Blue Mountain Science And Technology Thunderbolt Unveils The Dark Curtain Of The Collective Collapse Of Intermediary Agencies; Can Hualong Securities And Other Four Major Institutions Be Investigated To Make Up For The Loopholes In The New Third Board System?

A strange scene is on.

? ? ? The Lanshan science and Technology Office of digital TV National Engineering Laboratory at No.2 Huayuan Road, Haidian District, Beijing has long been missing. The company's new address, No.22, Yu'an Road, Shunyi District, Beijing, has never been answered.

The 21st century economic reporter's investigation shows that the Star Company Lanshan technology, once famous in the new third board market, is basically in a state of loss of connection, and the A-share market shock caused by the suspected illegal credit of Lanshan technology is still continuing.

According to the preliminary statistics of 21st century economic report, up to now, there are 62 listed and planned listed companies involved in the blue mountain science and technology violation incident. Among them, 34 gem, 8 sci tech innovation board and 10 main board companies planning to be listed on the main board have been suspended for IPO applications, and the refinancing applications of 5 gem and 1 sci tech Innovation Board enterprises have been suspended, The major asset restructuring of two gem and two main board companies has been shelved.

Tiger out of the tiger, turtle jade destroyed in the mango, who fault?

The explosion of a new third board innovative layer company has caused the normal business stagnation of dozens of Companies in the A-share market. Hualong securities, an independent financial consultant, which provides services for blue mountain technology, the audit institution Zhongxing caiguanghua accounting firm, the legal institution Beijing Tianyuan law office, and the valuation agency Kaiyuan asset appraisal Co., Ltd. can not escape the blame.

After Lanshan technology was filed for investigation by the regulatory authorities, Hualong securities, Tianyuan law firm, ZTC Guanghua club and Kaiyuan appraisal were investigated by the CSRC.

It is worth noting that since Lanshan technology was listed on the new third board in June 2014, Hualong securities, Tianyuan law firm and Zhongxing caiguanghua club have been serving Blue Mountain Technology for seven years. However, before the investigation of blue mountain technology, there was no objection to the company's operation, indicating the relevant risks.

Service agencies lie down collectively

According to the public information, the blue mountain science and technology case should begin on February 17, 2020, when the company applied for stock listing, and the selected layer was listed on the stock market. On February 14, 2020, the initial listing filing application of blue mountain technology was officially accepted by Beijing Securities Regulatory Bureau. On March 31, the company's application was accepted by Beijing Securities Regulatory Bureau. On April 29 of that year, Lanshan technology received the acceptance notice from the selection layer of the first listing of the new third board, and the company's problems were exposed.

On May 13, 2020, Lanshan technology received inquiries from the regulatory authorities, and a total of 40 issues, including the company's R & D mode, capitalization of R & D expenditure, and the reason and rationality of R & D expenses being higher than those of the same industry and listing, were reviewed.

It is worth noting that up to now, neither blue mountain nor its service agencies have responded to the above inquiries.

Four months later, on September 22, Blue Mountain Technology submitted an application to terminate the listing of the selection layer, but failed to prevent the company's problems from happening.

On November 27, 2020, according to the blue mountain technology investigation notice issued by the China Securities Regulatory Commission, the company was put on file for investigation because of suspected violations of trust laws and regulations.

The 21st century economic report reporter noted that after being inquired by the regulatory authorities, the company successively issued reports on the resignation of several directors, supervisors and senior executives, judicial freezing of assets and major litigation, and reissued the announcement that blue mountain technology and its subsidiary Beijing Zhongjing Saibo were listed as the executee and restricted high consumption on September 30, 2020.

Whether blue mountain technology is involved in financial fraud and other major issues remains to be further investigated. What is very strange is that before the company was officially put on file for investigation, the company's main securities dealers, audit institutions, and law institutions collectively lost their voice and did not issue any risk warning announcement.

It was not until the announcement of the company's being filed by the CSRC that Hualong securities, the sponsor of the securities firm, issued the first risk warning. It said that after receiving the investigation notice on November 27, 2020, Lanshan technology was investigated, which may have adverse effects on the company's operation and finance. It reminded investors to pay attention to investment risks, and said that it would continue to follow up the progress of the above investigation, If there is any new progress, the company will be urged to disclose in time.

