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Big Wisdom is investigated and company information disclosure violation
Release Time：2019-04-25
According to the announcement issued by Great Wisdom on the evening of April 30, the company received the "Investigation Notice" from the China Securities Regulatory Commission on April 30, 2015. As the company’s information disclosure was suspected of violating securities laws and regulations, in accordance with the relevant provisions of the "Securities Law of the People's Republic of China", the China Securities Regulatory Commission decided to open a case for investigation. However, the announcement did not explain the specific reasons for the investigation.
Big Wisdom only stated that during the investigation period, the company will actively cooperate with the investigation work of the China Securities Regulatory Commission, and perform information disclosure obligations in strict accordance with regulatory requirements to remind investors of investment risks.
Six months after being investigated by the China Securities Regulatory Commission on May 2 this year, the Great Wisdom case finally came to fruition. Big Wisdom issued an announcement stating that the company received the "Advance Notice of Administrative Penalties and Market Banning" issued by the China Securities Regulatory Commission on November 5.
The announcement showed that Big Wisdom had a number of inflated revenue behaviors in 2013, and the company's books were manipulated in many places that year: the revenue with the promised policy was confirmed in advance of 87,446,900 yuan, the inflated sales revenue was 2,872,500 yuan, and the recognition of 2013 was delayed. The year-end bonus reduced the accrued costs by RMB 24,954,300, and used the framework agreement and business contract with the advertising company to inflated revenues of RMB 933,400 and RMB 15.6774 respectively. At the same time, the company’s subsidiaries were suspected of merging Tianjin Mintai ahead of schedule, affecting the total profit of the consolidated statement. RMB 8.2501 million and goodwill RMB 4.3313 million.
Based on this calculation, the company has inflated its operating income by more than 100 million yuan. At that time, the company’s report showed that its operating income in 2013 was 890 million yuan, and its net profit was 11.6614 million yuan. If the unaccounted costs of 24,954,300 yuan are included , The company’s 2013 net profit should be a loss. This also means that by virtue of false financial figures, Great Wisdom escaped the fate of being put on a hat for two consecutive years of losses.
In response to the above-mentioned violations, the China Securities Regulatory Commission plans to warn Great Wisdom and impose a fine of 600,000 yuan; it plans to warn the company's then directors, supervisors, and other relevant personnel, and impose penalties ranging from 30,000 to 300,000 yuan depending on the magnitude of the responsibility. It is proposed to take five-year measures to prohibit access to the securities market for directly responsible managers and other directly responsible personnel.
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