Shenzhen Laibao High-Tech Co.Ltd(002106) ( Shenzhen Laibao High-Tech Co.Ltd(002106) . SZ) the independent director questioned the authenticity of the financial data of the company’s annual report. Shenzhen Laibao High-Tech Co.Ltd(002106) will receive the inquiry letter from the Shenzhen Stock Exchange after receiving the attention letter from the Shenzhen Stock Exchange on the disclosure day of the annual report. The inquiry letter disclosed by the company on April 2 shows that the Shenzhen stock exchange requires the company to explain the continuous large difference between the net profit and the net cash flow from operating activities in the past three years.
Shenzhen Laibao High-Tech Co.Ltd(002106) is mainly engaged in the research, development and production of flat panel display materials and touch devices. Its leading products include ITO conductive glass for small and medium-sized flat panel display devices, color filter (CF), TFT-LCD panel and medium and large-sized capacitive touch screen.
On March 31, Shenzhen Laibao High-Tech Co.Ltd(002106) disclosed annual report shows that in 2021, the company achieved operating income of RMB 7.682 billion, with a year-on-year increase of 13.79%, net profit attributable to shareholders of listed companies of RMB 491 million, net profit attributable to shareholders of listed companies after deducting non recurring profits and losses of RMB 454 million, with a year-on-year increase of 18.08%, and net cash flow from operating activities of RMB 639 million, with a year-on-year increase of 164.91%.
The reporter of economic information daily noted that according to the data disclosed by Shenzhen Laibao High-Tech Co.Ltd(002106) disclosure, both operating revenue and net profit have reached a new high since the company was listed The auditor of Shenzhen Laibao High-Tech Co.Ltd(002106) annual report is Tianjian Certified Public Accountants (special general partnership). The latter took the determination of income and net realizable value of inventory during Shenzhen Laibao High-Tech Co.Ltd(002106) period as key audit matters in the audit, and finally issued a standard unqualified audit report to Shenzhen Laibao High-Tech Co.Ltd(002106) company. However, Jiang Daxing, an independent director of the company, said that he could not guarantee the authenticity, accuracy and integrity of the annual report, and doubted the financial data in the annual report, such as operating income, accounts receivable, inventory count, profit and so on.
The detailed reason given by Jiang Daxing is that in the process of audit communication, the early audit institution only gave procedural reply to his letter of concern, making it have reasonable doubts about the relevant financial data. Later, when Jiang Daxing proposed to hire a new accounting institution to review the financial statements and would vote against the proposed renewal of the audit institution, he gave a specific reply. Therefore, Jiang Daxing has reasonable doubts about the authenticity, accuracy and completeness of the financial report data of Shenzhen Laibao High-Tech Co.Ltd(002106) 2021.
Shenzhen Stock Exchange issued a letter of concern on March 31, requesting Jiang Daxing to specify the specific contents of the letter of concern sent to the audit institution, including but not limited to accounting subjects, accounting treatment and audit issues, and explain the reasons for paying special attention to the above issues; Require the audit institution to specify the specific contents of the first and second replies to Jiang Daxing; Jiang Daxing is requested to explain in detail whether there are inconsistencies and the reasons for reasonable doubt in combination with the two replies of the audit institution; Whether to communicate with the audit institution after doubt; If yes, please explain the communication; If not, please specify the specific reasons. In addition, Shenzhen stock exchange requires the audit institution to specify the audit procedures for relevant accounting subjects and accounting treatment in combination with Jiang Daxing’s attention letter.
On April 2, the Shenzhen Stock Exchange issued another inquiry letter on the annual report.
The inquiry letter pointed out that in Shenzhen Laibao High-Tech Co.Ltd(002106) 2019, 2020 and 2021, the net profit attributable to the shareholders of the listed company (hereinafter referred to as “net profit”) was 282 million yuan, 438 million yuan and 491 million yuan respectively, the net cash flow from operating activities was 616 million yuan, 241 million yuan and 639 million yuan respectively, and the proportion of cash received from sales of goods and services in operating income was 98.60%, 89.80% and 104.87% respectively.
In this regard, the Shenzhen stock exchange requires the company to explain the reasons for the continuous large difference between the net profit and the net cash flow from operating activities in the past three years, as well as the reasons and rationality of the changes in sales collection in the past three years.
According to the financial report, in 2021, Shenzhen Laibao High-Tech Co.Ltd(002106) achieved an operating revenue of 7.682 billion yuan, a year-on-year increase of 13.79%, of which the operating revenue of full fit products was 6.97 billion yuan, a year-on-year increase of 14.28%. In operating income, sales accounted for 89.95% of the total revenue from Chinese mainland.
In this regard, the Shenzhen stock exchange requires the company to explain the reasons for the growth of operating revenue during the reporting period in combination with the sales of different types of full fit products this year, and ask the annual audit accountant to explain the audit procedures for overseas revenue and whether the relevant revenue recognition is true, accurate and complete.
At the end of the reporting period, the book value of Shenzhen Laibao High-Tech Co.Ltd(002106) inventory was 832 million yuan, with a year-on-year increase of 27.38%. Among them, the book values of inventory goods, raw materials and issued goods were 324 million yuan, 255 million yuan and 134 million yuan respectively, with a year-on-year increase of 37.85%, 5.15% and 41.05%. The inventory falling price reserves were 19.071 million yuan, 240699 million yuan and 200000 yuan respectively, and the withdrawal proportions of inventory falling price reserves were 5.56%, 8.62% and 0.15% respectively. The company explained that the increase of inventory in this year was mainly due to the impact of delayed delivery and increased delivery of goods required by some customers.
In this regard, the Shenzhen stock exchange requires the company to explain the reasons for the increase of inventory and issued goods at the end of the reporting period; Whether the customer’s delayed delivery is consistent with the operation of the industry, and whether the delayed delivery affects the revenue recognition of the company; Analyze and explain whether the amount of inventory falling price reserves withdrawn at the end of the reporting period is reasonable in combination with the specific composition of the company’s inventory, stock age, storage status, relevant product prices in the last two years, production and sales, changes in orders on hand and the withdrawal of inventory falling price reserves of Companies in the same industry.
According to the annual report, in June 2018, Shenzhen Laibao High-Tech Co.Ltd(002106) invested RMB 125 million of its own capital in Chongqing Shenhua film Cecep Solar Energy Co.Ltd(000591) Technology Co., Ltd. (hereinafter referred to as “Chongqing Shenhua”) for the joint venture construction of 306mw copper indium gallium selenium (CIGS) film Cecep Solar Energy Co.Ltd(000591) battery module industrialization project (hereinafter referred to as “CIGS project”), and other investors are the controlling shareholders of the company and its related parties. Since the company invested in Chongqing Shenhua, CIGS project has not been put into operation. At present, the project is at a standstill and will not be continued. During the reporting period, Chongqing Shenhua made an impairment provision of 1.418 billion yuan for CIGS project, resulting in Chongqing Shenhua’s insolvency, and the fair value of the company’s investment in other equity instruments decreased by 125 million yuan accordingly.
In this regard, Shenzhen stock exchange requires the company to explain the approval procedures performed by the company for its investment in Chongqing Shenhua, whether the feasibility of the project is fully demonstrated at the initial investment, and the reason why CIGS project has not been put into operation; In combination with the previous evaluation results of the assets involved in the CIGS project and the construction and operation, explain the reasons and rationality of the provision for large impairment of the project up to this year.
In addition, the Shenzhen Stock Exchange also inquired about Shenzhen Laibao High-Tech Co.Ltd(002106) monetary funds, accounts receivable, financial assets, incentive funds and other related issues.
