Letter of concern about Oceanwide Holdings Co.Ltd(000046)
Attention letter of the company Department [2022] No. 105 Oceanwide Holdings Co.Ltd(000046) the board of directors:
On January 29, 2022, your company disclosed the performance forecast for 2021, which shows that your company expects the net profit attributable to the shareholders of the listed company in 2021 (hereinafter referred to as “net profit”) to be a loss of 9-11 billion yuan. The reasons for the loss mainly include: affected by the changes of overseas macroeconomic environment and covid-19 pneumonia epidemic, the recoverable amount of overseas projects is expected to decrease in the future. According to the principle of prudence, the company has made provision for impairment of real estate projects in the United States and power plants in Indonesia; China Minsheng Trust Co., Ltd. (hereinafter referred to as “Minsheng trust”), the holding subsidiary of the company, prudently accrued fair value loss and impairment provision for individual risk projects; Increase in financial expenses included in profit or loss during the reporting period. Our department is concerned about this. Please explain the following issues.
1. Please explain the amount and details of the estimated provision for impairment of U.S. real estate projects and Indonesian power plants in combination with the changes of overseas macroeconomic environment and covid-19 pneumonia epidemic situation, including but not limited to the specific project name, main contents, commencement time, project availability status, original plan arrangement and current progress of the project The book value of the project and the impairment reserves accrued in the previous period.
2. Please explain in detail the situation of Minsheng trust withdrawing fair value loss and impairment provision for individual projects, and explain the prediction of the recoverability of relevant creditor’s rights investment and funds, as well as the basis and rationality of withdrawing impairment loss in combination with the main issuers, credit status and cash flow involved in individual risk projects, Whether the provision for impairment of relevant assets is sufficient and reasonable.
3. Please explain the content and amount of financial expenses included in profit and loss during the reporting period, and the reason, amount and rationality of the increase of financial expenses.
4. Please explain whether there are significant changes in the accounting policies and determination basis for the provision for impairment and the recognition of financial expenses compared with the same period of the previous year, whether the relevant accounting treatment complies with the relevant provisions of the accounting standards for business enterprises, and on this basis, explain whether the provision for asset impairment and the recognition of financial expenses of your company in previous years are sufficient, and whether there are any problems through the provision for asset impairment Earnings management by means of inter period recognition of expenses.
Our ministry is concerned about this. Your company is requested to make a written explanation on the above issues, submit relevant explanatory materials to our department and disclose them to the public before February 14, 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 and regulations, 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
Listed company management department of Shenzhen Stock Exchange on February 29, 2021