On March 2, 2021, Hualong securities issued the second risk warning announcement, saying that, as the sponsor securities company of blue mountain technology's continuous supervision, recently, through consulting the public website, it learned that blue mountain technology and Tan Shu, one of the actual controllers, were listed as Executees, reminding investors to pay attention to investment risks.

Since then, Hualong securities has successively issued 8 risk warning announcements, which have disclosed the risks of blue mountain technology being downgraded and delisted.

The 21st century economic report reporter investigation found that all the warning announcements of Hualong securities came late, and some risk warning announcements were even as long as a year away from the date of the blue mountain technology related issues. Only half a year after the incident, the number of announcements issued by Hualong Securities for Lanshan technology accounted for nearly half of its seven-year service period.

According to the preliminary statistics of 21st century economic report, after the listing of Blue Mountain Technology in 2014, a total of 612 announcements were issued, of which only more than 20 were issued by Hualong securities.

Before and after the listing of Lanshan technology, Hualong securities has issued a number of reports, such as recommendation reports and compliance opinions. In 2015, it issued a number of reports for the fixed increase of capital raising and major asset restructuring of Lanshan technology. After June 2016, for as long as four years, the supervision report of Hualong securities on blue mountain technology was completely absent.

As a matter of fact, since the listing of blue mountain technology's selection layer, there have been changes within the company. Several directors, supervisors and senior management of the company have left the company collectively. The board of directors and the board of supervisors of blue mountain technology were suspended for lack of quorum. The service organizations of blue mountain technology all turn a blind eye to this, and there is no doubt.

What is more puzzling to investors is that blue mountain technology has been put on file for investigation. So far, the company's audit institutions and legal service agencies have not issued any targeted announcement.

This time, if the self-discipline review of the new third board and the on-site inspection by the CSRC found that the authenticity of the information disclosure of blue mountain technology was questionable, the service agencies of bluemountain technology might still be in collective silence.

In this regard, the reporter of 21st century economic report consulted Tianyuan law firm, Zhongxing caiguanghua club, Kaiyuan appraisal and other institutions for consultation. As of the time of publication, no response has been received from relevant organizations.

Intermediary violation must be dealt with severely

A number of industry investment banks pointed out to the 21st century economic news reporter that according to the regulatory requirements of the new third board market, listed companies need professional opinions from the sponsor securities companies, auditing, legal and evaluation institutions. However, in the implementation process, the supervision, audit and evaluation procedures of the basic and innovative levels of the new third board are essentially mere formality, Intermediary service agencies are simply to the listed companies to do regulatory endorsement.

The 21st century economic reporter combs the 2016-2019 annual reports of blue mountain technology, and finds that compared with the annual reports of A-share listed companies, the annual reports of listed companies need professional opinions from securities companies, auditing and legal service institutions, while the annual reports of listed companies at the basic and innovative levels of the new third board only need audit opinions from accounting and auditing institutions. Since its listing, Lanshan technology has been auditing in Zhongxing finance Guanghua club, and its annual reports have been audited with standard and unqualified opinions.

It is not difficult to find out by consulting the public information of the regulatory authorities. In fact, Zhongxing financial Guanghua certified public accountants has been punished by the regulatory authorities for failing to perform due diligence audit in recent years.

In December 2019, the company and its certified public accountants, Yao Gengchun and Wang Xinwen, were issued warning letters by Shandong Securities Regulatory Bureau due to their illegal audit of financial statements of Hongye Chemical from 2013 to 2015. In May 2020, the Institute, together with accountants sun Guowei and Xu Honglei, were ordered to rectify, fined and warned by the CSRC because of false records in the 2015 audit report issued for Xinlv shares.

In recent years, the securities companies and law firms sponsored by Blue Mountain technology have also been punished by regulators.

In September 2020, Hualong securities, Shi Peiai and Hu Lin, two employees of Hualong Securities Co., Ltd., were issued a warning letter by the CSRC for failing to check the suspected bribery of the chairman of the applicant in the process of recommending the shares of Lanzhou manor ranch.

In May 2017, Beijing Tianyuan law firm and its four responsible personnel, including Shi zhenkai and Liu Dong, were fined and warned by the CSRC for false records and major omissions in the legal opinions on the major asset restructuring project of Anshan heavy mining machinery and Zhejiang Jiuhao office.

