What a big scam

On the evening of August 5th, 2002/kloc-0, Shanghai Electric announced that Mr. Huang Ou, the executive director and president of the company, died unfortunately on August 5th, 2002/kloc-0. Prior to this, on May 3 1 day, Shanghai Electric announced that the accounts receivable of Shanghai Electric Communication Technology Co., Ltd. (hereinafter referred to as "Communication Company", which holds 40% of the shares), a holding subsidiary within the scope of consolidated statements, were generally overdue, and there was a risk that large accounts receivable could not be recovered. The balance of accounts receivable of the communication company is 8.672 billion yuan, the balance of book inventory is 2.230 billion yuan, the loan balance of the communication company in commercial banks is 65.438+25.2 billion yuan, and the total shareholder loan provided by the company to the communication company is 7.766 billion yuan, all of which have great loss risks.

According to the announcement, the communication company was established on March 6, 2065438 with a registered capital of 300 million yuan (including: the company contributed 65438+200 million yuan, accounting for 40% of the shares of the communication company). In addition to Shanghai Electric, the communication company was jointly established by Shanghai Haixing Tong Di Communication Technology Co., Ltd. (holding 28.5%), Anshan Shenghua Technology Co., Ltd. (holding 8.5%), Beijing Fuxin Fengyuan Trading Co., Ltd. (holding 8.5%), Shanghai Dong Jun Investment Management Co., Ltd. (holding 8.5%) and Shanghai Naipan Enterprise Management Partnership (limited partnership) (6%).

Subsequently, according to incomplete statistics, a number of listed companies were involved in it, and the Announcement of Significant Risk Warning was issued one after another. The businesses involved are "abnormal execution of some contracts in electronic communication equipment business", including but not limited to: Guo Rui Science and Technology, Le Kai Science and Technology, Zhongli Group, etc. According to incomplete statistics, there are mainly the following:

The major risks involved in the resumption of Shanghai Electric Communication are all elaborate scams woven in the name of "trade financing".

Basic flow of trade financing

Financing trade refers to all parties involved in trade, relying on property rights such as real right and accounts receivable in the process of value exchange of goods and services, and comprehensively using various trade means and financial tools to achieve the purpose of short-term financing or credit enhancement and increase the cash flow of trading subjects. Therefore, financing trade should be based on real trade relations in essence. Through the application of financial instruments in all aspects of trade, financing is a combination of "trade+financing", not a simple trade act or a simple financing service.

Simply put, trade financing is a way for investors to provide financing for financiers by relying on the upstream and downstream of the supply chain, and its schematic diagram is as follows:

In short, the transaction process is as follows:

1. Structure construction: The financing party establishes two companies, A and B, which are controlled by itself, among which A is the supplier of equipment manufacturing.

The second is to buy raw materials in advance: the investor buys raw materials from Company A (as a supplier) controlled by the financing party, and pays 90% in advance to realize the financing purpose of the financing party. The balance is generally paid after delivery and acceptance, and the account period is generally 90 days to 180 days;

III. Equipment settled by account period: According to the contract, the investor supplies equipment to Company B controlled by the financier, with 65,438+00% in advance, and the remaining payment is settled according to the supply cycle, usually 65,438+080 days -360 days. After the supply of equipment, Party C, the financing party, essentially completed the repayment of principal and interest to the investors.

Trade financing risk

The essence of trade financing is a financial behavior that one party provides financing to the other party by taking advantage of capital (or low credit interest rate). The risk of trade financing is still financial risk in essence, that is, the ability of investors to repay the principal and interest. However, because Chinese lenders in trade financing usually do not have the risk management awareness and ability of financial institutions, it is difficult to prevent risks only by relying on the so-called closed-loop design of transaction structure. Once the financing party does not have the repayment ability, the supplier will face all risks upstream and downstream of the supplier. Including but not limited to:

One is the risk that the supplier fails to deliver the raw materials after the upstream pays the advance payment. Once the financier runs away without repayment ability, if the financier has paid the prepayment to the supplier it controls, and if the supplier fails to deliver the goods within the time limit, the risk of prepayment loss will be paid to the financier. Take "Le Kai Science and Technology" influenced by Shanghai Electric as an example. From May 2020 to September 2020, we signed 29 product purchase and sale contracts with new generation suppliers, with a supplementary agreement of 1 copy. According to the contract, Le Kai Science and Technology purchased three products from the new generation: tunnel encryption transmission service system processor, intelligent ad hoc network data communication module and high-speed data processing embedded system; After signing a contract with the new generation, it is generally not less than 30% of the purchase price in advance within one week, and 65% of the total contract price will be paid after half a year. The arrival time is 180 calendar days after the contract comes into effect. Le Kai Science and Technology disclosed that the new generation received a total of 65,438+065,438+0.565 billion yuan in advance payment, and the corresponding contracts were overdue and not yet delivered.

Second, purchasing raw materials from the upstream, there is a risk that the inventory cannot be realized and the inventory is impaired. If the investor has paid the payment to its supplier and obtained the raw materials, but the supply chain is broken, it is impossible to organize production and sales, resulting in the risk that the inventory cannot be realized and the inventory will be impaired. For Huihong Group listed in the above table, due to the break of the whole supply chain, the value of delayed delivery of inventory (after deducting the advance payment received) is 6,543,800+77 million yuan. The above amount accounts for 3.28% of the audited net assets of the listed company in the latest year; The amount that may increase the inventory (excluding the advance payment received) is 65438+78 million yuan.

