Text | Liu Zhentao
The winter of the "fertilizer king" is coming!
On the evening of January 19, the listed company ST JinZheng (hereinafter referred to as "Kingenta") announced that Wan Lianbu, as the actual controller, former chairman and general manager, was fined 2.4 million yuan and banned from entering the market for 10 years.
Wan Lianbu, a former "excellent private entrepreneur", the richest person who appeared on the 2015 Forbes Chinese Rich List and the 2019 Hurun Hundred Rich List finally became a person who was banned from entering the market. The glory of the past is in stark contrast to the loneliness of the present.
How did Wan Lianbu fall to such a point?
The answer is financial fraud. According to the CSRC's Administrative Penalty Letter, Kingenta under wanlianbu's control has accumulated 23 billion yuan in false income and 1.98 billion yuan in total inflated profits.
What is the concept of 23 billion yuan, Kingenta's total market value is now 8.7 billion, and the amount of fraud is more than twice the company's market value.
Kangdexin, which was last counterfeited by tens of billions, has now been delisted and has become Kangde retreat. After the promulgation of the new regulations on the strictest delisting in December 2020, according to the rules, "major illegal financial fraud indicators, financial fraud for two consecutive years, revenue, profit, net profit, balance sheet false record amount of more than 500 million yuan, and more than 50% of the total amount of the corresponding account in two years" can meet the delisting requirements.
Kingenta has no possibility of survival, perhaps because the new regulations will be implemented half a year later, or perhaps it may be "judged by the financial data from 2015 to 2020 whether it touches the situation of major illegal forced delisting according to the standards of the original rules", so that Kingenta luckily escaped delisting.
Although it escaped delisting, it is long gone.
The "fertilizer king" rises
Wan Lianbu was once an agricultural technician at the Linshu County Commercial Bureau in Shandong Province, and later began to go to the sea to do business.
In 1998, Wan Lianbu started a business in several simple sheds in Linshu County, Shandong Province, and in 10 years, built a workshop-style small fertilizer enterprise into the world's largest slow-release fertilizer production base with sales revenue of more than 2.6 billion yuan - Kingenta Ecological Engineering Group Co., Ltd.
Why is the company name Kim JoonDa?
According to the company's official website, the word "zheng" in "Kingenta" means integrity, integrity and responsibility. Kingenta always adheres to the integrity of management, the courage to assume social responsibility, to be responsible for society, shareholders, customers, and employees.
Kingenta was very famous at that time, and people who farmed at home should know that "Kingenta Compound Fertilizer" was its ace product. In the glory days, Wan Lianbu once hit the golden gap before the weather forecast of CCTV1 channel of CCTV1. The advertising slogan of "Kingenta Compound Fertilizer, Leading Sales in The Country for 7 Consecutive Years" has become a household name.
With the success of Kingenta, founder Wan Lianbu is also known as "China's fertilizer king" and "China's compound fertilizer king".
In 2010, Wan Lianbu officially landed on the capital market with Kingenta and was listed on the small and medium-sized board of the Shenzhen Stock Exchange. However, on the first day of listing, the capital market did not give the "fertilizer king" face, and Kingenta's stock price fell by 56% and broke.
Although the stock price of the capital market broke, Kingenta's performance began to grow. From 2010 to 2015, Kingenta's net profit rose from 314 million yuan to 1.112 billion yuan, an increase of more than 2 times.
With the growth of performance, the stock price of Kingenta's secondary market has also begun to rise. During the bull market in 2015, the stock price rose to an all-time high of 16.21 yuan (the former compound price), and the total market value reached 53.2 billion yuan at one point.
That year, Wan Lianbu, as the actual controller, also rose sharply with the stock price of Kingenta, making his wealth grow and landing on the Forbes Chinese rich list that year.
Seeing it rise tall, seeing him collapse!
After 2015, Kingenta's net profit began to decline. From 1.112 billion yuan in 2015, it fell all the way to a loss of 3.366 billion yuan in 2020. The share price of the secondary market also fell from the highest price of 16.21 yuan in 2015 to the lowest price of 1.02 yuan in 2020, and the total market value evaporated by about 50 billion yuan.
