False Performance! The Founder Of The Sewing Equipment Leader Was Fined 300 Thousand And 10 Years To Ban The Securities Market.

In May 31, 2019, the Changyuan group Limited by Share Ltd, which was put under investigation by the China Securities Regulatory Commission on May 31, 2019 for the purpose of information disclosure, was issued a notice in June 12th. It announced that the company received the "advance notice of administrative penalty and market entry" issued by the Shenzhen regulatory authority of the China Securities Regulatory Commission. The Commission decided to give a warning to the Changyuan group and impose a fine of 500 thousand yuan. Yin Zhiyong was given a warning and a fine of 300 thousand yuan. Warnings were given to Shi Xin, Liu Rui, Xu Xiaowen, ruer Bing, Huang Yong Wei and Ni Zhaohua, and they were fined 200 thousand yuan respectively. In addition, the SFC also decided to take 10 years' ban on securities market to Yin Zhiyong and take 5 years' ban on securities market for Shi Xin and Liu Rui respectively.

The announcement shows that in June 7, 2016, Changyuan Group signed a share transfer agreement with 16 shareholders of Shanghai and Eagle Industrial Development Co., Ltd. and Shanghai Wang Xin Investment Co., Ltd., to pay cash and purchase 80% stake in Shanghai and Eagle Electric and electronic Polytron Technologies Inc (later renamed Changyuan and Eagle Intelligent Technology Co., Ltd.), hereinafter referred to as "Changyuan" and "Eagle". Shanghai and Eagle Industrial Development Co., Ltd. and Shanghai Wang Xin Investment Co., Ltd. promise that Changyuan and eagle will have a net profit of not less than 350 million yuan after 2016 or 2017 cumulative annual report. If Chang Yuan and Eagle fail to fulfill their commitments, the performance compensation obligor shall make profits compensation to Changyuan group in accordance with the relevant agreements of the agreement. In July 28, 2016, Changyuan and Eagle completed the registration of equity changes and became a subsidiary of Changyuan group. Since August 2016, Changyuan group has begun to include Chang Yuan and eagle in the scope of consolidated statements.

According to the investigation, Chang Yuan and Eagle falsely increased their performance through fictitious overseas sales, early recognition of revenue, repeated recognition of income, signing of "Yin and yang contract", and project accounting not meeting the accounting standards, resulting in the false records of the financial data disclosed in the annual reports of Changyuan group in 2016 and 2017.

The actions of Chang Yuan and Eagle resulted in a virtual income increase of 149 million 712 thousand and 700 yuan in the consolidated profit statement of the Changyuan group in 2016, and a total profit of 123 million 3 thousand and 800 yuan, which accounted for 2.56% and 15.21% of the total operating income and total profit of the Changyuan group (before the adjustment), while the consolidated profit statement in 2017 increased by 20. 9 million 587 thousand and 800 yuan, the total profit increased by 179 million 898 thousand and 300 yuan, accounting for 2.82% and 14.85% of the total operating income and total profit of the Changyuan group, which was publicly disclosed before the retrospective adjustment. In addition, Chang Yuan and Eagle confirmed that the sales revenue of M.T.SEWING had occurred before it was included in Changyuan group's consolidated statement, which resulted in a 2016 yuan and 2017 annual accounts receivable increased by 8 million 704 thousand and 100 yuan.

According to public information, Changyuan group is a state-level high-tech enterprise founded in 1986 by the Chinese Academy of Sciences. It specializes in R & D, manufacturing and service of electric vehicle related materials, intelligent plant equipment and smart grid equipment.

As a provider of comprehensive digital solutions and a soft material cutting scheme provider, the Changyuan and Eagle technologies are one of the few independent intellectual property companies in the country that own CNC cutting machines. Their products are sold in dozens of countries and regions around the world, and are widely used in clothing, bags, shoes and hats, and steam. Car interior decoration, aerospace, home and other industries. Products in sewing equipment industry market share of more than 70%.

Yin Zhiyong, who has a high reputation and prestige in China's automatic cutting industry, was born in October 1966. He was born in Huaiyin, Jiangsu province. The world famous automatic cutting production enterprise, Shanghai and Eagle electromechanical Polytron Technologies Inc chairman, founder, graduated from the Engineering Department of Osaka City University in Japan, and obtained a master's degree in mechanical engineering in April 1999.

According to the financial report, in 2019, Changyuan group achieved a 6 billion 420 million operating income, down 10.1% from the same period last year, and realized a net loss of 880 million of its net profit, which was 110 million yuan in the same period last year. During the reporting period, the gross profit margin of the company was 40.6%, which basically maintained the level of the previous year. The net interest rate was -14.9%, down 14.7 percentage points from the same period.

During the reporting period, Chang Yuan and Eagle Intelligent Technology Co., Ltd. had a revenue of 192 million yuan and a net profit loss of 264 million yuan. Changyuan group said that in order to improve the management of the long garden and hawks, the management of the park and Eagle should take measures such as streamlining personnel, integrating production sites and optimizing the procurement process to reduce operating costs, establishing accounts receivable collection teams and other measures to speed up the collection and collection of accounts receivable. Shan Chang Yuan and Eagle cash flow situation. Due to the slow development of the industry and the negative news of the previous market, the development of the hawk market was hindered, and a large amount of losses occurred in the reporting period due to the comprehensive factors such as the impairment of assets and so on.