In response to the inaccurate disclosure of Shengtun Mining (600711) financial report data for two consecutive years, after the Xiamen Securities Regulatory Bureau ordered corrections and issued a warning letter, the Shanghai Stock Exchange recently criticized Shengtun Mining and the then chairman Zhang Zhenpeng and other responsible persons.
The annual financial report confirmed a profit of nearly 200 million yuan
According to the "Decision on Circulating Criticism of Shengtun Mining Group Co., Ltd. and Relevant Responsible Persons" disclosed by the Shanghai Stock Exchange, the facts ascertained by the Xiamen Supervision Bureau of the China Securities Regulatory Commission show that the disclosure of Shengtun Mining's financial report data for two consecutive years is inaccurate.
That is, from 2021 to 2022, when Shengtun Mining Group Co., Ltd. (hereinafter referred to as the Company) carried out the sales of cobalt hydrometallurgical intermediates with relevant customers, the control of the goods was not substantially transferred when the goods were delivered to the relevant customers, and the Company recognized revenue at the time of delivery, and the accounting treatment was inaccurate.
At the same time, the aforesaid individual cobalt hydrometallurgical intermediates sold to customers were repurchased by a subsidiary of the Company for production and were not consolidated and offset. As a result of the above-mentioned events, the company overrecognized revenue of 359.3675 million yuan (about 359 million yuan) in 2021, accounting for 0.79% of the current operating income, and overrecognized profit of 193.7214 million yuan (about 194 million yuan), accounting for 7.15% of the total profit of the current year; In 2022, the overrecognized revenue was 84.149 million yuan (about 84 million yuan), accounting for 0.33% of the operating income of the current year, and the total profit was underrecognized by 139.093 million yuan (about 139 million yuan), accounting for 18.20% of the total profit of the current year. The relevant financial information disclosed in the company's 2021 and 2022 annual reports is inaccurate.
In addition, on April 23, 2024, the company disclosed the "Announcement on the Correction of Accounting Errors", retrospectively adjusting the 2021 and 2022 annual reports and 2023 quarterly financial data according to the "Warning Letter".
Among them, in the 2021 annual financial statements, the operating income, total profit, and net profit attributable to the owners of the parent company (hereinafter referred to as the net profit attributable to the parent company) were reduced by 359,367,524.96 yuan (about 359 million yuan), 193,721,431.46 yuan (about 194 million yuan), and 98,841,140.33 yuan (about 99 million yuan), accounting for 0.79%, 7.19%, and 9.73% of the amount before correction, respectively.
In addition, in the 2022 annual financial statements, the operating income was reduced by 84,148,951.76 yuan (about 84 million yuan), the total profit was increased by 139,092,957.04 yuan (about 139 million yuan), and the net profit attributable to the parent company was increased by 77,868,972.74 yuan (about 78 million yuan), accounting for 0.32%, 17.77% and 97.39% of the amount before correction, respectively.
In addition, in the financial statements for the first quarter of 2023, the financial statements for the second quarter of 2023, and the financial statements for the third quarter of 2023, the operating income was increased by 4,821,219.69 yuan (about 50 million yuan), 69,969,155.69 yuan (about 70 million yuan), and 58,427,731.30 yuan (about 58 million yuan), accounting for 0.08%, 0.53%, and 0.32% of the amount before correction, respectively, and the total profit was increased by 18. 373,531.72 yuan (about 18 million yuan), 25,030,563.97 yuan (about 25 million yuan), 10,774,174.22 yuan (about 11 million yuan), accounting for 9.89%, 5.69% and 1.88% of the amount before correction, respectively, and increased the net profit attributable to the parent company by 11,690,242.62 yuan (about 12 million yuan), 15,022,956.73 yuan (about 15 million yuan), 4,442,729.60 yuan (about 0.04 billion yuan), accounting for 36.00%, 9.16% and 1.93% of the amount before correction, respectively.
The SSE said that regular reporting is a matter of concern to investors, which may have an impact on the company's stock price and investors' decision-making, and the company should objectively and prudently account for and disclose the current financial data in accordance with accounting standards. The financial data disclosed in the company's periodic report was inaccurate, involving a large amount of adjustment, which affected the investor's right to know, and its behavior violated the "Rules for the Preparation of Information Disclosure of Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reporting" and Articles 1.4, 2.1.1 and 2.1.4 of the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange (hereinafter referred to as the "Stock Listing Rules").
With an annual salary of more than 3.6 million yuan, Chairman Zhang Zhenpeng and others were notified and criticized
In response to the inaccurate disclosure of financial data in the above two consecutive annual reports, the Shanghai Stock Exchange issued a notice of criticism to Shengtun Mining and four relevant responsible persons.
The Shanghai Stock Exchange pointed out that in terms of responsible persons, Zhang Zhenpeng, then chairman and president, as the main person in charge of the company, the first person responsible for information disclosure and the main person in charge of daily operation and management matters, Chen Dong, the then chairman of the board of directors, as the main person in charge of the company's main person in charge and the first person responsible for information disclosure, Zhou Xianjin, the then president, as the main person in charge of the company's daily operation and management matters, and Weng Xiong, the then chief financial officer, as the person in charge of the company's financial affairs, failed to be diligent and responsible for the company's relevant violations.
According to the SSE, the above-mentioned persons violated Rules 2.1.2, 4.3.1 and 4.3.5 of the Stock Listing Rules and the undertakings made in the Declaration and Undertaking of Directors (Supervisors and Senior Management).
In view of the facts and circumstances of the aforesaid violations, after the review and approval of the Disciplinary Committee of the Shanghai Stock Exchange (hereinafter referred to as the Exchange), and in accordance with Article 13.2.3 of the Stock Listing Rules, the Implementation Measures of the Shanghai Stock Exchange for Disciplinary Sanctions and Regulatory Measures, and the Shanghai Stock Exchange Self-Regulatory Guidelines for Listed Companies No. 10 - Implementation Standards for Disciplinary Sanctions, the Shanghai Stock Exchange made the following disciplinary decisions: Chen Dong, then chairman, Zhou Xianjin, then president, and Weng Xiong, then chief financial officer, were notified and criticized. For the above-mentioned disciplinary actions, the firm will notify the China Securities Regulatory Commission and record them in the integrity file of the listed company.
It is worth noting that behind the irregularities in the disclosure of Shengtun Mining's financial report data for two consecutive years, the annual remuneration of many of the above four responsible persons has increased significantly in the corresponding reporting period. It is worth noting that in the same period, that is, in 2021 and 2022, the year-on-year growth rate of Shengtun Mining's revenue recorded: 15.29% and -43.95%; The year-on-year growth rate of net profit was recorded: 1645.62% and -109.31%.
