Securities code: Suzhou Chunxing Precision Mechanical Co.Ltd(002547) securities abbreviation: Suzhou Chunxing Precision Mechanical Co.Ltd(002547) Announcement No.: 2022020 Suzhou Chunxing Precision Mechanical Co.Ltd(002547)
Announcement on uncovered losses reaching one third of the total paid in share capital
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Suzhou Chunxing Precision Mechanical Co.Ltd(002547) (hereinafter referred to as “the company”) held the 9th meeting of the 5th board of directors on April 24, 2022, deliberated and adopted the proposal on making up losses up to one third of the total paid in share capital. The specific situation is hereby announced as follows:
1、 Overview of the situation
As of December 31, 2021, the audited net profit attributable to the owners of the parent company was -103254599351 yuan, the amount of outstanding loss was 196893571827 yuan, the paid in capital was 112805716800 yuan, and the amount of outstanding loss of the company exceeded one third of the total paid in capital. According to the company law, the articles of association and other relevant provisions, the matter shall be submitted to the general meeting of shareholders for deliberation.
2、 Main reasons for losses
During the reporting period, the main reason why the company did not make up for the large losses was that the company further focused on the main business this year, implemented the strategy of closing down and transferring the non main business with poor profitability and low capital utilization, optimized the cost structure, actively promoted the work of “downsizing and reducing the burden”, and accrued large impairment reserves in accordance with the accounting standards for Business Enterprises No. 8 – impairment reserves and the company’s accounting policies. At the same time, due to the obvious decline of gross profit margin of some products and the withdrawal of some products from the market due to the intensification of market competition, the company accrues large impairment reserves for accounts receivable and inventories.
During the reporting period, under the influence of repeated global epidemics and bulk commodity trade, the purchase price of main raw materials of the company’s products increased significantly, especially the aluminum price continued to rise, and the customer price adjustment has not been completed, which has a great impact on the company’s net profit loss in the current period.
3、 Countermeasures
1. Continue to focus on core business and continuously improve the operation and management level of the company
The company will continue to sort out the existing assets and business structure, further strengthen the business focus, and concentrate more effective resources on the advantageous and innovative businesses that can support the company’s long-term growth in the future; Further strengthen scientific and technological research and development, continuously improve the product and service power of enterprises, and improve the market competitiveness of products.
The company will continue to improve the current situation of accounts receivable and financial recovery, and strive to improve the current situation of accounts receivable and financial recovery; Control the cost of supply chain and gradually increase the overall gross profit margin of the company; And reduce the management cost and capital cost by improving the management efficiency, reducing the proportion of inventory and improving the capital turnover rate; Achieve the results of improving the company’s operating efficiency and enhancing the company’s competitiveness. At the same time, the company will actively revitalize the stock assets, fully release the value of the stock assets, improve the overall asset quality of the company, increase the proportion of high-quality assets, and improve the comprehensive profitability of the company as a whole.
2. Comply with the policy orientation and actively expand the customer system
As a leading manufacturer and service provider of precision aluminum alloy structural parts in China, the company is based on the communication and automobile industries. In 2022, the company will further expand marketing channels, further strengthen cooperation with advantageous resource enterprises and high-quality customers, deeply explore the market, develop new projects, improve the company’s market share and performance growth point, and provide guarantee for the stable and healthy development of the company.
3. Improve the internal control system and standardize corporate governance
The company will continue to improve the construction of internal control system, and implement the high-quality development requirements of listed companies according to the new regulatory requirements and new ideas of regulatory authorities. The company will further strengthen corporate governance, improve and improve the internal control system, optimize the company’s management system, improve the standardized operation level, strengthen the awareness of risk prevention, and promote the stable, healthy and sustainable development of the company.
It is hereby announced.
Suzhou Chunxing Precision Mechanical Co.Ltd(002547) board of directors
April 26, 2002
