Securities code: 002592 securities abbreviation: Nanning Baling Technology Co.Ltd(002592) Announcement No.: 2022-006 Nanning Baling Technology Co.Ltd(002592)
2021 annual performance forecast
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
1、 Expected performance of the current period
(I) performance forecast period
January 1, 2021 – December 31, 2021
(II) performance forecast
The current reporting period of the project is the same period of last year
Net profit attributable to shareholders of listed companies: 17 million yuan – 25.5 million yuan, loss: 685193400 yuan
Net profit loss after deducting non recurring profit and loss: 130 million yuan – 140 million yuan, loss: 688.1054 million yuan
Basic earnings per share: 0.06 yuan / share – 0.1 yuan / share loss: 2.57 yuan / share
The operating income is 620 million yuan – 640 million yuan and 604.8599 million yuan
After deduction, the operating income is 520 million yuan – 540 million yuan and 515.8165 million yuan
Note: operating income after deduction refers to the operating income after deducting the business income irrelevant to the main business.
2、 Communication with accounting firms
This performance forecast has not been pre audited by accountants. The company has communicated with the accounting firm on matters related to the performance forecast, and there is no major difference between the two sides in the performance forecast.
3、 Explanation of performance change reasons
1. Compensation for land acquisition and storage obtained by the company
With the approval of the fourth meeting of the sixth board of directors and the first extraordinary general meeting of shareholders in 2021, the company signed the compensation agreement for the acquisition of state-owned land use right with the land reserve center of Nanning high tech Zone on January 11, 2021, and agreed that the company’s plot located at No. 1 Kede Road, Nanning high tech Zone should be collected and stored by the land reserve center of Nanning high tech Zone. The land acquisition and storage compensation fee is about 186 million yuan, which belongs to non recurring profit and loss. After deducting relevant expenses, the impact on the net profit in 2021 is expected to be 152 million yuan.
2. According to the actual operation of each subsidiary, the company expects to make corresponding impairment provision for various assets that may have impairment losses. The main asset scope and amount involved are as follows:
(1) The holding subsidiary Beijing Hongrun Tianyuan gene Biotechnology Co., Ltd. (“Hongrun Tianyuan”) is expected to withdraw an impairment loss of about 231 million yuan, which is expected to reduce the net profit attributable to the shareholders of the listed company by about 118 million yuan. The main withdrawn asset losses are as follows:
① Provision for bad debts of other receivables to be withdrawn
From April 2019 to January 2020, Wang Anxiang and his related parties formed related party non operating funds for Hongrun Tianyuan and its subsidiaries by means of advance payment, current payment and illegal guarantee, occupying about 542 million yuan. Hongrun Tianyuan included these funds in other receivables. Although Wang Anxiang promised to return these funds, up to now, all his repayment commitments have been overdue, and Wang Anxiang has not fulfilled his commitments so far. The company has taken capital recovery measures and filed a civil lawsuit against Wang Anxiang for the loss of 170 million yuan. Nanning intermediate people’s Court (hereinafter referred to as “Nanning intermediate people’s court”) held that his behavior was suspected of criminal crime and should be transferred to the public security organ for handling in the first instance, so it ruled to reject the lawsuit of the company; Hainan Hongrun Tianyuan gene Biotechnology Co., Ltd. (hereinafter referred to as “Hainan Hongtian”) filed a civil lawsuit against the Zhujiang branch of Bank of Guangzhou for the loss of 146 million yuan. The first instance judgment of Guangzhou intermediate people’s court rejected all claims of Hainan Hongtian, and Hainan Hongtian has filed an appeal. Up to now, the company has not recovered any of the above funds.
There is a great risk of bad debt in these funds, and there is a major uncertainty about whether they can be recovered. The company has individually accrued impairment loss of 70% of these funds in the 2020 annual report. Based on the principle of prudence, the company will further evaluate the recoverability of these amounts. If the amount is still not recovered before the disclosure of the company’s 2021 annual report, the company may withdraw the impairment loss of about 162.54 million yuan for the remaining 30% of these amounts in a single full amount.
② Provision for bad debts of accounts receivable to be withdrawn
The balance of unaudited accounts receivable of Hongrun Tianyuan is about 27.454 million yuan. The account age is long and has not been recovered so far. There is a large risk of bad debts. There is a major uncertainty about whether it can be recovered in the end. Based on the principle of prudence, the company will further evaluate the recoverability of the amount, and may fully withdraw the bad debt provision of about 27.455 million yuan.
③ Asset impairment loss and retirement loss to be accrued
Hongrun Tianyuan has been closed since the outbreak of covid-19 epidemic in early 2020, and has been unable to resume normal operation so far. Some fixed assets, inventories and other assets of Hongrun Tianyuan may have impairment loss or scrap loss. It is estimated that the provision for asset impairment loss and scrap loss is about 38 million yuan.
(2) The wholly-owned subsidiary impression dinosaur culture and Art Co., Ltd. (hereinafter referred to as “impression dinosaur”) may need to further accrue the impairment of fixed assets and recognize the retirement loss of fixed assets. After preliminary calculation, the amount of impairment and retirement loss is expected to be about 54.84 million yuan.
