Core Vision IPO Suspension Audit Conceals Astonishing Inside Information, Suspected Of Excessive Earnings Management In Arrears Of Customer Invoices, And Regulation Of Related Party Transactions With False Credit Or Violation Of Regulations

On May 19 this year, the company has obtained the core vision of IPO acceptance on the science and technology innovation board, but the queuing dynamics was finally fixed on September 30.

After replying to the first round of inquiry letter of the science and technology innovation board on August 7, the audit of core vision was suspended due to the application for financial report updating, while the IPO and triple play communication, which were pre disclosed in the same period, had already been listed. Earlier, core vision was not only controversial in its core technology, but also reported by customers that it owed more than 5.5 million invoices.

Recently, the 21st century economic reporter also learned from people familiar with the matter that up to now, the 5.57 million invoices owed by core vision have not been fully returned. In addition, core vision still participates in the general meeting of shareholders after withdrawing from the investment of the participating company, or is suspected of fraud.

Regulating the false credit of related party transactions

It has to start with an investment in 2013.

According to the inquiry letter in response to the core vision, in 2013, Ding Ke, the controller of core vision, arranged for his younger brother Ding Zhong to help hold an enterprise named Tianjin zirbo microelectronics technology research and Development Co., Ltd. (hereinafter referred to as "Tianjin zirbo"), which is mainly engaged in the R & D, production and sales of power management chips.

At that time, Tianjin zircon also had two founders and shareholders, namely Wang Gang and Hu bin. Wang Gang was mainly responsible for the company's strategy and structure, operation and sales, while Hu bin was mainly responsible for product design, research and development, and matching market demand. DingKe did not directly participate in the operation and management of Tianjin zircon, but arranged core vision to provide relevant technical services to Tianjin zircon.

According to the initial plan, DingKe participated in Tianjin zircon as an incubation project. In the early stage, Youxin vision provided IC technology analysis services for Tianjin zircon at low price or even free of charge to support its chip research and development. In the future, if the operation and development of Tianjin zircon is better, the equity of this part can be transferred to the core vision at an appropriate time, so that the core vision can obtain better investment income, or the core vision can recover the cost of early stage technical service fee and obtain better business income by means of Commission on chip sales.

Although the financial data meet the standard, the IPO road of core vision is not smooth. Visual China

With the growing growth of Tianjin zircon, its purchase volume of core vision related products is also increasing. According to the core vision prospectus, in 2017 and 2018, Tianjin zircon ranked the third and fifth largest customers of core vision, with the purchase amount of 3.8836 million yuan and 6.9285 million yuan respectively, accounting for 5.27% and 6.10% of the total revenue of core vision respectively.

However, according to the core vision, since then, the operation of Tianjin zircon did not meet the expectations of all shareholders. In order to standardize and reduce related party transactions, Ding Zhong transferred all the equity to Hu bin in April 2017. Qixinbao data also shows that the transaction completed the change of industrial and commercial registration on April 21, 2017.

However, it is worth mentioning that the resolution of the shareholders' meeting of Tianjin zirbo microelectronics technology research and Development Co., Ltd., which was exclusively obtained by the 21st century economic report reporter, showed that on September 26, 2017, Ding Ke still attended the shareholders' meeting and signed.

However, in the resolution of the shareholders' meeting, the three shareholders re divided the rights and interests of Tianjin zircon, and formally discussed the details of core vision company's withdrawal from Tianjin zircon.

This also means that the time of core vision's actual exit from Tianjin zircon may be later than April 2017 disclosed in its prospectus.

On the other hand, when core vision withdrew from Tianjin zircon, Wuxi Hanqi Microelectronics Technology Co., Ltd. (hereinafter referred to as "Hanqi technology"), another enterprise that belongs to power management chips with Tianjin zircon, attracted the attention of the regulatory authorities.

According to public information, in October 2017, core vision and natural person Hu bin jointly established Hanqi technology, in which core vision invested 5.1 million yuan, accounting for 51% of the shares. However, since Hanqi technology has been in a state of loss, in May 2019, core vision transferred its 51% equity of Hanqi technology to Hu bin and his wife at a price of 561000 yuan.

