Easy Visible Supply Chain Management Co.Ltd(600093) board of directors
Special note on audit report without expressing opinions
Easy Visible Supply Chain Management Co.Ltd(600093) (hereinafter referred to as “the company” or “easy to see shares”) engaged Dahua Certified Public Accountants (special general partnership) (hereinafter referred to as “Dahua certified public accountants”) to audit the financial statements of 2021 and issued an audit report that could not express an opinion. In accordance with the relevant requirements of the rules for the preparation and reporting of information disclosure of public securities companies No. 14 – handling of non-standard audit opinions and matters involved by China Securities Regulatory Commission and the stock listing rules of Shanghai Stock Exchange, the board of directors of the company explains the matters involved in the audit opinions as follows:
1、 Matters involved in the issuance of audit reports that cannot express opinions
Dahua Certified Public Accountants issued Easy Visible Supply Chain Management Co.Ltd(600093) financial audit report (dhsz [2022] No. 0011868) for the company. The specific audit opinions are as follows:
(I) unable to express opinions
We have audited the financial statements of Easy Visible Supply Chain Management Co.Ltd(600093) (hereinafter referred to as easy to see shares), including the consolidated and parent company’s balance sheet as of December 31, 2021, the consolidated and parent company’s income statement, consolidated and parent company’s cash flow statement, consolidated and parent company’s statement of changes in shareholders’ equity and relevant notes to financial statements in 2021. We do not express an audit opinion on the attached financial statements. Due to the importance of the matters described in the section “forming the basis for unable to express an opinion”, we are unable to obtain sufficient and appropriate audit evidence as the basis for forming the audit opinion on the financial statements.
(II) form a basis on which opinions cannot be expressed
We conducted our audit in accordance with the auditing standards for Chinese certified public accountants. The “responsibilities of certified public accountants for the audit of financial statements” in the audit report further expounds our responsibilities under these standards. In accordance with the code of professional ethics for Chinese certified public accountants, we are independent of easy to see shares and have fulfilled other responsibilities in terms of professional ethics. We believe that the audit evidence we have obtained is sufficient and appropriate, which provides a basis for our audit opinion.
1. Significant uncertainties related to the ability to continue as a going concern
The net profit in the 2021 financial report reported by easy to see shares was -741 million yuan, and the net cash flow from operating activities was -19 million yuan. As of December 31, 2021, Yijian shares had current assets of 1.46 billion yuan, current liabilities of 6.451 billion yuan and net assets of -5.071 billion yuan, which were in an insolvent state.
At present, easy to see shares are faced with the subsequent repayment of debts, the freezing of some equity of relevant bank accounts and subordinate subsidiaries, the judgment of some litigation has been made, the financial pressure of external guarantee for joint and several compensation is large, and the company involves many litigation matters. If the company enters the implementation stage according to the judgment results, it will have an adverse impact on the operation and performance of the company.
As of the date of the audit report, there has been no significant improvement in the above matters. These circumstances indicate that there may be significant uncertainty about the going concern ability of easy to see shares. As stated in “III. preparation basis of financial statements (II)” in the notes to the financial statements, although the company has disclosed the improvement measures to be taken, we cannot judge the effectiveness of these measures and whether the 2021 financial statements prepared based on the assumption of going concern are appropriate.
2. For the original value and recoverable amount of receivables of Jiutian investment holding group, the former controlling shareholder of easy to see shares, on April 19, 2022, China Securities Regulatory Commission issued the prior notice of administrative punishment and market Prohibition (punishment Zi [2022] No. 25), which found that there were false records in the company’s annual report from 2015 to 2020, and easy to see shares made retroactive adjustment to the financial data from 2015 to 2020. After retroactive adjustment, the original book value of Jiutian investment holding group was 8.227 billion yuan, the accumulated impairment provision was 8.008 billion yuan, and the net book value was 219 million yuan.
(1) After retroactive adjustment, the amount of creditor’s rights receivable from Yijian to the former controlling shareholder Yunnan Jiutian Investment Holding Group Co., Ltd. was 8.227 billion yuan, which was significantly different from the amount of 4.253 billion yuan confirmed by self inspection in a letter from Yunnan Jiutian Investment Holding Group Co., Ltd.
(2) Easy to see shares reported to the public security organ that some former executives were suspected of committing crimes. On July 30, 2021, the company received the notification of case filing from Kunming Public Security Bureau and was filed for investigation. As of the date of issuance of this audit report, the company has not received the concluding opinions of Kunming Public Security Bureau on the above-mentioned filing and investigation matters. According to the information obtained in the process of cooperating with the economic investigation and handling the case, easy to see shares evaluated the recoverability of the funds occupied by Yunnan Jiutian investment holding group, and accrued 8.008 billion yuan of bad debt reserves for receivables. Easy to see shares estimated that the recoverable amount of the above occupied funds was 219 million yuan.
