The picture shows the Siemens Medical Exhibition at China International Medical Equipment Fair.
Fictional sales contract to maintain growth
In order to complete the performance indicators, Siemens China's medical business unit adopted a fictitious sales contract. This approach has been going on for many years within the company and has gradually formed trading rules.
Recently, the behavior of Siemens China Medical Business Unit (hereinafter referred to as Siemens Medical) to create false performance by fictitious sales contract was exposed by its dealers. According to a Siemens medical distributor to the Rule of Law Weekend reporter, this way of making false performance has been going on for many years.
Siemens Medical is the medical business unit of Siemens (China) Co., Ltd. (hereinafter referred to as Siemens China). Its main business is medical imaging products, and its market share in China ranks second.
In January of this year, an open letter called "To the boss of Siemens agents" (hereinafter referred to as the open letter) circulated in major online forums pointed out that Siemens Medical was forced to sign in order to complete the quarterly sales target due to poor internal management. False contracts, and an additional 10% deposit of equipment for Siemens Medical, to achieve 50% of the contracted revenue.
A number of Siemens medical distributors confirmed to the Rule of Law Weekend reporter that the contents of the open letter were true.
For the Siemens industry insiders to take a fictitious sales contract to increase performance, Siemens China told the rule of law weekend: "Siemens attaches great importance to the prevention of unfair competition and other unfair business practices. The company has repeatedly reiterated that our The fundamental principle is that only a clean business is the business of Siemens."
“If the facts do exist and the false performance has been incorporated into the financial statements of the listed company, Siemens Medical’s behavior of increasing performance through fictitious sales contracts violates the relevant securities laws of the place where it is listed, and may face the securities department of the listed place. The investigation." Beijing Zhilin Law Firm lawyer Zhao Zhuang told the rule of law weekend reporter.
Secret in performance growth
"Under normal circumstances, the sales process of large medical devices is the first time that the dealers win the bid in the terminal sales hospital. After signing the contract for the purchase, they will sign a sales contract with the manufacturer." Shi Lichen, the head of Beijing Dingchen Medical Consulting, told the rule of law weekend reporter.
However, Siemens Medical's medical device product sales process is slightly different.
A Siemens Medical distributor told the Lawrence Weekend reporter that in order to complete the required performance indicators for the quarter, Siemens Regional Managers will require dealers to sign multiple sales contracts in advance and pay a 10% deposit.
"As a listed company, the general sales contract is signed, then the total amount involved in the contract can be included in the quarterly 'accounts receivable' and as the performance growth of the quarter." Zhao Zhan told the rule of law weekend reporter.
"These contracts are not true, because the end-users (that is, purchasing hospitals) need to be filled out on the contract. But in actual sales, most of these users are only intentions at present, and people should not be uncertain at all, let alone They have not yet participated in the bidding." Meng Lan (a pseudonym), a distributor of Siemens Medical, told the rule of law weekend reporter.
Meng Lan said that dealers had to sign such a contract because of pressure, because Siemens medical equipment in the past was opaque, and if it was not signed, the price of the products that the dealers would get would be very high.
Another person in charge of Siemens medical dealers told the rule of law weekend reporter that if the dealer does not sign the sales contract, he will face the risk of being disqualified from the dealer and the product sales area being cut.
“In order to open the market in the product sales area, we have made a lot of cost investment in advance. On the one hand, if we do not directly do its dealers, the initial investment will be lost, and if we narrow down the sales area, we will face a lot of money. Loss." The person in charge said.
“We have to sign a sales contract with Siemens without establishing real sales.†Meng Lan said, “And accordingly, Siemens Medical has privately promised that the deposit paid for the contract will be transferred to the new one by changing the contract. In the contract order."
A number of dealers revealed that Siemens Medical's business operation mode has existed for many years, and everyone has gradually defaulted on this method.
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