Guangdong Golden Dragon Development Inc(000712) received the inquiry letter of the annual report of Shenzhen Stock Exchange, asking to explain why the operating performance deviates from that of Companies in the same industry

On March 16, Guangdong Golden Dragon Development Inc(000712) received the inquiry letter on 2021 annual report issued by Shenzhen Stock Exchange. On March 9, Guangdong Golden Dragon Development Inc(000712) released the annual report for 2021. Last year, the company achieved an operating revenue of 1.006 billion yuan, a year-on-year decrease of 39.84%, and the net profit attributable to shareholders of listed companies was -131 million yuan, a year-on-year decrease of 298.93%. Guangdong Golden Dragon Development Inc(000712) is mainly engaged in securities companies. Up to now, it holds 67.78% equity of Zhongshan securities and 40% equity of Dongguan securities.

In the process of reviewing the annual report of Guangdong Golden Dragon Development Inc(000712) 2021, Shenzhen Stock Exchange paid attention to ten major issues, including the progress of non-public offering of shares, the purpose and necessity of large loans from controlling shareholders every year since 2017, comprehensively sorting out the current situation of interest bearing debt, deviation of operating performance from companies in the same industry Whether the provision for impairment of margin trading is sufficient.

Among them, according to the statistics of unaudited operation data of securities companies in 2021 released by the Securities Industry Association, in 2021, 140 securities companies in the industry realized an operating revenue of 502.41 billion yuan, a year-on-year increase of 12.03%; The net profit was 191119 billion yuan, a year-on-year increase of 21.32%. Shenzhen stock exchange requires the company to explain the reasons for the deviation between the operating performance and the companies in the same industry in combination with the operation of each business segment.

Meanwhile, Guangdong Golden Dragon Development Inc(000712) from the first quarter to the fourth quarter, the operating revenue was 346 million yuan, 333 million yuan, 362 million yuan and – 45 million yuan respectively. Please explain the main contents of the fourth quarter’s operating revenue and the reason why the revenue amount deviated significantly from the first three quarters and was negative, and whether it was consistent with comparable companies in the same industry.

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