Every Journal reporter: Zhang Jing Every Journal intern reporter: Xia Zibo Every Journal editor: He Juanjuan
Broadcasting and Television Network (600831), a case was filed.
On December 25, 2023, Radio and Television Network announced in the evening that the China Securities Regulatory Commission decided to file a case against the company due to the company's suspected information disclosure violations. As for the matters involved in filing the case, the "Notification of Case Filing" has not yet been clarified.
"Daily Economic News" reporter noticed that Radio and Television Network had received regulatory letters from the Shanghai Stock Exchange and Shaanxi Securities Regulatory Bureau in the second half of 2023, which mentioned many issues:
The company's funds formed a self-circulation after four rounds of circulation, annual reports Some items in the balance sheet and cash flow statement were inflated, some items in the income statement were incorrectly presented, and the secretary of the board of directors accepted the management of the financial director... As the only legal cable TV network operator in the administrative region of Shaanxi Province,
relies on its exclusive advantages to be more stable. The radio and television network is in some "trouble" this time.
Related transactions constitute a self-circulation
Before the case was filed, Radio and Television Network had been paid attention to by the Shanghai Stock Exchange. In the reply to the regulatory work letter on July 11, 2023, there were some irregularities in the company's operations.
Among them, the most noteworthy thing is that the relevant funds that had previously invested in Shaanxi Guanghua Investment Partnership (Limited Partnership) (hereinafter referred to as: Guanghua Investment) returned to the radio and television network after four rounds of circulation, forming a closed loop of funds, and related transactions constitute a self-circulating problem.
According to the reply letter, in December 2022, Radio and Television Network planned to subscribe for a capital of 195 million yuan through its subsidiary and invest in Guanghua Investment as a limited partner, with a share ratio of 93.741%. As of the end of the reporting period, the paid-in capital contribution was 165 million yuan.
Guanghua Investment Equity Structure Picture Source: Radio and Television Network Announcement
The original intention given by Radio and Television Network at that time was to achieve an orderly conversion of old and new driving forces, to explore new projects and new businesses in the industry for incubation and cultivation, and to invest in companies with development potential. Equity, legal and compliance projects with good returns and security, other partnerships, etc.
However, according to the reply letter, Guanghua Investment did not implement specific project investment, but entrusted 180 million yuan to Qingdao Haide Jinxin Asset Management Co., Ltd. (Qingdao Haide Jinxin for short). Guanghua Investment will invest in December 2022 From the 21st to the 29th, Qingdao Haide Jinxin paid 160.38 million yuan. After receiving the money, Qingdao Haide Jinxin did two things through its wholly-owned subsidiary:
1. It spent 65.2598 million yuan to purchase trust products, which corresponded to the Shenzhen Lianhe Trust under the Radio and Television Network. Factoring assets for accounts receivable formed by Uninvested Development Co., Ltd.
2. Purchased the publicly transferred debt assets of 94.1826 million yuan from the Shaanxi Radio and Television Network subsidiary Shaanxi Radio and Television Financial Services Small Loan Co., Ltd. (hereinafter referred to as: Radio and Television Small Loan) on the Taobao asset bidding network platform.
In other words, the money originally used to be an investor was used to purchase radio and television network-related assets. According to the inquiry letter, the above-mentioned trust assets and radio and television small loan debt assets were transferred to Qingdao Haide. Under the name of Jinxin subsidiary.
According to the reply letter, as of the end of 2022, Radio and Television Network had recovered a total of 159.4424 million yuan in funds by collecting asset purchase payments. Among them: 65.2598 million yuan of funds recovered from factoring of accounts receivable and 94.1826 million yuan of credit asset transfer funds for radio and television small loans.
The reason given by Radio and Television Network for this self-circulating behavior is that the above-mentioned assets have a long accounting period and are difficult to collect. The company hopes to dispose of them while meeting the requirements for value preservation of state-owned assets, and urgently needs to find a professional asset management company. Qingdao Haide Jinxin proposed to help with the disposal through its professional team, so it was entrusted to purchase the above-mentioned assets and use various means to carry out asset recovery.
