KELON exposure 404 million funding black hole suspected illegal violations of the six matters

After a day of suspension wait, Kelon (000921) yesterday again disclosure of sensitive information, the first half of this report before the release of the corrections. The main contents of the corrections commission to survey six Kelon found suspected illegal items, involving the relevant personnel to use the corporate chapter, Sike seal and financial account transactions, illegal related party transactions, and transfer to the unknown third party payment of large prepayments and other issues, the six event is suspected of embezzlement of Kelon Electric Capital of 404 million yuan.

In fact, these six events in the previous A shares semi annual report announcement has been expressed, but unlike its H-share listed companies is that A shares semi annual report is in the text of the "accounts receivable and related transaction note" distributed disclosure, while H shares semi annual report these events on display in "the financial statements of certain matters" column, relatively more attractive. For the difference between A shares and H shares semi annual report, Kelon explained that the work error". However, in the announcement yesterday that Kelon corrections: in view of China has not yet received the Commission to initiate an investigation, the company responsible for the incident personnel involved in the financial statements, or other items which may arise due to China Commission investigation to see note."

Correction notice issued, Kelon appliance also resume trading yesterday, shortly after the opening of the limit until the close, the stock closed yesterday at 2.72 yuan, an increase of 10.12%.

KELON six alleged misappropriation of funds

A subsidiary of Guangdong 1 Kelon Kelon Air Conditioner Co. opened accounts outside the bank account at the same time, Sike corporate chapter and financial dedicated seal for a series of transactions, from March 2003 to February 2004 in the same period, but did not disclose the financial statements, including accounts receivable (Shenzhen) Co. Greencool technology development company 32 million yuan. Greencool environmental engineering Shenzhen Co. Ltd. accounts payable 33 million yuan; Tianjin Thailand Jin Yun industry limited company 65 million yuan.

2 Kelon Electrical Appliance Co., Ltd. Jiangxi Kelon Industrial Development Co., Ltd. involves the use of off balance transactions and may not disclose the related party transactions, as of June 30, 2005, there are no other receivables of $57 million.

3 Guangdong Kelon Air Conditioner Co. Ltd. in March 10, 2005 without the approval of the board of directors, signed to the purchase contract value of 13 million 500 thousand yuan of refrigerant and the Hainan Greencool Environmental Engineering Co Ltd. The sum of money has been paid in April 29th without the normal procedures, the goods have been received in storage, but the reduction was not sealed.

4 the use of subsidiary to Tianjin Xing-run, Tianjin Lixin, Ji'nan san'aifu fluorine chemical unknown third party payment 268 million 690 thousand yuan, but so far only received 2 million 426 thousand and 700 yuan of goods.

The 5 subsidiary of Shenzhen Kelon procurement limited during the period from April 26, 2005 to April 27th a total of two paid 89 million 600 thousand yuan to a new supplier "Tianjin Lixin Trade Development Co. Ltd., the delivery time is May 1, 2005 to August 31st, to report the date of delivery is 58.8 tons, the market value of 396 thousand and 700 yuan.

6 by a subsidiary of Jiangxi Kelon industry during the period from April 6, 2005 to April 14th were paid 81 million 680 thousand yuan to a new supplier "Ji'nan san'aifu fluorine chemical industry limited liability company" development limited, the delivery time is from May 1, 2005 to August 31st, to report on the date of Jiangxi Kelon has been closing value of about 400 thousand yuan of goods.