Financial News
Author: Hu Xueneng
2020-10-19 07:00
Last update date: 2020-10-19 07:00
Convoy Global (1019) has been suspended for nearly three years due to its involvement in the "Mystery.com Storm". The company received a notice from the Stock Exchange in June this year and decided to delist. Although it has submitted a review, it has recently been questioned by the outside world as "retreat for progress" "To privatize the company in disguise through delisting.
When Wu Ronghui, President and Executive Director of Convoy Group, was interviewed by "Hong Kong 01", he refuted the allegations from the outside world, saying that the company itself would be the biggest victim of the failure to resume trading.
At present, one of the keys to Kanghong's resumption of trading is to implement the 2017 financial statements, but it has been delayed. Wu explained that because it involves too many "irregularities" (irregularities), the company has appointed Zhonghui Anda Certified Public Accountants as the new company in recent months. The auditor is expected to announce the 2017-2019 annual report before the end of this year, which will remove a major obstacle to the resumption of trading.
"I'm pretty sure, at this minute, in addition to the accounts, we will do our homework well."
Wu Ronghui believes that it is not fair to say that outsiders claim that the company "Terden" will not resume trading for privatization.
(Photo by Lu Yiming),
In December 2017, the Independent Commission Against Corruption and the Securities Regulatory Commission jointly cracked down on the "Penny Stock Group" involved in market manipulation, setting off a "mystery net storm". Several senior Convoy officials were arrested on suspicion of corruption and the company also voluntarily suspended trading in the same month.
After nearly three years of the incident, Convoy changed its logo and moved its head office into the new building in Wan Chai. However, it has not been able to meet the conditions for resumption of trading. Recently, it has been questioned about deliberately delisting the company in disguise.
Denounce the unfairness of "deliberately" not resuming trading
Wu Ronghui, President and Executive Director of Convoy Group, was the first to "hold injustice" during an interview with "Hong Kong 01". He bluntly said that the biggest victim of failure to resume trading must be the company itself. In addition to the failure of many projects, it also added difficulties and failures. Distributing stocks to colleagues as bonuses, "Say that we will not resume trading in order to privatize this (accusation) is very, very unfair to many of our colleagues and advisors!"
The Listing Review Committee of the Stock Exchange issued a decision to cancel the listing to Convoy at the end of May this year.
Wu Ronghui revealed that the company had submitted a written review of the decision on August 14, involving more than 100 pieces of paper. In addition to him and many of his colleagues, more than 20 consultants also participated. "After two weeks, 100 A few pieces of paper, I think 70% of the paper, I typed it myself, I wrote it myself... I think my colleagues and I have not slept for a week. I am pretty sure our consultant told us that we are here. A document should be brought to the "post hall"... They have never seen a company that did this and wrote this in order to resume trading."
Wu Ronghui is confident that the company can announce its 2017-2019 financial report before the end of the year.
(Photo by Lu Yiming),
The new auditors are optimistic about the financial report announced by the end of the year
After reviewing the listing notice, a key requirement for Convoy's resumption of trading is to implement the 2017 financial statements, but it has failed so far. What are the reasons?
Wu Ronghui explained that the company had problems as early as 2014. From mid-2017 to the end of 2017, it became "extremely ill". There were too many "irregularities" (irregular behaviors), which caused the original auditor Luo Bingxianyong (PwC) to respond to Kanghong 2017 The annual financial statement has reservations, ""There are too many unusual facts, as many as SFC (SFC) more than 100 people rushed into the office to search... Irregularities are too important and too esoteric, and there are too many documents buried. , Plus the Circular Financing involved, what do you call PWC do?”
After checking the information, Convoy appointed PricewaterhouseCoopers as the new auditor in 2018 after the "Mystery Storm" broke out. By August this year, the other party asked to resign because it was unable to commit to the clearness of the 2017 financial statements. schedule.
At the end of the same month, Convoy appointed Zhonghui Anda, who is not the "big four", as the auditor. Why did Wu Ronghui think that there was a turning point?
He explained: "Some Irregularities have also "eye-opened" Zhonghui Anda, but the problems they ask and how to solve the problems are different... For example, they will help us take one step further. Why is there no such document? Is there really no document? There was this document and it was taken away, or there was no document from beginning to end."
Wu Ronghui believes that the method adopted by Zhonghui Anda will eventually help complete the 2017 accounts, and he is optimistic that the company will be able to announce the accounts for 2017 to 2019 before the end of this year. (Required) The accounts must be done, but after we complete the accounts, will the Stock Exchange point out other problems? I can’t guarantee it, but I’m pretty sure, at this minute, in addition to the accounts, we will hand over homework".
Wu Ronghui said that the company is very different from two years ago, and the five newly hired team members are "inspiring and powerful."
(Photo by Lu Yiming),
Said that Convoy is very different now from more than two years ago
In addition to the allegations of deliberately privatizing the exclusion card, there are also voices outside that corporate governance is not effective. Wu Ronghui responded that the company's independent directors held board meetings every week during the first half of the "Mystery Internet Storm" to deal with poor conditions. .
In July and August 2018, an independent committee was established, and FTI was hired to review every "unusual incident", including the reason for its occurrence and the possibility of recurrence in the future, and also suggest how the company can improve Internal compliance, corporate governance, "They and FTI have spent more than ten months in meetings every day. I really appreciate these independent directors!"
He said that the current Convoy, and the 2017 Convoy, are two different companies, currently operating 4 businesses, of which the IFA (Independent Financial Advisor) business is "unprecedented" strong.
In terms of scale, IFA business and non-IFA businesses including "B2B" (business-to-business business) account for about half and a half.
"This company used to have no internal control or internal compliance. We hired an internal audit from Citigroup. Then we changed the compliance and legal department completely. We saw the company’s performance from 2014 to 2017. The situation is impossible to accept!"
Wu Xu said that since the company announced its operating status on August 28, it has received a large number of calls, including investors from local, mainland, and even New York, the United States, seeking cooperation, which proves that the company is currently in good governance.
He also pointed out that the number of financial advisors dropped to a low point in 2018, falling to only 1,200, and has now risen to more than 2,000. The five newly hired team members are "inspiring and powerful": "All of them come from well-known financial institutions. ...I want to persuade them (jumping) to come over. It takes a lot of time. If we are on the market (status), please don't let me down, especially since we have achieved such results now!
Kang Hong was accused of delisting and privatizing, the president denounced the accusations of unfairness and optimism about the financial report before the end of the year
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