With regard to the attention letter on Jinzhou Cihang Group Co.Ltd(000587) , the company’s Department’s attention letter [2022] No. 103 Jinzhou Cihang Group Co.Ltd(000587) board of directors:
On January 29, 2022, your company disclosed the annual performance forecast for 2021, which said that your company expects to achieve operating revenue of 130 million yuan to 160 million yuan in 2021. After deducting the operating revenue of 130 million yuan to 160 million yuan, the net profit attributable to the parent company is – 1.55 billion yuan to – 1.45 billion yuan, and the net profit attributable to the parent company after deducting non is – 2.77 billion yuan to – 2.67 billion yuan. It is estimated that the net assets at the end of the year will be 216 million yuan to 316 million yuan. The main reason for the change in performance is that the impairment loss of accounts receivable is 1.9 billion yuan to 2.4 billion yuan, the statement of the subsidiary Jinye jewelry is expected to generate an investment income of 900 million yuan to 1.3 billion yuan, and the large debt exemption is expected to increase the capital reserve by 1.2 billion yuan to 1.5 billion yuan. Our department is concerned about this. Please explain the following issues.
1. At present, your company’s main business is the sales of gold jewelry and silver in Jinzhou, Xiamen and Jinye, Shanghai. The gross profit margin of sales in the first three quarters of 2021 is only 2.92%. Please combine the business essence of gold jewelry and silver sales (including procurement mode, production mode, sales mode, etc.) to explain whether they belong to trade business. If so, please further combine whether your company has the right to independently select suppliers and customers, whether there are customers designated by your company’s suppliers Your company’s customers designate suppliers or suppliers to introduce customers to your company, explain whether your company has the primary responsibility to sell goods to customers, and whether your company recognizes revenue by using the total amount method instead of the net amount method.
2. According to the semi annual report disclosed by your company, your company only achieved an operating revenue of 37 million yuan in the semi annual of 2021, while your company expects to achieve an operating revenue of 130 million yuan to 160 million yuan in 2021. In combination with the actual sales volume and price of various products such as gold and jewelry in each quarter, please explain the reason and rationality that the operating revenue is mainly concentrated in the third and fourth quarters, whether it conforms to the characteristics of the industry, and whether your company increases the revenue scale in 2021 by surprise new businesses and transactions without commercial substance, so as to avoid the implementation of delisting risk warning. At the same time, please check whether your company has deducted the income irrelevant to the main business or without commercial substance in accordance with the relevant requirements on the deduction of operating income in the guidelines for self regulation and supervision of listed companies No. 1 – business handling.
3. On December 27, 2021, the 100% equity of gold leaf jewelry held by your company was auctioned by the judiciary. On January 10, 2022, the reply to the notice of concern disclosed by your company showed that by the end of 2021, your company had receivable 1.118 billion yuan of gold leaf jewelry, and there was still a guarantee balance of 1.186 billion yuan for gold leaf jewelry. Please explain the accounting treatment and compliance of gold leaf jewelry, as well as your company’s provision for bad debts of the above receivables and external guarantees.
4. With regard to the large debt exemption, our department has sent the second letter of concern to your company. So far, no reply has been received. Please reply to our inquiry as soon as possible. At the same time, please explain whether your company has evaded the delisting risk warning of stock trading by increasing the scale of operating income, less provision for asset impairment or estimated liabilities, passive statement of subsidiaries, large debt exemption, etc. Please fully remind your company of the possible delisting risks.
5. On January 25, 2022, your company disclosed the announcement on the superimposed implementation of other risks warning for your company’s shares, which showed that your company’s shares were superimposed and implemented other risks warning since the opening of the market on January 25, 2022 due to the freezing of the main bank account. Please explain the specific reason and date of the freezing of your company’s main bank account, and whether there is any situation of untimely information disclosure.
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
Shenzhen Stock Exchange listed company management department I January 30, 2022
