YOUNGOR's Operation To Reduce CITIC Securities Was Exposed

YOUNGOR, which has been in the capital market for many years, now has a "low-level error" in the stock asset sales link, and is therefore under the supervision of the Shanghai Stock Exchange.

Information disclosed on the Shanghai Stock Exchange, Shanghai Stock Exchange Listed company A regulatory letter was issued to YOUNGOR and related personnel on February 16. The reason was that YOUNGOR sold the CITIC Securities and other financial assets for sale in 2014, failed to perform the shareholders' meeting review procedure, and did not fulfill the obligation of information disclosure when the profits generated by the sale of assets reached the 10% of the net profit of the parent company in the previous year (2013).

What is worth mentioning is that the regulatory authorities discovered the company's above violations from a brief performance notice issued by YOUNGOR earlier. In January 27th, YOUNGOR disclosed in its 2014 annual performance forecast that its net profit in 2014 is expected to increase by 120% to 150% over the same period last year. One of the reasons for the increase in performance is the sale of CITIC Securities and the first pioneering work of the company in 2014. financial assets A net profit of 1 billion 462 million 877 thousand and 600 yuan has been achieved, which has reached 107.60% of the company's net profit of 1 billion 359 million 597 thousand yuan in 2013.

According to the rules of stock listing, the profits generated by the transactions of listed companies account for more than 10% of the audited net profit of the latest accounting year, and the absolute amount exceeds 1 million yuan. The company should disclose it in time. When the profits generated by the transaction account for more than 50% of the net profit of the latest accounting year, and the absolute amount exceeds 5 million yuan, the company shall submit the shareholders' meeting for consideration in addition to timely disclosure. In contrast, YOUNGOR has not made any targeted announcement on the reduction of CITIC Securities and so on, regardless of whether the shareholders' meeting is deliberating or not. If it is not the performance notice, investors do not know that the company has made high profits through reducing stock assets in 2014.

The Shanghai Stock Exchange pointed out that the above acts of YOUNGOR violated the relevant provisions of the stock listing rules. Wu Youguang, director of the company's financial affairs and Liu Xinyu, the Secretary of the board of directors, were not diligent in their duties, and were responsible for the company's irregularities. At the same time, they violated the rules of stock listing and the stipulations and commitments in the statement and undertaking of senior managers. At the same time, the Shanghai stock exchange requires YOUNGOR to take warning, standardize operation and conscientiously fulfill the obligation of information disclosure. The company executives should also perform their duty of loyalty and diligence to ensure that the company disclose all important information in a timely, fair, truthful, accurate and complete manner.

Aside from the illegal activities of the company in the consideration of stock assets and information disclosure, it can be found from the past announcement information that YOUNGOR has carried out a "high throw and low absorption" operation in the process of CITIC Securities Trading. According to relevant earnings data, YOUNGOR held a total stake of 0.37% citic securities at the end of 2013, and did not reduce it until the end of 6 in 2014. In the three quarterly report of 2014, the company said, "during the reporting period, the company increased its strategic investment in Ningbo bank, Shanghai Pudong Development Bank and CITIC Securities". This means that it increased its stake in CITIC Securities in the third quarter of last year, and then sold it backhand in the fourth quarter of CITIC Securities price rise.

It was also disclosed that as at the end of 2014, Youngor It still holds the sale of financial assets such as Guang Bo shares, Shanghai Pudong Development Bank, Jin Zhengda, China Ping An (A shares and H shares), which corresponds to a stock market value of up to 5 billion 570 million yuan.