In June, the total number of delisted companies in Shanghai and Shenzhen exceeded 20, a record high. Among them, Lion Retirement (002684), Kedi Retirement (002770), and King Kong Retirement (300064) are all listed companies of Henan.
Another Henan listed company failed to disclose the audited 2021 annual report and 2022 first quarterly report within the statutory period.ST Fu Jen(600781) was filed by the China Securities Regulatory Commission. Although the company completed the financial report disclosure within the two-month deadline, the company was still issued a delisting risk warning.
Late earnings report reproduces large losses
Nearly two months following the suspension of trading, standing on the brink of delistingST Fu Jenfinally disclosed the late 2021 annual report and 2022 first quarter report, and the company’s stock will resume trading on July 1.
Because the audit institution Shenzhen Xutai issued an audit opinion on the company’s 2021 financial report that might not express an opinion, and issued a negative opinion on the effectiveness of the company’s internal control,ST Fu JenAfter the resumption of trading, a delisting risk warning will be implemented, and the company’s stock abbreviation will be changed to “*ST Fu Jen”, and the daily limit on the share price is still 5%.
After the dividends were broken, the CSRC filed a case, and the stock price fell steadily,ST Fu JenThe business situation has also deteriorated.
The 2021 financial report shows that due to financial difficulties,ST Fu JenDuring the period, the operating income was 1.512 billion yuan, a decrease of 47.67% over the previous year; the loss was 3.2 billion yuan, an increase of 147.5% over the previous year’s loss; the basic earnings per share loss was 5.18 yuan, an increase of 151.46% over the previous year’s EPS loss.
In the first quarter of 2022, the company’s losses further expanded. During the period, its operating income was 349 million yuan, a year-on-year decrease of 29.3%; its loss was 177 million yuan, a year-on-year decrease of 360.83%.
Huge loss in performance in 2021, withST Fu JenThe provision of large asset impairment is not unrelated.
According to the disclosure, in 2021, the company made various asset impairment provisions totaling 1.928 billion yuan, accounting for 60.28% of the company’s latest audited net profit. Among them, the company’s accounts receivable accrued credit impairment reserves of 620 million yuan, and other receivables accrued credit impairment reserves of 1.309 billion yuan.
From September 3, 2019,ST Fu JenOther risk warnings were issued due to the non-operational occupation of funds by the controlling shareholder and its related parties and the provision of external guarantees in violation of the prescribed decision-making procedures.
As of December 31, 2021, as of December 31, 2021, the company’s controlling shareholder Furen Pharmaceutical Group Co., Ltd. and its related parties occupied a net capital of 743 million yuan (the balance of capital occupation was 1.653 billion yuan, and a bad debt provision of 910 million yuan had been made) ); the company provided illegal guarantees to the controlling shareholders and related parties, and the remaining guarantee balance was 1.74 billion yuan (of which 150 million yuan was not liable for the guarantee in the first instance judgment), and 433 million yuan of estimated liabilities had been accrued.
Sustainability still in doubt
On June 22, Cody announced the termination of listing and delisting, and the company’s stock has been delisted since June 23. After less than a week,
On June 26, King Kong Retirement and Lions Retirement were also announced successively, and the company’s stock will be delisted on June 27, 2022.
Although the financial report was released at the end of June and avoided the “delisting tide”, the financial report has been issued with non-standard review opinions for three consecutive years.ST Fu Jenthe ability to continue operating is still facing challenges.
The audit institution Shenzhen Xutai believes that,ST Fu JenThere are many problems such as illegal occupation of funds by the controlling shareholder and its related parties and illegal external guarantees. As of December 31, 2021, the net amount of funds occupied by the company’s controlling shareholders and related parties reached 743 million yuan, and the balance of illegal guarantees was 1.74 billion yuan.
Meanwhile, as of December 31, 2021,ST Fu JenDifficulty in capital liquidity, facing the pressure of overdue debt repayment and joint compensation for external guarantees, involving multiple lawsuits, freezing of some bank accounts and assets, and major uncertainty in the ability to continue operations.
In addition, although Shenzhen XutaiST Fu JenThe sales and accounts receivable in 2021 have implemented the necessary audit procedures such as interviews, confirmations, and inspections. However, due to the defects in the operation of the internal control of monetary funds, the total balance of customer accounts receivable with no amount in 2021 is 564 million yuan (accounted for). The provision for bad debts was 171 million yuan), and it was impossible to judge the appropriateness and recoverability of the book balance of accounts receivable and the possible impact on the financial statements.
In the internal control audit report, Shenzhen Xutai believes thatST Fu JenThe internal control of fund management, seal management, related party transactions and external guarantees, sales management, information disclosure and other aspects of the internal control operation failed, and the internal control of financial reporting related to the above matters failed.
According to disclosure,ST Fu JenThe six subordinate companies transferred the company’s asset package with a book value of 999 million yuan to Tibet Huayu Asset Management Co., Ltd. at a price of 571 million yuan. On June 22, 2022, both parties to the agreement decided to terminate the implementation,ST Fu JenMake adjustments to the report. The audit institution cannot obtain sufficient and appropriate audit evidence to judge the rationality of its business logic and its impact on the financial statements.