Ltd. (hereinafter referred to as Guangzhou Longqi), the former vice chairman and general manager Chen Jianbin and former secretary of the board of directors Wang Zhigang were investigated for allegedly “illegal duties”. Since the outbreak of the “black hole” of Guangzhou Longqi trade, six people have been involved in this case.
Guangzhou Longqi announced on January 28 that the investigation of the relevant departments is still in progress for matters related to the risk of inventory, prepayment receivables and other debts and liabilities involved in the trading business, and the company’s related personnel suspected of criminal offences and disciplinary offences.
On January 29, Guangzhou Longqi closing price of 2.83 yuan / share, compared with the closing price of 5.70 yuan / share on September 25, 2020 before the “explosion”, the company’s share price has been cut, the market value has evaporated about 1.8 billion yuan, affecting more than 30,000 shareholders of the company.
Previously, Guangzhou Longqi was investigated by the Communist Party’s Securities Regulatory Commission on Jan. 8 for alleged information disclosure violations.
Caixin.com reported that Guangzhou Longqi’s trade “black hole” has involved six people, four of whom are: Fu Yongguo, former chairman of Guangzhou Longqi; Fu Yan, deputy general manager of Guangzhou Longqi’s subsidiary Guangdong Qihua, and Huang Jianbin, chief financial officer; and Deng Yu, manager of Guangzhou Longqi’s business development department and former supervisor of Guangdong Qihua.
A person close to the inspection team of Guangzhou State-owned Assets Supervision and Administration Commission said that all the staff of Guangzhou Longqi’s business development department are being investigated by the inspection team, and all positions in the department are frozen and not allowed to leave.
According to Guangzhou Daily, Fu Yongguo and some middle managers of Guangzhou Longqi are suspected of using their positions to illegally accept bribes from each other in the course of business between enterprises controlled by social personnel and Guangzhou Longqi. In addition, some personnel of Longqi are suspected of colluding with social personnel inside and outside to obtain funds from listed companies and are under investigation.
The large amount of inventory is strangely missing, the debt overdue is increasing, the senior management is involved in the case …… Since September last year, Guangzhou Longqi is in an eventful season. Guangzhou Longqi is a large enterprise in China’s laundry industry, and its top two shareholders are all state-owned enterprises in Guangzhou, with a combined shareholding of 45.26%.
From September last year, the company’s inventory “black hole” has expanded to nearly 900 million yuan after nearly 600 million yuan of inventory disappeared. Guangzhou Longqi September 28, 2020 self-exposure, the company stored in the Ruili warehouse and Hui Feng warehouse of two batches of goods disappeared, the inventory value of a total of 572 million yuan, the trade “black hole” tip of the iceberg appeared. This matter is known as “laundry detergent run”.
As of December 30, 2020, Guangzhou Longqi had evidence that the amount of inventory in the third-party warehouse and other goods issued with discrepancies in the accounts had accumulated to RMB 898 million.
Entering 2020, Guangzhou Longqi has been in a state of loss, with net profit loss reaching 1.17 billion yuan as of the third quarter of 2020. In addition to the inventory “black hole” and poor performance, the company also has a large amount of overdue debt. As of December 30, 2020, Guangzhou Longqi and its subsidiaries had overdue debts amounting to RMB 710 million.
Many bank accounts of Guangzhou Longqi have been frozen due to various commercial disputes in court. As of January 7, 2021, a total of 27 bank accounts of the company were frozen. As of 26th, the total amount of frozen equity registered capital of some subsidiaries and grandchildren under Guangzhou Longqi’s name is 599 million yuan.
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