Letter of concern about Hunan Er-Kang Pharmaceutical Co.Ltd(300267)
Gem concern letter [2022] No. 94 Hunan Er-Kang Pharmaceutical Co.Ltd(300267) board of directors:
On January 28, 2022, your company disclosed the annual performance forecast for 2021, with an estimated loss of 650 million yuan to 820 million yuan. Your company made provision for impairment of relevant assets such as the asset group of modified starch and starch capsule project and the inventory of modified starch and starch capsule series. The amount of provision for impairment in 2021 is expected to be 800 million yuan to 950 million yuan. Our department is concerned about this. Please check and supplement the following items:
1. Please list item by item the name of the assets that your company expects to withdraw the provision for asset impairment, the time point when the impairment sign of relevant assets occurs, the reason and rationality of this large amount of withdrawing the impairment of inventory and other related assets, the basis for withdrawing the impairment of inventory and other assets, whether the impairment test has been carried out in time, and whether the obligation of information disclosure and risk prompt have been fulfilled, Whether the relevant accounting estimation judgment and accounting treatment comply with the provisions of the accounting standards for business enterprises.
2. Please explain whether the accounting policies, accounting estimates and determination basis of the provision for asset impairment have changed significantly compared with the same period of the previous year, whether the provision for asset impairment complies with the provisions of the accounting standards for business enterprises, and explain the sales of main customers and the marketable turnover of inventories in each stock age group in the current year, Explain whether the provision for impairment of relevant assets such as inventories in previous years is sufficient, and whether there is a case of cross period profit adjustment by using the large amount of provision for impairment of assets such as inventories in 2021.
3. Please supplement the production and operation of the modified starch and starch capsule business in 2021, including but not limited to the operation of the production line, the orders of this year, whether the orders and customers of this year have changed significantly compared with the previous year, the recovery of accounts receivable, etc.
Please make a written statement on the above matters, submit the relevant explanatory materials to our department and disclose them to the public before February 8, 2022, and send a copy to the listed company supervision department of Hunan securities regulatory bureau. At the same time, remind your company that listed companies must earnestly and timely fulfill the obligation of information disclosure in accordance with national laws and regulations and the Shenzhen Stock Exchange GEM Listing Rules. All members of the board of directors of a listed company must ensure that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions, and bear individual and joint liabilities for their guarantee.
We are writing to inform you that
Gem company management department
January 29, 2022
