Interface News Reporter | Guo Jingjing
html After the market closed on May 15, Yili Shares (600887.sh) announced that the 2023 Annual Shareholders Meeting would cancel the proposal to renew the appointment of the accounting firm. Yili Co., Ltd. said that in view of the recent matters related to the proposed accounting firm that need to be further verified by the company, based on the principle of prudence, the company plans to cancel the renewal of Dahua Accounting Firm (Special General Partnership) (referred to as "Dahua Firm") as the company's 2024 accounting firm. The external audit agency has communicated with it in advance regarding the cancellation of the renewal of the appointment. Dahua Law Firm has no objection to the company’s cancellation of the renewal of the accounting firm.On the same day, Furui Holdings (300049.sz) also announced that in view of the fact that Dahua Law Firm, which the company intends to hire, has recently received an administrative penalty decision from the Jiangsu Supervision Bureau of the China Securities Regulatory Commission, it has been suspended from engaging in securities service business for 6 months. According to relevant laws and regulations According to regulations, the company decided to cancel the seventh proposal "Proposal on Re-appointing Dahua Accounting Firm as the Company's Audit Agency for 2024" that was originally scheduled to be submitted to the 2023 Annual General Meeting of Shareholders for consideration.
On the same day, more than 10 A-share listed companies including Huayi Brothers (300027.sz), Chengdu Luqiao (002628.sz), Jiugang Hongxing (600307.sh), and Hanrui Cobalt (300618.sz) announced the cancellation Proposal to appoint Dahua Law Firm. At this point, rough statistics from Jiemian News show that since May 13, more than 40 listed companies have announced the suspension of cooperation with Dahua Exchange.
html On May 13, as the financial statement audit agency of Jin Tongling (300091.sz) from 2017 to 2022, the Jiangsu Securities Regulatory Bureau issued an administrative penalty decision to Dahua. The Jiangsu Securities Regulatory Bureau found that Jin Tongling’s annual reports from 2017 to 2022 contained false records such as inflated or decreased operating income and total profits; Dahua Law Firm provided auditing for Jin Tongling’s annual financial statements from 2017 to 2022 services, all issued standard unqualified audit reports, signed by the certified public accountants Fan Rong, Yan Lisheng, and Hu Zhigang, with a total audit income of 6.8868 million yuan (excluding tax) in 6 years.Jiangsu Securities Regulatory Bureau believes that when Dahua audited Jin Tongling’s annual financial statements from 2017 to 2022, there were major flaws in the risk assessment and internal control testing procedures, failure to take appropriate audit measures to deal with fraud risks, major flaws in substantive procedures, and violation of The company failed to perform its obligations of diligence and due diligence in accordance with the relevant professional standards, and the audit report issued contained false records, which constituted illegal conduct as described in the Securities Law. The bureau decided to order Dahua to make corrections, confiscate business income of 6.8868 million yuan, impose a fine of 34.434 million yuan, and suspend the securities service business for 6 months; Fan Rong, Yan Lisheng, and Hu Zhigang were all given warnings and fined 1.5 million yuan, Fines of 800,000 yuan and 400,000 yuan.
Xu Feng, a lawyer at Shanghai Jiucheng Law Firm, told Jiemian News that the punishment imposed by the regulatory authorities on Dahua Law Firm this time was extremely severe in recent years. I personally believe that it should bear full joint and several liability for the losses of investors.. "There is a high probability that the person will be jointly and severally liable. What needs to be paid attention to is the specific proportion of joint and several liability in the judgment."
After the above-mentioned punishment was "confirmed," Dahua Law Firm issued a statement on its official WeChat account in response, saying that our firm sincerely accepts the punishment imposed by the regulatory authorities. It was decided to consciously accept the supervision of various regulatory agencies, corporate customers and all parties in society, carry out comprehensive rectifications as required, and organize deep introspection throughout the entire firm. "We are deeply saddened and ashamed, and deeply apologize to the customers and cooperative entities affected by this."