China Shen Asia Pacific Accounting Firm (Special General Partnership) stated in the reply letter: The risks of the radio and television network's accounts receivable and debt investments have not been substantially transferred, which does not comply with relevant regulations. The above-mentioned transfer of creditor's rights is deemed to have not been terminated. Financial assets are still reflected in the items such as "Accounts Receivable" and "Other Current Assets" on the balance sheet, and their recognition has not been terminated; the factoring payment of accounts receivable and the transfer of creditor's rights received are regarded as "Other Current Liabilities - Not Determined Debt” reflects.
On December 16, 2023, Radio and Television Network announced that it would change the appointment of an accounting firm for 2023. It would no longer appoint China Audit Asia Pacific and replace it with Baker Tilly International. The transaction price was 1.3 million yuan, an increase of 200,000 yuan from the previous year.
Investors may be able to claim
On October 31, 2023, Radio and Television Network received a decision on administrative regulatory measures from the Shaanxi Securities Regulatory Bureau. The announcement showed more "loopholes" in disclosure and internal control issues.
Regarding Guanghua Investment, the Shaanxi Provincial Securities Regulatory Bureau found that Radio and Television Network failed to include Guanghua Investment in the consolidated statements as required and did not comply with the relevant provisions of the Accounting Standards for Business Enterprises; the accounting for the indirect purchase of its own accounts receivable and non-performing debt assets was inaccurate , this matter caused the radio and television network’s 2022 annual report to inflate some items in the balance sheet and cash flow statement, and present errors in some items in the income statement, which did not comply with the relevant provisions of the accounting standards for enterprises.
The reporter noticed that the executive partner of Guanghua Investment, Shaanxi Huaqin Yonghe Investment Management Co., Ltd. (hereinafter referred to as Huaqin Yonghe), the largest shareholder after penetrating the equity is also Radio and Television Network, which holds about 40% of the shares, but According to the reply letter, Radio and Television Network did not consolidate it. Public information shows that the scale of Hua Qin Yonghe’s funds under management in the past year was less than 2 million, and many directors were restricted from high consumption.
Picture source of Hua Qin Yonghe’s main personnel: Qichacha
In addition, the Shaanxi Provincial Securities Regulatory Bureau also found that three customers including Xi’an Chengfan Network Information Services Co., Ltd. failed to provide for impairment losses in accordance with the expected credit loss policy of the subsidiary Radio and Television Small Loans. ;
There is significant uncertainty in the recovery of accounts receivable of 15.6338 million yuan from Shaanxi Radio and Television Jinma Media Co., Ltd., a subsidiary of Radio and Television Network, but bad debt provisions have not been fully made. The above matters do not comply with the relevant provisions of the Accounting Standards for Business Enterprises.
In terms of corporate governance, the secretary of the board of directors of Radio and Television Network does not actually serve as a senior manager of the company, but accepts the management of the financial director.
According to the supervision letter, the above behavior violated the provisions of Article 3, paragraph 1, of the "Measures". In accordance with Article 51 of the "Measures", Chairman Wang Liqiang, General Manager Han Pu and Financial Director Hu Xiaolai should bear primary responsibility for the above-mentioned violations.
On December 11, Radio and Television Network announced that it had received a written resignation report from independent director Mr. Wang Xiaopeng. The announcement shows that since the proportion of independent directors does not meet the regulations after Wang Xiaopeng's resignation, and there is a lack of accounting professionals among independent directors, Wang Xiaopeng should continue to perform his duties until the date of the new independent director.
Image source: Radio and Television Network Announcement
Later, on the evening of December 25, Radio and Television Network announced that the company received a "Notice of Filing" issued by the China Securities Regulatory Commission due to the company's suspected violation of information disclosure laws and regulations.
