The audit institution suddenly resigned, and there are only more than 20 days left before the official disclosure of the annual report. After searching for nearly a year, I didn’t find Ningbo Sunlight Electrical Appliance Co.Ltd(002473) ( Ningbo Sunlight Electrical Appliance Co.Ltd(002473) . SZ) of the audit institution. I’m afraid I will face the embarrassment of no audit of the annual report in 2021.
In recent years, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) violations have continued. After the end of 2019, the controlling shareholder and related parties of the company occupied more than 79 million yuan through non operation. After being discovered by the original audit institution, all the occupied funds had not been returned until the end of December last year.
From 2014 to 2020, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) deducted non net profit for seven consecutive years, with a cumulative loss of 408 million yuan. On April 30, 2021, its shares were warned of delisting risk. If it continues to lose money in 2021, its shares will face delisting. In the case of continuous losses in the first three quarters, the company disclosed the performance forecast on January 28 this year, saying that it was expected to achieve a maximum net profit of 58 million yuan last year.
The first financial survey found that the authenticity of the sudden “turnaround” is in doubt Ningbo Sunlight Electrical Appliance Co.Ltd(002473) last year, some suppliers involved in the distribution complete equipment business had equity and personnel contacts with downstream customers. Among them, a supplier shareholder whose purchase volume accounts for nearly 25% and a supervisor in the enterprise controlled by the largest customer whose sales account for nearly 90%.
st business limited auditor resigned
Ningbo Sunlight Electrical Appliance Co.Ltd(002473) 3 on March 1, it was announced that Lixin Zhonglian Certified Public Accountants (hereinafter referred to as “Lixin Zhonglian”) recently sent a letter stating that it was unable to continue to undertake the audit in 2021 due to the limited undertaking of St project, heavy business volume, the impact of the epidemic, difficulties in personnel transfer and other reasons, so it was required to select other accounting firms in time.
The audit institution suddenly “changed its mind”, which appears to be very sudden. Previously, on February 11, when replying to the inquiry of Shenzhen Stock Exchange, the company also said that it was communicating with Lixin Zhonglian on the annual audit arrangement, and there was no plan to replace the accounting firm for the time being. According to the pre disclosure, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) will publish the annual report of 2021 on March 30. At present, it is less than one month from the agreed time.
In fact, the refusal of Lixin Zhonglian to continue to provide audit has long been a clue. As early as April and may 2021, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) the board of directors and the general meeting of shareholders have decided to renew the appointment of Lixin Zhonglian as the annual audit institution, but there has been no following since. At the end of December last year, Ningbo Securities Regulatory Bureau specifically reminded the company in the supervision letter to select and hire audit institutions with good integrity record in time.
Since then, due to the failure to disclose the progress of renewing the appointment of the audit institution, the Shenzhen Stock Exchange also issued an inquiry letter on January 28, asking the company to explain whether to renew the appointment of Lixin Zoomlion as the audit institution of 2021 financial report, and disclose the situation of the newly hired accounting firm as soon as possible.
Lixin Zhonglian is an earlier accounting firm established in China. According to the website information, as of 2015, the Institute has nearly 500 employees, more than 240 with Chinese CPA qualification, and more than 160 with more than 5 years of audit experience. At present, its main customers are concentrated in the new third board, and there are only 17 A-share customers.
The annual report audit provided by Lixin Zhonglian for Ningbo Sunlight Electrical Appliance Co.Ltd(002473) is only in 2020. The reason for refusing to continue the audit may be related to a number of business violations of the company. Due to a number of irregularities in the use of funds, the company’s 2020 annual report was audited by Lixin Zhonglian with non-standard opinions.
According to the 2019 audit report issued by Asia Pacific (Group) accounting firm, in November 2019, Xingmei international cinema Co., Ltd. (hereinafter referred to as “Xingmei international”) entrusted the operation rights of 29 cinemas to Ningbo Sunlight Electrical Appliance Co.Ltd(002473) wholly-owned subsidiary Beijing Golden Sunshine Equipment Leasing Co., Ltd. (hereinafter referred to as “Golden Sunshine”).
