Letter of concern about Fujian Ideal Jewellery Industrial Co.Ltd(002740)
Attention letter of the company Department [2022] No. 96 Fujian Ideal Jewellery Industrial Co.Ltd(002740) the board of directors:
Your company disclosed the performance forecast for 2021 on January 29, 2022, which said that your company expects to realize a net profit attributable to the shareholders of the listed company in 2021 ranging from RMB 600 million to RMB 785298600, and a net profit after deducting non recurring profits and losses ranging from RMB 592656600 to RMB 768372400. The main reasons for your company’s large losses are the sharp decline in the company’s operating performance and the provision of bad debt losses for accounts receivable. Meanwhile, the wholly-owned subsidiaries Jiangsu Millennium Jewelry Co., Ltd. (hereinafter referred to as “Millennium jewelry”) and Chengdu Shumao diamond Co., Ltd. (hereinafter referred to as “Shumao diamond”) failed to meet the expectations due to the epidemic and other reasons, And there is great uncertainty in the future performance. Your company will fully withdraw the impairment loss of the consolidated goodwill.
Our department is concerned about the above matters. Please verify and explain the following matters: 1 Explain the specific reasons leading to the large loss in 2021 and the calculation of the affected amount, itemize the asset scope, impairment reason and estimated impairment amount of the provision for impairment, whether the accounting policy and determination basis for the provision for impairment of assets have changed significantly compared with the same period of the previous year, and whether the impairment of relevant assets complies with the relevant provisions of the accounting standards for business enterprises, On this basis, explain whether the asset impairment provision of your company in previous years is sufficient and whether there is improper earnings management through asset impairment provision.
2. Please explain in detail the difference (if any) and rationality between the 2020 annual report and the important parameters used in the goodwill impairment test and evaluation in combination with the important assumptions and key parameters in the goodwill impairment calculation process of Millennium jewelry and Shumao diamond (including the growth rate in the forecast period, growth rate in the stable period, profit rate, discount rate, etc. required for the present value of estimated future cash flow), At the specific time point when the goodwill of Millennium jewelry and Shumao diamond shows further signs of impairment, whether the impairment provision of Millennium jewelry and Shumao diamond goodwill accrued by your company in previous years is sufficient, and whether there is any improper earnings management by withdrawing large amount of goodwill impairment.
3. Your company’s net profit after deducting non recurring profits and losses for two consecutive years from 2019 to 2020 is negative, which is -296 million yuan and -1.299 billion yuan respectively. Please explain whether there is significant uncertainty in your company’s sustainable operation ability and its reasons in combination with the performance forecast. If so, please timely and fully disclose the risk tips.
4. Please fully remind your company of the risks faced by your company, including but not limited to the risk of reorganization failure, liquidity risk, major litigation risk, etc., in combination with your company’s current pre reorganization progress and overdue debt, and explain the specific measures (if any) your company has taken or plans to take to improve its sustainable operation ability and eliminate the above risks.
Please make a written statement on the above issues, submit the relevant explanatory materials to our department for disclosure before February 11, 2022, and send a copy to the dispatched office at the same time. At the same time, remind your company and all directors, supervisors and senior managers to strictly abide by the securities law, the company law and other laws, as well as the stock listing rules of the exchange, and perform the obligation of information disclosure truthfully, accurately, completely, timely and fairly.
We are writing to inform you that
Shenzhen Stock Exchange listed company management department 1 January 29, 2022