Third, the risk of overdue accounts receivable caused by downstream sales of equipment. If a single financier loses the repayment ability, a large number of accounts receivable will be overdue for the delivered equipment. For example, the balance of accounts receivable of Shanghai Electric Communication Company is 8.672 billion yuan.

Fourth, the financing risk brought by using its own advantages to external financing. In the trade financing business, some financial lenders use their own credit advantages to borrow money from external financial parties in order to expand their income, which artificially enlarges their business risks. For example, the loan balance of Shanghai Electric Communication Company in commercial banks is 65.438+0.252 billion yuan, and the total shareholder loan provided by Shanghai Electric to the communication company is 7.766 billion yuan, all of which have great loss risks.

Trade financing supervision

2065438+On July 30, 2008, the State Council State-owned Assets Supervision and Administration Commission issued Order No.37 "Implementation Measures for Investigating the Responsibility of Central Enterprises for Illegal Business Investment (Trial)", which prohibited central enterprises from conducting financing trade business or "idling" or "taking orders" and other false trade businesses.

On August 6, 2020, the General Office of the Shanghai Municipal People's Government issued the Notice on the Implementation Measures for Investigating the Responsibility of Shanghai Municipal State-owned Enterprises for Illegal Operation and Investment (Trial), and the Implementation Measures for Investigating the Responsibility of Shanghai Municipal State-owned Enterprises for Illegal Operation and Investment (Trial) stipulated that it is strictly forbidden for Shanghai Municipal State-owned enterprises to carry out financing trade business or false trade business such as "idling" and "taking orders". It is reasonable to believe that the above-mentioned relevant participants, after understanding the relevant provisions of this article, also have risks in the process of cleaning up/counting related businesses (otherwise they may continue to cover up for some time).

Shanghai electric complex

The resumption of the Shanghai Electric case involves almost all the risks of the above-mentioned trade financing, and these risks all point to Sui and its affiliated companies.

Sui's name appeared in the letter of concern of Shenzhen Stock Exchange on *ST and Hongda New Materials on July 29th and 30th respectively. The Shenzhen Stock Exchange's question to *ST Hua Xun is: "Our department (that is, the second management department of the listed company of Shenzhen Stock Exchange) pays attention to Shanghai Haixing Tong Di as Sui Holding Company. Please check whether your company has any business dealings or related relations with Sui and its affiliated companies since 20 15. If yes, please list and explain in detail the specific circumstances of the relevant transactions, including but not limited to the reasons for formation, the balance of prepayments or accounts receivable up to now, collection, recovery risks, etc. "

In the letter of concern to HTC New Materials, Shenzhen Stock Exchange disclosed some information about Sui: "Our department is concerned that Sui and its suspected affiliated companies are in arrears with the contract payments of several listed companies and cause operational risks. Shanghai Haixing Tong Di, Jiangsu Xingditong Communication Technology Co., Ltd. (hereinafter referred to as' Jiangsu Xingditong') and Shenzhen Tiantong Information Technology Co., Ltd. are all holding companies of Sui Tian Li (hereinafter referred to as' Shenzhen Tiantong'), and Sui Tian Li has long been committed to the new generation of private network communication.

According to the information disclosed by Shanghai Communication Co., Ltd., Sui1998165438+10 has worked as the director of Shanghai Institute of Communication Engineering since October. During the period, he worked in Nanjing Sanbao Communication Technology Industry Co., Ltd., Jiangsu Guo Xin DJI Technology Co., Ltd., New Generation Private Network Communication Technology Co., Ltd., Ningbo New Generation Private Network Communication Technology Co., Ltd., New Generation Radio and Television Data Service Co., Ltd., Beijing Sepp Gongxin Investment Management Co., Ltd., Ningbo Xingditong Communication Technology Co., Ltd., Jiangsu Xingditong Communication Technology Co., Ltd., Aerospace Shenhe Technology (Beijing) Co., Ltd., and served as a director, executive director, supervisor and supervisor.

Because the products of "private network communication" are confidential, it is difficult for the outside world to see the whole picture of Tian Li's "private network communication" business. In the information disclosure of many listed companies, the names of products and customers are mostly hidden, and they are said to be major customers of the company. For example, among the accounts receivable of Shen Fu Electric's 8.3 billion financial black hole case, Industrial Company (hereinafter referred to as "Shen Fu Industry") owed 788 million yuan. The shareholder of Shen Fu Industrial Company is the Fifth Office of the Shanghai Municipal People's Government, and the functions of the Fifth Office are not clear to the outside world.

According to 20021August 2, the communication announced that Sui, the actual controller of the company, is currently involved in the case and is under investigation by the public security organ. Another actual controller, Qing Liu, lost contact. Although the information of some cases is a little mysterious, it is difficult to get a full picture before the judicial investigation is completed, but it can be preliminarily concluded that some listed companies have indeed fallen into the "scam" of trade financing carefully woven by Sui. Under the financing trade mode, once the downstream customers are in arrears and the upstream suppliers are overdue, listed companies will form huge bad debts as mentioned above. (Remarks: Some reports are from Economic Observer)