Securities code: Gome Telecom Equipment Co.Ltd(600898) securities abbreviation: St MeiXun Announcement No.: pro 202215 Gome Telecom Equipment Co.Ltd(600898)
Announcement on receiving the inquiry letter on the supervision of information disclosure of the company’s 2021 annual report from Shanghai Stock Exchange
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
Gome Telecom Equipment Co.Ltd(600898) (hereinafter referred to as “the company”) received the inquiry letter on information disclosure supervision of Gome Telecom Equipment Co.Ltd(600898) 2021 annual report (szgh [2022] No. 0200) (hereinafter referred to as “the inquiry letter”) issued by Shanghai Stock Exchange on March 24, 2022. The specific contents of the inquiry letter are as follows:
In accordance with the requirements of the standards for the content and format of information disclosure by companies offering securities to the public No. 2 – the content and format of annual report (hereinafter referred to as the standard for the format No. 2), the self regulatory guidelines for listed companies of Shanghai Stock Exchange No. 3 – industry information disclosure guidelines and other rules, after the post audit of your 2021 annual report, in accordance with the provisions of article 13.1.1 of the stock listing rules of the exchange, Please further supplement and disclose the following information.
1. The annual report shows that in 2021, the company achieved an operating revenue of 235 Hcr Co.Ltd(688500) yuan, a year-on-year decrease of 74.92%. The sharp decline in operating revenue is mainly due to the contraction of smart home trading business. In 2021, the trading business of smart home achieved an operating revenue of 116148 million yuan, a decrease of 98% compared with 584 million yuan in 2020. The company is requested to make supplementary disclosure: (1) in combination with the development of the industry, explain the basic situation of the company’s smart home trade business, including but not limited to business model, operation and profitability; (2) In combination with the company’s decision-making procedures and internal control, list in detail the name and sales amount of the top five customers, the name and purchase amount of the top five suppliers of the company’s smart home trade business in recent two years, and explain the final source and destination of funds of the above customers and suppliers in relevant trade business, and whether there are business transactions or large capital transactions with the company’s controlling shareholders and their affiliates, Whether there are other relationships that should be disclosed, whether there are abnormalities in the upstream and downstream capital flows, and whether the relevant businesses are authentic; (3) Specific reasons for the sharp decline of smart home trade business during the reporting period. The annual audit accountant is requested to express his opinions prudently and comprehensively in combination with the audit procedures.
2. According to the annual report, the gross profit margin of the company in 2021 was only 5.10%, a decrease of 8.49 percentage points over the same period. Among them, the gross profit margin of ODM complete machine, motherboard and others are 4.19%, – 0.83% and 0.14% respectively, and that of OEM is – 1.41%. In 2020, the gross profit margin of the above businesses of the company is negative. Meanwhile, the company’s net profit after deduction for four consecutive years from 2018 to 2021 was -507988600 yuan, -81971930 yuan, -1758928 million yuan and -416145 million yuan respectively, which were negative, while the 2021 annual report was issued with standard unqualified opinions. The company is requested to make supplementary disclosure: (1) explain the reasons why the gross profit margin of the company’s main business has been at a low level in recent years in combination with the development trend of the industry, the fluctuation of product raw materials and the product price, and make a comparative analysis with the same industry to explain whether it is reasonable; (2) Explain the main considerations and rationality of the company’s focus on the above business in combination with the company’s specific operation and profitability; (3) In combination with the negative net profit after deducting non-profit for four consecutive years and the gross profit margin, this paper explains whether there is uncertainty and judgment basis for the company’s sustainable operation ability. Please comment on the annual audit accountant.
