An analysis of the five major black swan events of listed companies in 2019

As the basic legal guarantee for my country’s capital market, the revision of the Securities Law is related to the overall reform and development of the capital market and the vital interests of hundreds of millions of investors. After a lapse of more than 4 years, it has set a record for the longest period between deliberations. After the twists and turns of two authorization decisions during the review period, the newly revised Securities Law has finally come out.

Wang Xiang, deputy director of the Economic Law Office of the Legal Affairs Committee of the Standing Committee of the National People's Congress, told the media that the revision of the Securities Law has greatly enhanced the punishment for illegal activities. Wang Xiang introduced that the newly revised "Securities Law" has increased administrative liability for illegal securities activities: "On the basis of confiscation of illegal gains, larger fines will be imposed for illegal activities. For example, if securities are fraudulently issued but have not yet been issued, they will be fined The issuer shall be fined not less than RMB 2 million but not more than RMB 20 million; those who have issued securities shall be fined not less than 10% but not more than one time of the amount of illegally raised funds. In addition, administrative penalties for false statements, insider trading and market manipulation are also severe. Increase. A dual-penalty system shall be implemented for administrative penalties such as fraudulent issuances. In addition to the penalties imposed on the issuer, the issuer’s directly responsible person in charge and other directly responsible personnel shall also be punished. ”

First place. : Kangmei Pharmaceutical

On April 30, Kangmei Pharmaceutical Co., Ltd. (600518. SH, which was previously considered a "white horse stock" by the market) exposed that 30 billion yuan of monetary funds "does not exist", causing a stir in the market There was an uproar. This is also the largest cash fraud case in A-shares to date.

Judging from more information subsequently disclosed, Kangmei Pharmaceutical’s financial fraud has continued for several years. In 2016, it inflated operating income by 8.999 billion yuan and operating profit by 656 million yuan, accounting for the total profit disclosed in the current period. 16.44% of the total; in 2017, the operating income was artificially increased by 10.032 billion yuan, and the operating profit was artificially increased by 1.251 billion yuan, accounting for 25.91% of the total profit disclosed in the current period; in 2018, the operating income was artificially increased by 1.613 billion yuan, and the operating profit was artificially increased by 165 million yuan, accounting for 25.91% of the total profit disclosed in the current period; 12.11% of the total profit disclosed for the period.

The Kangmei Pharmaceutical fraud case was defined by the China Securities Regulatory Commission as "premeditated, organized, long-term, and systematic financial fraud to maliciously deceive investors." It also pointed out that "Kangmei Pharmaceutical and other companies acted wantonly and violated The rule of law and investors have no fear, the bottom line of integrity is lost, the red line of the rule of law is touched, and the foundation of the information disclosure system of listed companies is shaken." The words were harsher than ever before.

Second place: Kangdexin

On the evening of July 5, Kangdexin (002450.SZ) received an advance notice of administrative penalties and market ban from the China Securities Regulatory Commission. , also marks that the investigation began on January 22 this year and has the final result. After investigation, Kangdexin had inflated profits by nearly 12 billion yuan in the past four years. This is also the largest profit fraud case in the history of A-shares. It was called the "Shuangkang Incident" by the market and Kangmei Pharmaceutical.

Kandexin’s financial fraud can be traced back to 2015. The inflated profits in 2015 totaled 2.381 billion yuan, accounting for 144.65% of the total profits disclosed in the annual report. The inflated profits in 2016*** Totaling 3.089 billion yuan, accounting for 134.19% of the total profit disclosed in the annual report. In 2017, the inflated profit totaled 3.974 billion yuan, accounting for 136.47% of the total profit disclosed in the annual report.

Not only that, Kangdexin also has problems such as concealing related transactions involving non-operating funds occupied by controlling shareholders, concealing related guarantees provided to controlling shareholders, and failing to truthfully disclose the use of raised funds.

As of now, trading in Kangdexin’s shares has been suspended on July 5 and has not yet resumed trading. The latest announcement shows that with the approval of the Suzhou Municipal People's Procuratorate, Mr. Yu Zhong, the actual controller of Kangdexin, was arrested on suspicion of committing a crime; the listed company was also listed as a person subject to execution for breach of trust.

