This year's No. 1 fine was issued: Kimenta has inflated its income for three and a half years by about...

Recently, the China Securities Regulatory Commission disclosed the first decision on administrative punishment in 2022, targeting Kingenta Ecological Engineering Group Co.

The CSRC found out that Kingenta's illegal facts include: falsely increasing income and profits through fictitious trade business, failing to disclose related parties and related transactions as required, and false records in some assets and liabilities

Attorney Liu Guohua, director of Guangdong Benben Law Firm, told the Beijing News Shell Finance reporter: According to relevant laws and regulations, the "Decision on Administrative Punishment", relevant announcements and other materials, damaged investors can make claims against ST Jinzheng, the perpetrator of false statements, and claim compensation.

After three and a half years, Kimenta’s accumulated inflated income was about 23.

Specifically, from 2015 to the first half of 2018, Kingenta and some of its subsidiaries within the scope of its consolidated statements, through fictitious contracts with its suppliers, customers and other external units, idled funds, and carried out fictitious trade business without actual logistics.

The above situation resulted in false records in the 2015 Annual Report, 2016 Annual Report, 2017 Annual Report and 2018 Semi-annual Report disclosed by Kingenta

At the same time, Kingenta should truthfully disclose its related relationships and related transactions with Nobel, Furlong, and Nortel in the "2018 Annual Report" and "2019 Annual Report", but Kingenta did not disclose it as required

In addition, Kingenta also falsely reduced bills payable and falsely increased the number of goods issued.

The CSRC held that: Wan Lianbu was fully responsible for making decisions and organizing the implementation of the above-mentioned illegal acts, while Li Jiguo and Tang Yong organized and participated in the above-mentioned illegal acts, failed to perform their duties with due diligence, and were the directly responsible persons in charge.

In the end, the China Securities Regulatory Commission decided to impose a fine of 1.

Net profit has been in losses for three consecutive years, and Kimenta’s pre-loss last year exceeded 300 million

Kingenta's main business is the research and development, production and sales of a full range of soil products such as compound fertilizers, slow-release fertilizers, nitro fertilizers, water-soluble fertilizers, biological fertilizers, and soil conditioners, as well as providing related planting industry solutions for growers.

As a new type of compound fertilizer leading enterprise, Kingenta has huge leading advantages in technology, talents, capital, channels, and resource integration, and is also known as the "fertilizer king" by the market

However, in recent years, Kimenta's performance has been poor

In 2019 and 2020, Kingenta's operating income was about 11.

"In 2019, the domestic economic situation is still relatively severe.

"In 2020, in order to increase operating income, the company will sell some products at a reduced price, and the gross profit margin will decrease.

The above are the reasons for Kimenta's losses in 2019 and 2020.
By 2021, Kimenta will still lose money
.

The performance forecast shows that Kingenta expects that the net profit attributable to shareholders of listed companies in 2021 will be -680 million yuan to -360 million yuan
.

Kingenta said: "In 2021, the company will be affected by the substantial increase in financial costs and the provision for impairment of assets that may show signs of impairment in the current period, resulting in a loss in the company's 2021 performance
.
The various asset impairment provisions accrued for assets decreased compared with the same period of last year, and the profit decreased year-on-year
.
"

Wan Lianbu has been administratively punished many times in recent years, and the controlling shareholder of Kingenta is in bankruptcy and reorganization

The Beijing News Shell Finance reporter noticed that in addition to the fine, the China Securities Regulatory Commission decided to impose a 10-year market ban on Wan Lianbu, a five-year market ban on Li Jiguo, and a three-year market ban on Tang Yong
.

According to public information, Wan Lianbu was born in July 1965, and successively served as an agricultural technician of Linshu County Commercial Bureau, general manager of Linshu County Agricultural Development Company, chairman and general manager of Linyi Jindadi Compound Fertilizer Co.
, Ltd.
, Shandong Jinzhengda Chairman and General Manager of Ecological Engineering Co.
,
Ltd.

Wan Lianbu also has many social positions, such as vice chairman of China Enterprise Confederation and China Entrepreneurs Association, vice chairman of China Phosphate Fertilizer Industry Association, vice chairman of China Agricultural Technology Promotion Association, vice chairman of China Agricultural Risk Management Research Association, Director of the National Slow and Controlled Release Fertilizer Engineering Technology Research Center, member of the National Fertilizer and Soil Conditioner Standardization Technical Committee,
etc.

Wan Lianbu has received many administrative penalties in recent years
.

On May 7, 2019, Wan Lianbu and others received the "Decision on Taking Supervisory Talk Measures to 3 Persons including Wan Lianbu, Chairman of Kingenta Ecological Engineering Group Co.
, Ltd.
" issued by Shandong Supervision Bureau of China Securities Regulatory Commission The Shandong Securities Regulatory Bureau decided to take regulatory measures for the above-mentioned personnel and record them in the integrity file of the securities and futures market
.

On September 26, 2019, Wan Lianbu and others received the "Decision on Measures to Issue Warning Letters to 11 Personnel including Wan Lianbu" issued by the Shandong Supervision Bureau of the China Securities Regulatory Commission, and decided to issue a warning letter to the above-mentioned personnel.
The regulatory measures for the warning letter, and the relevant information is recorded in the integrity file of the securities and futures market
.
 

On November 16, 2020, Wan Lianbu and Li Jiguo received the "Decision on Disciplinary Action on Kingenta Ecological Engineering Group Co.
, Ltd.
and Related Parties" issued by Shenzhen Stock Exchange.
Wan Lianbu, the general manager, and Li Jiguo, the then financial director, were given the punishment of criticism
.

At the same time, Wan Lianbu was already the person being executed
.

According to the company's investigation data, the total amount of Wanlianbu's execution exceeded 1 billion yuan
.

Behind Wan Lianbu's lawsuit is that Kingenta's controlling shareholder Linyi Kingenta Investment Holdings Co.
, Ltd.
(abbreviation: Linyi Kingenta) is undergoing bankruptcy and reorganization
.

Public information shows that on December 11, 2020, Jinzhengda received the "Notification Letter" from the controlling shareholder Linyi Jinzhengda and the forwarded Linshu County People's Court's "Civil Ruling", "Decision" and other materials.
Linshu County People's Court The reorganization application of Linyi Jinzhengda was accepted
.

On January 21, 2022, Kingenta received the "Notice on the Progress of Reorganization" from the manager of Linyi Kingenta Investment Holdings Co.
, Ltd.
, which indicated that the fourth creditors' meeting of Linyi Kingenta had been held, and there were a total of one item to be voted on at the meeting.
That is, to vote on amendments to the draft reorganization plan
.