucky’s costs and expenses were inflated by RMB 1.34 billion in 2019 (including RMB 150 million in the second quarter, RMB 520 million in the third quarter and RMB 670 million in the fourth quarter).
“Ms. Qian Zhiya, former chief executive officer, Mr. Liu Jian, former chief operating officer, and some of the employees who reported to him participated in the forged transaction,” Ruixing said According to the above-mentioned internal investigation, funds used to support forged transactions were remitted into the company through a number of third parties that are associated with the company’s employees and / or related parties.
Lucky coffee also announced that the board of directors further decided to fire another 12 employees “who were involved under the guidance of the former CEO and the former coo and / or were aware of fraudulent transactions, including those previously suspended.”. In addition, 15 employees will be subject to other disciplinary actions. In addition, the company is in the process of terminating all third party relationships related to the forgery transaction.
After seeing Ruixing, let’s take a look at the latest development of Nongfu spring’s listing.
Xiaoshidai checked the official website of China Securities Regulatory Commission today and found that the reply on approving Nongfu Shanquan Co., Ltd. to issue overseas listed foreign shares and domestic unlisted shares to be listed overseas has been released. This means that Nongfu Shanquan’s listing in Hong Kong has been approved by the CSRC.
But before Nongfu Shan Quan goes to Hong Kong for listing, it has to finish two things. According to the above approval documents, no more than 1.38 billion overseas listed foreign shares with a par value of 0.1 yuan per share are approved to be issued by Nongfu Shanquan, all of which are ordinary shares. After the completion of this offering, Nongfu Shanquan can be listed on the main board of the Hong Kong stock exchange.
In addition, the document also pointed out that a total of 4588200000 domestic unlisted shares held by 70 shareholders including Nongfu Shanquan Yangshengtang Co., Ltd. (see the table below for the names of shareholders) are approved to be converted into overseas listed shares, and the relevant shares can be listed on the Hong Kong Stock Exchange after the conversion. The name of shareholders and the number of conversion are as follows:
According to xiaoshidai, Nongfu Shanquan issued IPO application documents in the Hong Kong Stock Exchange in April this year. According to the document, in 2017, 2018 and 2019, Nongfu mountain spring achieved 17.491 billion yuan, 20.475 billion yuan and 24.021 billion yuan respectively, with an increase rate of more than 17%. In 2019, the net profit of Nongfu spring will reach 4.954 billion yuan.
The snack food agency introduced it in November last year. According to sources familiar with the matter, Nongfu Shanquan is planning an IPO in Hong Kong to raise at least $1 billion. According to the source, Nongfu Shanquan’s IPO is likely to take place in the first half of 2020 as soon as possible.
Reuters reported in December last year that the company’s market value is expected to reach $11 billion based on its net profit of RMB3.6 billion in 2018 and the price earnings ratio of its peers.
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