On the last day of the A-share annual report season, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) disclosed that Beijing xingchanghua Certified Public Accountants (“Beijing xingchanghua Association”) issued a 2021 annual audit report with a “negative opinion”. In addition, the company’s internal control audit report was also issued with a “negative opinion”. Another independent director and two senior executives issued a “non fidelity” statement on the company’s annual report.
“Negative opinions are rare, and A-Shares are often less than once a year,” a senior certified public accountant told reporters. The reporter noted that the last time A-share companies received the “negative opinion” annual audit report was also traced back to August 2020. China Audit Asia Pacific Certified Public Accountants issued a 2019 annual audit report with a negative opinion for ST fukong. The company was delisted by the Shanghai Stock Exchange in May last year.
Ningbo Sunlight Electrical Appliance Co.Ltd(002473) this time, a negative opinion was issued, which almost declared that the company’s “shell preservation” was facing failure. According to relevant regulations, the company’s shares may be terminated by the Shenzhen Stock Exchange. In the secondary market, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) has started the plunge mode since April 7, and the stock has fallen by the limit for 15 consecutive trading days since April 11.
Looking back on the just concluded A-share 2021 audit quarter, among the 4785 audit reports that have been disclosed, according to incomplete statistics by the securities times · e company, there are 1 “negative opinion”, 42 “unable to express opinions”, 97 “qualified opinions” and 107 “unqualified opinions with emphasized items”. The above non-standard audit opinions are 247 in total.
annual report is issued with “negative opinion”
Let’s look at the first and only “negative opinion” annual review report in the 2021 annual report of a shares.
The report was issued by Beijing xingchanghua and the audit fee for the current period was 800000 yuan.
Ningbo Sunlight Electrical Appliance Co.Ltd(002473) previously experienced “one institute is difficult to hire”, and the appointment was reached before the deadline of the annual report. The company’s 2021 annual report was originally scheduled to be disclosed on March 30 this year. On March 16, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) announced that the original audit institution, Lixin Zhonglian certified public accountants, could not continue to undertake the annual audit, so it changed to Beijing xingchanghua.
However, more than a month later, the Ningbo Sunlight Electrical Appliance Co.Ltd(002473) annual audit report was still rejected. What does “negative opinion” mean?
“A negative opinion means that the certified public accountant, through the implementation of audit procedures and after obtaining sufficient and appropriate audit evidence, believes that the misstatement of the accounting statements prepared by the auditee, alone or combined, has a significant and extensive impact on the financial statements and cannot fairly reflect the financial position, operating results and cash flow of the auditee in all major aspects.” Liu Zhigeng, a well-known financial and tax audit expert and senior certified public accountant, told the reporter of securities times · e company.
Ningbo Sunlight Electrical Appliance Co.Ltd(002473) why was the negative opinion issued? According to the contents of the 2021 audit report, the basis for forming the audit opinion mainly involves three aspects: going concern, foreign cooperation, revenue recognition and cost carry forward.
Specifically:
1. Going concern:
Ningbo Sunlight Electrical Appliance Co.Ltd(002473) 2021 net profit was 369845 million yuan. By the end of last year, the company had accumulated a loss of 371 million yuan, and the net assets at the end of the period were 234215 million yuan; The subsidiary Ningbo shenglaida Electrical Equipment Co., Ltd. has not obtained relevant industrial production qualification for the manufacturing of complete sets of equipment in the power distribution industry; The investor claims involved indicate that there are major uncertainties that may lead to major doubts about Ningbo Sunlight Electrical Appliance Co.Ltd(002473) going concern ability.
2. Foreign cooperation:
In January 2020, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) subsidiary Ningbo shenghuimei trading company (shenghuimei) signed a cooperation trade agreement with Inner Mongolia state and symbiosis agriculture and animal husbandry development company (symbiosis company) to cooperate in beef cattle breeding industry chain trade business. Shenghuimei paid 20 million yuan in advance for cooperation, and the book balance of other receivables at the end of the period was 19.7 million yuan. For the above-mentioned other receivables, the audit institution has implemented audit procedures such as inspection of contracts and payment vouchers, letters, inspection of industrial and commercial registration information, inspection status and bank flow of symbiosis company, but it is unable to obtain sufficient and appropriate audit evidence on whether the above-mentioned other receivables are implemented in accordance with the agreement, nor can it determine whether the above-mentioned other receivables can be recovered.
