About Shanghai Huahongjitong Smart System Co.Ltd(300330)
Annual report inquiry letter
Gem annual report inquiry letter [2022] No. 116 Shanghai Huahongjitong Smart System Co.Ltd(300330) board of directors:
Our department paid attention to the following situations in the post review of your 2021 annual report:
1. In November 2021, your company was put on file for investigation by the CSRC on suspicion of illegal information disclosure. At present, the company has not received the concluding opinions or decisions of the CSRC on the above filing matters. Lixin Certified Public Accountants (special general partnership) issued an unqualified audit report with emphasis on the matters in the 2021 financial report of your company, emphasizing that the matters involved in the matters in the matters section are the investigation of your company by the CSRC. Please your company:
(1) The description emphasizes the latest progress of the matters involved in the event section, the possible impact on your company's future financial situation and production and operation, whether it involves the retroactive adjustment of the disclosed annual financial statement data of your company, and whether it will lead to the change of the profit and loss nature of your company's previous annual performance.
(2) According to the identification standard of internal control defects, explain the establishment, implementation and effectiveness of your company's internal control system for the matters involved in the highlighted items section, whether the reasons for the absence of major defects and important defects in internal control during the reporting period are prudent and sufficient, as well as the specific work plan and Countermeasures for the next step.
2. During the reporting period, the operating income of your company in the first quarter, the second quarter, the third quarter and the fourth quarter was 824721 million yuan, 1140337 million yuan, 469965 million yuan and 1281954 million yuan respectively, the net profit attributable to the shareholders of the listed company was 1.9037 million yuan, 4.3738 million yuan, -4.5622 million yuan and 8.4506 million yuan, and the net cash flow from operating activities was -127486 million yuan, -313565 million yuan, -6.5595 million yuan and 1004233 million yuan; The operating income in the second and fourth quarters was high; In the fourth quarter, the net profit attributable to the parent company accounted for 83.13% of the company's annual net profit, an increase of 96.59% over the same period last year. During the reporting period, the amount of non recurring profit and loss recognized by your company was RMB Gansu Qilianshan Cement Group Co.Ltd(600720) 0, an increase of RMB 1944500 over the previous year, mainly due to the addition of other profit and loss items that meet the definition of non recurring profit and loss of RMB 2611000. Please your company:
(1) Combined with the operation of the company during the reporting period, it shows that the performance of the company fluctuated greatly in each quarter, the operating revenue increased significantly in the second and fourth quarters, the net profit in the third quarter was negative, and the reason and rationality of the sharp year-on-year increase in the net profit in the fourth quarter.
(2) Explain whether the net cash flow from operating activities in the reporting period was negative in the first three quarters and the reason for the significant increase from the fourth quarter matched with the change of net profit in the same period.
(3) Supplement and disclose the specific matters corresponding to "other profit and loss items in line with the definition of non recurring profit and loss", and confirm the time point of profit and loss and specific accounting treatment.
3. During the reporting period, the operating revenue of your company's traditional rail transit automatic fare collection system (hereinafter referred to as "AFC") project was 218688900 yuan, accounting for 58.84% of the total operating revenue, a year-on-year decrease of 21.54 percentage points, and the gross profit margin of AFC business was 19.18%, a year-on-year increase of 5.62 percentage points; The performance of major contracts shows that the three major contracts executed by your company during the reporting period are AFC projects, including the second round of construction of Ningbo Rail Transit and the integrated procurement of automatic fare collection system of Ningbo Fenghua intercity railway project, the general contracting of automatic fare collection system of Dalian metro project and the integrated procurement of automatic fare collection system of Xi'an Metro Line 5 phase I project, with contract amounts of 1058351 million yuan respectively 1118583 million yuan and 108.97 million yuan. The project implementation progress has exceeded 90%, and the cumulative recognized income of the project accounts for more than 80%. Please your company:
(1) Add the names of the top five customers of AFC business in the reporting period, project name, project initiation date, contract amount, expected completion date, project implementation progress, revenue recognized in the reporting period, cumulative revenue recognized and payment collection, and explain the reasons for the sharp year-on-year decline of AFC project revenue and whether it continues in combination with orders in hand, industry competition pattern and market expansion.
(2) During the reporting period, your company completed the construction and opening of AFC projects such as Wuxi line 4 and Tianjin line 6 phase II. Please supplement the details of the above-mentioned project construction, project progress, revenue recognition and payment collection in the reporting period.
(3) In combination with contract quotation, competitive environment, major customers, cost control, etc., further explain the reasons and rationality of the growth of gross profit margin while the decline of AFC business income in the reporting period.
4. The ending balance of your company's inventory in the reporting period was 67.901 million yuan, a decrease of 44.33% compared with the beginning of the period; The ending balance of inventory falling price reserves increased from 3.6296 million yuan to 4.9781 million yuan, including 219200 yuan and 11502 yuan of impairment reserves for raw materials and inventory commodities respectively. Please describe in detail the specific process of inventory impairment test in combination with inventory composition, nature and characteristics, stock age, contracts and orders owned by your company, the reasons for the reverse growth of inventory falling price reserves while inventory declines in the reporting period, whether there is inventory backlog, and whether the provision for inventory falling price reserves is sufficient.
