Securities code: Guangdong Rongtai Industry Co.Ltd(600589) securities abbreviation: St Rongtai Announcement No.: 2022038 Guangdong Rongtai Industry Co.Ltd(600589)
Notice on receiving the 2021 annual report of the company from Shanghai Stock Exchange
Announcement of information disclosure supervision inquiry letter
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this announcement, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
On May 19, 2022, Guangdong Rongtai Industry Co.Ltd(600589) (hereinafter referred to as “the company”) received the inquiry letter on the supervision of information disclosure of Guangdong Rongtai Industry Co.Ltd(600589) 2021 annual report (szgh [2022] No. 0411) (hereinafter referred to as “the inquiry letter”) from Shanghai Stock Exchange. The contents of the inquiry letter are as follows: ” Guangdong Rongtai Industry Co.Ltd(600589) :
In accordance with the requirements of the standards for the content and format of information disclosure by companies offering securities to the public No. 2 – the content and format of annual report (hereinafter referred to as the standard for the format No. 2), the self regulatory guidelines for listed companies of Shanghai Stock Exchange No. 3 – industry information disclosure guidelines and other rules, after the post audit of your 2021 annual report, in accordance with the provisions of article 13.1.1 of the stock listing rules of the exchange, Please further supplement and disclose the following information.
1、 The annual report shows that the company’s internal control audit report in 2021 was issued with a negative opinion. The accountant believes that there are major defects in the company’s accounts receivable management system, resulting in a large number of customers unable to collect the money in time, which has a significant adverse impact on the authenticity of relevant businesses. At the end of 2021, the company’s book balance of accounts receivable from customers of chemical business in Jieyang was 562155400 yuan, and the balance of bad debt provision was 197591600 yuan, corresponding to the realized operating revenue of 353464100 yuan in 2021. However, the turnover times of accounts receivable from customers in Jieyang in 2021 was 0.55 times, significantly lower than 1.74 times in other regions. The accountant was unable to fully obtain the flow documents in the sales process of the above goods. According to the annual report, the balance of accounts receivable at the end of the reporting period was 473 million yuan, accounting for 25.36% of the total assets. The balance of bad debt provision was 174 million yuan, and the credit impairment loss was 17.91 million yuan. The daily announcement showed that the company and its subsidiaries withdrew 174 million yuan of credit impairment loss in 2021. The company is requested to make supplementary disclosure: (1) the object of accounts receivable for which the expected credit loss is individually accrued, whether it is a related party, transaction background, transaction time, aging, etc., as well as the specific time when the company judges that it cannot be recovered; (2) The credit evaluation, aging policy and implementation of transactions with relevant customers, and whether there is a continuous transaction after the overdue payment; (3) The impact of chemical business income in recent three years, accounts receivable and bad debt reserves recognized in the same period, amounts actually recovered after the period and changes in the balance of bad debt reserves on the company’s profits, indicating whether the company’s credit policy can reasonably estimate the possibility of bad debt and whether there is insufficient provision for credit impairment loss; (4) The recognition policy and recognition basis of sales revenue of relevant customers, and in combination with the above situation, goods flow and capital flow, explain whether there are cases of illegal recognition of revenue that do not meet the conditions for revenue recognition and false increase of revenue; (5) Specific reasons for the inconsistency between the disclosure of credit impairment loss in daily announcement and annual report; (6) In combination with the guidelines for the application of regulatory rules – the universality of audit, the annual audit accountant is invited to express his opinions.
2、 According to the annual report, the controlling shareholders and other related parties of the company occupied 3284314 million yuan of the funds of the listed company, accounting for 400.43% of the net assets. The liquidation plan for the above capital occupation has been deliberated and approved by the board of directors, but the controlling shareholders have not been effectively implemented. According to the summary of capital occupation, Jieyang Dewang Plastic Co., Ltd. and Huiming Chemical Plastic Co., Ltd. occupied 500 million yuan and 410 million yuan of listed companies respectively in 2021, which had not been fully repaid by the end of 2021. The company is requested to: (1) disclose the time point, specific matters, purpose and repayment time limit of the above capital transactions, and explain whether the capital repayment is overdue; (2) Explain the specific plan to solve the fund occupation and whether it is recyclable in combination with the repayment ability and operation of the fund occupying party; (3) Combined with the effectiveness of the company’s internal control construction, explain the reasons and rationality of the reoccurrence in 2021 after the capital occupation in 2020, and how the listed company can protect its own interests; (4) Self check and fully disclose whether there are other situations that occupy the funds of the listed company or encroach on the interests of the listed company in a disguised form. Please comment on the annual audit accountant.
