The Last Year's Suspension Of Busen's Stock Has Come To An End.

Busen shares "escaped", the target assets financial data flooding seriously, as the SFC punished the boots landing, the company temporarily avoided the risk of suspension or termination of the listing, troubled Busen shares for nearly a year now finally come to an end.

The investigation that troubled Busen (002569.SZ) for nearly a year has finally come to light.

Recently, Busen shares According to the announcement, the company received the advance notice of administrative penalty in September 29th. The SFC intends to give warnings, fines and other penalties to listed companies and related responsible persons. In this notification, Busen shares were identified as major assets reorganization and in the process of alleged information disclosure illegal. The specific reason is that in the Hong Wah agricultural backdoor plan that has been terminated, the financial data of the underlying assets are heavily watermarked.

Some market participants believe that with the SFC's punishment for boots landing, the company temporarily avoided the risk of suspending or terminating the listing.

The original financial data is seriously waterflooding.

From the previous bizarre shell scheme, the company was placed under investigation, until the new restructuring plan failed, and the suspension of Busen's stock for nearly a year has now come to light: in its terminated Hong Wah agriculture backdoor plan, the target is Asset financial data The water injection was serious, but fortunately, it failed to make a big mistake because of the failure of the shell.

According to the announcement, Busen shares disclosed a major asset reorganization report (Draft) with false records in the process of major asset reorganization with Busen agriculture in 2014. There is a false record of the assets and business income of the targeted enterprises.

In the draft at that time, the total assets of Hong Wah bio as of April 30, 2014 were 950 million yuan, and in fact, Hong Wah's agricultural assets increased by 503 million yuan, accounting for 53% of the total assets of Hong Wah's agriculture. In the financial statements of -2013 in 2011, the total assets of Hong Wah agriculture were 430 million yuan, 630 million yuan and 890 million yuan respectively, while the inflated assets of Hong Wah's agriculture were 204 million yuan, 340 million yuan and 470 million yuan respectively.

Backdoor Hong Wah agriculture has not only shifted its assets, but also increased its operating profit substantially. In the acquisition plan, Hong Wah agricultural disclosure in 2011 -2014 April operating income was 423 million yuan, 496 million yuan, 559 million yuan and 93 million 307 thousand and 500 yuan, and according to the survey, its inflated operating income were 148 million yuan, 183 million yuan, 238 million yuan and 41 million 289 thousand and 600 yuan respectively.

In this way, if we put aside the inflated portion, the actual operating income of Hong Wah agriculture in 2011 -2014 April is only 275 million yuan, 313 million yuan, 321 million yuan and 52 million 17 thousand and 900 yuan. That is to say, Hong Wah's agriculture has more than half of its total assets and 30% to 40% of its income is "blown", and the situation of financial fraud is quite serious.

Busen shares also announced that, according to the above "administrative penalty prior notice" content, the company's shares will not be suspended or listed on the market because of the proposed penalty decision.

Escape temporarily

The company was punished by the SFC's punishment process. Textile and garment industry Busen shares began to seek asset restructuring because of its loss in performance.

In August 2014, Busen shares announced an asset restructuring plan with Hong Wah agriculture. However, at that time, Hong Wah's agricultural valuation of about 4000000000 yuan and the authenticity of its cultivated land data were questioned by the market. In November last year, after the shareholders' meeting had passed the reorganization plan, Busen shares announced the termination of asset restructuring on the grounds of differences between the controlling shareholder Busen group and Hong Wah agriculture and its shareholders.

In February 2015, Busen shares were suspended again. Subsequently, private equity firms took the lead and the company began planning for the two reorganization. By May 5th, the company became a controlling shareholder of the company with a 29.86% stake instead of Busen.

But in Hong Wah's agricultural backdoor, Busen shares were suspected of illegal disclosure of information, and the company received a notice from the SFC in May 12th. In June 29th, Busen shares announced again that the new restructuring transaction target enterprise took into account the commitment period of the listed company is coming, and the investigation has not yet ended, so it decided to withdraw from the reorganization.

Busen's restructuring efforts were again forced to terminate.

The letter tells us that in view of the fact that Busen Shares applied to the SFC in December 2014 to apply for withdrawal of a major asset reorganization application document, Hong Wah's agriculture failed to get backdoor listing successfully, and objectively played a role in mitigate the harmful consequences of illegal activities. The listed company and relevant responsible persons actively cooperate with the investigation. The SFC decided to order the Busen shares to be corrected, give a warning, impose a fine of 300 thousand yuan, give a warning to the chairman Wang Jianjun, impose a fine of 50 thousand yuan, give Dong Mishou a warning to him and impose a fine of 30 thousand yuan, and give warning to Wu Yongjie, Ma Li, Chen Zhijun, Wang Ling, Wang Ling, and other seven directors.

"This punishment is the best result." Mr. Tang, an analyst at Zhejiang branch of galaxy securities, believes that according to the original judgment, Busen shares are unrealistic. However, because the information fraud is Hong Wah's agriculture, Busen shares belong to "no one is happy", and there is no subjective intent and behavior. Generally speaking, the SFC will end the investigation by way of warning and punishment. For this reason, some garment enterprises including Semir said it was not convenient to make an evaluation.

Some market participants believe that the administrative penalty of the SFC has temporarily avoided the risk of suspending or terminating the listing of Busen shares.

Nowadays, the punishment of the SFC has been basically determined, and whether the way of restructuring Busen shares will continue is still unknown.

Rui Wei said when the assets had been taken, the follow up did not exclude the possibility of continuing to increase the shares of the listed companies. At the same time, "it is not excluded that the assets and business of the listed companies will be disposed of in the next 12 months or major changes and adjustments may be made to the main business".

At the same time, the punishment of the SFC will also be affected. According to the "Regulations on the issuance of securities issued by listed companies", the issue of refinancing shares of listed companies should be "not punished by the CSRC within the last thirty-six months".

"Now that the case is over, the market will revaluate the shell value of Busen shares." A strategic analyst at the Zhuji Hai Hai Liang Shi Futures Co., Ltd. said, "restructuring is inevitable. In addition to the introduction of other businesses with strong profitability, Busen shares seems to have no other way to go at the moment."

According to the above strategy analysts, after the reorganization starts, the two major shareholders may have a new interest exchange. It depends on whether Busen shares completely withdraw from the garment industry or merely restructure to add a new second main business. Of course, assets will become the biggest winners in any case.

Reporters repeatedly contacted Busen's shares, and had not responded to the press release.