Yike Food IPO information disclosure suspected of violation

Not long ago, Jiangsu Yike Food Group Co.
, Ltd.
("Yike Food") first issued an application meeting for the Growth Enterprise Market
.

Yike Foods is a large domestic poultry food leading company.

Nearly 800,000 yuan fined during the reporting period

During the reporting period (referring to 2017, 2018, 2019 and the first half of 2020, the same below), Yike Food voluntarily disclosed 12 administrative penalties, with a total fine of 766,900 yuan; the types of penalties can be described as diverse, involving environmental protection, Taxation, emergency and other aspects
.

The reporter of "Economic Information Daily" noticed that Yike Food disclosed seven environmental violation penalties in the prospectus.
The penalties involved water pollution and air pollution
.

The total fines amounted to 640,000 yuan .

During the reporting period, Shuyang Yike Food Co.
, Ltd.
, a wholly-owned subsidiary of Yike Food, suffered one air pollution penalty
.

On July 12, 2018, due to the existence of “discharging air pollutants through abnormal operation of air pollution prevention and control facilities to evade supervision, failing to monitor the discharged water pollutants at the frequency required by the EIA, and failing to take measures to prevent the emission of malodorous gases For other violations, the company was fined 130,000 yuan by the Shuyang County Environmental Protection Bureau

The environmental protection department has repeatedly been punished by the environmental protection department in the new construction, renovation and expansion projects of the company of Yike Food
.

On October 20, 2018, the Xinyi Environmental Protection Bureau imposed a fine of 30,000 yuan on the illegal activity of the broiler slaughter, upgrade, and expansion project of Xinyi Zhongke Food Co.

In addition, during the reporting period, Yike Food also had 5 administrative penalties in taxation, emergency and other aspects, with a total fine of 126,900 yuan
.

Yike Food stated in the prospectus that the above administrative penalties have been issued by the relevant penalties department to prove that they are not major violations of laws and regulations

Multiple environmental penalties failed to disclose suspected concealment of major violations

However, a reporter from "Economic Information Daily" found that there were many environmental penalties that Yike Food had not disclosed during the reporting period, and there were also suspected illegal use of seepage pits, hidden pipes and other methods to evade supervision to discharge water pollutants
.

The reporter logged on to the public websites such as Enterprise Chacha, Guangzhou Green Net Environmental Protection Service Center (non-profit environmental protection organization) and other public websites and found that on August 22, 2019, the Zoucheng Branch of the Jining City Ecology and Environment Bureau issued a report to Shandong Yike Food Holding Subsidiary.
On-site inspections of Kejinpeng Food Co.
, Ltd.
("Yike Jinpeng") and Jining Zhongke Food Co.
, Ltd.
("Jining Zhongke"), a wholly-owned subsidiary of Yike Food The permit stipulates that the monitoring of some discharge outlets is illegal
.

Based on this, the Zoucheng Branch of the Jining Municipal Ecological Environment Bureau issued "Jihuan Zoupu [2019] No.

Among them, "Jihuan Zou Punishment [2019] No.
60" penalties show that Yike Jinpeng violated Article 23 of the "Water Pollution Prevention Law of the People's Republic of China" and Article 34 of the "Pollution Permit Management Measures".
He was ordered to make corrections and fined 20,000 yuan.
The existing violations mainly include "failure to monitor flow and suspended solids items"; "Jihuan Zou Punishment [2019] No.
62" penalties show that Jining Zhongke was due to "2019 In January and February, the animal and vegetable oil project at the DW001 discharge port was not monitored; the suspended solids project at the DW002 discharge port and the DW003 discharge port were not monitored since the pollutant discharge permit was obtained, and he was ordered to correct and fined 20,000 yuan
.

What is intriguing is that the reporter of "Economic Information Daily" logged into the "Administrative Law Enforcement Information Disclosure-Administrative Penalty" section of the official website of Zoucheng City People's Government and found that they could not find the corresponding "Jihuan Zou Punishment" for Yike Jinpeng and Jining Zhongke [ 2019] No.
60", "Jihuan Zou Punishment [2019] No.
62" "Administrative Punishment Letter"
.

But what is interesting is that the reporter inquired about "Jihuan Zou Punishment [2019] No.

The "Zoucheng City Environmental Protection Bureau" (Zou Huan Juyi [2018] No.
20) obtained by a reporter from "Economic Information Daily" shows that on April 3, 2018, Zoucheng City Environmental Protection The bureau's on-site inspection found that part of the sewage of Yike Jinpeng was treated in its sewage treatment station, and the other part of the sewage was sent to Shandong Jinpeng sewage treatment station for treatment.
Both sewage treatment stations were agreed to be operated by Yike Jinpeng
.