In view of the complex reasons for the formation of the above-mentioned creditor’s rights receivable, suspected of financial fraud and illegal crime, and the amount and recoverable amount of the above-mentioned creditor’s rights receivable have not been finally determined by the judicial organ, we are unable to obtain sufficient and appropriate audit evidence to confirm the accuracy of the amount of the above-mentioned creditor’s rights receivable and the amount of impairment provision.
3. Accuracy of opening report data
The financial report of 2020 was issued by tianyuanquan Certified Public Accountants (special general partnership) with an audit report that could not express an opinion. On April 19, 2022, China Securities Regulatory Commission issued the prior notice of administrative punishment and market entry ban (punishment Zi [2022] No. 25), which found that there were false records and major omissions in the company’s annual report from 2015 to 2020. The financial data of easy to see from 2015 to 2020 were retroactively adjusted according to the inspection and identification of the CSRC and the results of self-examination of extended application.
In view of the complex reasons for the above matters involved in the correction of prior period errors, we are unable to obtain sufficient and appropriate audit evidence to confirm the accuracy of the opening amount and its impact on the current financial statements.
2、 Special instructions of the board of directors on audit opinions that cannot express opinions
Dahua Certified Public Accountants issued an audit report that could not express an opinion on the company. The board of directors of the company respected its independent judgment and attached great importance to the impact of the matters involved on the company. The board of directors will organize the management to actively take effective measures in combination with the actual situation, strive to properly solve the adverse effects of the matters involved in the audit report, strengthen operation and management, eliminate adverse effects, improve the company’s sustainable operation ability in multiple dimensions, and ensure the sustainable and healthy development of the company.
3、 The company makes accounting error correction and retroactive adjustment according to the notice
On April 19, 2022, the company received the notice. Due to the short time interval between the receipt of the notice and the disclosure of the 2021 annual report and the many years involved in the correction of accounting errors, it brought great challenges to the timely disclosure of the company’s annual report. However, the company took the initiative and timely communicated with the annual audit accounting firm on the correction of accounting errors, the adjustment of penalty interest, the provision of impairment, the retrospective adjustment of the previous financial report and other matters, The announcement on the correction of 2021 annual performance forecast was disclosed on April 21. The company convened the board of directors in time and disclosed the 2021 annual report of the company and the announcement on the correction of accounting errors in the early stage of the company on April 27. The corrected financial data can more objectively and accurately reflect the actual operation and financial situation of the company.
4、 The company has taken and will take specific measures to eliminate relevant matters and their impact
(I) promoting debt collection and alleviating operating pressure
In view of the current financial situation, the company will clarify the occupation of funds according to the investigation results of the case, continue to carry out self-examination, implement the settlement of the related debts of Jiutian holdings, and recover the stolen goods and losses in time; Actively promote the clearing and collection of large receivables, further straighten out the relationship between creditor’s rights and debts, assign special personnel to manage and be responsible to the end, and take various means including legal means to protect the legitimate rights and interests of the company. At the same time, strengthen communication with shareholders, seek the support of financial institutions, resolve the debt crisis and alleviate the operating pressure of the company.
(II) adjust business direction and optimize asset allocation
While fully promoting debt collection, the company will vigorously promote market-oriented reform, adjust business structure and optimize asset allocation. Starting from the actual situation, eliminate the risk businesses determined after the asset self inspection, strengthen the disposal of companies with inefficient operation and weak supervision and joint-stock companies, speed up the withdrawal of non main business companies and inefficient and invalid assets that lack competitive advantage and development potential, and manage subsidiaries with clear property rights, clear rights and responsibilities and scientific management. Fully tap their own advantages, have the courage to explore and innovate, design products that meet the market and customer needs, deeply tap the potential cooperation opportunities in the market, and improve the company’s business status and profitability.
(III) strengthen corporate governance and improve internal control system
The company will conduct in-depth self-examination on the defects proposed by the audit institutions to further improve the level of corporate governance and ensure the scientificity and standardization of the requirements of the governance system; The company’s internal supervision and control mechanism is improved to ensure the healthy development of the company’s internal risk management and control system, and the audit department’s internal supervision and control functions are fully developed to ensure the healthy operation of the company’s internal risk management committee.
It is hereby explained.
Easy Visible Supply Chain Management Co.Ltd(600093) board of directors
April 26, 2002
