Letter of concern about Xinjiang Tianshan Animal Husbandry Bio-Engineering Co.Ltd(300313)
Gem concern letter [2022] No. 95 Xinjiang Tianshan Animal Husbandry Bio-Engineering Co.Ltd(300313) board of directors:
On January 28, 2022, your company disclosed the performance forecast for 2021 and the suggestive announcement on the possible delisting risk warning of the company’s stock trading. Our department expressed concern about this. Please verify and explain the following problems.
1. The announcement shows that the net profit attributable to the shareholders of the listed company in 2021 is expected to be negative, and the operating income after deduction is 82 million yuan to 117 million yuan. Your company also disclosed in the announcement that the amount of related party transactions of the company’s young cow business during the reporting period was 23.28 million yuan. The company believes that it has commercial substance and fair pricing, which is not a deduction item specified in the business handling guide No. 13 – matters related to business income deduction of companies listed on the gem of Shenzhen Stock Exchange. Due to the epidemic situation, The auditor did not complete all the audit procedures, so the related party transaction was not finally confirmed. Based on the principle of prudence, the company’s performance forecast is listed by deduction, and the final audited data shall prevail.
(1) Please describe in detail the development of the company’s young cow business during the reporting period, including but not limited to transaction frequency, transaction amount, business model, main products, procurement model, sales model, main customers and suppliers (as well as cooperation history), profit model, gross profit margin, industry situation, whether the company needs to have relevant qualifications to engage in this business License or technology, whether the company has fixed personnel engaged in this business, personnel background, number of personnel, responsibilities undertaken within the company, etc.
(2) Please explain whether the total amount method or the net amount method is adopted for the recognition of the business income of young cows, and whether the income recognition method is in line with the provisions of the accounting standards for business enterprises.
(3) Please explain in detail the reasons why the company believes that the related party transactions of the company’s young cow business during the reporting period do not belong to the deduction of operating income, including but not limited to whether the business has nothing to do with the company’s existing normal business, whether it is commercially reasonable, whether it is accidental and temporary, Whether a stable business model is formed (including whether the business has complete input, processing process and output capacity, whether it can calculate its costs and expenses independently and the income generated; whether the business has significant dependence on customers and suppliers and whether it is sustainable; whether the company has a certain scale of investment in the business, whether the company has relevant business experience, etc.) Whether the transaction price is fair (please compare with the same industry).
Ask the accountant to check the above problems and give clear opinions.
2. The performance forecast shows that the operating income is 107-120 million yuan, and the operating income after deduction is 82-117 million yuan. Please explain the main items and amounts of deductions from operating income, and explain the cross check relationship between the upper and lower limits of operating income and the upper and lower limits of operating income after deduction.
Please make a written statement on the above matters, submit the relevant explanatory materials to our department for disclosure before February 11, 2022, and send a copy to the listed company supervision department of Xinjiang securities regulatory bureau.
This is to inform you.
Gem company management department
January 29, 2022
