The risk of delisting is high *ST Zuojiang plans to increase the price to replace the annual review agency
[ad_1]
Less than a year after announcing the change of the annual financial audit agency, on the evening of January 15, *ST Zuojiang once again announced that it planned to change the annual audit agency and increase the annual audit fees it would pay by 25%. The reporter noticed that in recent years, the company’s financial situation has been worrying, with operating income continuing to decline sharply and net profit attributable to the parent company showing a loss. The company’s 2022 financial report was issued with a non-standard audit opinion, and it also faces the risk of delisting. In addition, *ST Zuojiang has been investigated by the China Securities Regulatory Commission for suspected violations of information disclosure laws and has been under key monitoring by the exchange for nine consecutive weeks.
Audit fees increase by 25%
*ST Zuojiang is a software and hardware solution provider and software and hardware platform supplier in the field of information security. The company was listed on the Shenzhen Stock Exchange on October 29, 2019, and the sponsor is CITIC Securities. Although the company’s performance is poor, it has been hyped by the market because of its popular concept. From January to June 2023, the company’s stock price fluctuated between 97.50 yuan/share and 297.50 yuan/share. It was once called the “most expensive hat stock” by the market. “.
The reporter noticed that *ST Zuojiang has changed its annual financial audit agency twice since it landed on the GEM, and both changes were during the annual report disclosure season.
The announcement shows that in 2019, 2020 and 2021, *ST Zuojiang’s annual financial audit agency is BDO LLP Accounting Firm (Special General Partnership) (referred to as “LX Firm”). Each appointment period is one year, and the annual audit The cost is 600,000 yuan. In January 2022, the company announced that it planned to change the signing certified public accountant. The reason was that the original signing certified public accountant was adjusted due to the work arrangement of Lixin Firm.
On January 30, 2023, *ST Zuojiang announced that due to the scheduling of the Lixin Institute project, it is expected that it will not be able to complete the 2022 audit work within the company’s designated time. After prior communication and friendly negotiation between the two parties, it was decided to change the accounting firm. It is proposed to appoint Daxin Accounting Firm (Special General Partnership) (referred to as “Daxin Firm”) as the company’s audit agency for 2022. The appointment period will be one year and the audit fee will be 600,000 yuan. However, Daxin Exchange issued a qualified audit report on its 2022 financial report.
A year later, *ST Zuojiang changed its annual financial audit institution from Daxin to Asia Pacific (Group) Accounting Firm (Special General Partnership) (referred to as “Asia Pacific”), and the audit fees increased by 25%.
The announcement shows that the Asia-Pacific firm that *ST Zuo Jiang intends to employ has been subject to 8 administrative penalties, 26 supervisory and management measures, 4 self-regulatory supervisory measures and 4 disciplinary sanctions in the past three years due to professional conduct. There are 18 personnel, 52 people are subject to supervision and management measures and 8 people are subject to self-discipline supervision measures.
Has been investigated by the China Securities Regulatory Commission
On December 1, 2023, *ST Zuojiang received the “Notification of Case Filing from the China Securities Regulatory Commission” issued by the China Securities Regulatory Commission. Due to suspected violations of information disclosure laws and regulations, the China Securities Regulatory Commission decided to file a case against the company in accordance with relevant laws and regulations.
In terms of performance, in 2020, 2021, 2022 and the first three quarters of 2023, *ST Zuojiang’s operating income was 200.722 million yuan, 118.3489 million yuan, 58.9612 million yuan, and 33.7221 million yuan respectively, with year-on-year growth rates of -8.25%, respectively. -41.04%, -50.18%, -9.54%; the net profits attributable to shareholders of the parent company during the same period were 93.6416 million yuan, 5.665 million yuan, -146.8954 million yuan, and -97.3273 million yuan respectively, with year-on-year increases of 5.56% and -93.95%. , -2693.04%, -28.27%.
Daxin Institute issued a qualified audit report on the company’s 2022 financial report. Dasin Law Firm stated that as of December 31, 2022, *ST Zuojiang had accounts receivable of more than 200 million yuan. Dasin Law Firm was unable to conduct on-site interviews and failed to obtain a confirmation letter. Due to the fact that important audit procedures such as interviews and confirmations were not effectively executed, Daxin was unable to obtain sufficient and appropriate audit evidence to judge the recoverability of the book value of the above-mentioned receivables. At the same time, *ST Zuojiang’s operating performance has continued to decline in the past two years. The consolidated net loss in 2022 was 174.4244 million yuan, and the net cash outflow from operating activities was 182.0076 million yuan. These conditions indicate the existence of material uncertainties that may cast significant doubt on the Company’s ability to continue as a going concern.
In addition, *ST Zuojiang has received regulatory inquiry letters after financial report disclosure many times since its listing, and has been closely monitored by regulatory authorities due to multiple abnormal stock price fluctuations.
The reporter noticed that after the disclosure of the 2022 annual report, the 2023 semi-annual report and the 2023 third quarter report, as well as after the disclosure of external investment projects and business progress, *ST Zuojiang received letters of inquiry or letters of concern from the exchange. Issues that the exchange is concerned about include the company’s verification of accounts receivable, whether there is over-reliance on individual customers, the reasons why the balance of accounts receivable increased year-on-year despite a sharp year-on-year decline in operating income, etc., and whether there is any utilization information Disclosures, interactive platforms and media promotions cater to market hot spots, boost stock prices and cooperate with shareholders to reduce their holdings. Regarding the inquiry letter for the third quarterly report of 2023, *ST Zuojiang postponed its reply 6 times.
In addition, in response to the multiple abnormal fluctuations in *ST Zuojiang’s stock price, the exchange issued multiple letters of concern and carried out focused monitoring. The regulatory updates released by the Shenzhen Stock Exchange show that since November 13, 2023, the Shenzhen Stock Exchange has been focusing on monitoring *ST Zuojiang for nine consecutive weeks.
The company faces the risk of delisting
*ST Zuojiang disclosed that because the 2022 annual audit report shows that there is uncertainty in the company’s ability to continue operating, the company’s relevant financial indicators have not yet improved, and there is uncertainty in the company’s ability to continue operating, and the company’s stock transactions have been subject to a delisting risk warning. In addition, the company also has situations where some revenue cannot be determined and products cannot be delivered as planned by the company. If the company’s audited net profit in 2023 is negative and its operating income is less than 100 million yuan or the company is issued a non-standard audit report in 2023, the company’s stocks will face the risk of being terminated from listing and trading.
In order to resolve the risk of delisting, *ST Zuojiang has taken a series of measures. On October 13, 2023, *ST Zuojiang disclosed that the company plans to apply to banks, securities companies, asset management companies, factoring companies and other financial institutions for non-recourse factoring of accounts receivable not exceeding 250 million yuan. business. Subsequently, the Shenzhen Stock Exchange issued a letter of concern, requesting an explanation of the reasons for the proposed factoring business and the compliance of this factoring business. According to the latest announcement disclosed by *ST Zuojiang, as of December 22, 2023, the accounts receivable factoring business has not yet taken effect.
On December 15, 2023, *ST Zuojiang announced that in order to support the company’s production and operation needs, improve financing efficiency, and promote the company’s sustainable and healthy development, the company plans to sign a “Loan Agreement” with its controlling shareholders Zhang Jun and He Zhaohui. The above two The person will provide financial assistance of no more than 20 million yuan to the company in the form of an interest-free loan. This loan does not require the company to provide any form of guarantee, mortgage, pledge, etc.
[ad_2]
Source link