The annual report disclosure of A-share listed companies is in full swing. Compared with the performance forecast released in the early stage, some listed companies have “changed face” in performance. According to the incomplete statistics of the reporter of economic information daily, as of March 28, 13 listed companies had issued the revised announcement of 2021 annual performance forecast during the year. Among them, a total of 10 listed companies revised their performance downward, mainly due to the re accrual of asset impairment losses. However, compared with the same period last year, the number of listed companies with “face change” in performance this year has converged.
more than ten listed companies revised performance forecast
On March 26, Northern Copper and Annil Co.Ltd(002875) two listed companies issued the revised announcement of 2021 annual performance forecast. Among them, Annil Co.Ltd(002875) ‘s performance forecast amendment announcement showed continued losses. In the previous performance forecast, Annil Co.Ltd(002875) said that the net profit range attributable to shareholders of Listed Companies in 2021 is expected to be 14 million yuan to 20 million yuan, and the net profit range after deducting non recurring profits and losses is 3.5 million yuan to 5 million yuan. After the amendment, the net profit attributable to the shareholders of the listed company is a loss of 2 million yuan to 4 million yuan, and the net profit after deducting non recurring profits and losses is a loss of 14 million yuan to 20 million yuan Annil Co.Ltd(002875) explained that affected by the epidemic factors since February 2022, the consumption environment of the company’s key offline sales areas has been affected, affecting the company’s overall expected selling out rate. Therefore, the company reassessed the expected sales and its impact on inventory, and made a supplementary provision for inventory falling price at the end of 2021.
Northern Copper revised the expected net profit after deducting non recurring profits and losses in 2021 from the previous profit of 80 million yuan to 97 million yuan to 43 million yuan to 64 million yuan. The net profit data attributable to shareholders of Listed Companies in 2021 predicted in the previous performance announcement remained unchanged. For the reasons for performance correction, Northern Copper said that according to the relevant provisions of accounting standards and interpretative Announcement No. 1 – non recurring profits and losses, the current net profits and losses of subsidiaries from the beginning of the period to the merger date arising from business merger under the same control should be included in non recurring profits and losses. Due to the different understanding of non recurring profits and losses in the reorganization and listing, the company did not include the current net profits and losses of subsidiaries from the beginning of the reporting period to the merger date under the same control into non recurring profits and losses in the previous performance announcement, which belongs to the classification and presentation error of non recurring profits and losses.
According to the announcement statistics of listed companies, as of March 28, 13 listed companies, including Great Wall International Acg Co.Ltd(000835) , Beijing Wkw Automotive Parts Co.Ltd(002662) etc., have issued the revised announcement of 2021 annual performance forecast since this year. Among them, a total of 10 listed companies reduced the net profit attributable to the shareholders of listed companies and deducted non net profit in the amendment announcement, and the rest of the amendments include the modification of the reasons for performance changes and the addition of expected items.
In addition, listed companies have revised the performance forecast for many times. For example, Egls Co.Ltd(002619) revised the performance forecast downward twice this year. On January 26 this year, Egls Co.Ltd(002619) released the performance forecast for 2021, saying that the company expects the net profit attributable to the parent company in 2021 to be -756688 million yuan to -114 million yuan. On February 16, Egls Co.Ltd(002619) issued a performance forecast amendment announcement, saying that the company’s loss in 2021 will expand, and the net profit attributable to the parent company is expected to be – 460 million yuan to – 562 million yuan. On March 16, Egls Co.Ltd(002619) again issued a performance forecast amendment announcement, saying that the loss of net profit attributable to the parent company in 2021 is expected to be – 730 million yuan to – 892 million yuan.
important reasons for recosting and withdrawing of asset impairment
The reporter noted that the re accrual of asset impairment has become an important reason for the “face change” of the performance of listed companies. For example, Egls Co.Ltd(002619) then explained the reason why it lowered the performance forecast for many times, saying that because the annual audit accountant sent letters to the related parties of the company’s game revenue and the accounts receivable of previous years before January 31, 2022, the company estimated that the game revenue of 20 million yuan was uncertain due to no relevant reply, and decided to withdraw bad debts in full for the accounts receivable of 290 million yuan. For the dividend recovery of the cancelled Sun company, the bad debt loss is also fully accrued.
Great Wall International Acg Co.Ltd(000835) also said that the “face change” of performance was mainly due to the proposed provision of credit impairment loss and increase in asset impairment loss after checking the assets of the company and its subsidiaries that may show signs of impairment at the end of 2021 Beijing Wkw Automotive Parts Co.Ltd(002662) said that the main reason for performance changes was the supplementary provision for credit impairment Zhejiang Huatong Meat Products Co.Ltd(002840) also said that the management of the company carefully assessed the impairment risk of biological assets according to the recent pig market, and made a supplementary provision for the impairment of biological assets for the biological assets on hand at the end of 2021.
Industry insiders believe that at present, for some industries, due to the impact of external environmental factors, the expected performance changes are acceptable, but some cases with large performance changes should be kept in doubt. If there is a significant deviation between the performance forecast and the actual performance, there may be accounting quality problems. The annual audit accountant may issue non-standard audit opinions due to the difference between the forecast and the annual report, and the listed company may bear legal responsibility.
Guo Lijun, a partner of BOC law firm in Beijing, said that the “face change” of performance, especially the situation in which the pre profit turns into a loss, is very unfavorable to investors and the securities market. If a listed company fails to conscientiously fulfill its obligation of information disclosure in accordance with relevant regulations when disclosing its performance, or commits acts such as falsification of information disclosure and illegal manipulation of the market, it will face the consequences of administrative punishment by the securities administrative regulatory authority and forced delisting by the exchange, as well as the risk of criminal responsibility.
However, the performance “face change” of listed companies this year has converged. Data show that during the disclosure period of the 2020 annual report, a total of 108 listed companies showed “face changes” in performance. Among them, 17 listed companies, including Xinjiang Yilu Wanyuan Industrial Investment Holding Co.Ltd(600145) , Safbon Water Service (Holding) Inc.Shanghai(300262) and others, saw a reduction in net profit of more than 50%.
