Letter of concern about Jiawei Renewable Energy Co.Ltd(300317)
Gem concern letter [2022] No. 93 Jiawei Renewable Energy Co.Ltd(300317) board of directors:
On the evening of January 28, 2022, your company disclosed the performance forecast. It is estimated that the net profit attributable to the shareholders of the listed company in 2021 (hereinafter referred to as “net profit”) will be a loss of 190 million yuan to 245 million yuan, and the net profit of your company in the first three quarters will be 54.781 million yuan. According to the announcement, the reasons for the sharp decline in performance include the decline in business income and net profit of photovoltaic lighting and photovoltaic power station during the reporting period, the existence of certain exchange losses caused by exchange rate fluctuations, and the provision for impairment of about 170 million yuan for related accounts receivable, goodwill and fixed assets of Zhengxiang Baiqi Guodian photovoltaic power Co., Ltd. (hereinafter referred to as “Guodian photovoltaic”), And the provision for bad debts of inventories and accounts receivable is about 60 million yuan. Your company claims that due to the great uncertainty in the declaration of Guodian photovoltaic directory and the great risk in the recovery of accounts receivable, the impairment of Guodian photovoltaic related assets is accrued. Our department is concerned about this and asks your company to verify and explain the following matters;
1. Please list the sales unit price, sales volume, revenue and gross profit margin of your company’s photovoltaic lighting products by quarter, as well as the changes in the power generation capacity of photovoltaic power stations, and analyze and explain the reasons and rationality of the sharp decline in performance in the fourth quarter compared with similar businesses of comparable listed companies, and whether the accounting of relevant costs and expenses is accurate.
2. Please add the type and amount of foreign currency held by your company, explain the specific situation of relevant exchange losses in combination with the changes of exchange rate, and whether the company has established relevant risk prevention and control mechanism and its effectiveness.
3. Please list the impairment of Guodian photovoltaic related assets, other accounts receivable and inventories by category, the specific process of impairment test, whether the selection basis of relevant parameters is reasonable, whether the provision for impairment in the previous period and the current period is sufficient and timely, and whether there is a situation of adjusting profits through the provision for asset impairment.
4. Other matters that your company deems necessary to explain.
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 division of Shenzhen 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.
This is to inform you.
Gem company management department
January 29, 2022
