紫鑫药业财务舞弊分析——英文版.docVIP

Analysis of the Financial Fraud Method about Zixin Pharmaceutical Industrial Co., Ltd Part 1:Company Profile Jilin Zixin Pharmaceutical Industrial Co., Ltd., as a traditional Chinese medicine company, also is a high-tech joint-stock enterprise. On March 2nd, 2007, the company was listed on the Shenzhen Stock Exchange. The company is principally engaged in proprietary Chinese medicines R D, production and sales, and medicinal plant cultivation and breeding, the treatment of cardiovascular diseases, digestive diseases and bone-setting class of proprietary Chinese medicines for the dominant species. Main products are tablet for promoting coronary circulation, musk capsule for coaptation, capsule for refreshing reengineering, four wonderful pill, capsule for renal rehabilitation capsule, oral liquid for tonification and sedative, and so on. Making a brief introduction of the companys development process: In?May 1998,?the limited liability company (LLC) was established. In?November 1998,?the?EGM?decided?to?increase their investment,?its registered capital increased to?30 million?yuan. On February 9, 2001,?the company’s net?assets were converted into?equal shares, and the type of?the company was changed to the stock limited company, and the?capital stock was 35.65 million. On May 28, 2001,?changed to ZiXin?Pharmaceutical Co., Ltd.On March 2, 2007,?listed on the Shenzhen Stock Exchange. In?November 2010,?in?cooperation?with Jilin?Tonghua government, and first foray into the?ginseng?business. On August 9, 2011, First?temporary?suspension. On?August 10,?resumption of trading, share?price was19.58, amount of increase is 0.93% On August 17, 2011, the second?temporary suspension. On October 24,?resumption of trading,?three consecutive?lower limit. Part 2: Analysis of Zixin’s Financial Fraud From the above figure, we can see, in the past four years 2006-2009, the total operating income and net profit of Zixin had maintained a steady growth. In the opinion of industry analyst