The first department store in the mainland, Harbin’s Qiu Lin Company, was announced to be terminated, with a huge loss of more than 5 billion yuan (RMB). Prior to the delisting, Qiu Lin experienced a strange incident in which its executives were missing and billions of dollars in payments for goods have disappeared.
Qiu Lin Group announced in the afternoon of March 26 that the company’s shares traded on March 24, 25 and 26, 2021 for three consecutive trading days with an accumulated 20% drop in daily closing price.
Two days earlier, Autumn Forest issued an announcement that the Communist Party of China Securities Regulatory Commission issued a notice to Autumn Forest Group on May 24, 2019, to investigate the company.
Earlier in the evening of March 11, Qiu Lin Group issued an announcement saying that the company received on the same day the SSE’s “Decision on Termination of Listing of Shares of Harbin Qiu Lin Group Co., Ltd.”, according to which the SSE decided to terminate the listing of the company’s shares; Qiu Lin’s shares began to enter the delisting period for trading on March 19 for 30 trading days, with an expected last trading date of April 30, 2021.
The number of shareholders of Qiu Lin Group is 30,600.
Chairman and 10 tons of Gold have inexplicably disappeared so far
Qiulin, a century-old company, became a Communist state-owned enterprise in 1953 and was listed on the Shanghai Stock Exchange in 1996, but its performance continued to decline. After experiencing two consecutive years of losses at the Time, the Qiu Lin Group changed from a state-owned enterprise to a private one in 2004.
Subsequently, Qiu Lin Group had reached a peak in stock price and market capitalization in 2011. However, in recent years, Qiu Lin has experienced various strange events and eventually fell into difficulties.
In February 2019, the CPC Tianjin Public Security Bureau issued a Notice of Assistance in Freezing Property to the Shanghai Branch of China Securities Registration and Settlement Co., Ltd. to freeze the equity interests held by Qiu Lin shareholders Tianjin Jiayi Industrial Co., Yihe Gold Products Co. and Heilongjiang Penma Investment Co.
At the same time, Qiu Lin Group said that Chairman Li Ya and Vice Chairman Li Jianxin were out of contact.
Subsequently, Qiu Lin released an internal control audit report, saying that the possibility of recovery of accounts receivable and depository of the gold business unit established by the company in 2018 were at significant risk, and a bad debt loss of 3.694 billion yuan (RMB, the same below) was accrued, which was equivalent to 10 tons of gold based on the gold price at that time.
However, up to now, the whereabouts of the above-mentioned chairman, vice chairman and the payment for the 10 tons of gold are still unknown, and the Tianjin Public Security Bureau of the CPC, which issued the freezing of shareholders’ equity at that time, has not given any account.
From the time the shareholders’ equity was frozen, the operation of the companies under the gold division of Qiu Lin Group was at a basic standstill and most of the management staff left.
It is reported that Qiu Lin has lost a total of 5.2 billion yuan for three consecutive years, and its share price before the suspension was announced was only 1.2 yuan per share, compared to the high price of 16.07 yuan per share in 2011, a drop of nearly 93%, with a market value of about 9.2 billion evaporated.
According to the 2020 performance report, Qiu Lin Group’s net profit attributable to shareholders of the listed company in 2020 was 582 million yuan, and the net assets attributable to shareholders of the listed company at the end of 2020 was 2.214 billion yuan, and Daxin Accounting Firm (Special General Partnership) issued an “Unable to express an opinion” on the company’s financial accounting report for 2020. The audit report of Daxin Accounting Firm (Special General Partner) issued a “Unable to express an opinion” on the financial accounting report of the company for 2020.
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