Xiwang Foodstuffs Co.Ltd(000639) annual report inquiry letter: whether there are major audit differences or adjustments in the impairment of intangible assets

Xiwang Foodstuffs Co.Ltd(000639) 5 on May 18, we received the annual report inquiry letter issued by the Shenzhen Stock Exchange, and were asked about 8 aspects, such as book capital, holding risk and so on. Among them, the Shenzhen stock exchange requires the company to explain whether the advance progress and amount of the purchase contract with Xiwang starch germ during the reporting period comply with the industry practice and whether it is significantly higher than the general level of the same industry. On this basis, the company is required to explain whether the company’s funds are occupied by non operation. In addition, the inquiry letter also requires the company to explain whether there is insufficient amortization and provision for impairment of intangible assets such as trademark rights and customer relations in combination with the industry environment, the development of the company’s business activities and the sharp decline in net profit in the first quarter of 2021 and 2022. The annual audit accountant is required to further explain the specific conditions and audit conclusions of the audit procedures for the impairment of intangible assets, and whether there are major audit differences or adjustments.