① According to the warning letter, Juguang Technology has internal control flaws, and the “Internal Control Self-Assessment Report” disclosure was inaccurate from 2016 to 2020; ② Juguang Technology lost for two consecutive years in 2021 and 2022, with a cumulative net profit loss of more than 600 million yuan; ③ In the past few years, Juguang Technology has frequently “received” regulatory letters.
Finance Association, April 7 (Reporter Wang Bin) Juguang Technology (300203.SZ) was found to have internal control flaws because the holding subsidiary Yunnan Juguang Technology Co., Ltd. (“Yunnan Juguang”) committed the crime of corporate bribery. This evening, Juguang Technology announced that the Shenzhen Stock Exchange publicly condemned the company and Ye, the then general manager of Yunnan Juguang.
On March 29 of last year, the “Notice Concerning the Receipt of Criminal Rulings by Yunnan Juguang Technology Co., Ltd., a holding subsidiary” disclosed by Juguang Technology, that Ye, as the current general manager of Yunnan Juguang and the actual controller of the other two companies, in order to successfully pass the assessment of automatic pollution source monitoring facilities and undertake environmental protection industry engineering projects to obtain improper benefits in engineering projects involving the environmental protection industry, between 2012 and 2020, used the above company funds to bribe national workers, totaling 1.19 million yuan. Yunnan Juguang and 2 other companies all formed banks For the crime, Ye was held criminally responsible for the crime of bribery by the unit as the person directly responsible.
According to the Shenzhen Stock Exchange, Ye himself was sentenced to two years' imprisonment and a fine of 300,000 yuan for using company funds to bribe state workers, leading to the crime of bribing Yunnan Juguang and two other company constituents. The Shenzhen Stock Exchange believes that there are major flaws in Juguang Technology's internal control, failed to establish effective management control over the subsidiary, and violated relevant regulations.
Earlier, on April 3, Juguang Technology had just received a warning letter from the Zhejiang Securities Regulatory Bureau.
According to the contents of the warning letter, the People's Court of Zhanyi District, Qujing City, Yunnan Province issued a “Criminal Judgment” (2022) (Yun0303, No. 61), finding Yunnan Juguang, a subsidiary of Juguang Technology Holdings, guilty of bribery by the Yunnan Juguang Criminal Unit. Juguang Technology has internal control flaws, and the disclosure of the “Internal Control Self-Assessment Report” from 2016 to 2020 was inaccurate.
The warning letter stated that the above acts of the company violated relevant regulations, and that Ye Huajun and Ding Jianping, the company's then-chairman, should bear the main responsibility for this. According to the provisions of Article 59 of the “Administrative Measures on Information Disclosure of Listed Companies” (Securities Regulatory Commission Order No. 40), the Zhejiang Securities Regulatory Bureau decided to take supervisory and administrative measures to issue separate warning letters against the two and record them in the securities and futures market integrity file.
According to previous announcements, Juguang Technology first issued an announcement on the bribery case of Yunnan Juguang's suspected unit on November 30, 2021. On November 14, 2022, the company announced again that Yunnan Juguang was fined 800,000 yuan for the crime of corporate bribery. After the aforementioned verdict was handed down, Yunnan Juguang disagreed and filed an appeal. On March 29, 2023, Juguang Technology announced that the Yunnan Qujing Intermediate Court rejected the appeal and upheld the original ruling. The ruling was final.
According to the official website of Juguang Technology, the company was founded in 2002 and its main business is R&D, production and sales of instruments used in environmental monitoring and industrial process analysis. According to the announcement, Yunnan Juguang was founded in December 2015 with a registered capital of 30 million yuan, and Juguang Technology's shareholding ratio is 51%.
In the 2023 semi-annual report, Juguang Technology stated that the company's products and service customers are mainly customers from the government, enterprises and institutions, etc., and demand is greatly affected by the government's various policies, policy implementation efforts and the industrial cycle.
It is worth noting that in the past few years, Juguang Technology has frequently “eaten” regulatory letters from exchanges.
According to the Shenzhen Stock Exchange website, in June 2020, the company was notified by the Shenzhen Stock Exchange for correcting errors in financial reports during the period due to changes in accounting policies; in November 2021, the company failed to promptly fulfill its information disclosure obligations and stopped selling when the total shareholding ratio with the concerted actors reached 5%, and then received a regulatory letter; in April 2023, the company was also issued a regulatory letter because the controlling shareholder of the company failed to fulfill the pre-disclosure obligation due to judicial enforcement.
The Financial Services Association reporter also noticed that from 2016 to 2022, Juguang Technology's information disclosure evaluation results were never rated A; they were mainly B and C evaluation results. According to the “Evaluation Guidelines” issued by the Exchange, the evaluation results of listed companies' information disclosure work were A (excellent), B (good), C (qualified), and D (unqualified), respectively.
(2016-2022 Juguang Technology Credit Disclosure Review; Source: Shenzhen Stock Exchange official website)
In terms of performance, Juguang Technology lost money for two consecutive years in 2021 and 2022, with a cumulative net profit loss of over 600 million yuan to mother. However, the 2023 results have not reversed the losses. According to the annual results forecast, Juguang Technology expects a net profit loss of 330 million yuan to 260 million yuan in 2023 to mother.