For more than half a month,MesaarcadeThe news that Dahua Accounting firm (hereinafter referred to as "Dahua Institute") had been suspended from securities services for several months was circulated on the Internet, which was finally confirmed.
On May 13, Dahua Accounting firm issued a statement that Jiangsu Securities Regulatory Bureau issued a written decision on administrative punishment to Dahua: Dahua imposed administrative penalties on Dahua and related personnel according to law because Dahua failed to do its duty diligently during the annual financial statement audit of Jintongling Technology Group Co., Ltd. Dahua sincerely accepts the punishment decision of the regulatory authorities, consciously accepts the supervision of various regulatory agencies, corporate customers and all parties in society, and carries out comprehensive rectification and reform as required, and organizes profound self-reflection within the scope of the whole institute.
A reporter from Securities Times e Company noted that in the past two days, more than 10 A-share companies have announced the cancellation of their cooperation with Dahua Institute.
On the afternoon of May 13th (as of 18:00), eight companies, including Haixin Food, Central Plains Internal matching, Power Diamond, Booz Software, Taiji shares, Jiahe Meikang, Kuncai Technology and far East Transmission, issued a collective announcement, canceling some of the proposals for the 2023 annual general meeting.
The proposals cancelled by these eight companies are all related to the appointment of accounting firms. According to the company's original plan, it intends to rehire / newly hire Dahua Institute as the 2024 annual audit agency. Now, however, these companies have abandoned their original plans.
As for the reasons for canceling the cooperation, Power Diamond, Taiwan Foundation shares, Ka and Mei Kang said that in view of the recent related matters of Dahua Institute, the company has yet to be further verified.
The Central Plains Internal allocation said that after negotiation between the company and Dahua Institute, the company's board of directors carefully considered (cancelled the cooperation).
Booz software, Haixin Food is more clear: (cancellation of cooperation) because Dahua was recently punished by Jiangsu Securities Regulatory Bureau.
In addition, on the morning of May 13, Jinming Seiki also issued a notice announcing that it would cancel the consideration of the motion for cooperation with Dahua.
As of May 13, nine listed companies have announced the "dismissal" of Dahua Institute.
In addition, the listed company that is the first to terminate the cooperation with Dahua is Zhiyuan Xinneng. The company announced on the evening of May 12 that in view of the fact that the recent related matters of the proposed accounting firm have yet to be further verified by the company, after consultation between the company and Dahua Institute, the company decided to cancel the motion on the re-employment of audit institutions for 2024, which was originally scheduled to be submitted to the 2023 annual general meeting for consideration.
The news that Dahua might be fined was circulated on the Internet in mid-April.
At that time, the cases of being punished for large amounts of financial fraud for many years spread, and some intermediary agencies were punished one after another. At that time, some people speculated that Dahua Institute, as the annual audit agency of Jin Tongling, might be suspended from securities qualification or be substantially banned by securities regulatory authorities.
Data show that from 2017 to 2022, Jin Tongling and its wholly-owned subsidiaries falsely increased or decreased the total operating income and profits of 12 companies by falsifying project image progress confirmation forms and invoice, etc., and falsely increased or reduced the total operating income and profits of 12 companies; Jin Tongling and its holding subsidiaries falsely increased business income and total profits by means of recognizing revenue in advance without delivery and returning non-deductible income to sales.
Among them, from 2012 to 2016, Jin Tongling's auditor is Zhonghui Accounting firm. In 2017, in the first year when Jin Tongling began to fake, Dahua Institute became the company's annual audit agency.
However, some listed companies later announced the reappointment of Dahua as the 2024 annual review agency, which raised doubts about the speculation that Dahua would be punished.
By mid-May, a screenshot of "Dahua's letter to customers" suddenly circulated in the market.
It is mentioned in the screenshot that Dahua Institute received the "decision on Administrative punishment" issued by Jiangsu Securities Regulatory Bureau on May 10. It was suspended from securities service business for six months (from May 10, 2024 to November 9, 2024), and resumed securities service business on November 10, 2024.
According to the data, Dahua Institute was established in February 2012. by the end of December 2023, there were 270 partners and 1471 certified public accountants. In 2022, the total business income of Dahua Institute was 33.MesaarcadeIn 2022, Dahua listed companies audited 488 clients, and the annual report audit fees of listed companies totaled 610 million yuan. According to the "ranking Information of 100 Comprehensive Evaluation of Accounting firms in 2022" released by the Chinese Institute of Certified Public Accountants, Dahua ranked 11th.
In recent years, Dahua has been punished for involving financial fraud of some listed companies.
Earlier, Dahua Institute issued an audit report with standard and unqualified opinions on the financial statements of Changyuan Group in 2016 and 2017, but there were false records in the above audit report: Changyuan Group falsely increased its profits by 123 million yuan and 180 million yuan respectively in 2016 and 2017, accounting for about 15% of the total profits of the current period.
In 2022, Shenzhen Securities Regulatory Bureau decided to correct Dahua's order, confiscated 3.8679 million yuan of business income and imposed a double fine of 7.7358 million yuan.
In March 2023, Dahua was confiscated 3.6792 million yuan by the CSRC due to false records and lack of diligence in the 2016 annual audit report on Zhangzi Island.
At the end of April this year, the Beijing Stock Exchange issued a decision on self-regulatory measures to Dahua.
The Beijing Stock Exchange said in it that Funike had been found to have committed relevant irregularities in the process of applying for a public offering and listing. When conducting due diligence, Dahua Institute and the relevant signed accountants failed to exercise due diligence, maintained professional doubt, and failed to fully verify the long-term accounting and refund of large advance payments, as well as the accuracy of project cost collection and accounting under construction, failure to find and deal with the aforementioned misstatements before declaration, in violation of the listing Review rules of the Northern Stock Exchange.
The Beijing Stock Exchange decided to take self-regulatory measures to issue warning letters to Dahua and the relevant parties, which shall be recorded in the integrity files of the securities and futures market.
