On March 6, the Shanghai Stock Exchange issued to Weifang Yaxing Chemical Co.Ltd(600319) the inquiry letter on the supervision of information disclosure of the 2021 annual report, requiring to explain the reasons for the low gross profit margin of the product and compare it with the gross profit margin level of comparable companies in the same industry to explain whether it is reasonable; Combined with the main financial indicators in recent three years, analyze whether there is a large dependence on non recurring profits and losses for a long time; Explain the reasons for the mismatch between the change trend of quarterly operating income, net profit attributable to parent company and cash flow from operating activities in combination with the purchase and sales, cost and expense collection, etc; Supplement and disclose the specific business model of dealer sales and the specific contents of the company’s demolition compensation agreement; Whether the production status of CPE business after resumption of production is continuous production and whether there is the possibility of stopping production again, indicating whether the production and operation have actually returned to normal.
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