3 Hainan Jingliang Holdings Co.Ltd(000505) on May 23, we received the inquiry letter of the annual report of the Shenzhen Stock Exchange, and were asked why the net profit after deduction was negative for three consecutive years.
During the reporting period, the company achieved an operating revenue of 377 million yuan, a year-on-year decrease of 44.18%; Deduct non net profit -1.387 billion yuan; The gross profit margins of communication, Internet of things and vocational education were 22.18% and – 10.87% respectively, down 18.93% and 53.17% respectively over the same period of last year. The annual report shows that the company’s fundamentals, main business and core competitiveness have not undergone significant adverse changes, which is consistent with the industry trend, while the net profit after deduction has been negative for three consecutive years. The company is required to analyze the specific reasons and rationality of the negative net profit after deduction for three consecutive years, and specify the basis for no major adverse changes in the company’s fundamentals, main business and core competitiveness and whether the relevant statements are prudent, whether the company’s sustainable operation ability is uncertain, and the specific measures the company has taken or plans to take to improve the profitability of its main business.
At the end of the reporting period, the book balance of the company’s accounts receivable was 587 million yuan, and the accounts receivable aged more than 1 year and more than 3 years accounted for 71.68% and 25.74% respectively. Among them, the book balance of accounts receivable with single provision for bad debts is 763341 million yuan and the provision for bad debts is 661217 million yuan; The proportion of bad debt provision of accounts receivable withdrawn according to the combination was 22.08%, an increase of 8.22% compared with the proportion withdrawn at the beginning of the period. The company’s accounts receivable turnover rate from 2019 to 2021 is 1.95, 1.10 and 0.77 respectively The company is required to analyze the specific reasons and rationality for the sharp decline in the turnover rate of accounts receivable and the sharp increase in the proportion of bad debt provision of accounts receivable based on the combination of changes in the aging structure of accounts receivable, changes in customer structure and credit status, changes in credit policy and settlement cycle, overdue accounts receivable and comparable companies in the same industry. In combination with the above situation and the revenue recognition and sales return in the last three years, analyze whether there was a false increase in revenue or blind relaxation of credit policies in the previous years, whether the relevant revenue recognition is true, accurate and reasonable, and whether it complies with the provisions of the accounting standards for business enterprises.
During the reporting period, the company’s sales expenses, management expenses and R & D expenses accounted for 31.58%, 24.93% and 20.84% of the operating revenue respectively, of which the sales expenses increased by 49.02% year-on-year, significantly deviating from the growth rate of operating revenue. The company is required to analyze the rationality of the proportion of sales expenses, management expenses and R & D expenses in operating revenue in combination with business characteristics, business model and its changes, comparable companies in the same industry, and whether there is a situation of using expenses to adjust profits across periods.
