Henglong The news of launching an internal audit has spread into a storm after several days of fermentation.
The first one that came out was the Snowball platform.
At noon on June 9, a user with the ID name "Henglong Old Shareholder" posted:
<Henglong suddenly started a comprehensive audit, what is Zhao Chen doing?>
"As soon as Rights Issue ended and the stock price finally reached 7 yuan, the young Acting Chairman started to make troubles.
The Deloitte team is stationed, and it is said that the first batch of audit targets are the 12 core companies Suppliers. Why does normal operation require so much effort? A problem must have been discovered.
Combined with the previous financing from the market, the Henglong pool of water is much deeper than imagined..."
Three hours after the post was posted, the number of comments exceeded 500.
"The 7-yuan capital has been stuck for three months. It was just about to be released, and now it has fallen back. Will Zhao Chen be able to operate?"
"Of course he can manage - manage his own equity and wallet. Henglong He doesn't care whether he lives or lives."
"Audit is a good thing, right? Looking at the improvement of corporate governance in the long run, why are so many people criticizing it?"
"Upstairs, do you really not understand or are you pretending not to understand? The market is most afraid of uncertainty.
What does auditing mean? It means that there may be a thunderstorm. Before the thunderstorm explodes, all the smart people will run away."
"Run away, run away, clear the warehouse tomorrow, I can't afford to offend but I can hide."
Panic spreads like a virus.
On June 10, the stock price of Henglong opened at 7.12 Hong Kong Dollar and closed at 6.88 Hong Kong Dollar, a decrease of 3.4%.
On June 11, the decline continued and closed at 6.75 Hong Kong Dollar.
On June 12, it barely held steady, closing at 6.72 Hong Kong Dollar.
On June 13, a "Deloitte Audit Preliminary Findings Summary" began to circulate on Snowball, with an unknown source.
The content is mixed between true and false, but it is mentioned that "there are abnormal fund transactions in a certain core Suppliers" and "the amount involved may exceed 50 million."
The stock price plummeted 5.2% that day, once falling below 6.4 Hong Kong Dollar.
On the afternoon of June 13, Chairman's Office.
Chen Xi stared at the jumping stock price on the screen, frowning.
"Zhao Zong, Market Reaction is more intense than expected." She called up the public opinion analysis of the past few days,
"Negative public opinion mainly focuses on three points:
One is 'Rights Issue conducted an audit right after it was completed, indicating that the problem is more serious than imagined';
The second is that 'the audit specifically singled out Suppliers, possibly to purge dissidents';
The third is that 'the Zhao Jianguo case has not yet been decided, the company is in civil strife, and the management is unstable'."
She scrolled down the mouse. "Some people say... you don't know how to run a business at all, you only play capital games."
Zhao Chen leaned back in the chair with a calm expression. "Whatever they say."
Of course he knew that launching an audit would cause stock price fluctuations.
This is common sense in the business world - the market hates uncertainty, and auditing is synonymous with "uncertainty".
"Where is Lin Wanqing?" he asked.
Chen Xi switched the screen and spoke in a lighter tone, "She can hardly hold it anymore."
On the screen are fund monitoring records:
June 9: Huadong Construction withdrew a reserve fund of 8 million from Partner Banks.
June 10: Zhenhua Construction urgently discounted unexpired commercial bills, withdrawing 12 million funds.
June 11: Lin Wanqing individual Trust Account withdrew 30 million Hong Kong Dollar, and the payee was an overseas trading company.
June 12: Five companies including Huadong Construction, Zhenhua Construction, and Zhongcheng Construction submitted "emergency payment applications" to Henglong Finance Department at the same time, with a cumulative amount of 42 million.
"She is tearing down the east wall to make up for the west wall." Chen Xi said,
"Most of the problem items mentioned in the audit report need to be rectified.
During the rectification period, payments were suspended, and the cash flow of her vest companies was cut off."
She dug out another record:
"According to feedback from the Engineering Department, the 'Riverside No. 1' project undertaken by Zhenhua Construction has experienced delays in material supply in the past two days - the supply has been cut off due to default in payment to Suppliers."
Zhao Chen sneered, "You can't hold back so quickly?"
"The audit report is still being updated."
Zhang Qingxue opened the door and came in, holding the newly received Deloitte briefing in his hand.
"Two more abnormal payments were discovered today - in December last year, Henglong paid a 'project progress payment' of 38 million yuan to Huadong Construction.
But at that time, the actual progress of the project was only 60%. The overpayment of 12 million has not been refunded to this day."
She paused:
"Huadong Construction's explanation was 'year-end financial accounting error' and promised to refund next week. But week after week, it has been delayed for half a year."
Zhao Chen looked at Chen Xi: "Has Lin Wanqing asked you for payment recently?"
"More than just looking for me." Chen Xi smiled bitterly,
"Engineering Department, the operations department, and even Finance Department were forced to make phone calls to press for payment.
Yesterday afternoon, she first broke into the Engineering Department's office and slammed the table in front of seven or eight people."
"Song Zhongping What's your reaction?"
"Mr. Song doesn't express his position on the surface, but Engineering Department's payment approval is very strict."
Chen Xi said,
"Engineering Department Li Ming is his, every payment must be accompanied by a complete acceptance report and progress confirmation.
Lin Wanqing can't get these, so we can only worry."
Zhao Chen is thoughtful.
Song Zhongping This "Token of Surrender" is becoming more and more real.
"How much is left in her Trust Account?" he asked.
"After withdrawing 50 million from the trust, the remaining funds are approximately 370 million Hong Kong Dollar."
Chen Xi calls up data,
"But this is her last Lifeline Funds. If this money is also spent, she will not have any backup funds."
"The audit and rectification will continue for at least another month."
Zhang Qingxue answered the call,
"If within this month, her vest companies are sued by Suppliers, have their loans taken away from banks, and even get audited by tax..."