The on-site inspection found that Yike Jinpeng had three illegal sewage discharges using seepage pits and hidden pipes.

Since March 1, 2010, Article 10 of the "Environmental Administrative Punishment Measures" will be classified into 8 categories of punishments, including warnings, fines, orders to suspend production for rectification, and administrative detentions, among which administrative detentions are ranked in the seventh category
.
Pan Weiguo, a lawyer from Jiangsu Optimus Prime Law Firm, pointed out that according to the circumstances related to the transfer letter "Zou Huan Juyi [2018] No.
20" made by the Zoucheng Environmental Protection Bureau, Yike Jinpeng has been suspected of major environmental violations, and its violations may constitute a major violation of the law.
, Should be publicly disclosed in the prospectus
.
The reporter went through the prospectus of Yike Foods, but failed to find any information about the above illegal incidents
.

Reported by the masses due to pollution repeatedly on the blacklist of environmental protection inspectors

A reporter from "Economic Information Daily" searched public information and found that one of the entities implementing the IPO fundraising project of Yike Food was Jining Zhongke.
The company had been notified and supervised by the Central Environmental Protection Supervision Team for many times due to environmental violations
.
The prospectus disclosed that Yike Foods intends to publicly issue no more than 44.
898 million shares, and plans to raise funds of 1.
061 billion yuan, of which 124 million will be used for the construction of Jining Zhongke meat duck slaughter line project
.

Public information shows that Jining Zhongke has been reported by the public many times due to environmental pollution problems, and has been repeatedly notified and supervised by the Central Environmental Protection Supervision Group
.
On August 24, 2017, the Shandong Provincial Department of Ecology and Environment issued the “Central Environmental Protection Inspection Team’s Transfer of Mass Letters and Visits to Shandong and the List of Disclosures of Supervision and Reform (Fourth Batch)”, which indicated that the “environmental management” of Jining Zhongke On August 28 of the same year, the Zoucheng City Environmental Protection Bureau issued the "Notice on Ordering Jining Zhongke to Carry out Environmental Remediation" and imposed a fine of RMB 30,000; According to the "Central Environmental Protection Inspection Team's Transfer of Letters and Visits from the People to Shandong and the List of the Public Information on Supervision and Reform (the eighth batch)", Jining Zhongke was once again ordered to make corrections due to reports of pungent odor emissions; 9 of the same year On the 7th, the "Central Environmental Protection Inspection Team's Transfer of Letters and Visits from the People to Shandong and the List of Disclosure of Supervision and Reform (the eighteenth batch)" showed that in response to the problem of incomplete collection and treatment of odorous gases at the Jining Zhongke Sewage Treatment Station, The Zoucheng Environmental Protection Bureau ordered the company to suspend production for rectification on August 24
.
During the shutdown period, 25 problems were detected
.

In addition, on May 19, 2021, the official website of the Tai'an Municipal People’s Government released the "Shandong Province Fourth Ecological Environmental Protection Supervision Group Letters and Visits Reporting and Investigation Form (first and second batches)", according to the report that Yike Food is wholly-owned by the petitioners.
The Xintai branch of Shandong Zhongke Food Co.
, Ltd.
, a subsidiary of Shandong Zhongke Food Co.
, Ltd.
, contracted for meat duck breeding in Tai'an City Longshan Luyuan Breeding Professional Cooperative, which emits odorous gas.
Law enforcement officers from Xintai Branch of Tai'an Ecological Environment Bureau issued a "Notice of Order for Rectification within a Time Limit" , Requiring the company to rectify the problems in the breeding farm within a time limit; before May 3, the Jining City Ecological Environment Bureau issued the "Jining City Ecological Environmental Protection Inspectors Transfer Office List of Supervising and Reforming Situations (eighteenth batch) "Showing that in response to the public’s complaints about the serious scatter of duck manure and the pungent smell during the transportation of the duck farm in the Zhangzhuang Ecological Breeding Park of Jining Zhongke, the Zoucheng Animal Husbandry Development Center and the People’s Government of Zhangzhuang Town required the breeding park Strengthen the management of manure transportation after fermentation and spray deodorant on time to reduce peculiar smell
.

Regarding the above questions, a reporter from the Economic Information Daily called and wrote to Yike Food for an interview, but there was no reply as of the time of press
.
This newspaper will continue to pay attention to other problems of Yike Food
.