After the signing of the agreement, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) paid 40.417 million yuan to the third party designated by Xingmei international during the reporting period. And continue to pay 7.813 million yuan after the date of the financial statements; In the name of paying the expenses of cinema stores, jinyangguang also paid a total of 18.271 million yuan during the reporting period and after the statement date. Together with the funds paid to the third party designated by Xingmei international for the sale of assets and inventories to Ningbo Ruifu Industry Group Co., Ltd., the funds of related parties occupy 70.52 million yuan.
Moreover, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) did not disclose the above transactions in time and fulfill the review procedures, nor did it really obtain the operation right of relevant cinemas.
In addition, in a similar period of time, golden sunshine planned to purchase 90% equity of a company with 27.9 million yuan and paid 10 million yuan for the transfer. Later, the transfer failed. As of the date of financial report approval, the funds had not been recovered.
Similar problems have continued to occur since then. The audit of Lixin Zhonglian found that in January 2020, Ningbo shenghuimei Trading Co., Ltd., a Ningbo Sunlight Electrical Appliance Co.Ltd(002473) subsidiary, paid an advance payment of 20 million yuan to an enterprise in Inner Mongolia in the name of cooperation in beef cattle breeding industry chain trade. However, the audit found that the other party did not settle the settlement according to the agreement, and the two sides did not reach an agreement on follow-up cooperation. As of the end of the reporting period, the balance of advance payment was still 19.9 million yuan.
More importantly, the above-mentioned occupation of funds in 2019 has also been delayed. According to Ningbo Sunlight Electrical Appliance Co.Ltd(002473) disclosure, as of April 29, 2021, the total occupied balance was 79.054 million yuan. As some of them were considered to be occupied by non funds, 3754100 yuan had not been returned until the end of last year.
Even if the part has been returned, there are questions about its authenticity Ningbo Sunlight Electrical Appliance Co.Ltd(002473) 2020 disclosed that it had received 731978 million yuan of Occupied Funds returned by the controlling shareholder’s related parties. However, the supervision letter issued by Ningbo Securities Regulatory Bureau in August 2020 shows that these funds are still occupied by its controlling shareholder and related parties.
suddenly soaring performance
The operation status and annual report audit in 2021 play a decisive role in whether Ningbo Sunlight Electrical Appliance Co.Ltd(002473) can continue to maintain its listing status.
From 2014 to 2020, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) deducted non net profit for seven consecutive years, with a cumulative loss of 408 million yuan. On April 30, 2021, because the net profit in 2020 was negative, the operating income was less than 100 million yuan and the net assets at the end of the period were negative, its shares were warned of delisting risk.
In view of this situation, in April 2021, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) began the production and sales of power transmission and distribution equipment. The performance forecast disclosed on January 28 shows that the company expects the net profit in 2021 to be 42 million yuan to 58 million yuan, deducting the non net profit loss of 08 million yuan to 12 million yuan, and the operating revenue to be 100 million yuan to 120 million yuan.
According to the data of the third quarterly report, as of the end of September last year, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) operating income was only 42.29 million yuan, with a net profit loss of 13.43 million yuan and a loss of 38.03 million yuan after deducting non net profit. Among them, the revenue in the third quarter was 36.34 million yuan, and the loss of net profit and deduction of non net profit was 890000 yuan.
It is this performance forecast that has attracted regulatory questions. On January 28, the Shenzhen Stock Exchange issued an inquiry letter asking the company to explain whether the operating income in 2021 should be deducted but not deducted and to avoid the mandatory delisting indicators of relevant financial categories. Ningbo securities regulatory bureau also issued a regulatory letter earlier, requiring it to carefully demonstrate the financial situation in 2021 and avoid avoiding the implementation of listing rules by adjusting income or non recurring profits and losses.
If it fails to find a willing audit institution, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) will face delisting risk. Whether there are problems with the audit firm before the audit firm is hired and replaced.
Taking Elefirst Science & Technology Co.Ltd(300356) ( Elefirst Science & Technology Co.Ltd(300356) . SZ) as an example, in May 2021, the company renewed the appointment of Zhonghua Certified Public Accountants (hereinafter referred to as “Zhong’an Institute”) as the auditor of financial statements in 2021. However, on January 7 this year, Zhonghua proposed not to continue to serve as its 2021 audit institution according to the workload of financial report audit and project scheduling. The company immediately hired Shenzhen Jiuan certified public accountants. Subsequently, the Shenzhen Stock Exchange asked the company to explain whether there were differences with Zhonghua in terms of audit work arrangement, fees and audit opinions.
