“Clothing giant” Bai Baolong: He was once famous across the country, but now he is facing bankruptcy. What happened?
Today, the editor will introduce to you a couple who made profits through illegal means – they are Mr. and Mrs. Chen from Baibaolong Company. They made fraud on their accounts for seven consecutive years, and then fled after cashing out more than one billion. . Now the companies they created are no longer allowed to enter the market, and state-owned assets will eventually take over.
In fact, the Chen couple falsified financial statements intentionally, because they knew that falsification was illegal, but they did it in order to pursue higher interests. The company they opened was a clothing design company. The company is called Baibaolong. In fact, the scale in China is relatively large, because many of its brands already have 80 stores, and they also have offices in France.
It is understood that Baibaolong was established in 2006, and its headquarters is Puning City, Guangdong. Baibaolong’s business model is relatively unique, and the services it provides are all-round. For example, textile material research and development, quality control, organization of production, etc. After that, the company went through continuous transformation and became stronger and stronger. It gradually became a company registered in the market relying on clothing design, and it is also the only one in my country.
Mr. and Mrs. Chen are the main controllers of this company. They have been the president and general manager of this company since 2009. From 2013 to now, Chen Weixiong has also served as the vice president of the Guangdong Garment Industry Association. From 2015 to 2018, Baibaolong’s operating income was very considerable, which were 655 million yuan, 841 million yuan, and 1.05 billion yuan respectively, and the net profit was also very considerable, which was increasing year by year. This period The profits of time are 121 million yuan, 118 million yuan, 130 million yuan, and 193 million yuan respectively.
However, we can know from some news released by the media that Baibaolong has actually been committing financial fraud for six consecutive years. From 2013 to 2018, Baibaolong’s total income from producing false financial statements was 1.276 billion yuan, of which the falsely reported profits were 410 million yuan. In addition, Baibaolong also committed such violations, that is, by making false accounts, then concealing the actual amount entered, and providing this false information to the bank.
From 2012 to September 30, 2015, 2016, and from 2018 to 2019, during this period, the amounts of bank deposits misrecorded were 74 million yuan, 105 million yuan, 229 million yuan, and 262 million yuan respectively. yuan, 434 million yuan, 738 million yuan, 1.098 billion yuan. In addition, there was no disclosure of the purpose of raising funds, and some approval procedures for external guarantees did not comply with regulations. Therefore, the China Securities Regulatory Commission fined Baibaolong. The amount of the fine was as high as 10 million, and for Chen The couple was also fined, and the amount of the fine was 5 million.
In addition, officials related to this case have already imposed fines, ranging from 3 million to 500,000. It is understood that the Chens and his wife had actually cashed out a lot of funds before their financial fraud was exposed. From March 2019 to September 2020, the Chen couple cashed out approximately 555 million during this period. It can also be seen from this that they have actually already started planning to cash out.
In fact, in the two months of 2020, the signs of their cash-out were already obvious. It is understood that the two of them transferred tens of thousands of shares to other financial institutions, and then cashed out 180 million yuan and 200 million yuan. Yuan. In other words, from March 2019 until now, the total money raised by Chen Sheng and his wife is approximately 935 million yuan.
It is worth noting that in November 2021, the Chens and his wife irrevocably entrusted the voting rights corresponding to 29% of the shares they held to Zhongtai Group. In other words, Zhongtai Group will clean up the mess caused by the Chens and his wife. And in the context that Zhongtai Group is a state-owned asset, can Baibaolong achieve the smooth development of the company after taking over? Let’s wait and see!
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