3. The annual report shows that the sales of the company’s top five customers are 194286700 yuan, accounting for 82.43% of the total annual sales, a significant increase from 63.52% in 2020; The purchase amount of the top five suppliers is 880665 million yuan, accounting for 44.78% of the total annual purchase. The company is requested to make supplementary disclosure: (1) the names of the top five customers and suppliers, sales and procurement amount, proportion, product name and type, revenue recognition policy, settlement cycle and method, etc., and explain the reasons and rationality for the high sales concentration and significant increase compared with the previous period; (2) Whether major customers and suppliers have changed during the reporting period, as well as the specific conditions of new customers and suppliers, including but not limited to name, products involved, transaction time, transaction amount, settlement as of the end of the period, etc; (3) Whether the customer and supplier are the same party or have an associated relationship. If so, please disclose the name of the relevant customer and supplier, the products involved in the procurement or sales business and the specific amount, and explain the reasons and rationality of the relevant business; (4) Whether the company has any affiliated relationship and other business transactions with the top five suppliers, the top five customers and their final sales customers, whether the top five suppliers and customers have business transactions or large capital transactions with the company’s controlling shareholders and their related parties, and whether there is any non affiliated situation of affiliated transactions. The annual audit accountant is requested to express his opinions carefully and comprehensively in combination with the audit procedures.
4. The annual report shows that the balance of accounts receivable of the company is 963411 million yuan, an increase of 125.64% over the same period of last year, accounting for 40.88% of the operating revenue of this year; The top five accounts receivable totaled 894452 million yuan, accounting for 92.84%. The balance of accounts receivable increased rapidly and the concentration of key customers was high. In addition, the ending balance of advance payment was 5.6943 million yuan, a year-on-year increase of 183.97%. The top five prepayments totaled 5.3126 million yuan, accounting for 93.30%. The company is requested to make supplementary disclosure: (1) whether the top five accounts receivable balances are related parties, causes, aging and whether there is a large recovery risk; (2) Whether the top five prepayment balances are related parties, causes and time of occurrence; (3) Combined with the upstream and downstream conditions of the industry, the changes of the company’s operating revenue and the changes of procurement, sales and credit policies, analyze the rationality of the large increase of accounts receivable and prepayments, and whether there is a situation of increasing operating revenue by relaxing credit policies. Please comment on the annual audit accountant.
5. The annual report shows that the net cash flow generated by the company’s operating activities in 2021 is – 350 million yuan and the net profit is – 51.19 million yuan, with a large difference between the two. Please the company: (1) explain the reasons why the net cash flow generated from operating activities has changed greatly compared with last year and does not match the net profit; (2) Disclose the operating receivables and payables, the cash flow received from selling goods and providing labor services, and the cross check relationship between the cash flow paid for purchasing goods and receiving labor services and the corresponding balance sheet items and income statement items in the form of list; (3) Explain whether the net cash flow from operating activities is negative and whether it is sustainable.
The annual audit accountant shall check and give clear opinions.
6. The annual report shows that the company’s Jiaxing factory has carried out equipment upgrading and site decoration. At present, all the equipment required for the new production line has been accepted and put into use, and the plant decoration is in the final stage. By the end of 2021, the intelligent project of Jingmei electronic intelligent terminal production line had invested 262308 million yuan. On January 23, 2021, in the reply to the second feedback on the application documents for non-public offering of shares disclosed by the company, it was said that the total profit of the intelligent terminal production line intelligent transformation project of Jingmei Electronics was 9.7435 million yuan and the net profit was 121826 million yuan. The company is requested to make supplementary disclosure: (1) the specific situation of the upgrading and transformation of the original production line; (2) Whether the net profit realized by the intelligent transformation project of Jingmei electronic’s intelligent terminal production line reaches the predicted profit. Please comment on the annual audit accountant.
In view of the above problems, if the company believes that it is not applicable or inconvenient to disclose due to special reasons in accordance with the requirements of standard format No. 2 and the guidelines for industry information disclosure of Shanghai Stock Exchange, the company shall explain the reasons why it cannot disclose.
The company is requested to disclose the information immediately after receiving this letter, reply to our department in writing on the above matters within 5 trading days, and fulfill the obligation of information disclosure at the same time.
The above is all the contents of the inquiry letter. The company will timely reply to the relevant contents and fulfill the obligation of information disclosure according to the requirements of Shanghai Stock Exchange.
Shanghai Securities News, China Securities News, securities times and the website of Shanghai Stock Exchange (www.sse. Com. CN) Designated information disclosure media for the company, and the information published by the company shall be subject to the announcement information published by the above designated media. Please invest rationally and pay attention to risks.
It is hereby announced.
Gome Telecom Equipment Co.Ltd(600898) board of directors March 24, 2002
