Huaxun Fangzhou Co.Ltd(000687)
2021 annual performance forecast
The company and all members of the board of directors guarantee that the information disclosed is true, accurate and complete without false records, misleading statements or major omissions.
Special risk warning: as the net profit attributable to the shareholders of Listed Companies in 2020 is negative, the operating income is less than 100 million yuan, and the net assets at the end of 2020 are negative, the company’s 2020 financial and accounting report has been issued with an audit report that cannot express opinions. The company has continued to implement delisting risk warning since the disclosure of the 2020 annual report on April 30, 2021.
According to the performance forecast of the company in 2021, the net profit of the company in 2021 is negative and the operating income is less than 100 million yuan. The net assets of the company at the end of 2021 are negative. In addition, the elimination of the impact of the matters involved in the audit report of the company in 2020 remains to be reviewed by the annual audit accountant, According to article 9.3.11 of the Listing Rules of Shenzhen Stock Exchange (revised in 2022), If the annual report of the company in 2021 shows that “the net profit attributable to the shareholders of the listed company in 2021 is negative and the operating income is less than RMB 100 million”, or “the net assets at the end of 2021 are negative”, or “the audit report with qualified opinions, unable to express opinions or negative opinions is issued in the financial and accounting report of 2021”, the listing of the company’s shares will be terminated. Please invest rationally and pay attention to investment risks.
1、 Expected performance of the current period
1. Performance forecast period: January 1, 2021 to December 31, 2021
2. Performance forecast in 2021
The same period of last year in the current fiscal year
Loss attributable to shares of listed companies: 470 million yuan – 70 million yuan
East’s net profit loss: 1080278900 yuan
Year on year increase / decrease: n / A
Deducting non recurring profit and loss: 370 million yuan – 550 million yuan, loss: 636.2058 million yuan
Increase / decrease in net profit after: n / A
Loss of basic earnings per share: 0.6206 yuan -0.9243 yuan / share loss: 1.4264 yuan / share
The operating income is 34 million yuan – 51 million yuan and 46.6957 million yuan
After deduction, the operating income is 20-30 million yuan and 36.0522 million yuan
The end of the current fiscal year and the end of the previous year
Owner’s equity attributable to shares of listed companies ranging from -1962054100 yuan to -2192054100 yuan to -1492054100 yuan (Note 1)
Note 1: the reason for the difference between the data at the end of the previous year in the above table and the data in the 2020 annual report disclosed by the company: the company corrected the corporate income tax expenses and related subjects in 2017 and 2018 for the tax refund received by the subsidiary Nanjing Huaxun, which also affected the amount of owner’s equity attributable to the shareholders of the listed company at the end of the previous year, See the announcement on special instructions for correction of previous accounting errors (Announcement No.:
2021-096）。
2、 Communication with accounting firms
The performance forecast of the company has not been pre audited by an accounting firm. The company has pre communicated with the accounting firm of the annual report on matters related to the performance forecast, and there is no significant difference between the company and the accounting firm in terms of financial data of the performance forecast.
3、 Explanation of performance change reasons
In 2021, the company continued to be in the dilemma of high debt and shortage of funds. At the same time, the progress of restructuring was not as expected, and the main bank accounts were sealed up and frozen due to debt overdue litigation, which further limited the recovery of the company’s business throughout the year.
At the end of the reporting period, based on the analysis of relevant litigation by the special class for collection of accounts receivable, the progress of collection and the company’s legal affairs, and based on the principle of prudence, the company made analysis on the accounts receivable from Shanghai Xingditong Communication Technology Co., Ltd. (hereinafter referred to as “Xingditong”) formed by the business or events of previous years Fushen Industrial Co., Ltd. (hereinafter referred to as “Fushen industrial”) and other companies carried out risk assessment on the funds and accrued a high proportion of credit impairment losses. The company’s subsidiary Nanjing Huaxun Fangzhou communication equipment Co., Ltd. (hereinafter referred to as “Nanjing Huaxun”) filed lawsuits against Xingditong and Fushen industries respectively in June 2021 and August 2021. Based on the consideration of the company’s ability to bear legal costs under the condition of capital shortage, the litigation amounts are temporarily 10 million yuan and 1 million yuan respectively. Up to now, the lawsuit against Xingditong has been rejected by the court and transferred to the public security organ. At the same time, in the process of the lawsuit, the preservation applied by the company has blocked and frozen some bank accounts and equity of Xingditong, which are basically waiting to be frozen; For Fushen industrial litigation, the legal documents accepted and filed by the court have not been received. Considering the large number of litigation cases involving Xingditong and Fushen industries and the progress of collection, litigation progress and preservation results of the company in 2021, the company preliminarily judged that the recovery possibility of the above receivables was small. In 2021, the company made a supplementary provision for the credit impairment loss of about 298 million yuan for the receivables of the above two companies. As of the end of the reporting period, the company’s receivables from Xingditong Fushen industrial has fully accrued bad debt reserves.
