After the disclosure of the pre loss announcement, Nanjing Red Sun Co.Ltd(000525) (000525) received a letter of concern.
From 2019 to 2020, Nanjing Red Sun Co.Ltd(000525) net profit after deduction is negative for two consecutive years, and it is still negative in 2021. According to the requirements of Shenzhen Stock Exchange, Nanjing Red Sun Co.Ltd(000525) explain whether there is significant uncertainty in the company’s sustainable operation ability, and explain the adequacy of withdrawing relevant bad debt reserves.
estimated loss last year 3.4 billion to 3.7 billion yuan
Previously, on January 29, Nanjing Red Sun Co.Ltd(000525) announced that the expected loss in 2021 was 3.4 billion yuan to 3.7 billion yuan, mainly due to the company’s plan to withdraw large credit impairment losses, including about 1.9 billion yuan of bad debt provision for related receivables occupied by the funds of controlling shareholders and their related parties, and about 1.4 billion yuan of estimated liabilities for related guarantee and litigation.
On the same day, Nanjing Red Sun Co.Ltd(000525) disclosed the announcement on the proposed provision for asset impairment, which showed that in June 2021, the court ruled to accept the reorganization application of Nanjing First Pesticide Group Co., Ltd. (hereinafter referred to as Nanyi agricultural group), the controlling shareholder of the company.
As of January 5, 2022, the balance of non operating funds occupied by Nanyi agricultural group and its related party Red Sun Group Co., Ltd. (hereinafter referred to as Red Sun Group) was 2.952 billion yuan. Shenzhen stock exchange requires the company to explain the adequacy of the company’s provision for relevant bad debts in combination with the above-mentioned settlement of fund occupation, the declaration of the company’s creditor’s rights and the possible repayment proportion.
As of June 30, 2021, Nanjing Red Sun Co.Ltd(000525) of the external guarantee balance, the guarantee balance to the controlling shareholder Nanyi agricultural group and its related party red sun group was 1.452 billion yuan and 552 million yuan respectively. Shenzhen stock exchange requires the company to combine the solvency of Nanyi agricultural group and red sun group to conduct self-examination to explain whether the company has been transferred by the bank again due to undertaking the guarantee liability, and the adequacy of the company’s provision of estimated liabilities for the above guarantee.
In 2018, St Hongtai acquired 100% equity of Chongqing Zhongbang held by Jiangsu red sun Pharmaceutical Group Co., Ltd. (hereinafter referred to as red sun Pharmaceutical Group), the controlling shareholder of Nanyi agricultural group, in cash. However, Chongqing Zhongbang failed to fulfill its performance commitment in 2019. In June 2020, both parties made performance commitment adjustment. Chongqing Zhongbang performance commitment period was adjusted to 2018-2021, and the total after tax net profit of each year was no less than 369 million yuan. Nanyi agricultural group promised to bear the full performance guarantee responsibility for the commitments made by red sun Pharmaceutical Group. Shenzhen stock exchange requires the company to check and explain the achievement of the above performance commitments.
From 2019 to 2020, Nanjing Red Sun Co.Ltd(000525) net profit after non deduction was negative for two consecutive years. The performance forecast shows that the company’s net profit after deducting non-profit in 2021 is still negative. Shenzhen stock exchange requires the company to explain whether there is significant uncertainty in the ability of sustainable operation in combination with the composition of its main business, current production and operation status and expected loss in the current period, and timely and fully disclose the risk tips.
received the supervision letter because the chairman did not resign in time
In July 2020, Nanjing Red Sun Co.Ltd(000525) was investigated by China Securities Regulatory Commission on suspicion of illegal information disclosure.
Due to the non operating occupation of the company’s funds by the controlling shareholder Nanyi agricultural group and its related parties. Nanjing Red Sun Co.Ltd(000525) in 2020, the internal control audit report with negative opinions was issued by Lixin Zhonglian Certified Public Accountants (special general partnership). As of April 28, 2021, the fund balance of the company occupied by Nanyi agricultural group and its related parties was 2.964 billion yuan. As of February 6, 2022, the fund balance of the company occupied by Nanyi agricultural group and its related parties was 2.952 billion yuan.
Nanjing Red Sun Co.Ltd(000525) in the latest disclosed announcement, the company and the board of directors continue to urge Nanyi agricultural group and its related parties to return the occupied funds as soon as possible to eliminate the impact on the company. At present, the relevant parties are actively rectifying.
Before receiving this concern letter, Nanjing Red Sun Co.Ltd(000525) also received a supervision letter on January 28.
According to the announcement, on August 26, 2021, the Shenzhen Stock Exchange issued a disciplinary decision to the company and relevant parties, in which Yang Shouhai, the then chairman of the company, was publicly determined to be unfit to serve as a director, supervisor and senior manager of a listed company for five years.
However, within one month after the Shenzhen Stock Exchange made the public recognition decision, Yang Shouhai did not leave his post, and the company did not remove Yang Shouhai from relevant positions in time.
On December 21, 2021, Shenzhen Stock Exchange issued a letter of concern, asking the company to explain whether Yang Shouhai has the qualification of chairman of the board of directors, and to explain the reasons and rationality for the company’s failure to remove Yang Shouhai from his post in accordance with the corresponding provisions.
The chairman of the board of directors of China shouhuan Insurance Co., Ltd. has continued to rise since December 2021 and the third quarter of 2023, especially in the face of the complex situation of increasing the original energy consumption and safety control policies of shouhuan Insurance Co., Ltd. in the face of the spread of the epidemic situation in the world, The company actively implements the spiritual requirements of “six stabilities and six guarantees”, especially in the key period of production and operation in the fourth quarter. Considering the stability of the company’s production and sales, operation management and project operation, as of the date of receiving the letter, the company has not removed Mr. Yang Shouhai from the post of chairman of the board of directors according to the corresponding regulations.
According to the announcement, on December 29, 2021, Nanjing Red Sun Co.Ltd(000525) received a written resignation report from Yang Shouhai. After resigning from the positions of director and chairman of the company, he served as the general consultant of the company.