A former investment banker of Northeast Securities told the 21st century economic reporter that the problem of service agencies at the basic level and innovation level of the new third board is the grey area of lack of supervision, and the role of intermediary agencies in supervision and supervision is limited.

The above-mentioned investment banks believe that the basic level and innovation layer are not open markets, and the relevant companies are rarely paid attention to by investors and regulators, and the relevant regulatory policies are not perfect; Secondly, compared with the main board, growth enterprise market and science and technology innovation board market, the service cost of listing on the new third board is much lower. The overall cost of the main intermediary agencies is about 1.3 million. After listing, the listed acquisition only needs to pay supervision fees of tens of thousands of yuan to the sponsor securities companies every year, and the audit fees of the annual reports of the new third board of audit institutions are only about 100000 yuan.

It believes that this has caused the new third board intermediary service agencies to be very difficult to fulfill their duties, and the relevant regulatory measures urgently need to be followed up and improved. This time, China Securities Regulatory Commission (CSRC) has launched an operation on the four intermediary service agencies of blue mountain technology, hoping that under the strict supervision policy, they can make a serious attack, and strictly investigate the responsibilities of intermediary agencies for dereliction of duty, and the punishment should not stay at the level of warning.

How to patch the new third board system?

"The problem of intermediary agencies' dereliction of duty is only one aspect of the explosion of blue mountain science and technology in the new third board. The key problem of collective loss of voice is the deep binding interest relationship between intermediary agencies and listed companies." The accountant of an international accounting firm in Asia Pacific pointed out another institutional weakness in the new three board system to the reporter of the 21st century economic report: the market maker system of the new three board allows the host securities companies to participate in the market making operation of their service companies, which in essence allows the host securities companies to be both judges and athletes.

The sponsor securities company is a securities company that handles the stock transfer business on behalf of the listed company, and continuously supervises the listed company to fulfill the obligations of information disclosure, standardized operation and keeping promise, and constantly improves the corporate governance mechanism. A market maker is a securities company or other institution that publishes a two-way quotation for trading on the new third board with the consent of the new third board, and fulfills the obligation of trading with investors according to its quotation within the range of quoted price.

On the one hand, the new third board market requires that "the sponsor securities companies and their continuous supervisors shall not seek illegitimate interests through continuous supervision", on the other hand, they are allowed to carry out business such as recommendation, brokerage and market making.

"There are obvious loopholes in the interest relationship that allows securities companies to deeply bind with listed companies." The above-mentioned accountants pointed out that it is inevitable for the host securities companies to make irregularities for their own interests.

The 21st century economic reporter noticed that the blundering of securities companies is closely related to the explosion of blue mountain science and technology.

In June 2014, blue mountain technology, sponsored by Hualong securities, was listed on the new third board. In August of that year, it became one of the market makers of blue mountain technology. Until November 11, 2020, before the formal investigation of blue mountain technology, Hualong securities withdrew from providing market making and quotation services for blue mountain technology. During this period, Hualong securities has long been listed as one of the top five common shareholders of Lanshan technology.

According to a survey conducted by 21st century economic reporter, Hualong securities ranked fourth among the common shareholders of blue mountain technology, with 12.98 million shares, accounting for 3.84%. In the semi annual report of 2020, Hualong securities held 9.492 million shares, with a shareholding ratio of 2.80%, ranking the third largest common shareholder of blue mountain technology. It is worth noting that in the first half of 2020, the blue mountain technology explosion period, Hualong securities significantly reduced its holdings of 3.488 million shares, and after that, before it suggested risks to blue mountain technology, a large number of market makers withdrew collectively.

Is it because of the market maker's status, considering their own interests, they choose to avoid the violations of blue mountain technology, or is Hualong securities lack of continuous supervision ability? The intention behind it is hard to avoid being questioned.

It is understood that the business focus of Hualong securities investment bank is in the new third board. In 2020, there are nearly 70 enterprises supervised by Hualong securities investment bank in the new third board, of which more than a dozen are innovative companies. Although four institutions were investigated at the same time, Hualong securities was the least affected. Only one A-share project was affected, but other institutions' projects were largely suspended. We can see the risk accumulation of the market making business led by the host securities companies under the market maker system.

Whether the regulatory authorities will make changes to the shortcomings of the market maker system this time is also expected by the market.

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