In recent years, Dahua Law Firm has been punished by regulatory authorities many times. In March 2023, due to the presence of false records in the 2016 annual audit report of Zhangzidao (002069.sz) and failure to perform due diligence during the audit, Dahua Law Firm was fined a total of 3.6792 million yuan by the China Securities Regulatory Commission, and two certified public accountants were warned and fined A fine of 50,000 yuan.
Previously in 2022, Dahua Law Firm had been punished by the China Securities Regulatory Commission for the Oriental Jinyu project. The China Securities Regulatory Commission’s investigation found that Dahua’s Dongfang Jinyu failed to perform its due diligence in the audit of its 2017 financial statements, and the audit report on its 2017 financial statements issued contained false records. The China Securities Regulatory Commission ordered Dahua to make corrections, confiscated business income of 1.1 million yuan, and imposed a fine of 2.2 million yuan.
According to information from the Chinese Institute of Certified Public Accountants, Dahua Law Firm has also been punished by the Beijing Securities Regulatory Bureau, Guangdong Securities Regulatory Bureau, Shenzhen Securities Regulatory Bureau, etc. in the past three years.In addition, Dahua Law Firm was involved in professional violations in projects such as Qinshang Shares (002638.sz) and Century Dingli (300050.sz), and was punished by regulatory authorities.
The official website of Dahua Law Firm shows that the firm was founded in 1985 and is one of the largest large-scale accounting firms in China. It is one of the first domestic firms approved to engage in auditing qualifications for H-share listings. It is a group of large accounting firms of the Ministry of Finance. Develop pilot offices. Dahua has more than 8,000 employees in China, including more than 1,500 certified public accountants. The firm serves more than 10,000 clients all year round, including nearly 500 listed companies, more than 70 central enterprises, more than 300 provincial enterprise groups, and more than 500 foreign-funded enterprises.
According to the official website of Dahua Exchange, in the field of IPO services listed in 2023, Dahua Exchange has helped 30 companies successfully land in the capital market, including 8 on the main board, 8 on the Science and Technology Innovation Board, 9 on the GEM, and 5 on the Beijing Stock Exchange. .
Interface News According to Oriental Fortune Choice data statistics, as of May 16, 2024, there are still 516 listed companies in capital markets such as the Shanghai Stock Exchange, Shenzhen Stock Exchange, and Beijing Stock Exchange that have hired Dahua as an audit institution. At the same time, equity financing projects that are being queued for review may be affected. Rough statistics show that as of May 14, Dahua Securities has a total of 50 projects lined up for review, of which 38 are IPO projects, 10 are refinancing projects, and 2 are mergers and acquisitions and restructuring projects.
On April 30, the newly revised "Stock Issuance and Listing Review Rules" proposed that if "the issuer's sponsor or securities service institution is taken by the China Securities Regulatory Commission to restrict business activities, order to suspend business for rectification, designate other institutions for custody or takeover, etc. "Regulatory measures have not yet been lifted", the issuer, sponsor and securities service agency shall promptly notify the exchange, and the exchange will suspend the issuance and listing review and notify the issuer and its sponsor.
The China Securities Regulatory Commission once again issued a document on May 15, emphasizing that it will keep a close eye on those who are not diligent and fail to fulfill their responsibilities, tighten the "gatekeeper" responsibilities, and urge and guide intermediaries to improve their professional quality. Among them, we insist on "one case with multiple investigations". On the basis of investigating and handling cases of fraudulent issuance, financial fraud and other information disclosure violations in accordance with the law, we comprehensively verify the performance of the intermediary agencies involved in the case, and those suspected of illegal crimes will be dealt with seriously and will not be tolerated. At the same time, we adhere to the "double penalty system", severely punish intermediaries that fail to perform their duties, and impose "double penalties" on institutions and personnel in accordance with the law; in addition to applying "property penalties" in accordance with the law, make full use of legal empowerment and explore A “qualification penalty” applies.