5. During the reporting period, the ending balance of your company's accounts receivable was 1468167 million yuan, an increase of 23.91% over the beginning of the period, the ending balance of bad debt provision was 537042 million yuan, the proportion of bad debt provision was 26.78%, a decrease of 1.2 percentage points over the beginning of the period, including 381937 million yuan of accounts receivable for three years and more, accounting for 19.05%, a decrease of 5.18 percentage points over the beginning of the period; The ending balance of notes receivable increased from 80000 yuan to 3667000 yuan, and the provision for bad debts was 193000 yuan; The ending balance of contract assets is 649657 million yuan, a decrease of 20.97% compared with the beginning of the period. Your company withdraws the provision for impairment of contract assets at 5%. Please your company:
(1) The details of accounts receivable in 2020 and 2021, the provision for bad debts and the provision proportion are listed by aging. In combination with the differences, explain the reasons for the decline in the provision proportion for bad debts while the accounts receivable increased in the reporting period, whether there is a significant difference with comparable companies in the same industry, whether your company's accounting policies for accounts receivable have changed, and whether the provision for bad debts is sufficient and reasonable.
(2) Supplementary disclosure of the main object, drawer, transaction background, sales products, transaction amount, Bill issuance and maturity of commercial acceptance bills receivable, and the relationship between related parties and the company; Explain the reasons for the new large amount of notes receivable in the reporting period, whether the company's settlement policy has changed, whether the notes receivable have failed to be cashed when due, the current collection progress and the collection collection measures taken by the company, and analyze whether the provision for bad debts of notes receivable is sufficient in combination with the risk of capital recovery.
(3) Supplement and disclose the customers, contract amount and completion progress of the top five items of the book balance of contract assets, and explain whether the relevant income meets the conditions for revenue recognition, whether the recognition of contract assets meets the relevant provisions of the accounting standards for business enterprises, and the basis and rationality of the proportion of provision for impairment of contract assets in combination with the specific arrangement of the contract, the progress of contract performance and the basis for revenue recognition.
The annual audit accountant shall check and give opinions.
6. During the reporting period, your company's contract liabilities (payment received in advance) were 152234 million yuan, a decrease of 73.64% compared with the beginning of the period. Please explain the specific business corresponding to the advance payment, the name of the advance recipient, the performance of the orders in hand and the advance payment of the newly signed contracts and orders in this period, and the reasons and rationality for the significant decrease compared with the beginning of the period.
7. During the reporting period, your company received 354529 million yuan in cash from selling goods and providing labor services, which was basically the same as that of the previous year; The cash paid for purchasing goods and receiving labor services was 2259483 million yuan, a decrease of 36.25% over the same period last year. Please supplement the cross checking relationship between the cash received from selling goods and providing labor services and the items such as operating income, accounts receivable and contract liabilities, and between the cash paid for purchasing goods and receiving labor services and the items such as operating cost, inventory and prepayment, and explain the reason and rationality of the significant decrease in the cash paid for purchasing goods and receiving labor services when the operating cost increases in the reporting period. The annual audit accountant shall check and give opinions.
8. During the reporting period, the company's operating revenue increased by 14.60% year-on-year, and the tax and surcharges, sales expenses, administrative expenses and R & D expenses changed by - 26.82%, 92.29%, 18.83% and 87.49% year-on-year respectively. Among them, the employee salary in the sales expenses was 1.9372 million yuan, a year-on-year increase of 154.65%, the labor capital and wage surcharges in the management expenses were 1.9543 million yuan, a year-on-year increase of 12.89%, and the salary and wage surcharges in the R & D expenses were 15.716 million yuan, a year-on-; During the reporting period, the number of employees of your company decreased from 197 at the beginning of the period to 163; The main R & D projects "blockchain security supervision goods supply chain data service platform based on attribute encryption" and "innovative application of rail transit AFC system based on domestic software and hardware" have been completed. Please your company:
(1) Explain the reason and rationality of the significant reduction of taxes and surcharges when the income increases, and whether the relevant tax accounting is accurate.
(2) Combined with the personnel composition, average salary level and salary policy changes, this paper explains the reasons and rationality of the sharp increase in the salary expenses of sales, management and R & D personnel while the number of employees decreases.
(3) The restricted equity incentive fee in the management fee during the reporting period is -2.611 million yuan. Please explain the reason why the equity incentive fee is negative, the calculation basis and process, and whether it complies with the relevant provisions of the accounting standards for business enterprises in combination with the exercise and cancellation of equity incentive.
(4) In combination with the overall planning of major R & D projects, project initiation time, R & D cycle, R & D investment amount in each period, project progress and economic benefits, explain the reasons for the significant increase of R & D expenses in the reporting period and the reason and rationality of the capitalization amount of R & D expenditure of 0 in recent three years. The annual audit accountant shall check and give opinions.
9. In 2020 and 2021, the asset impairment losses of your company were -6.1347 million yuan and -4.1595 million yuan respectively, of which other losses were -5.1497 million yuan and -3.7285 million yuan respectively. Please explain the details of other assets for which the impairment provision is made, including the time point when the impairment indication occurs, the process of impairment test, the reasons for the provision, the adequacy and accuracy of the provision for impairment in previous years, and whether it complies with the relevant provisions of the accounting standards for business enterprises.
10. During the reporting period, the balance of current funds between your company and affiliated enterprises under the same control was 5.3606 million yuan, a significant increase over the beginning of the period, including 718800 yuan of accounts receivable from Shanghai Huali integrated circuit manufacturing Co., Ltd. and 4.586 million yuan of prepayments to Shanghai huahongri Electronics Co., Ltd. Please supplement and disclose the background, reasons and specific business essence of the above-mentioned related sales and related purchases, whether the related sales are final sales, the pricing basis and fairness of related party sales and purchases, and the payment collection of related sales. The annual audit accountant shall check and give opinions.
Please make a written statement on the above issues, submit the relevant explanatory materials to our department and disclose them to the public before April 30, and send a copy to the listed company supervision division of Shanghai Securities Regulatory Bureau. This is to inform you.
Gem company management department April 23, 2022