Coincidentally, Ningbo securities regulatory bureau also proposed in the supervision letter in December last year that Ningbo Sunlight Electrical Appliance Co.Ltd(002473) should promote the audit of 2021 annual report in order and eliminate the purchase of audit opinions. Whether there is sufficient communication with the accounting firm or other matters required by the accounting firm in the early stage, and whether there is insufficient communication with the accounting firm in Shenzhen.
Ningbo Sunlight Electrical Appliance Co.Ltd(002473) announcement shows that one major reason why Lixin Zoomlion will no longer undertake the audit of 2021 annual report is that its audit business of ST company is limited. In the case of learning from the past, it is not easy to find the audit institution in a short time.
left handed business
The performance forecast shows that the production and sales business of Ningbo Sunlight Electrical Appliance Co.Ltd(002473) power distribution complete sets of equipment is expected to complete the operating revenue of 100 million yuan to 110 million yuan, but the gross profit margin is only 9.79%.
In response to the regulatory inquiry, the company selected six A-share listed companies as the reference objects, of which the gross profit margin of three reference objects was more than 22%, and that of the other three was more than 10%, and Ningbo Sunlight Electrical Appliance Co.Ltd(002473) was at the lowest level. However, the disclosed data show that the company’s procurement cost in major suppliers is only 46.66 million yuan, which is very different from the gross profit margin.
According to Ningbo Sunlight Electrical Appliance Co.Ltd(002473) disclosure, due to the continuous loss of the original business, the company decided to carry out the production and sales business of distribution equipment through the introduction of Zhu xianding, the shareholder of Shanghai Haibin Electric Co., Ltd. (hereinafter referred to as “Haibin electric”). The specific mode is that after receiving the contract, Haibin Electric will place an order to Ningbo Sunlight Electrical Appliance Co.Ltd(002473) produce and then sell it to Haibin electric.
Last year, the company sold 94.86 million yuan to Haibin electric, and signed a purchase and sales contract of 330 million yuan with Ningbo Liaoyuan Electric Appliance Group Co., Ltd. (hereinafter referred to as “Liaodian Co., Ltd.”) controlled by Zhu xianding in December last year.
However, the first financial survey found that the cooperation between Ningbo Sunlight Electrical Appliance Co.Ltd(002473) and Haibin electric may be a left-handed business: some of the company’s suppliers are related to Haibin electric.
According to the disclosure, in 2021, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) purchased 10.27 million yuan from Ningbo Haishu Chaoyi electric appliance stamping Co., Ltd. Fan Jun, the company’s 46% shareholder, legal representative and executive director, also served as a supervisor in Liaodian shares.
Liaodian Co., Ltd. is a new third board company. It was listed on June 24, 2016. The major shareholder is Zhejiang Yuanchuang holding group, with a shareholding ratio of 79.21%. The latter is fully funded by Zhu Yuan and the legal representative is Zhu xianding. On February 11, 2020, the company terminated its listing on the new third board. According to the 2019 semi annual report of Liaodian Co., Ltd., Zhu xianding and Zhu Yuan, the actual controllers of the company, are father son relationship.
This is not the only example. In the same period, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) purchased 11.83 million yuan of circuit breakers and other electronic components from the supplier Ningbo Jiafeng Electric Technology Co., Ltd., accounting for 12.2%, and Weng Xuefeng, the major shareholder of the latter, contributed 81.48%.
Third party information shows that Weng Xuefeng intersects with Zhang Zhongyao and Zhang leiming. Zhang Zhongyao and Zhang leiming are 23% and 30% shareholders of Ningbo Haishu Daye Electric Appliance Co., Ltd. In this company, Weng Xuefeng also appeared as a shareholder, with a capital contribution ratio of 22%.
Zhang leiming has another identity, that is, the 88% shareholder of Ningbo Haiyue Electric Appliance Manufacturing Co., Ltd. and is the sales customer of Ningbo Sunlight Electrical Appliance Co.Ltd(002473) high and low voltage cabinet products, with a sales volume of 7.24 million yuan last year. In other words, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) purchased accessories and sold the products to related parties of upstream suppliers.