The Shanghai stock exchange required it to "provide the assets evaluation report of Hankie technology and explain the reasons for the impairment, and whether there is the situation of prepaying costs or expenses for the issuer".

Core vision denies any other relationship or interest exchange with Hu bin and his wife. From the perspective of core vision, at the beginning of its establishment, Hanqi technology mainly purchased the wafer products of Tianjin zircon, and packaged them into IC products for sale. At the same time, it also developed its own IC products. Since March 2018, Hanqi technology has gradually realized the external sales of a small number of products; in the last two years, its overall market development period, small sales scale, and has been in a state of loss.

At the same time, core vision also emphasizes that Hanqi technology and the company operate independently, and Hu bin is mainly responsible for the operation and management of the company, and there is no case of paying costs or expenses for the company.

Is default on customer invoice intended for earnings management?

According to the public information, core vision is an enterprise mainly engaged in electronic design automation (EDA) software, providing integrated circuit analysis services and design services. From the perspective of core vision's financial data, the company has met the first set of listing standards of the science and technology innovation board.

From 2017 to 2019, the revenue of core vision is 73.7052 million yuan, 114 million yuan and 160 million yuan respectively; the net profit attributable to parent company is 26.9465 million yuan, 41.6853 million yuan and 75.5764 million yuan respectively; the proportion of R & D investment in revenue is 8.47%, 10.25% and 8.29% respectively.

At the critical moment of Sino US trade friction, the weakness of the domestic semiconductor industry chain has aroused worldwide attention. The core vision engaged in EDA research and development has been widely concerned by the market. However, from the financial report data, the EDA software licensing service of core vision does not contribute much to the company's revenue.

During the reporting period, the revenue of core vision EDA software authorization was 4.178 8 million yuan, 3.51 43 million yuan and 4.42 07 million yuan respectively, accounting for 5.98%, 3.23% and 2.85% of the total revenue, respectively. Its main source of income is IC analysis services and IC design and other fields, and the company's EDA software business is also mainly positioned in the field of IC analysis and IC design to serve it.

Although the financial data meet the standard, the IPO road of core vision is not smooth.

In August this year, one of the top five customers of core vision reported that in the 6-year transaction with core vision, core vision owed 5.57 million yuan of invoice. Subsequently, the company reported to the State Administration of Taxation (SAT) and the Shanghai Stock Exchange (SSE) that the core vision failed to issue invoices in accordance with the provisions, and requested the State Administration of Taxation to check whether the core vision truthfully reported the relevant income and whether there was any situation of evasion of state tax. At present, the State Administration of Taxation has submitted it to the subordinate units for follow-up.

Recently, the 21st century economic reporter learned from people familiar with the matter that up to now, the above-mentioned invoice has not been fully supplemented, and "hundreds of thousands of us have not been supplemented yet.".

"If there are tax violations in the operation process of the proposed IPO enterprises, and the problem of making up the overdue taxes will bring serious tax risks to the enterprises, which indicates that the internal control mechanism of the enterprises to be IPO is not perfect. For example, excessive earnings management is implemented to reduce the tax burden of enterprises, and the means of controlling accounting profits is used to inflate the operating costs of enterprises, conceal the actual income, and artificially reduce them After being inspected by the tax authorities, the enterprise will also accept tax penalty, pay tax arrears and overdue fine, and reduce the enterprise's tax integrity. " South China, a medium-sized securities firm investment banking department, said in an interview.

In fact, shortly after the invoice problem was exposed, on September 30 this year, core vision applied to suspend the audit for the reason of financial report update. However, nearly two and a half months have passed, but the audit of core vision has not been resumed. Excluding kangpeng technology, which actively applied for suspension of audit due to unknown reasons, core vision is the earliest IPO acceptance time among the remaining four suspension audit enterprises.

It is understood that the suspended IPO companies need to update their financial information within the specified time of three months, which means that the core vision has less than 9 days left.

"In general, the financial data of the interim report are basically ready. If you want to supplement it, you can actually do it very quickly. It may be that some enterprises delay the inquiry time through" supplementary interim report ". Now most IPO projects are in the inquiry and reply stage. The" supplementary interim report "can give enterprises more time to prepare for reply." Shenzhen, a securities investment bank said.