Every reporter, Huang Xinlei, every editor, Yang Xia.
May 14, SZ301040 (Central), share price 12Leagueoflegendsblockchain15 yuan, with a market capitalization of 1.215 billion yuan) announced that it had received an inquiry letter on the annual report issued by the Shenzhen Stock Exchange.
It is reported that in 2023, the operating income of Central Sea and Land reached 625 million yuan, down 40.04% from the same period last year; the net profit lost 32 million yuan, from profit to loss, down 181.12% from the same period last year, of which the domestic operating income was 300 million yuan, and the gross profit margin was-0.55%.
In this regard, the Shenzhen Stock Exchange asked the Central Sea and Land to explain the reasons for the decline in operating income and return net profit, and to explain the specific reasons for the revision of the 2023 performance forecast.
Whether major adverse changes have taken place in business fundamentalsLeagueoflegendsblockchain?
With regard to the performance from profit to loss, China Sea and Land explained that since 2023, due to the continuous decline in the bidding price of wind power mainframe, the upward transmission of price pressure has led to a sharp decline in the company's order quotation; in order to save costs, major wind power bearing manufacturers have built their own bearing forgings production capacity, which has greatly intensified market competition. The quotation of downstream customers has declined and the payback cycle has been prolonged. In order to control the risk, the company has voluntarily abandoned to accept some orders, resulting in a decline in sales; part of the project raised by the company has been completed and new fixed assets have been added, and its depreciation has led to an increase in production costs; interest on convertible corporate bonds has led to an increase in corporate expenses.
According to the inquiry letter of the annual report, the Shenzhen Stock Exchange asked the Central Sea and Land to explain the changes in the bidding price of the wind power mainframe market and the company's order quotation during the reporting period, the capacity of self-built bearing forgings among the main customers and its impact on the company's performance. whether it is a general trend for downstream customers to expand upstream Combined with the above situation, this paper explains the reasons and commercial rationality of continuing to accept domestic orders when the gross profit margin of domestic business is negative.
At the same time, the Central Sea and Land shall, in the light of the capacity utilization rate and the progress of fund-raising projects during the reporting period, explain whether the company's existing and under construction capacity matches the market demand in the event of a substantial decline in performance, and whether there are risks such as overcapacity or idle capacity.
The Central Sea and Land shall also quantitatively analyze the impact of the depreciation of the company's new fixed assets on production costs in the light of the composition of operating costs and year-on-year changes during the reporting period, and explain whether the company's statement about the increase in production costs caused by depreciation in the company's annual report is true and accurate.
In addition, the Shenzhen Stock Exchange requires Central Sea and Land to further explain in detail the reasons for the sharp decline in performance in the light of the company's business composition, industry development and the operation of companies in the same industry; whether significant adverse changes have taken place in the external environment and fundamentals of the company's operation, whether there are significant risks in the company's sustainable operating ability, and the countermeasures to be taken by the company in view of the adverse factors affecting its performance.
Is the provision for inventory price reduction adequate?
According to the 2023 annual report, at the end of the reporting period, the book balance of land and sea accounts receivable in Central was 378 million yuan, accounting for 60.48% of business income, and the provision for bad debts was 51 million yuan in the current period. At the end of the reporting period, the book balance of the company's accounts receivable for more than one year was 122 million yuan, an increase of 238.89% over the same period last year.
The Shenzhen Stock Exchange requires the Central Sea and Land to explain the reasons for the prolongation of the customer payback cycle during the reporting period, and whether there is any difference between the proportion of accounts receivable with long age and the listed companies in the same industry, combined with the sales credit policy, explain the adequacy and rationality of the provision for bad debts of accounts receivable.
In 2023, the land and sea construction projects in Central were transferred to fixed assets of 289 million yuan. The Shenzhen Stock Exchange requires the company to explain the specific situation of the transfer of projects under construction to fixed assets during the reporting period, as well as the content, basis, time and amount of the projects under construction, and whether the relevant accounting treatment conforms to the provisions of enterprise accounting standards.
By the end of 2023, the book balance of land and sea inventory in Central was 203 million yuan, an increase of 3.06% over the same period last year, and the reserve balance for inventory decline was 7.3998 million yuan. The Shenzhen Stock Exchange requires the company to explain the reasons and reasonableness of the reported increase in ending inventory in the event of a sharp decline in operating income, and whether the provision for the decline in the price of the company's inventory is adequate when the gross profit margin continues to decline and the gross profit margin of domestic income is negative.
In addition, on January 31, the Central Sea and Land disclosed the "2023 results Forecast", showing that the net profit of returning to the mother in 2023 is expected to be 3.1 million yuan to 4.6 million yuan. On April 10, the company disclosed the revised announcement of 2023 performance Forecast, which shows that the net profit of 2023 is expected to be a loss of 25 million yuan to a loss of 34 million yuan.
The Shenzhen Stock Exchange requires the Central Sea and Land to explain the specific reasons for the revision of the performance forecast and the reasons for failing to make a reasonable and accurate forecast when compiling the performance forecast, the internal decision-making procedures followed by the company in carrying out the performance forecast and the specific measures to be taken by the company to improve the accuracy of the performance forecast.