【正文】 financial frauds is the lack of governance mechanisms, mainly for four aspects as follow: the unreasonable corporate governance system, the deficient government supervision, the unscientific audit relationship, and the powerless legal punishment The end of 2001, Kelon through the EGM, the resolution adopted by the Board election. The new board of directors of the CPC nine directors, including five executive directors all e from Greencool. The Extraordinary General Meeting on behalf of shareholders attending the pany39。 2004 Kelon parent pany statements of other receivables at 17 billion, while consolidated statements of the project only 12 billion. According to Kelon published report shows that the year 2000 Kelon huge loss of billion reached in 2001 is billion yuan, an instant to achieve 2002 net profit of 100 million yuan actually. Under such a huge contrast, the hidden field is not unmon in big bath smelting financial means, that the huge losses in 2002, contributions from the huge loss in 2001. Kelon 2001, the total cost of billion is huge, pared to just 900 million yuan in 2002. (1) 2002 to 2004, Kelon Electrical taken fictional main business ine, less about bad debt .Equipment, less about litigation and other means of pensation make up a false financial report, leading to inflated its 2002 profit of 11, million in annual report, 2003 annual report inflated profits 11, million, inflated profits in 2004 Annual Report 14 , million yuan. (2) Kelon Electrical 2003 annual report significant cash flow disclosure of false information. In 2003, Kelon Electrical product and its subsidiaries in the sale of each other. Promissory notes issued by banks trading background and mercial acceptance bills to the bank discount, access to large amounts of cash. Kelon39。 Kelon by technology leader. It is worth mentioning that the State Council Development Research Center, Institute of Market Economy Research shows that this year, Gree , Midea, Kelon brand value have been greatly improved. In the consumer awareness, the quality of identity, technology Technical leadership, service satisfaction, brand loyalty, Evaluation of 5, not far from the whole three, Kelon received The quality of identity, technology leadership, brand loyalty, the three first, as the survey was the first Most of the brand. Ⅲ Fraud Conditions (23) Brief explanation and analysis of the alleged fraud scheme The end of 2001, Kelon through the EGM, the resolution adopted by the Board election. The new board of directors of the CPC nine directors, including five executive directors all e from Greencool. At a time from April 2002 led Greencool Gu Chujun transferee Kelon shares some time. The Board represents the interests of shareholders, and so the design does not represent the board the interests of shareholders, but the interests of major shareholders Greencool. Slow growth in household appliances industry, but there is a very high rate of Kelon. Kelon 2001 operating ine of billion yuan only, but 2002,2003,2004, respectively, reached billion, billion, billion. Compared with 2001, Kelon 2004 revenues increased by billion, an increase of 93%, threeyear average annual growth rate of about 30%. Kelon39。 On this basis, with the downstream distribution business and establish a stable relationship. The second and third tier brands do not have these conditions, which is distributed to the market this year by the concentration of the main reason. State Council Development Research Center of the top three airconditioning experts to punctuate the year, each winning the Road: Gree by the unique Channels。 the same time, strengthen the construction of its own network of dealers to rely solely on small shipments exert tremendous pressure on the brand. Kelon introduced this year, the interests of dealers management greatly dealers wele this year39。 and Kelon airconditioning should be efficient to sell the initiative to give full play to their account for the energy efficiency industry Advantages over high ground, pushing the double effect King airconditioning, inverter air conditioner at the arena with the game, signed hundreds of experts Name for sale and other activities, achieved remarkable success. Contention in the channel, and Kelon brands with large distributors such as close cooperation with each other to make a conspiracy o