What is even more surprising is that the enterprises that have been flaunting their integrity management, the courage to assume social responsibility, and the responsibility for society and shareholders have been found to be financial fraud.
23 billion financial fraud
It all started in 2019.
In April of that year, Daxin Certified Public Accountants, which had continuously audited Kingenta's 11-year financial report, gave a qualified opinion on the company's 2018 annual report; a few days later, the CSRC issued a warning letter to Kingenta.
The climax is 2020.
April 30, 2020, is the day Kingenta released its 2019 annual report, and thousands of investors in the market are waiting for Kingenta's annual report.
However, many investors were disappointed, and on this day, Kingenta did not release.
Market investors began to be anxious, "According to Kingenta's previous performance express, Kingenta's net profit in 2019 was 236 million yuan, a year-on-year decrease of 43.96%, is it true that Kingenta is lying, is there an accident?" ”
After a two-month extension, on June 30, Kingenta's 2019 annual report finally came out. Thousands of investors in the market are dumbfounded, in 2019, Kingenta's net profit loss was 683 million yuan, a difference of 18,000 miles from the previous performance express.
As an auditing agency, Daxin Accounting Firm issued a "unable to express an opinion" evaluation of the annual report, and the company's independent directors and some executives could not guarantee the authenticity of the annual report.
In this case, the company is to be delisted risk warning.
On July 1, 2020, because of this "face-changing" annual report, Kingenta became "*ST Jinzheng". Two months later, the CSRC issued a "Notice of Investigation" to Kingenta, and because the company was suspected of violating laws and regulations on information disclosure, the CSRC decided to file an investigation against the company.
With the IN-depth investigation by the CSRC, Kingenta's shocking counterfeiting has been peeled off layer by layer.
According to the results of the CSRC's investigation, from 2015 to the first half of 2018, kingenta and some of its subsidiaries in the consolidated statements carried out fictitious trading business without physical circulation through fictitious contracts with their suppliers, customers and other external units, accumulating inflated revenue of 23.073 billion yuan, inflated costs of 21.084 billion yuan, and inflated the total profit of 1.989 billion yuan.
Among them, in 2015, the company's total inflated profit was 159 million yuan, accounting for 12.20% of the total disclosed profit in the current period; in 2016, the company's total inflated profit was 1.045 billion yuan, accounting for 99.22% of the total disclosed profit in the current period; in 2017, the total inflated profit was 450 million yuan, accounting for 48.33% of the total disclosed profit in the current period; in 2018, the total inflated profit was 334 million yuan, accounting for 28.81% of the total disclosed profit in the current period.
In addition, Kingenta is also suspected of failing to disclose related parties and related party transactions as required. Wan Lianbu conducted related party transactions through Noble Feng (China) Agricultural Co., Ltd., controlled by his sister Wan Yajun, and paid non-operating funds of 5.545 billion yuan and 2.529 billion yuan to Noble Feng from 2018 to 2019 through prepaid accounts. These funds were transferred to Kingenta's external capital pool, which was used for the company's fictitious trade capital cycle.
Fortunately, Wan Lianbu and Kingenta can still recognize the seriousness of the problem, and after the second half of 2018, they stopped inflating their financial situation and reversed the relevant inflated data.
Therefore, the CSRC imposed a lighter punishment on Wanlianbu and other relevant personnel, and sentenced Wanlianbu to a 10-year ban on entering the market.
However, although Kim Chia and Wan Lianbu were given lighter penalties, the CSRC's penalties were only the beginning, and there were also claims from damaged investors waiting for them. It is understood that at present, relevant law firms have spoken out that damaged investors can register claims.
An enterprise that flaunts its integrity management eventually falls on the "integrity issue" and pays the price for dishonesty. We don't know whether Kingenta's advertising, which has led the national sales lead for 7 consecutive years, is true, but we know that it is a fact that it has been faked for many years.
Perhaps in the face of the punishment and loneliness of thousands of steps, the people will say that it is an ox cart without wheels - it can't run!