＂Xu Jiayins most trusted man＂ was severely punished by Xia Haijuns annual

On September 25, the China Securities Regulatory Commission issued an administrative penalty decision (Xia Haijun). Xia Haijun was then the vice chairman and president of the board of directors of the China Evergrande Group.The annual report has false records of illegal acts, warning Xia Haijun and a fine of 5 million yuan. In response to the fraudulent issuance of corporate bonds on Evergrande Real Estate, Xia Haijun fined 10,000 million yuan.

In view of Xia Haijun's organizational arrangements to prepare false financial reports, the means are particularly bad and the plot is particularly serious.

illegal facts

The Securities Regulatory Commission released the administrative penalty decision of Xia Haijun, the vice chairman and president of the board of directors of the then Evergrande Group of China, to disclose the illegal act of false records of the 2019 and 2020 annual reports, and gives Xia Haijun.The warning was fined 5 million yuan; the discretion of corporate bonds for Evergrande Real Estate had fraudulent issuance, and Xia Haijun fined 10,000 million yuan.In view of the organization of Xia Haijun's arrangements to prepare false financial reports, the means are particularly bad and the circumstances are particularly serious.

The penalty decision shows that after being found out, Xia Haijun has the following illegal facts:

I. There are false records of the 2019 and 2020 annual reports disclosed by Evergrande Real Estate

Evergrande Real Estate implemented financial fraud by confirming the income method in advance. In 2019, the virtual income increased by 213.989 billion yuan, accounting for 50.14%of the current operating income, corresponding to the cost increase cost of 1,73.267 billion yuan, and the profit increase of 40.722 billion yuan, Accounted for 63.31%of the total profit of the current profit; in 2020, revenue increased by 35.157 billion yuan, accounting for 78.54%of the current operating income, corresponding to virtual increase costs of 2,9888.8 billion yuan, and fictional increased profits of 5.1289 billion yuan, accounting for the current total profit of the current period, accounting for the current total profit.86.88%.

2. There are fraudulent issuance of Evergrande Real Estate's public offering of corporate bonds

Evergrande Real Estate issued 20 Evergrande 02 bonds on May 26, 2020, with a issuance scale of 4 billion yuan; 2020 Evergrande 03 bonds issued on June 5, 2020, with a issuance scale of 2.5 billion yuan; September 23, 2020Issuing 20 Evergrande 04 bonds, issuance scale of 4 billion yuan; 2020 Evergrande 05 bonds issued on October 19, 2020, the issuance scale was 2.1 billion yuan; the 21st Evergrande 01 bonds were issued on April 27, 2021, with a issuance scale of 8.2 billion yuanEssence

Evergrande Real Estate's issuance documents announced in the process of issuing the above bonds quoted the relevant data of the 2019 and 2020 annual reports of false records, and there are fraudulent issuance.

The Securities Regulatory Commission believes that there are false records of the 2019 and 2020 annual reports disclosed by Evergrande Real Estate.Clear, easy to understand, no false records, misleading statements, or major omissions "constitute the behavior described in Article 197, paragraph 2 of the Securities Law.Xia Haijun, the vice chairman and president of the China Evergrande Group, actually coordinated the daily business affairs of Evergrande Real Estate, organized and arranged false financial reports. The means were particularly bad and the plot was particularly serious.Direct responsible supervisor.

Evergrande Real Estate's public issuance of corporate bonds has the behavior of fraud issuance. In violation of Article 19, paragraph 1 of the Securities Law "," the securities issuance application documents submitted by the issuer shall fully disclose that investors make value judgments and investment decisions.The content of information should be real, accurate, and complete ", which constitutes the behavior of Article 181, paragraph 1, paragraph 1 of the Securities Law.Xia Haijun, the vice chairman and president of the China Evergrande Group, actually coordinated the daily business affairs of Evergrande Real Estate, organized and arranged false financial reports. The means were particularly bad and the plot was particularly serious.

According to the facts, nature, plot and social harm of the parties' illegal behavior, the CSRC decides:

1. In response to Evergrande Real Estate's disclosure of illegal acts in the 2019 and 2020 annual reports, in accordance with the provisions of Article 197, paragraph 2 of the Securities Law, Xia Haijun was warned by 5 millionYuan's fine;

2. In response to the public issuance of corporate bonds in Evergrande Real Estate, fraudulent issuance is fined by Xia Haijun in accordance with the provisions of Article 181 of the Securities Law.

Three, given that Xia Haijun organizes the arrangement of false financial reports, the means are particularly bad and the circumstances are particularly serious.Article 3, paragraph 1, and Article 5, paragraph 3, should take the lifelong securities market forbidden measures for Xia Haijun.From the date of announcement of the decision, during the ban period, except that it is not allowed to continue to engage in securities business in the original institution or serve as a director, supervisor, and senior management personnel in the original listed company, the non -listed public company.Business may serve as other listed companies, directors, supervisors, and senior management personnel.

It is called " Xu Jiayin Most Trusted Man"

Xia Haijun was once known as the "Emperor of the Workers".

Public information shows that Xia Haijun was born in Harbin in 1964 and graduated from Central South University, Jinan University .Doctoral degree in industrial economics, joined Evergrande in 2007.

Xia Haijun was previously known as "Xu Jiayin's most trusted man".As the left arm of Xu Jiayin, he has been in the "No. 2 character" in Hengda for many years. Xu Jiayin has let go of the media that he has repeatedly responded to the performance of the performance.In the entire real estate industry, Xia Haijun is also one of the longest -lasting professional managers.

Xia Haijun also has a ceiling -level salary.In 2017, Xia Haijun topped the list with 270 million yuan in the CEO of China -listed China -shares released by Forbes.According to the Evergrande annual report, in 2021 and 2020, Xia Haijun's salary at Evergrande Group was still as high as 202 million yuan and 204 million yuan.

But on July 22, 2022, China Evergrande issued an announcement that Xia Haijun resigned as the company's executive director and chief executive officer.

During the crisis of Evergrande's difficulties, Xia Haijun chose to reduce his holdings.On August 11, 2021, Xia Haijun reduced its holdings on Evergrande Property and Evergrande Automobile, which cash out about 73.02 million Hong Kong dollars and 42.53 million Hong Kong dollars, and the two total of approximately HK $ 116 million.

Source: Securities Regulatory Commission, Finance Association, China News Network