In-depth analysis of the companies involved in the Xi'an Metro "Cable Gate" incident

The companies involved in the Xi'an Metro "Cable Gate" incident - Shaanxi Aokai Cable Co., Ltd. (hereinafter referred to as Aokai Cable Co., Ltd. Kai Company)'s operating risks were superficially caused by "cutting corners and providing substandard products", which led to major safety accidents and were severely punished by law; the underlying reason was actually that the actual controller took desperate risks to produce fake and shoddy products due to the pressure of huge invisible debts. , caused by an attempt to make huge profits.

1. Watch him build a tall building, watch him entertain guests, watch his building collapse

Okay Company was established in November 2012. In less than four years, its trademark won the With the title of "Shaanxi Provincial Famous Trademark", its products have entered Chengdu Metro, Hefei Metro, Xi'an Metro, Baolan Railway, Chongqing-Guizhou Railway, etc. However, on March 13, 2017, a netizen who claimed to be an employee of Shaanxi Okai Cable Co., Ltd. posted a post online titled "Do you still dare to sit on the Xi'an Metro?" The post stated that Xi'an Metro Line 3 has potential safety accidents. "The cables produced by this factory are all cut corners, and all production indicators do not meet the subway construction standards." Not only will a large amount of power be lost, but fires may also occur. "In When the cable burns, it will produce a large amount of harmful and toxic gases, which will kill thousands of passengers trapped in the subway."

Like a thunder on the ground, the corporate image of Okay Company collapsed; immediately afterwards, the relevant government departments quickly launched an investigation and severely held accountable the Xi'an Subway "problem cable" incident. In the end, the actual controller Wang Zhiwei Several crimes were punished concurrently, and it was decided to execute life imprisonment, be deprived of political rights for life, and be fined RMB 21.5 million; the remaining seven defendants (all employees of the company) were sentenced to prison terms ranging from 7 to 12 years. The incident spread so widely that 122 responsible persons from relevant local functional departments, including 16 at the department level and 58 at the division level, were held accountable and dealt with in accordance with the law and disciplines, which is shocking.

2. The operating profit of Okay Company is acceptable, and the actual controller will not take risks in order to seek huge profits

Financial statements provided by Okay Company to a financial institution

(Unit: 10,000 yuan)

Year 2013, 2014, 2015, May 2016

As can be seen from the report, Okay Company's profitability is good, and the net sales profit rate is at Around 9; the main business is growing rapidly. According to the development trend at that time, the future development prospects are optimistic.

According to the "Second Instance Criminal Ruling of Shaanxi Okai Cable Co., Ltd., Wang Zhiwei and others on the crime of producing and selling counterfeit and inferior products, the crime of bribery by an entity, and the crime of bribery" on the China Judgment Document Network: "From February to July 2015, Shaanxi Okai Company has successively signed low-voltage power cable supply contracts with construction units of eight sections of Xi'an Metro Line 3, including China Railway First Bureau Group Electrical Engineering Co., Ltd." Its production time for cables used in Xi'an Metro should be in the second half of 2015. At this time, the company's operating conditions are relatively good.

The actual controller Wang Zhiwei has been engaged in cable production and sales for more than 20 years. It is impossible that he does not know the consequences of using fake and inferior cable products, and there is no need to cut corners (during the production process, both ends of the cable are deliberately only 15 It is about 30 meters long, produced according to the standards required by the contract to prepare for random inspections, the middle part is slimmed down, and the quality of the product is controlled through internal operations), eager for quick success and instant gain, touching the bottom line of the law, because according to the first requirement of the "People's Republic of China and the Criminal Law of the People's Republic of China" According to the provisions of Article 140, anyone who produces or sells counterfeit and inferior products with a sales amount of more than 2 million yuan shall be sentenced to 15 years in prison or life imprisonment, and shall also be fined not less than 50% but not more than twice the sales amount, or have property confiscated.

Why would he take such desperate risks?

3. From the analysis of personal development experience and wealth accumulation process, the actual controller is very likely to be burdened with huge invisible debts, causing him to take risks in order to repay the huge debt as soon as possible

Wang Zhiwei September 1972 Born on the 11th in Hejian City, Hebei Province, with a junior high school education. When a Chinese business reporter interviewed Wang Zhiwei’s hometown, his brother Wang Binglu introduced that the family were farmers and had no money to provide financial help to Wang Zhiwei. The scene saw that his hometown only had a few bungalows, which was already very crowded. old.

(1) From December 1991 to 2002, Wang Zhiwei basically worked part-time. According to an interview report released by Shaanxi Radio and Television Station on March 25, 2017, during the interview in Yangling Demonstration Zone, the reporter found the resumes of three shareholders of Shaanxi Okai Cable Co., Ltd. from a financing guarantee company.

