On April 2, Shenzhen stock exchange sent an annual report inquiry letter to Hainan Ruize New Building Material Co.Ltd(002596) requesting to list the main financial data and operating data of Guangdong lvrun from 2017 to 2021, briefly analyze its operating conditions and main changes, and explain in detail the reasons and rationality of the sharp decline in performance after the performance commitment period of Guangdong lvrun in combination with industry development, competition pattern, market position and management stability, and whether there was any false increase in profits and Cross period adjustment of profits; Explain the specific test situation and rationality of this goodwill impairment test, including but not limited to the main assumptions, test methods, parameter selection and basis, specific test process, etc; As for accounts receivable for which bad debt provision is made in combination, the company’s main businesses include commercial concrete, cement, landscaping and municipal sanitation. Please explain the rationality of making bad debt provision in combination with accounts receivable according to the unified bad debt provision proportion, and whether it is enough to truly reflect the company’s financial situation; Explain the future debt repayment arrangement, whether the company has sufficient solvency, and whether there is any risk of project shutdown or delay due to capital problems.
The company acquired 100% equity of Guangdong lvrun by issuing shares to purchase assets in 2018. Guangdong lvrun’s performance commitment period is from 2017 to 2020. During the performance commitment period, the four annual completion rates are 103.89%, 101.12%, 92.44% and 108.08% respectively, and the overall completion rate is 101.59%. According to the annual report, Guangdong lvrun achieved a net profit of 676376 million yuan in 2021, a year-on-year decrease of 67.34%. Your company has accrued a provision for goodwill impairment of 6505266 million yuan.
