If your salary is about 200,000 yuan, a boss suddenly said: Little brother, your few pieces of money are not enough to buy a toilet in Beijing. Come to my place, I will give you 3 million. I'm afraid many people can't withstand such temptation. Faced with nearly 15 times the salary, Huang Yi did not hesitate to change jobs.

Huang Yi received a salary of 3.0942 million yuan in 2024 without any suspense, becoming the salary champion among 604 secretary of the board of directors in Zhejiang. Of course, many Zhejiang bosses are very frugal. Among the 721 A-share listed companies, only 604 full-time secretary of the board, because many listed companies are the boss acting as secretary of the board, saving money. So is ST Huatong really generous? Huang Yi is here to carry the thunder.

ST Huatong recently received two letters, one is the regulatory letter from the Shenzhen Stock Exchange and the other is the warning letter from the Zhejiang Securities Regulatory Bureau. The two regulatory letters mainly target the false records of ST Huatong's goodwill in the 2018-2022 annual report, and the temporary report on the completion of performance commitments from 2020-2021. To put it bluntly, it is financial fraud. Both letters mentioned Huang Yi. Huang Yi only became the secretary of the board of directors of ST Huatong in February 2023. Why is he also involved in ST Huatong's financial fraud case?

Huang Yi is just a scapegoat.

Huang Yi joined ST Huatong in February 2023. According to the notice from the regulatory authorities, ST Huatong’s fraud was all before 2023 and had nothing to do with Huang Yi, but why should he be punished? The compilation of the financial data of the 2022 annual report began in January 2023. It was so coincidental that Huang Yi entered ST Huatong in February 2023 and was specifically responsible for the 2022 annual report. That year, the boss offered Huang Yi a salary of 1.4863 million yuan, while Huang Yi's salary in Oriental Fashion in 2021 was 195,400 yuan. Because it was a great achievement in 2023, it rose to 3.0942 million yuan by 2024.

How ruthless is ST Huatong’s performance fraud?

ST Huatong was a listed company that made auto parts and spare parts. There were three things that caused big trouble in A-shares. One was that 29.8 billion snake swallowed elephant to acquire Shengqu Games. The second was that Tencent kept buying ST Huatong stocks. The third was that financial fraud. Three things are related. The M&A Game has a performance bet from 2018 to 2020, with a cumulative promised profit of 7.598 billion in three years. According to ST Huatong's disclosure at the time, the bet was completed, but in the 2022 financial report, 5.428 billion goodwill impairment was set aside.

The exchange has doubts about ST Huatong's large-scale goodwill provisions, because after deducting non-operating items in 2021, ST Huatong's net profit fell from 2.583 billion in 2020 to 241.2 million, and even more exaggerated in 2022, with a huge loss of 6.681 billion. The exchange sent an inquiry letter, and there was no problem with the reply from the listed company. The China Securities Regulatory Commission decided to investigate ST Huatong's suspected illegal and irregular information disclosure, and the secretary of the board of directors was Huang Yi at that time. The China Securities Regulatory Commission's investigation found that ST Huatong carried out financial fraud from 2018 to 2022.

ST Huatong's financial fraud focuses on goodwill impairment provisions and fictitious transactions. Among them, from 2019 to 2022, the impairment of goodwill was set aside by approximately 762 million yuan, resulting in an inflated net profit of 762 million yuan in 2020. There is also a lot of companies to transfer copyrights, inflated net profit by 369 million. If these fake profits are excluded, ST Huatong's performance bet will not be completed. On November 6, 2024, the China Securities Regulatory Commission imposed a fine of 14 million yuan on its financial fraud-related institutions and responsible persons, and also put a ST hat on it.

Now, the boss gives you a high salary, that's not a pie from the sky. Huang Yi’s previous secretary Zhou Mi joined the board of directors on March 6, 2022, and she didn’t work for a year. No, to be precise, she didn’t hold on in 2022. She quit on December 1, 2022 because she was also a scapegoat and came to make her 2021 financial report.

Zhou Mi has returned from studying in the United States and has worked at Tencent for a long time. She has been the secretary of the board of directors at ST Huatong for less than 9 months and has received a salary of 1 million yuan. Zhou Mi's previous secretary was Li Bingjie. He joined the company on January 13, 2020 and worked until Zhou Mi took over on March 6, 2022. To be honest, Li Bingjie's salary is not high, only 180,000 in 2020, and only increased to 331,000 in 2021. Li Bingjie is also a standard scapegoat because she is responsible for the financial reports in 2019 and 2020.

Li Bingjie was trained by ST Huatong. She joined ST Huatong Securities Investment Department after graduating from college. 2019 and 2020 were the two most critical years for ST Huatong to bet. Any financial mistakes will happen, and the boss will be in big trouble. Although Li Bingjie did not have any experience as a secretary before, ST Huatong insisted on using her own people during the critical period. Li Bingjie, born in 1994, started her own journey of taking the blame with a salary of 180,000. By March 2022, during the critical period of the annual report, Zhou Mi was here.

Before Li Bingjie, ST Huatong had never replaced the secretary of the board. From September 26, 2008 to August 30, 2019, the secretary of the board was Yan Zhengshan. Yan Zhengshan is an old secretary of the board and publicly disclosed that he retired in 2019. I retired at the right time. In fact, many people in private enterprises work until they are 80 years old. After all, Yan Zhengshan’s salary in 2017 and 2018 was 600,000, and I don’t know how much retirement salary can be obtained. Anyway, I retired before the 2019 third quarter report was disclosed, but this time I didn't get out of here.

According to the income of the secretary of the board of directors disclosed by ST Huatong, Yan Zhengshan's corresponding responsibility is the annual report for 2018, Li Bingjie corresponds to 2019 to 2020, Zhou Mi corresponds to 2021, and Huang Yi corresponds to 2022. Li Bingjie's salary in two years is only 511,000 yuan, less than Yan Zhengshan's salary in one year, and only 16% of Huang Yi's 2024. Li Bingjie is still too young. Her old boss seems to treat her as her own person, but in fact, she takes the blame for the girl for two years with the minimum salary.

Whether it is the regulatory letter from the exchange or the Securities Regulatory Bureau, the secretary of the board of directors of ST Huatong was punished and killed in one fell swoop. Yan Zhengshan retired, it doesn’t matter. Li Bingjie has no chance to be the secretary of the board of directors. The old boss probably felt sorry for him and gave him a position as supervisor. Zhou Mi didn't know where she was, because of this regulatory letter, she would probably be in vain. Huang Yi took the blame and raised her high salary and was punished. Can she continue to be the secretary of the board of directors? The secretary of the board of directors is an important window for investors to understand listed companies. Anyone who commits fraud should clear this ranks. Faced with the fall of ST Huatong's four secretary-in-chiefs, perhaps, the people would say that they are really guarding the tiger and making accomplices.