Due to the shortage of funds, the company’s bank loans are overdue and sued by banks and other institutions. The company needs to bear high overdue interest payment and penalty interest expenses. According to the preliminary calculation, the above expenses are preliminarily estimated to be about 100 million yuan in 2021; Based on the principle of prudence, the company has accrued a higher amount of liquidated damages and deferred payment interest expenses according to the execution of the judgment of the litigation case. According to the preliminary calculation, the above liquidated damages and compensation expenses are preliminarily estimated to be about 69 million yuan in 2021.
4、 Risk tips
(I) on December 17, 2020, the company received the notice of response (2020) Jin 03 min Chu No. 688 and one of the civil ruling (2020) Jin 03 min Chu No. 688 from Tianjin No. 3 intermediate people’s court sent by Huaxun technology. According to the above notice of response, Minsheng financial leasing Co., Ltd. (hereinafter referred to as “Minsheng financial leasing”) is due to Huaxun Investment Co., Ltd., Shenzhen chuxuan Industrial Co., Ltd., Hubei Linhe Trading Co., Ltd., Wu Guangsheng and Shen Shuli filed a lawsuit against Huaxun technology, Huaxun investment and the company.
The company involved in the case did not perform any deliberation procedures in providing external guarantees. According to the above ruling, Minsheng Jinzu has withdrawn this lawsuit against the company. On December 31, 2020, the company received the civil mediation statement (2020) Jin 03 min Chu No. 688 from Tianjin No. 3 intermediate people’s court sent by Huaxun technology. According to the above civil mediation statement, the company does not participate in the payment of rent and other expenses, and the company is not included in the scope of relevant guarantors. In addition, Mr. Wu Guangsheng, the actual controller of Huaxun technology and the company, is actively promoting Minsheng financial leasing to exempt the company from all liabilities under the guarantee contract and will not investigate the company’s guarantee liability and any civil liability arising therefrom in any way. It is uncertain whether Minsheng financial leasing can issue relevant documents to exempt the company from all liabilities under the guarantee contract and not investigate the company’s guarantee liability and any civil liability caused by this matter in any way. For details, see the announcement on major litigation (Announcement No.: 2020-157) and the announcement on the company’s new illegal external guarantee (2020-156) issued by the company on December 18, 2020; On January 6, 2021, the announcement on the progress of various lawsuits of the company (Announcement No.: 2021-001) was issued; The progress of other risk warning matters and risk warning announcement on the implementation of the company’s shares disclosed on schedule every month in 2021.
Considering that Minsheng Jinzu has withdrawn this lawsuit against the company in this case In the civil mediation statement (2020) Jin 03 min Chu No. 688 mediated by Tianjin No. 3 intermediate people’s court, the guarantor no longer includes the relevant provisions of the company and Article 9 of the interpretation on the application of the relevant guarantee system of the civil code of the people’s Republic of China issued by the supreme people’s Court on December 31, 2020, In this performance forecast, the company has not accrued estimated liabilities for this matter. The company will continue to actively follow up the negotiation progress of the above documents, consider the impact on the relevant estimates of the company’s estimated liabilities and the performance of 2021, and timely fulfill the obligation of information disclosure;
(II) the company received the notice of arbitration issued by Shenzhen International Arbitration Court on March 16, 2020 ((2019) sgzwz No. 7319-5), The applicant Tianhao Investment Co., Ltd. (hereinafter referred to as “Tianhao investment”) submitted an application for arbitration on the dispute over the sales contract between the company’s controlling shareholder Huaxun Fangzhou Technology Co., Ltd. (hereinafter referred to as “Huaxun technology”) and Tianhao investment on December 3, 2019. The third respondent (Huaxun Technology Co., Ltd. and Shenzhen Huaxun Fangzhou Investment Co., Ltd. (hereinafter referred to as “Huaxun investment”) is requested to perform joint and several guarantee liabilities, pay relevant debts, interest during the overdue period of debts, case arbitration fees, etc. in accordance with the provisions of the guarantee. The company involved in the case did not perform any review procedures for external guarantees. On May 29, 2020, the company received the notification letter from Tianhao investment on the exemption of the company’s guarantee liability. On November 30, 2020, the company received a notice from Huaxun technology that it had received the award of contract dispute arbitration case with Tianhao investment and relevant