3. Revenue recognition and cost carry forward:
Ningbo Sunlight Electrical Appliance Co.Ltd(002473) 2021 annual financial statement revenue of 112 million yuan and cost of 100 million yuan. The income mainly comes from the sales of complete sets of equipment in the power distribution industry. There are 88 projects in total. As of the date of the audit report, the audit institution has visited 28 project sites, but can not further obtain sufficient and appropriate audit evidence to prove the authenticity and integrity of income and cost.
With regard to the above opinions given by the firm, Liu Zhigeng believes that from the basis of the negative opinions given by the certified public accountant, whether it is the problems of small income and large profits exposed by the auditee, the accounts receivable accounting for 46.58% of the total assets at the end of 2021, the 100 million revenue generated in eight months, or the fact that the audit institution visited 28 project sites, In these cases, not only can we not obtain sufficient and appropriate audit evidence, but also can not prove the authenticity and integrity of the company’s income and cost in 2021. Based on these issues, it should be reasonable, reasonable and compliant for certified public accountants to express negative opinions.
\u3000\u3000 “Judging from the operation situation, trend and results of the auditee in recent years, the business has shrunk year by year, the income has decreased year by year, and the loss has increased year by year. The operation of the auditee can be said to be ‘getting worse and worse’, and it has been in a state of maintaining and maintaining the listed company. During this period, it is not strange and normal that there are some large or small financial problems. Therefore, the certified public accountants have expressed qualified opinions in the first two years, but sometimes Today, it is already “terminally ill”, so this time we have to “accept our life”, which is the inevitable result. ” Liu Zhigeng further said.
some directors and senior executives issued a statement of “non fidelity”
For the 2021 annual report disclosed by Ningbo Sunlight Electrical Appliance Co.Ltd(002473) disclosure, one independent director and two senior executives issued a statement of “non fidelity” of the annual report.
The announcement shows that Gu Jiazhong, the independent director, Zhang Peifeng, the deputy general manager and Zhang Xiaohui, the Secretary of the board of directors, cannot guarantee that the content of this report is true, accurate and complete, that there are no false records, misleading statements or major omissions, and do not agree to bear any personal or joint and several liability.
Among them, Gu Jiazhong believes that the audit report with negative opinions issued by Beijing xingchanghua fully reveals the risks faced by the company. According to the “revenue recognition and cost carry forward” which is the basis of xingchanghua’s negative opinion, as of the date of the audit report, xingchanghua visited 28 project sites, and xingchanghua could not further obtain sufficient and appropriate audit evidence to prove the authenticity and integrity of revenue and cost.
Meanwhile, Gu Jiazhong has served as an independent director since December 27, 2021. In view of the above reasons, he is unable to express his opinions on the 2021 annual report as a whole. It is suggested that accountants should obtain further audit evidence to prove the authenticity and integrity of revenue and cost; It is suggested that the company should take effective measures to eliminate the matters involved in the negative opinions as soon as possible and actively safeguard the interests of investors and the company.
Zhang Xiaohui, who has served as the Secretary of the board of directors since December 27 last year, also gave the same reasons as above.
Zhang Peifeng said that he has served as deputy general manager since March 10 this year and has neither participated in nor understood the company’s business in 2021. In view of the above reasons, he is unable to express his opinions on the 2021 annual report as a whole.
Ningbo Sunlight Electrical Appliance Co.Ltd(002473) 2020 has a negative net profit, an operating income of less than 100 million yuan and a negative net asset at the end of the period. Since April 30, 2021, according to the relevant regulations of Shenzhen Stock Exchange, the company’s shares have been warned of delisting risk.
The negative opinion on the financial report of Ningbo Sunlight Electrical Appliance Co.Ltd(002473) 2021 almost declared that the company’s “shell preservation” was facing failure. According to relevant regulations, the company’s shares may be terminated by the Shenzhen Stock Exchange. The shares will be suspended from Thursday, May 5.
In this regard, Ningbo Sunlight Electrical Appliance Co.Ltd(002473) said that the subsequent board of directors will continue to lead the company’s management and all employees to actively take measures to improve the company’s sustainable operation ability and operating conditions, and promote the company to return to the track of benign growth, so as to effectively safeguard the interests of the company and all shareholders.
