256 annual report inquiry letters in the year, multi-dimensional "torture" of listed companies

Reporter Meng Ke

Although the disclosure of the annual report has ended, the regulatory inquiry on the annual report of listed companies continues. According to the statistics of Securities Daily, as of May 24, the Shanghai Shenzhen North Stock Exchange has released 256 annual report inquiry letters, of which more than 212 have been inquired since May.

Dong Zhongyun, chief economist of AVIC Securities, said to the reporter of Securities Daily that the intensive issuance of the annual report inquiry letters of listed companies is an important measure for the regulatory authorities to strengthen the supervision of listed companies and improve the quality of information disclosure of listed companies, which helps to improve the transparency of information disclosure of listed companies and provide investors with more comprehensive and accurate company information, Help investors identify companies with high potential risks and avoid losses. At the same time, through strict supervision, we urge listed companies to operate in compliance with laws and regulations, promote the rational allocation of capital market resources, and promote the long-term healthy development of the market.

　　 Financial data becomes the focus of inquiry

From the content of the inquiry letter, the regulators mainly focus on the financial data, such as "face changing" performance, high asset impairment, abnormal financial indicators, internal control flaws and inadequate information disclosure.

Chen Bo, partner of Deheng Shanghai Law Firm, told Securities Daily that listed companies are profitable legal persons, and financial data is naturally the focus of inquiry. Among them, revenue recognition, cost allocation, asset impairment, bad debt provision, etc. are all areas that are easy to be used to adjust profits, and are also the focus of financial inquiries.

In Dong Zhongyun's opinion, the regulatory authority conducts a detailed review of the annual reports of listed companies, and requires the company to explain and explain financial data, business operations, internal control and other aspects through an inquiry letter, emphasizing strict information disclosure standards and quality requirements.

"Focusing on corporate governance and internal control, the inquiry letter pays special attention to whether there are problems such as imperfect governance structure and weak internal control of listed companies, which indicates that the regulatory authority can protect the legitimate rights and interests of investors by urging listed companies to strengthen internal control for the governance level of listed companies; Pay attention to the authenticity of financial indicators. Through the inquiry of abnormal financial indicators in the annual report, the regulatory authority conveyed a zero tolerance attitude to financial fraud to the market, emphasizing the importance of the authenticity and accuracy of financial reports of listed companies. " Dong Zhongyun said.

Compared with previous years, this year, not only the number of enterprises inquired by the Exchange has increased significantly, but also the content of the inquiry has become more detailed. In addition to the above regular inquiries, it also focuses on dividend distribution. At the same time, higher requirements are put forward for intermediaries, and the audit institutions are required to focus on whether the audit opinions are reasonable.

For example, on May 15, Shenzhen Stock Exchange Lvtong Technology The annual report inquiry letter issued shows that it requires Lucent Technology to explain the determination basis and rationality of the company's profit distribution proportion in the last three times, and whether there is any difference with the historical dividend distribution; On May 11, at Shenzhen Stock Exchange *ST Zhengbang The annual report inquiry letter issued shows that * ST Zhengbang is required to ask the annual auditor to explain the rationality of identifying that the impact of the matters involved in non-standard opinions in the 2022 annual audit report of the company has been eliminated, and on this basis, further demonstrate whether the audit evidence on which the audit opinion is based in 2023 is sufficient and appropriate, and whether the audit opinion is prudently issued.

"The new features of the above annual report inquiry letter are in three aspects, namely, refined supervision, emphasis on authenticity, and risk orientation." Dong Zhongyun believes that strict inquiry supervision forms effective pressure on listed companies to improve their internal management and corporate governance, so as to achieve long-term stable development of listed companies and capital markets.

　　 Urge listed companies to improve their internal control system

The new "National Ninth Article" clearly states that "continuous supervision of listed companies shall be strictly enforced", "a comprehensive punishment and prevention system for preventing and combating fraud in the capital market shall be established, and violations of laws and regulations in key areas such as financial fraud and capital occupation shall be severely rectified".

According to the official website of Beijing Stock Exchange Lilda 、 Kungong Technology 、 Kaida Catalysis The listed companies such as Beijing Stock Exchange have violated the rules of inaccurate disclosure of performance forecast and performance express information and failed to correct them in time. The company's performance has been corrected significantly. Some companies have also violated the rules of reporting financial data wrongly on a regular basis. Beijing Stock Exchange has given the above three listed companies and relevant responsible subjects a disciplinary punishment of criticism.

Regular reports, performance forecasts and performance bulletins are important information sources and bases for investors to fully understand the production, operation and financial conditions of listed companies and make investment decisions. The authenticity, accuracy and completeness of financial data are not only statutory requirements, but also reflect the quality and level of corporate governance and accounting of listed companies. Industry insiders said that the supervision and punishment of Beijing Stock Exchange on violations of annual reports of listed companies is the embodiment of the implementation of "two strong and two strict", which helps to maintain market order and protect the legitimate rights and interests of investors.

Chen Bo said that listed companies have a large number of shareholders, and the average shareholding ratio of shareholders is low except for controlling shareholders. The power and ability of small and medium-sized shareholders to supervise listed companies through annual reports are relatively weak. There are few ways of supervision and the effect of supervision is weak. On the contrary, the Exchange has sufficient power, ability and manpower. The annual report inquiry work of the Exchange will play a very direct and important role in urging listed companies to improve the quality of annual reports.

When talking about the future of listed companies, what should they do to improve their internal skills? Dong Zhongyun said that in order to better adapt to the current regulatory trend, on the one hand, listed companies need to continue to improve the quality of information disclosure, ensure the authenticity, accuracy and integrity of financial reports, disclose financial data in detail, provide reasonable explanations for abnormal indicators, and conduct full risk assessment and disclosure for new businesses and new fields; On the other hand, continue to strengthen corporate governance, improve the internal control system, improve the transparency and efficiency of decision-making, ensure the compliance of the company's operations, establish and improve the risk management system, and timely identify and effectively control potential risks.