Among them, Wang Zhiwei’s personal resume shows that he served as vice president of sales at Hebei Xinhua Cable Co., Ltd. from 1993 to 2002, and studied a self-study MBA at Xi’an Jiaotong University from 2002 to 2006. , was assigned by the company to Shaanxi to engage in company sales. According to a survey conducted by Huashang.com on March 25, 2017 ("Reporters visited the father of Okay Cable Corporation's hometown: Don't bear the burden of what you shouldn't bear"), a person in charge of the human resources department of Hebei Xinhua Cable Co., Ltd. surnamed Wang said that Wang Zhiwei in 1991 From December 1994 to March 1994, he worked as a worker in the company's workshop; and the Huashang Daily received a reply from the relevant department of Xi'an Jiaotong University: "Wang Zhiwei, the person in charge of Okay Cable, was not found in all queryable systems of our school. This person, Wang Zhiwei, has no relationship with Xi’an Jiaotong University.”

(2) From 2003 to 2012, Wang Zhiwei had no experience in accumulating wealth on a large scale. Judging from the resume Wang Zhiwei provided to the guarantee company, he did not provide any experience in large-scale accumulation of wealth at this stage, and public opinion and media did not inquire and find that he had any experience in starting a company or even being self-employed.

According to his brother Wang Binglu, Wang Zhiwei followed him in sales at two large local cable companies in his early years, selling cables for the companies. After about 2003, Wang Zhiwei left the local area with his wife Liu Xiufen, who was also from a farmer's family in a neighboring village, and went to work in Shaanxi. "We should still be in sales." (See "Wang Zhiwei, the actual controller of Okay Cable: Born in a rural area with a junior high school education and started in sales" Source: Company Secrets 2017-03-24).

The public work experience is that in September 2009, Wang Zhiwei served as an agent salesperson at Yangtze Hi-Tech Cable Co., Ltd. (see "Shaanxi Okai Cable Co., Ltd., Wang Zhiwei and others were charged with the crime of producing and selling fake and inferior products, and bribery by the unit Criminal Ruling of Second Instance on Crimes of Crime and Bribery"), but how much can one earn as a salesperson? The net profit of the entire company of Okay Company in the first two years was only about 2 million yuan. Even if it is optimistically estimated, it is difficult for a Yangtze Company salesperson to have an annual income of 1 million yuan, because Yangtze Hi-Tech Cable Co., Ltd. is not operating well and is in arrears with various payments. In 2013, he was listed as a defaulter by the court.

(3) The huge capital increase of 40 million yuan at the beginning of the company's establishment is likely to be the formation of invisible debt. On March 21, 2017, a reporter from the Huashang Daily inquired at the Yangling Demonstration Zone Industrial and Commercial Administration Bureau that Shaanxi Aokai Cable Co., Ltd. was registered and established in November 2012. The initial shareholders were two natural persons, Liu Xiufen and Gao Fei, and his wife Liu Xiufen is the company's executive director and general manager, holding 60% of the shares; niece Gao Fei is a supervisor, holding 40% of the shares.

The two of them should be holding shares on behalf of Wang Zhiwei on behalf of Wang Zhiwei, because according to the report in "Company Secrets" on March 24, 2017, "Wang Zhiwei, the actual controller of Okay Cable: Born in a rural junior high school, started in sales" : “In the eyes of some people who know Gao Fei well, she and her family do not seem to have such great financial resources.

According to relatives and neighbors in Wang Zhiwei's hometown, Gao Fei, who works at Okay, has not bought a house so far; about a few months ago, Gao Fei's mother went to Xi'an to take care of her newborn grandson in the house rented by her daughter; Gao Fei "My father went to work as a chef in the canteen of Shaanxi Okai Company and was responsible for cooking for the company's employees." And if Liu Xiufen and Gao Fei are the true shareholders of the company, they will inevitably bear legal responsibility and be punished by law. 2015 In December 2019, shareholders Liu Xiufen and Gao Fei transferred part of their equity to Wang Zhiwei. The equity structure of Okay Company was finally composed of Wang Zhiwei (71.11), Liu Xiufen (18.46), and Gao Fei (10.43). The company's executive director and general manager Changed to Wang Zhiwei. From the "Risk Control Technology" public account, please indicate the source when reprinting

Okay Company's initial registered capital was 50.3 million yuan, but the paid-in capital was only 10.1 million yuan (the company's 2012 The financial audit showed that the total assets of the company were only 10.1484 million yuan in that year. It was not until July 2013 that the two paid up the registered capital, which was more than half a year ago. Where did this huge amount of funds come from? , until the establishment of Shaanxi Okai Cable Company in 2012, the origin of the initial funds invested in building the factory was not clear to the brothers and sisters, including Wang Binglu.

Before the establishment of Okai Company, Wang Zhiwei had no big business. If he has accumulated wealth on a large scale, this huge capital increase of 40 million yuan is likely to be caused by hidden private debt; and the interest rate of private financing is generally much higher than the interest rate of bank loans. Therefore, Wang Zhiwei is burdened with a huge amount of private financing principal and interest. It is understandable to pay off debts as soon as possible and to be eager for quick success and quick profits in business, so that you take desperate risks and produce fake and inferior products to make huge profits.

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