Securities code: Zhejiang Renzhi Co.Ltd(002629) securities abbreviation: Renzhi stock Announcement No.: 2022021 Zhejiang Renzhi Co.Ltd(002629)
Announcement on uncovered losses reaching one third of the total paid in share capital
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Zhejiang Renzhi Co.Ltd(002629) (hereinafter referred to as “the company”) held the 24th Meeting of the 6th board of directors and the 14th meeting of the 6th board of supervisors on March 18, 2022. The proposal on the company’s outstanding losses reaching one third of the total paid in share capital was deliberated and adopted, which needs to be submitted to the 2021 annual general meeting of shareholders of the company for deliberation. The relevant information is hereby announced as follows: I. overview of the situation
According to the audit report dhsz [2022] No. 004903 issued by Dahua Certified Public Accountants (special general partnership), as of December 31, 2021, the undistributed profit in the consolidated financial statements of the company in 2021 was -52280590556 yuan, the paid in share capital of the company was 41194800000 yuan, and the amount of the company’s outstanding loss exceeded one-third of the total paid in share capital. According to the relevant provisions of the company law of the people’s Republic of China and the articles of association, when the amount of the company’s outstanding losses reaches one third of the total paid in share capital, it shall be submitted to the general meeting of shareholders for deliberation. 2、 Reasons for loss
As of December 31, 2017, the undistributed profit on the consolidated balance sheet of the company was 10917571832 yuan, but as of December 31, 2021, the undistributed profit on the consolidated balance sheet was -52280590556 yuan, mainly because the net profit attributable to the shareholders of the listed company in 2018 was -61985611890 yuan. Although the company turned losses into profits in 2019 and realized a net profit attributable to shareholders of the listed company of 2897017923 yuan, it is not enough to make up for the losses of previous years. The specific reasons for the loss in 2018 are detailed in the 2018 annual report and the announcement on the correction and retroactive adjustment of the company’s previous accounting errors (Announcement No.: 2020080) disclosed by the company on April 29, 2019 and September 16, 2020 respectively.
In 2020, the company achieved an operating income of 10796965155 yuan and a net profit attributable to shareholders of listed companies of -1469017423 yuan.
In 2021, the company realized an operating income of 12599124943 yuan and a net profit attributable to shareholders of listed companies of -2640550998 yuan.
The company’s outstanding losses exceed one-third of the total paid in share capital, mainly due to:
1. In 2018, among the deposits and other receivables from bulk trade business, the receivables of 3737027 million yuan were difficult to recover, resulting in a bad debt loss of 3737027 million yuan;
2. In 2018, the former chairman, assistant to the chairman and relevant personnel of the company issued notes payable of RMB 1467708 million in the name of the company without authorization and performing the normal internal approval decision-making procedures for the purpose of financing the company. Based on the principle of prudence, the company confirmed the relevant loss of RMB 1467708 million, which significantly reduced the profit level of 2018. 3、 Countermeasures
While maintaining the stability of existing business, the company actively seeks new profit growth points to improve the company’s operation and realize the sustainable development of the company. In order to improve the profitability of the company, the company has taken or plans to take the following countermeasures:
(1) Focus on new material business, strengthen product R & D and market development, and improve the profit scale;
(2) Optimize and improve internal management. 4、 Documents for future reference
1. Resolutions of the 24th Meeting of the 6th board of directors;
2. Resolution of the 14th meeting of the 6th board of supervisors.
It is hereby announced.
Zhejiang Renzhi Co.Ltd(002629) board of directors March 21, 2022
