Shanghai Stock Exchange
Szgh [2022] No. 0105
About China Fortune Land Development Co.Ltd(600340)
Inquiry letter on performance forecast
China Fortune Land Development Co.Ltd(600340) ：
On January 28, 2021, your company submitted an annual performance loss forecast announcement, saying that in 2021, the net profit loss attributable to shareholders of listed companies was 33.1 billion yuan to 39.1 billion yuan, and the net profit loss after deducting non recurring profits and losses was 31.8 billion yuan to 32.8 billion yuan, which turned from profit to loss year-on-year, and significantly expanded compared with the loss reported in the third quarter of 2021, mainly due to the sharp decline of main business revenue under liquidity risk Significant increase in financial expenses, impairment of accounts receivable and contract assets. In view of the above, according to article 13.1.1 of the stock listing rules of the exchange, the company is requested to verify and supplement the disclosure of the following matters.
1、 The announcement shows that in 2021, the company accrued loan interest and penalty interest of nearly 20 billion yuan according to the original loan agreement, and the capitalization rate of superimposed interest decreased, resulting in a significant increase in financial expenses, accounting for a high proportion of the overall loss. The company is requested to: (1) explain the reason and rationality of withdrawing large interest and penalty interest in the fourth quarter in combination with the debt and cashing situation of each quarter, and whether the withdrawal is sufficient and timely; (2) Explain the specific situation and reasons for the change of interest capitalization rate in combination with the completion and delivery of projects in each quarter; (3) In combination with the current progress of debt restructuring and relevant requirements of the standards, further explain the preconditions, amount range and possible impact on the company’s current and future annual performance of interest rate reduction and penalty interest exemption. The annual audit accountant is requested to verify and give opinions.
2、 The announcement shows that the increase in the amount of provision for bad debts of accounts receivable and impairment loss of contract assets in 2021 is one of the main reasons for the performance loss. The company is requested to: (1) disclose the company’s accounting policies and accounting estimates for bad debt provision of accounts receivable and impairment provision of contract assets, and explain the specific process and rationality of determining the correlation coefficient; (2) Disclose the main debtors of accounts receivable and contract assets by business segment, including but not limited to the name of debtors, nature of debtors, balance of arrears, aging, provision of bad debts, whether related parties, etc; (3) Combined with the payment collection of major customers in recent three years, explain whether there was insufficient provision for bad debts and impairment in previous years; (4) In combination with the current progress of debt restructuring plan and the credit status of customers, explain whether the provision is prudent and objective. The annual audit accountant is requested to verify and give opinions.
3、 The announcement shows that in 2021, due to the impact of liquidity risk, the company’s income related to industrial new town business, park supporting residential business and commercial real estate business decreased year-on-year. In combination with the specific development of various businesses, revenue recognition methods and future business plans, the company is requested to explain the reasons for the decline of relevant business revenue, the prudence and rationality of early revenue recognition, whether there is a risk of further decline, and give necessary risk tips.
4、 The announcement shows that matters related to overseas financial loss are still under investigation, and the specific amount of financial loss will be confirmed according to the progress. Your company should speed up self-examination and cooperate with relevant departments to investigate, disclose relevant progress in time, and clarify the risk exposure and its impact on the company’s performance as soon as possible.
Please disclose this letter immediately after receiving the letter, reply to our department in writing as soon as possible, and fulfill the obligation of information disclosure at the same time.
Shanghai Stock Exchange listed company management department 1 January 28, 2002
