The "financial fraud" of Kejie Lithium will have a profound impact on the lithium power industry

The real sin of Kejie Lithium is that major shareholders occupy public company funds and are corporate governance issues.

Just six months after the listing, it has not yet had time to merge from the new three boards. Kejie Lithium(871673) was suspected of fraud in the financial data in the declared materials. What's even more surprising is that it's not investors, it's not the media, it's not regulators, it's the brokerage firms that run the companies.

A few days ago, Kejie Li-Li-electric's sponsor securities, issued the "Risk Warning Announcement", through the joint verification with Lianda Accounting Co., Ltd., that Kejie Li-Li-Power 2014 20 million yuan increase in the payment of financial processing involved financial fraud. This is also the first listed company in the history of the new three boards to be directly identified as a financial fraud by the sponsored brokerage firm.

Into the capital market and the concept of lithium electricity

Ningxia Kejie lithium battery Co., Ltd. was established in October 2013. In September 2014, the shareholding system was completed. The legal representative is Yao Yong. Yao Yong and three other shareholders, Wang Hui, Wang Yongfa and Yang Ketao, took the lead through direct and inter-joining. The stock is 57.01%, which is the joint actual controller. The company's current total share capital is 3,291,200 shares.

This company is located in the Science and Technology Incubation Park of Small and Medium Enterprises in the Shizuishan City Development Zone in Ningxia. Its main business is research and development, manufacturing and sales of lithium ion battery positive electrode materials(nickel cobalt manganese ternary oxide positive electrode materials) and downstream application products. The main product is high energy density lithium battery positive material nickel cobalt manganese ternary oxide.

According to public information, the customer base of Kejie Lithium includes TCL, Wanlida, Xinwangda, Scud, ZTE, Huawei, etc.. The company's current focus of research is in the field of clean energy and materials, and it is expected that it can be used in the direction of power batteries. Make achievements, Promote the rapid development of the electric car industry.

Positive material is an important upstream of the lithium battery industry chain. With the outbreak of the domestic new energy automotive industry in recent years, the demand is strong and the performance of related companies has broken out. Another company on the new board, Sequoia Energy(835930), which is engaged in positive materials, made a net profit of 275 million in the half year report last year. A share market in the relevant subject, also last year's stock price strength.

Listed in the new three boards, and on the "lithium battery", the most popular concept of the time, the road to the capital market of Kejie Lithium looks like a good start.

The so-called financial fraud, the actual use of funds

It was identified as a financial fraud by Anxin Securities, which originated from a new increase in Kejie Lithium in 2014.

After the completion of the stock reform, Kejie Lithium conducted its first capital increase in September 2014, issuing 20 million shares with 1 yuan / share, and raising funds of 20 million yuan. The participants in this increase were mainly several original shareholders of the company, Wang Hui, Wangyongfa, Yangketao, and Wangyiqiu, who respectively subscribed for 1.54 million yuan, 2 million yuan, 600,000 yuan and 500,000 yuan. Another natural person, Yao Yong, subscribed for 1.5 million yuan and became the company's fourth largest shareholder.

The $20 million increase was received in September 2014, according to the prospectus, but in our 2014 financial statements, we found the odd thing: at the end of 2014, the capital of the company was only 931,500 yuan.

20 million in the last quarter?

In the cash flow statement, we seem to have found the answer. In 2014, Kejie Lithium "purchased fixed assets, intangible assets and other long-term assets to pay cash" reached 214,101,200 yuan, which is almost the same amount as the capital increase recorded in September. But is it normal that cash outflows from the project will be less than $400,000, except in 2014?

In response, the company explained that "payments were made in 2014 for long-term assets such as fixed assets purchased in the previous period, and there was a time lag between long-term asset accounting and payment." However, in 2014, the original value of the fixed assets, intangible assets, and construction projects of Kejie Lithium also increased by only 13.08 million yuan, of which there was a difference of more than 8 million yuan.

This question was finally found after the listing.

Last November, Ningxia Securities Supervision Bureau issued a special inspection notice to Kejie Lithium. In this special inspection, Ningxia Securities and Supervision Bureau found that Kejie Lithium, through its bank account on September 25, 2014, transferred 20 million yuan in additional capital to the company's controlling shareholder and joint actual controller Wang Hui.

On September 25, 2014, it was the same day that Kejie Lithium had just received the capital increase. In other words, the 20 million capital increase of the front foot is directly returned to the major shareholder.

You see this, perhaps? In fact, this is not any financial fraud, or naked major shareholders occupy the company's funds.

Make it even, thanks to the three related parties

20 million in cash directly into the pockets of major shareholders, for Kejie Lithium, accounting processing is a problem. Fortunately, the company has a large number of related parties, you can casually find a few, and you can move around and look like water.

From the point of view of the content of the Anxin Securities announcement, Kejie Lithium directly offset the 20 million yuan increase in capital payments to Shizuishan Yuyuan Technology Development Co., Ltd., Jiangsu Yaohua Electromechanical Technology Co., Ltd., Jiangsu Huanneng Environmental Technology Co., Ltd. and Zhenjiang Yongteng Construction Engineering Co., Ltd.. Four suppliers 'accounts.

This, in turn, perfectly explains why the purchase of fixed assets pays for large amounts of cash.

What's wrong with spending money?

In fact, the mistake made by Kejie Lithium was not the "financial fraud" reported by many media. The company did not make much profit through financial magic, and therefore the amount of financing.

The real sin of Kejie Lithium is that major shareholders occupy public company funds and are corporate governance issues.

Last year, the stock transfer system moved the fund occupancy review to the listing filing stage. At the end of the reporting period, check the funds occupied, check the materials before reporting, check the materials before listing, and find that the funds occupied after the reporting period will be withdrawn materials. If the declaration period is not found but has been listed, all supervisory measures will be taken. If the circumstances are serious, they will be handed over to the Securities and Futures Commission.

However, there are still endless cases of large shareholders of the new three board companies occupying funds. In the case of Kejie Lithium, the sponsor brokerage recommended for the company has become the future of the correct person. Have these not been discovered when the recommendation was listed?

Therefore, the problem of the new three boards is not in liquidity, investor threshold, and three types of shareholders. At this stage, the real core issue is the virtual internal control system and corporate governance of the listed companies.

The page contains the contents of the machine translation.