On April 25, Shenzhen Stock Exchange issued a letter of concern to Xinjiang Machinery Research Institute Co.Ltd(300159) asking the company to explain the specific impact of accounting error correction on the company’s annual net assets and net profit, whether the company has avoided delisting risk warning or delisting, and whether the company’s shares have the risk of delisting risk warning.
Recently, Xinjiang Machinery Research Institute Co.Ltd(300159) respectively disclosed the “announcement on correction of accounting errors”, “announcement on change of expected credit loss rate” and “announcement on change of accounting estimates”. Among them, the accounting error correction announcement shows that the company plans to retroactively restate some data in the 2020 financial statements; The announcement on the change of expected credit loss rate shows that the company plans to adjust the expected credit loss rate of accounts receivable and contract assets, starting from January 1, 2019; The announcement of accounting estimate change shows that the company plans to change the depreciation life of some fixed assets, starting from January 1, 2022.
According to the announcement, this accounting error change involves multiple accounting subjects in the 2020 financial statements, and does not involve the opening data of the balance sheet. Among them, the total shareholders’ equity attributable to the parent company at the end of 2020 was corrected from 1.54 billion yuan to 531 million yuan; In 2020, the operating revenue was corrected from 1.105 billion yuan to 926 million yuan, and the net profit was corrected from – 2.558 billion yuan to – 703 million yuan; Credit impairment loss and asset impairment loss were corrected from 405 million yuan and 1.78 billion yuan to 194 million yuan and 216 million yuan respectively.
The attention letter requires the company to verify and explain that the credit impairment loss and asset impairment loss of the company in 2020 are reduced by 211 million yuan and 1.564 billion yuan respectively compared with the original disclosure, and the net profit is increased by 1.855 billion yuan compared with the original disclosure, but the reason and rationality of the significant reduction of net assets by 1.009 billion yuan compared with the original disclosure at the end of 2020. At the same time, explain the specific matters involved in the correction of the company’s accounting errors, and whether it involves financial fraud such as false income, net profit and net assets; Whether the correction of accounting errors has fully reflected the impact of relevant matters, and whether the company still needs to adjust the financial data of the beginning of 2020 and previous years. If so, explain the specific year, accounting subject and affected amount involved. In addition, the attention letter requires the company to explain whether there is a risk of delisting risk warning in the stock in combination with relevant conditions. If so, information disclosure shall be carried out in accordance with relevant regulations.