Lawyer Peng from Beijing Weiheng (Xi'an) Law Firm said that with regard to civil compensation caused by false statements in the securities market, Radio and Television Network has triggered pre-procedures to buy before December 25, 2023, and in December 2023 Injured investors who sold or continued to hold the stock after March 26 (inclusive) may temporarily seek compensation from Radio and Television Network.
"The calculation of the loss amount mainly includes three aspects. The first is the investment difference resulting from investment losses due to false statements. The second includes commissions and stamp taxes during stock transactions. The third is that compensation can be requested, which is equal to the amount of the stock purchased. The interest generated by bank demand deposits during the same period."
In response, the reporter called the securities affairs representative number left in the annual report of Radio and Television Network. The other party stated that the company is currently operating normally and will cooperate with the relevant investigations of the China Securities Regulatory Commission. Subsequent disclosures will be subject to the company's announcement.
Accounts Receivable Difficulties
In fact, radio and television networks have frequently been subject to regulatory attention due to violations, partly due to their operating pressure and rising accounts receivable.
According to wind data, from 2019 to 2022, the revenue of radio and television networks was 2.630 billion yuan, 2.760 billion yuan, 3.005 billion yuan, 2.999 billion yuan, remaining stable; deducting non-net profits was -117 million yuan, 23.2901 million yuan, 38.9967 yuan 10,000 yuan, -14.591 million yuan, with a large fluctuation range.
In the first three quarters of 2023, the company's revenue was 1.772 billion yuan, a year-on-year decrease of 16.81%, and a significant loss of 67.1662 million yuan after non-net profit was deducted, with a year-on-year growth rate of -356.14%.
Although revenue remains stable, the revenue structure of radio and television networks has changed due to intensifying competition in the traditional cable market. According to the reply letter, in 2022, compared with the same period last year, the company's revenue from value-added services, mainly individual users, dropped by 130 million yuan; revenue from basic cable TV viewing and maintenance services fell by 21.7 million yuan; revenue from group private networks and dedicated lines, mainly group customers , and engineering construction income increased by 80.35 million yuan respectively.
Compared with the prepayment fees of individual users, group customers generally have the characteristics of large single income amounts and long credit periods, resulting in a significant increase in the company's accounts receivable.
According to wind data, the company's accounts receivable from 2020 to 2022 were 890 million yuan, 1.582 billion yuan, 2.381 billion yuan, and as of the first three quarters of 2023, they were 2.757 billion yuan. In terms of
's asset-liability ratio, the company's asset-liability ratio was 57.10%, 62.47%, and 67.23% from 2020 to 2022, and reached 68.94% in the first three quarters of 2023, continuing to rise.
observes the company's financial problems, and most of the purposes are to speed up "receipts" and increase the turnover rate of accounts receivable.
According to the reply letter, on December 1, 2022, the company plans to cooperate with financial institutions to carry out factoring business of non-recourse accounts receivable not exceeding 600 million yuan, which explains:
In recent years, the company has actively participated in government public affairs For service projects, most projects require the company to advance funds for construction and implementation, resulting in a rapid growth in the company's accounts receivable, among which government departments and non-profit organizations account for a high proportion. Affected by the tightening of local government financial funds and other reasons, some government and enterprise projects Collection of accounts receivable was less than expected.
Image source: Radio and Television Network Announcement
Reporters noticed that after frequent regulatory attention, Radio and Television Network also began to actively transform and adjust to strengthen internal control.
On December 8, 2023, Radio and Television Network announced that it plans to revise some provisions of the "Articles of Association", including strengthening the political construction of the company's party, establishing an investor protection agency in accordance with the law, including at least one accounting professional among the independent directors, and Refine the company's management requirements and improve the democratic management system with the workers' congress as the basic form.
In addition, radio and television networks are actively integrating into 5g construction, focusing on differentiated advantages, and exploring new revenue tracks. As of the first half of 2023, 507,300 new 5g accounts have been released, achieving an increase in the number of mobile users. In the future, after getting rid of the shortcomings and getting ready, we still look forward to the "return" of Radio and Television Network, an old operator, with a light package.
Daily Economic News
