① Longyu Co., Ltd. announced that there are false records in the company's 2022 annual report and 2023 semi-annual report, which violates the “Administrative Measures on Information Disclosure of Listed Companies”. The company was ordered to make corrections, and a number of senior officials received a warning letter from the supervision. ② At the same time, the company was issued with the “2023 Audit Report”, which was unable to express an opinion, and the internal control audit report, which gave a negative opinion, and will be “covered with stars.”
Financial Services Association, April 30 (Reporter Xiao Lianghua) Longyu Co., Ltd. (603003.SH), which had been popular for a few days due to its ranking as a “dragon character,” has now experienced an incident.
On the evening of the 29th, Longyu Co., Ltd. issued an announcement. The company received the “Decision on Administrative Supervision Measures” issued by the Shanghai Supervisory Authority of the Securities Regulatory Commission. As a result, the company and Xu Zengzeng, Liu Ce, Zhang Yekan, and Lu Yuping had false records in the company's 2022 annual report and 2023 semi-annual report due to the fact that the listed company had large related transactions that were not disclosed and that some of the trading business had no commercial substance, in violation of the “Administrative Measures on Information Disclosure of Listed Companies”. Meanwhile, Xu Zengzeng, the company's chairman, Liu Ce, general manager, director Zhang Yekan, and financial director Lu Yuping were all issued warning letters.
On the evening of the same day, the company also issued an announcement stating that the 2023 Beijing Dahua International Accounting Firm (Special General Partnership) issued a 2023 audit report and an internal control audit report with negative opinions, and that the company's stock abbreviation will be prefaced with the word “*ST” before.
The company also released a report for the first quarter of 2024 showing a sharp decline in both revenue and net profit. It is worth noting that in this latest financial report, director and financial director Lu Yeping and board secretary Zhang Yekan all issued “additional opinions” that “it is impossible to fully and effectively verify (the company) related parties and related transactions. Currently, the company has stopped the business of the above related parties and urged the related parties to return the business capital as soon as possible.”
In addition, Deputy General Managers Cheng Yu and Ma Ying issued an “unguaranteed” opinion on the latest quarterly report based on the audit report of the first quarter of 2024 where the rectification of matters relating to internal control was not completed and “unable to express an opinion”.