Third place: Xincheng Holdings

Subsequently, Xincheng Holdings also adopted "stability maintenance" measures, showing that the chairman of the listed company

In July this year, Zhangzidao and relevant personnel received the "Administrative Penalty and Market Ban Prior Notification" issued by the China Securities Regulatory Commission, and were later identified by the China Securities Regulatory Commission as "suspected of financial fraud and major defects in internal control."

The China Securities Regulatory Commission also pointed out that Zhangzidao’s previously disclosed annual reports for 2016 and 2017 and the “Announcement on the End-of-Year Inventory of Ezo Scallops in 2017”, the “Announcement on the Write-off of Assets and the Provision for Inventory Price Decline”, and the “Announcement on the 2017 Documents such as the "Announcement on the Result of the Ezo Scallop Sampling Test" broadcast at the end of the autumn of 2018 are suspected of false records; in addition, Zhangzi Island is also suspected of failing to disclose information in a timely manner.

What surprised investors even more was that in the latest announcement on November 12 this year, Zhangzidao once again announced that “according to the situation of scallops collected on site, a large proportion of bottom-sowed scallops have died recently, and some The proportion of dead shells in the sea accounts for more than 80%." At the same time, Wu Hougang, chairman of Zhangzidao, also said in an interview with CCTV's "Economic Information Broadcast" that the company has decided to immediately stop sowing scallops this year.

In response, some investors shouted: "You lie to me, please pay attention to the number of times!"

Fifth place: Haohua Energy

December 28 , only three days before 2020, the listed company Haohua Energy (601101. SH) issued a "Risk Warning on Issues Related to the Acquisition of BOE Energy Equity in 2015 and Announcement on Resumption of Trading", disclosing the BOE Energy Company acquired by the company in 2015 (Currently a holding subsidiary within the scope of the merger of listed companies) There is an error in the resource allocation of 960 million tons in the Bayannaoer mine field, which should actually be 450 million tons.

At the same time, the announcement also stated that accounting treatment based on BOE Energy’s 960 million tons of coal allocation resources has resulted in an inflated increase in the company’s consolidated assets of approximately 2.8 billion yuan since 2015, and an inflated increase in minority shareholders’ equity of approximately 1.4 billion yuan. In 2015, the company's net profit attributable to its parent company was inflated by approximately 1.4 billion yuan.

First of all, the incident occurred on the day when new products under the Securities Law were released. Secondly, what is obviously different from the first four cases is that Haohua Energy is a state-owned enterprise actually controlled by Beijing SASAC, while the first four typical cases are all private enterprises. Combined with the previously exposed financial fraud case of which-share listed company Aerospace Communications, this has sent a message to the market: "Black Swan" incidents are not exclusive to private enterprises, and they are greatly increasing their listings.

In the process of punishing illegal information disclosure by companies, state-owned listed companies and private listed companies will also face more stringent supervision. Related Q&A: What is a black swan event?

Black swan events refer to very unpredictable and unusual events that usually cause a chain of negative reactions or even subversion in the market.

Generally speaking, a "black swan" event refers to an event that meets the following three characteristics: it is unexpected; it has a major impact; although it is unexpected, human nature prompts us to respond after the event Make up reasons for it to happen and think of it as more or less explainable and predictable.

The impact of the black swan incident on the stock market

1. Ping An’s “financing scandal” and the melamine incident made the “black swan” wealth destruction in 2008 the most serious. After a relatively calm year in 2009, the losses caused by the "black swan" have increased year by year. The public pays more and more attention to product safety, and public opinion is also playing an increasingly important role.

2. More than 2% of listed companies on the main board, small and medium-sized board, and GEM have experienced "black swan" events, and the ratio of the three is 44:15:8. The "black swan" of the GEM market occurred in 2012. The food and beverage, pharmaceutical and biological, and non-ferrous metal industries are high-risk areas for “black swans”.