SMM News: recently, Chongyi Zhangyuan Tungsten Industry received an inquiry letter for the 2019 annual report issued by the Management Department of small and medium-sized Board Company, the specific contents are as follows:
Board of Directors of Chongyi Zhangyuan Tungsten Industry Co., Ltd.
In the process of reviewing your company's 2019 annual report, our department paid attention to the following:
1. During the reporting period, your company's operating income was 1.827 billion yuan and net profit was 288 million yuan, down 723.17% from the same period last year. Net profit after deducting non-profit was 328 million yuan, down 1351.71% from the same period last year. Please explain:
(1) Please explain the reasons and rationality of your company's declining performance in 2019 according to the operating situation of the company in 2017 and 2018, the profit situation of comparable listed companies in the same industry, the price fluctuation of tungsten raw materials and the prices of major products.
(2) the net profit of your company from the first to the fourth quarter of 2019 is 7.1407 million yuan, 36.9769 million yuan, 84.2811 million yuan and 174 million yuan respectively. Please explain the reasons for the large fluctuations in net profit from quarter to quarter.
2. In April 2019, your company disclosed the announcement on the abandonment of the General Survey and Exploration right of the Changliukeng Copper polymetallic Mine, which said that the general survey and exploration right of the Changliukeng Copper polymetallic Mine had been abandoned. Your company invested a total of 15.2777 million yuan in prospecting cost in the mining area, lost 15.2777 million yuan in abandoned assets and reduced net profit by 15.2777 million yuan. Please state the accounting treatment of the above-mentioned abandonment of exploration rights.
3. During the reporting period, your company has set aside 97.9524 million yuan for inventory decline, including 28.6168 million yuan for products in process and 69.3355 million yuan for goods in stock. Please add the main process of preparing for the test of inventory price decline, whether the amount is reasonable, and ask the annual auditor to express his opinion.
4. During the reporting period, your company recorded 59.3944 million yuan in government subsidies for the profits and losses of the current period, an increase of 104.47% over the same period last year. Please explain the compliance of the accounting treatment of government subsidies, and combined with the impact of the new government subsidies on your company's profits, indicate whether your company is heavily dependent on government subsidies.
5. During the reporting period, your company invested 99.1899 million yuan in R & D, 13.5444 million yuan in capitalization and 50.7166 million yuan in expenses. Please explain:
The main results are as follows: (1) the reason why there is a difference of 34.9289 million yuan between the above-mentioned input amount and capitalization amount and cost;
(2) from 2017 to 2019, the proportion of your company's capitalized R & D investment in R & D investment is 21.99%, 14.24% and 13.15%, respectively. Please explain the reason why the proportion of R & D capitalization fluctuates greatly in the past three years according to the situation of R & D capitalization of your company.
6. During the reporting period, the balance of your company's monetary funds at the end of the period was 384 million yuan, of which the restricted funds totaled 113 million yuan and short-term loans totaled 955 million yuan. Please explain:
(1) Please list the time when the restricted state of the deposit of bill of exchange, deposit of letter of credit, deposit of mine environmental treatment and ecological restoration, and deposit of loan is released;
(2) the balance at the end of the short-term loan is guaranteed to be 613 million yuan, an increase of 70.88% over the beginning of the period. Please explain whether your company has short-term debt repayment pressure in combination with the above guaranteed loan repayment time and the limited monetary funds of your company.
7. From 2017 to 2019, the turnover rate of accounts receivable of your company is 12.22,9.38,7.98 respectively, and the amount of accounts receivable is 143 million yuan, 256 million yuan and 202 million yuan respectively. Please combine your company's credit policy, sales policy and refund situation to explain the reason and rationality for the increase in the scale of your company's accounts receivable but the decrease in turnover rate year by year.
8. During the reporting period, your company's holding subsidiary UF1 lost 2.8279 million yuan, your company fully provided for goodwill impairment provision of 20.211 million yuan; UF12018 annual loss of 280100 yuan, your company did not make provision for goodwill impairment provision. Please explain the reasons for your company's provision for full impairment of goodwill in the light of the production and operation of UF12018 and 2019, and ask the annual audit accountant to express your opinion.
9. During the reporting period, your company increased the impairment loss of fixed assets by 17.1146 million yuan. Combined with the capacity utilization of your company's main machinery and equipment in 2019 during the reporting period, please explain the reason and rationality of the increase in the provision for impairment of fixed assets in the current period.
10. During the reporting period, your subsidiary Ganzhou Aoketai tool Technology Co., Ltd. (hereinafter referred to as "Ganzhou Aoketai") made a net profit of 224 million yuan. Please explain:
(1) during the reporting period, the operating income of Ganzhou Aoketai was 199 million yuan, an increase of 58.59% over the same period last year. Explain the reason why the change direction of the company's operating income is not consistent with that of the return net profit.
(2) during the reporting period, Ganzhou Aoketai's gross profit was upside down due to the fact that the sales scale did not meet expectations and the production capacity was not fully released. Please combine your company's estimated sales scale and production capacity of Aoketai in Ganzhou to explain the sales scale with a balanced gross profit margin.
(3) Please explain the rationality that your company does not make provision for bad debts for its accounts receivable with a final balance of 69.6819 million yuan in the current period;
(4) the reasonableness of your company's absence of impairment in the current period of related party current funds within the consolidated scope of its final balance of 93.8356 million yuan.
11. During the reporting period, your company sold 73.2226 million yuan of powder products to the participating company Xi'an Huashan Tungsten products Co., Ltd. (hereinafter referred to as "Xi'an Huashan"), accounting for 111.15% of the estimated transaction value for the whole year. In combination with the estimated amount of daily related party transactions with Xi'an Huashan, please indicate whether the disclosure of the amount and proportion of the actual related party transactions between your company and Xi'an Huashan in 2019 is correct and whether it exceeds the review limit; if so, whether the excess carries out the corresponding review and disclosure procedures in accordance with paragraph 10.2.11 (3) of the share listing rules (revised in November 2018).
12. On January 3, 2019, your company announced the expiration of the framework agreement on the equity acquisition of Jiangsu Yongwei Precision tools Co., Ltd. (hereinafter referred to as "Zhangyuan Kechuang"), a wholly-owned subsidiary of Zhangyuan International Science and Technology Innovation (Shenzhen) Co., Ltd. (hereinafter referred to as "Zhangyuan Kechuang") terminated the acquisition of 51% of Jiangsu Yongwei Precision tools Co., Ltd. (hereinafter referred to as "Jiangsu Yongwei"). During the reporting period, your company made provision for bad debts on the basis of 16.5576 million yuan of Jiangsu Yongwei's book balance, which is being filed for litigation and is expected to be less likely to be recovered. Please summarize the above situation and its impact on the company's performance and indicate whether it violates rules 7.8 and 11.11.3 of the Stock listing rules (revised in November 2018). Please make a written explanation on the above matters, and submit the relevant explanatory materials to our department and disclose them to the public before July 24, 2020, and at the same time copy them to the Supervision Office of listed companies of Jiangxi Securities Regulatory Bureau.
I hereby inform you
Management Department of small and medium-sized Board companies
July 17, 2020
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