execution notice. According to the award of Shenzhen International Arbitration Court (2019) sgzwfz No. 7319, the arbitration case of contract disputes between Tianhao investment and Langqi Communication Technology Co., Ltd. (hereinafter referred to as “Langqi technology”), Huaxun technology and the company has been finally decided by the arbitration tribunal of Shenzhen International Arbitration Court. According to the above ruling, the guarantee between the company and Tianhao investment is invalid, but the company shall bear relevant fault liability. The total ruling amount of the case is 502367800 yuan, and the company shall be liable for half of the unliquidated part of Langqi technology’s investment debt to Tianhao. On December 7, 2020, the company received a notice from Huaxun technology that it had received the execution ruling (2020) Yue 03 Zhi No. 6801 issued by Shenzhen intermediate people’s Court of Guangdong Province on the arbitration case of contract dispute with Tianhao investment. According to the above ruling, the Shenzhen intermediate people’s court has made a ruling on the application for compulsory execution by the applicant Shenzhen Aerospace Guangyu Industry Co., Ltd. The company received the letter of commitment from Huaxun technology on December 7, 2020, which promised that the bank deposits and real estate that have been sealed up and frozen due to the case will be used to repay the creditors’ debts first. At the same time, it promised that if the listed company needs to bear the liability for compensation due to the arbitration case, it will give priority to deducting the balance of the company’s financial assistance, or in cash Fully repay the losses caused to the listed company by means of assets. For details, see the announcement on major litigation (Announcement No.: 2020-028) and the announcement on illegal external guarantee of the company (Announcement No.: 2020-029) issued by the company on March 19, 2020; On May 30, 2020, the announcement on the cancellation of illegal guarantees (Announcement No.: 2020-069) was issued; The announcement on the progress of major litigation of the company (Announcement No.: 2020-150) was issued on December 2, 2020; The announcement on the progress of major litigation of the company (Announcement No.: 2020-152) was issued on December 9, 2020; On January 6, 2021, the announcement on the progress of various lawsuits of the company (Announcement No.: 2021-001) and the announcement on the progress of other risk warning matters and risk warning of the company’s shares disclosed on schedule every month in 2021 were issued.
Huaxun investment, one of the joint and several liability parties of the above-mentioned debts, was ruled by the intermediate people’s Court of Shenzhen, Guangdong Province in March 2021 to accept the reorganization. According to the relevant provisions of the enterprise bankruptcy law of the people’s Republic of China, after the reorganization of Huaxun investment is accepted, the relevant execution procedures of the intermediate people’s Court of Shenzhen, Guangdong Province for Huaxun investment will be suspended, The creditors of Tianhao investment arbitration case need to declare their creditor’s rights in accordance with the relevant provisions of the enterprise bankruptcy law of the people’s Republic of China and be compensated in accordance with the reorganization plan approved by the Shenzhen intermediate people’s court. There is uncertainty in the amount of compensation received by relevant creditors of Tianhao investment arbitration case through Huaxun investment reorganization procedure. If the company is required to bear the liability for compensation due to the arbitration case, Huaxun technology shall deduct the balance of the company’s financial assistance or fully repay the losses caused to the company in the form of cash, assets, etc. As of December 31, 2021, the company has accrued estimated liabilities at 293 million yuan. The company will actively follow up the progress of Huaxun investment restructuring and the repayment of creditors related to Tianhao investment case, consider the impact on the estimated liabilities of the company and the performance of 2021, and timely fulfill the obligation of information disclosure;
(III) Chengdu Tiangu real estate, a subsidiary of the company, provided mortgage guarantee for the debt of Shenzhen Branch of Bohai Bank Co., Ltd. (hereinafter referred to as “Bohai bank”) to the controlling shareholder of the company Huaxun Fangzhou Technology Co., Ltd. (hereinafter referred to as “Huaxun technology”) in July 2019. Meanwhile, in order to control the guarantee risk, Huaxun technology provided counter guarantee to the company for this guarantee, The guarantee property is 300 million yuan of other receivables of Huaxun technology to the company. Huaxun technology’s debt to Bohai Bank (principal of US $13.8 million) was overdue in January 2020. According to the receipt of intermediate people’s Bank of Shenzhen, Guangdong Province in August 2020, the company