Impression dinosaur’s main large-scale science fiction performance project of “gone dinosaurs” (hereinafter referred to as “dinosaur project”) has been suspended from April 8, 2019 and moved out of the National Stadium due to the need of the transformation of the competition venue of the 2022 Beijing Winter Olympic Games. Except for some direct demolition and damage of the performance equipment of the dinosaur project, the rest of the equipment has been removed from the National Stadium and relocated to Guilin, which has been stored in the temporarily leased warehouse in Guilin for nearly three years. As the partner in charge of the construction of the new theater has not completed the construction of the new theater in Guilin so far, the dinosaur project is still in the state of suspension and cannot resume normal operation. There is still great uncertainty about the time of reconstruction and resumption of performance and future operating benefits, and the performance equipment may suffer impairment losses. In addition to the humid climate in the south, the performance equipment stored in the warehouse without electronic components for a long time is easy to be damaged. At the same time, some performance equipment is created and designed according to the performance site at that time, and some real scene equipment is also constructed and installed according to the on-site design. Once removed, it can no longer be used, The fixed assets that have no use value may need to be scrapped.
(3) It is estimated that the long-term equity investment impairment provision of about 2.5 million yuan may need to be further accrued for the joint-stock company Dayao Mawang Shanghai Kehua Bio-Engineering Co.Ltd(002022) Technology Co., Ltd. (hereinafter referred to as “Dayao Mawang”).
From 2019 to 2020, the company paid a total investment of 38 million yuan to Dayao Mawang. Due to the dispute over capital increase between the two parties, the company sued Dayao Mawang and its controlling shareholder Yunnan Mawang Biotechnology Development Co., Ltd. (hereinafter referred to as “Yunnan Mawang”) to Nanning intermediate people’s court. Nanning intermediate people’s Court of first instance ruled that the defendant Yunnan Mawang repurchased 22% of the equity of Dayao Mawang held by the company and paid 8.46 million yuan and corresponding interest. The company refused to accept the judgment and appealed to the higher people’s Court of Guangxi Zhuang Autonomous Region in September 2021. However, as of the disclosure date of this report, the second instance of the case has not yet opened, the final judgment result is still uncertain, and whether the company can recover all the invested funds is still uncertain. Based on the principle of prudence, the company has accrued 26.6 million yuan of long-term equity investment impairment reserves for Dayao Mawang at 70% in the 2020 annual report. According to the first instance judgment of the case, the company may continue to accrue about 2.5 million yuan of long-term equity investment impairment reserves in 2021.
To sum up, after preliminary calculation, the above asset impairment losses are expected to reduce the net profit attributable to the shareholders of the listed company by about 175 million yuan. The final impairment amount will be determined after evaluation and audit by professional evaluation institutions and audit institutions hired by the company. The impact of the above asset impairment has been considered in this performance forecast.
4、 Other relevant instructions and risk tips
1. According to the actual operation of each subsidiary, according to the accounting standards for Business Enterprises No. 8 – asset impairment and the provisions of the company’s accounting policies, the company may withdraw corresponding impairment reserves for various assets with signs of impairment in the 2021 annual report, and scrap some fixed assets without value in use, At the same time, bad debt losses are recognized for some receivables with long aging and expected to be unrecoverable. The final impairment amount and loss amount will be determined after evaluation and audit by the evaluation institution and audit institution with securities and futures qualification hired by the company. Please make prudent decisions and pay attention to investment risks.
2. In May 2019, the company acquired 51% equity of Hongrun Tianyuan, and Wang Anxiang promised that the total operating net profit of Hongrun Tianyuan in three years (2019-2021) would not be less than 600 million yuan. If Hongrun Tianyuan fails to meet the aforesaid total operating net profit commitment (subject to the audit report data issued by the audit institution with securities qualification approved by the company from 2019 to 2021, and such audit report shall be a standard audit report), the company shall notify Wang Anxiang in writing within 60 days after the occurrence of the above events, Wang Anxiang shall, within 60 days after receiving the written notice from the company, make compensation according to the amount of compensation = [(RMB 600 million – actual total three-year operating net profit) × 17.8/6 × 51%] compensate the company.
Up to now, Hongrun Tianyuan is still closed and cannot resume normal operation. The above performance commitment period has expired, and Hongrun Tianyuan is expected to fail to meet the performance promised by Wang Anxiang. The company will entrust an accounting firm to audit Hongrun Tianyuan, and will officially start the performance compensation recourse procedure after obtaining the audit report. However, according to the company’s inquiry through the implementation information disclosure website, Wang Anxiang has huge debts at present, and it is likely that Wang Anxiang will be unable to fulfill his performance compensation commitment. At that time, the company may face the risk of failing to fulfill his performance commitment. Please make prudent decisions and pay attention to investment risks.
3. This performance forecast is the preliminary calculation result of the company’s financial department, which has not been audited by the audit institution. The specific financial data shall be subject to the 2021 annual report disclosed by the company. There may be differences between the calculation data disclosed this time and the final data disclosed in the 2021 annual report. Please make careful decisions and pay attention to investment risks. It is hereby announced
Nanning Baling Technology Co.Ltd(002592) board of directors
January 29, 2022
