Scandal: The Annual Report Can Not Guarantee The Truth? Herme Group Costs Are Self Contradictory.

Herme group has made a headline.

The company's main business is from electric meter to diamond, and then to agent Armani, which is dazzling across the field. No one business can attract attention, but this time, it has become a focal point of Kang Mei's capital market after the fire of his own Dong Jiangao.

After herding, the Herme group became *ST Herman.

The small shareholders of hermet also lived on the board days. Three months ago, when the restructuring was popular in the two tier market, the minority shareholders went through the immortal days of the daily limit.

01

Counterfeiting creates contradictions.

In April 30th, Herme group disclosed its annual report in 2018, and the audit institution issued an audit report which could not express its opinions.

The wonderful thing is that the general manager, deputy general manager and chief financial officer of the company are unable to guarantee the authenticity, accuracy and completeness of the annual report data, nor do they bear any joint and several liability.

Senior officials were surprised, some said "bad management of company's official seal", while others called themselves long-term vacation.

An introductory financial book reads the audit report that cannot be expressed as "I refuse to cooperate with a bad liar".

Yes, another false hammer.

The reasons why auditors fail to express their views include:

1, violation of the company's official seal for the controlling shareholders and related parties to provide external guarantees;

2, illegal use of the official seal to sign the loan agreement, the fund does not flow into the company, forming the non operating capital of the controlling shareholder and its associated party;

3, suspected related party large amount of capital pactions;

4, involving a number of lawsuits, debt overdue, has been included in the list of dishonest persons, commonly known as Lao Lai;

5, poor investment management, resulting in a large amount of liquidated damages.

The first three are related to the internal control of the company. Compared to the external debt disputes and litigation matters, the internal control is the most important contradiction in herm.

In 2018, the herm group provided 780 million yuan of infraction guarantee for the shareholders' shareholder's first Hertz investment and chairman Wang Lei, and 780 million yuan was 5 times the net assets of herm's own.

Controlling shareholders and related parties also borrowed more than 200 million yuan in the name of Herman, and the vast majority of their funds flowed into the first HCH investment and its related parties.

The controlling shareholder and its related parties are above the company's internal control, resulting in illegal use of official seals, illegal guarantees and irregularities in borrowing.

The first, second is only using the convenience of listed companies.

The third is to get money from the listed companies naked.

In the relevant provisions of the SFC, it is clear: "listed companies are not allowed to borrow or lend their funds to the controlling shareholders and other related parties without compensation."

The third point is that Herme group has the possibility of illegally occupying the funds of listed companies through related party pactions.

In 2018, Herme group and its subsidiaries had large capital pactions with 9 companies, reflecting other receivables in the balance sheet, but did not sign any agreements. The 9 companies appeared to be independent third parties.

Auditors indicated that they failed to obtain sufficient and appropriate audit evidence to dispel doubts about the identification of the relevant party relations in Herme group, unable to judge the completeness and accuracy of the herd group related relationship and the disclosure of related pactions, as well as the recoverability of the above-mentioned receivables.

In terms of ground gas, we suspect that you have given the money to those 9 companies. Although you do not recognize them, we still doubt that those 9 are your related parties (or several of them are related parties). For listed companies, this will lead to a claim that nobody knows whether it can be recovered (that is, the formation of other receivables).

The related party not only occupies the capital of the listed company through unreasonable related paction, but also has the possibility of damaging the interests of the listed company.

As for the related parties, the market circles find something.

The 9 companies mentioned above are shown below:

Please note that the third companies, Shenzhen jinyida Asset Management Co., Ltd. are listed as non related parties here, and in another part of the annual report, 191st pages, the related parties' Receivable and payable projects are listed as related parties.

There are contradictions here.

Herme group seems to be saying, guess if he is our related party.

City investors call the Herman group's executive office as an investor, and the wiring staff do not know how the financial sector judges or identifies the relevant parties.

When the market puts forward a person who can know more about it, the other side can only record it down.

The fourth companies in the screenshot, Shenzhen union gold commercial factoring Co. Ltd. and third are the same controlling shareholders.

If China Jin Yi Da is the affiliated party, the business probability of joint venture is also related party.

Do you want to break the pot?

Today, Herman held an online performance briefing, and maintained that the two companies were related parties and maintained the annual report as the standard.

In addition to other receivables, 2018 and 3 subsidiaries of Herman and its subsidiaries also had large sums of money in advance, and the advance payment did not correspond to actual delivery activities, and the company did not identify them as affiliated parties.

Auditors consider that it is impossible to identify whether they are related parties, nor can they verify the commercial rationality of large prepayments.

So there is also the possibility of the pfer of funds out of the prepayment.

He also acknowledged that there are major deficiencies in the management and use of financial seals and financial management.

To what extent did the listed public company get out of control, so that three executives could stand up to "face" and do not guarantee the authenticity of the annual report.

02

Signature is true.

If the management does not sign, it can be identified that there is a problem in the annual report, but the sign will surely mean no problem.

The market noticed that the three executives, who were very awe inspiring, had ensured the authenticity of the quarterly report.

From prepayment, it may not be so.

In 2017, 2018 and 2019, the pre payment of Herme group was 67 million yuan, 302 million yuan and 308 million yuan respectively.

The audit opinion mentions that in 2018, there were large sums of money in advance with 3 companies. The 3 companies may exist in the following 4.

A quarterly prepayment of 308 million is 6 million more than that of the 2018 annual report. It is almost certain that this 308 million still includes prepayment in the above figure.

That is to say, the factors leading to unreal, complete and accurate prepayment remain.

If quarterly reports need to be audited, auditors still doubt whether the pactions in advance payments are related to the parties concerned and whether they are commercial rationality.

Therefore, the authenticity of Herme group's quarterly report is doubtful.

At the performance briefing, the attitude of Han Xia, chief financial officer, was that because the auditor could not verify many contents in 2018, as a chief financial officer, Han Xia himself could not guarantee the authenticity, accuracy and completeness of the whole content.

The 1 quarterly report in 2019 reflected the main contents of the financial statements prepared by Herme group. The chief financial officer can guarantee the authenticity, accuracy and completeness of the contents of the 1 quarterly financial statements in 2019.

It sounds like "no audit. What can I guarantee?"

In the capital market, the credibility of Herman has been brushed low by its own operation.

Hannah's original name, Hao Ning Da, was an electronic measuring instrument. Later, he changed jewelry and diamonds, and bought every gram of Latin American performance. It also sold P2P and almost had a bad connection with the thunder loan network.

Herme also entered the field of clothing, acting Armani's Zhen Qiao fashion was quickly sold by its revenue.

Each pformation is reorganized, and its restructuring history is stinking and long.

In these dazzling operations, there is no lack of high premium acquisition, the acquisition of target performance change face, the final sale resulted in a large amount of goodwill impairment damage to the interests of listed companies.

Recently, the "marriage" of mutual entertainment with heroes has been asked directly by the exchange whether it is flickering.

In the two tier market that is rising or just, Hertz once again used the restructuring advantage to blow up the share price. The green vegetables were lucky enough to get on the bus again and again, and finally had no choice but to cut the meat.

If you are a monster, you will be addicted. If you have a black history company, please pull it into the black list.

After the annual report, Herman opened a new day limit.

This time, will vegetables have only 7 seconds to remember?