3、 The company’s annual report has been issued with qualified opinions for two consecutive years, including capital occupation, bad debt provision and inventory loss. The annual audit accountant is requested to: (1) for the specific judgment process of the elimination or change of the matters involved in the qualified opinion in the 2020 annual report in the current period, issue a clear conclusion according to the audit evidence obtained, and evaluate the impact of relevant matters on the audit opinion at the beginning of 2021 and the current period; (2) In combination with the specific impact of the matters covered by the qualified opinion on the financial statements and the requirements of the guidelines for the application of regulatory rules – Audit No. 1, clearly explain whether the impact of the above matters on the financial statements in 2021 is extensive and whether the types of relevant audit opinions are prudent.
4、 The annual report shows that during the reporting period, the company achieved an operating revenue of 780 million yuan, a year-on-year decrease of 27.02%, a net profit of -709 million yuan, a chemical gross profit margin of -3.14%, a year-on-year decrease of 15.99 percentage points, and an Internet comprehensive gross profit margin of -17.10%, a year-on-year decrease of 26.09 percentage points. The company has suffered losses for three consecutive years. The company is requested to: (1) disclose the product selling price, product cost, production and sales volume, specific conditions of upstream and downstream businesses and pricing policies during the reporting period by business, and quantitatively analyze the reasons and rationality of the sharp decline in operating revenue and gross profit margin; (2) In combination with industrial policies and the operation of comparable companies in the same industry, supplement whether the overall performance changes of the company and the industry are consistent, and explain the reasons. Please comment on the annual audit accountant.
5、 According to the annual report and daily announcement, the nature of the land in the company’s land capital plant is logistics land, and it is still unable to obtain the approval to change to industrial land for the production of chemical projects. Due to the shortage of cash flow, the company can no longer carry out large-scale investment and repair, so it will be scrapped and written off at the end of 2021. The book value of the scrapped buildings, equipment and projects under construction this time is 130 million yuan, During the reporting period, the profit and loss of non current assets recognized was – 180 million yuan. The company is requested to: (1) describe the specific conditions of the disposed and scrapped fixed assets according to the asset type, including but not limited to the original investment amount, corresponding products or businesses, production capacity and actual output, the amount of depreciation or impairment accrued, book value, counterparty, disposal progress, etc., and explain the specific accounting treatment basis and process for the recognition of profits and losses of non current assets, and whether they meet the requirements of accounting standards; (2) Supplement the reasons and rationality of the above decision made by the company at the end of 2021 and not disclosed until April 2022, and whether the information disclosure is not timely.
6、 According to the annual report, the net assets of the company at the end of 2021 were only 820381 million yuan, a significant decrease of 94.69% compared with 1.546 billion yuan in 2020, of which the undistributed profit changed by 509 million yuan due to large losses. During the reporting period, the company terminated the equity transfer of Jiafu Industry Co., Ltd. (hereinafter referred to as Jiafu industry) and re included Jiafu industry into the consolidated statements, resulting in a decrease in capital reserve of about 954 million yuan. In combination with the asset appraisal results of Jiafu industry, the company is requested to supplement and disclose the specific process and basis of accounting treatment for incorporating Jiafu industry into the consolidated statements, as well as the impact on the items of financial statements, and explain whether it meets the requirements of accounting standards.
In view of the above problems, if the company believes that it is not applicable or inconvenient to disclose due to special reasons in accordance with the requirements of standard format No. 2 and the guidelines for industry information disclosure of Shanghai Stock Exchange, the company shall explain the reasons why it cannot disclose.
Please disclose to the public immediately after receiving this letter, and reply to our department in writing on the above matters within 5 trading days, and fulfill the obligation of information disclosure at the same time. “
The above is all the contents of the inquiry letter, and the company will reply in time and disclose it in accordance with the requirements of Shanghai Stock Exchange.
It is hereby announced.
Guangdong Rongtai Industry Co.Ltd(600589) board of directors may 20, 2022
