Stock Code: 600078 stock abbreviation: Chengxing stock No.: pro 2022-015 Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078)
Announcement on receiving the inquiry letter from Shanghai Stock Exchange
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) (hereinafter referred to as “the company”) received the inquiry letter on matters related to * ST Chengxing performance forecast (szgh [2022] No. 0110) (hereinafter referred to as “the inquiry letter”) from Shanghai Stock Exchange on January 28, 2022. The specific contents are as follows: ” Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) :
On January 28, 2022, your company issued the annual performance forecast for 2021, saying that the owner’s equity attributable to the parent company at the end of 2021 was 977 million yuan to 1453 million yuan. In view of the significant impact of the company’s financial data in 2021 on the termination of the listing of the company’s shares, in accordance with article 13.1.1 and other relevant provisions of the stock listing rules of the exchange, your company is requested to further verify and supplement and disclose the following matters.
1、 According to the performance forecast, the net assets at the end of 2020 were -476 million yuan, while the net assets at the end of 2021 became positive, mainly because the company received the creditor’s statement issued by Jiangsu Asset Management Co., Ltd. (hereinafter referred to as Jiangsu assets) on December 31, 2021. The company judged that this letter was likely to be fulfilled in the future, The company reversed the bad debt provision of 2177.6013 million yuan of the total balance of principal and interest of Jiangyin Chengxing Industrial Group Co., Ltd. (hereinafter referred to as Chengxing group) and its related parties’ non operating occupied company funds fully withdrawn in the previous year at the median value of 72.5%. The accountant of the company issued a special statement that, according to the provisions of the accounting standards for business enterprises, the company reversed 72.5% of the bad debt reserves of the accounts receivable from Chengxing group and its related parties in 2020 based on the creditor’s statement, resulting in the conversion of net assets to positive, which is not based on sufficient basis. The accounting treatment basis for the conversion of the company’s net assets to regular does not comply with the relevant provisions of the accounting standards. The company is requested to strictly abide by the accounting standards and correct the performance forecast. After correction, the net assets are expected to be negative. When the 2021 annual report is disclosed, the listing of the company’s shares will be terminated. The company shall regulate information disclosure, fully prompt delisting risks, and effectively protect the right to know of small and medium-sized investors.
At the same time, our department is concerned that the company announced that “there is no difference with the accounting firm in terms of performance forecast”. The above statements are inconsistent with the special instructions issued by the accountant. Please correct it.
2、 According to the previous announcement, the company and its subsidiary Chengxing daily chemical, the controlling shareholder Chengxing group and the thermal power plant of affiliated enterprise Jiangyin Chengxing Industrial Group Co., Ltd. signed the general agreement on enterprise relocation compensation for No. 618, Meiyuan street, Chengjiang street, Jiangyin City, No. 23-25, Xiejing road and No. 27, Xiejing road with Jiangyin land reserve center in June 2020, The total compensation price is estimated to be RMB 1.512 billion. After the signing of the agreement, the land reserve center will pay the first relocation compensation (the first relocation compensation is tentatively RMB 430 million) to the above company according to the requirements on the basis of receiving the above company’s resolutions and other relevant procedures, and the land will be handed over in the form of net land, Jiangyin land reserve center shall pay the remaining relocation compensation within two months from the date of acceptance. The company is requested to verify and make supplementary disclosure: (1) specifically disclose the specific allocation arrangement of relocation compensation of RMB 1.512 billion in the contract; (2) The current progress of demolition work, whether the company and its related parties have received relevant capital compensation in accordance with the contract, and whether the relevant funds have been recognized in the current period; (3) Whether the demolition compensation has flowed to the controlling shareholder and whether it constitutes the occupation of funds by the controlling shareholder and its related parties. The company’s accountants are invited to express their opinions. 3、 At present, some directors, supervisors and senior officers of the company have been publicly recognized by the exchange as ineligible to serve as directors and supervisors on January 13, 2022. According to the relevant provisions of the stock listing rules, the company shall remove him from his post within one month from the date of this fact. Please adjust the positions of relevant personnel as soon as possible to avoid affecting the preparation and disclosure of the company’s 2021 annual report, and ensure the normal operation of the company’s daily operation and information disclosure.
4、 Our department sent the inquiry letter on matters related to the judicial auction of shares held by * ST Chengxing shareholders to your company on December 16, 2021, and the supervision letter on matters related to urging * ST Chengxing to reply to the inquiry letter on January 7, 2022. The company has repeatedly delayed replying to the inquiry letter. The company and the directors, supervisors and senior management are requested to check relevant matters as soon as possible according to the regulatory requirements, reply to the inquiry letter as required and disclose to the public. 5、 The annual audit accountant of the company shall be diligent and conscientious, strictly abide by the practice standards, formulate necessary, feasible and targeted audit plans and procedures, pay full attention to the relevant risks of the company, seriously carry out the audit of the company’s 2021 annual report, strictly perform the quality control review system and issue appropriate audit opinions.
6、 The company’s share price fluctuates greatly recently. Your company should comprehensively check whether there are matters that should be disclosed but not disclosed, timely perform the obligation of information disclosure according to the self inspection, and fully reveal the risks to the market. The company is requested to check the recent stock transactions of controlling shareholders, actual controllers, directors, supervisors and related parties.
Please disclose this letter immediately after receiving this inquiry letter, reply within 5 trading days, and disclose the corrected performance forecast to remind the delisting risk. All directors, supervisors, senior managers and intermediaries of your company shall be diligent, honest and trustworthy, actively implement the requirements of this letter, seriously do a good job in the preparation and disclosure of the company’s annual report, ensure the legality and compliance of accounting treatment, and ensure that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions. The company and the directors, supervisors and senior executives shall abide by the norms of information disclosure and ensure the smooth channels of information disclosure. For the verified violations of information disclosure of the company and relevant parties, the exchange will start the disciplinary procedure in accordance with the regulations and deal with them seriously. “
The company attaches great importance to the issues involved in the inquiry letter, and will implement relevant work as soon as possible in accordance with the requirements of the inquiry letter, reply to the above matters and fulfill the obligation of information disclosure in time. Please pay attention to and pay attention to investment risks.
It is hereby announced.
Jiangsu Chengxing Phosph-Chemical Co.Ltd(600078) board of directors January 29, 2022
