Zhongxin Jingwei, May 22, Shenzhen Stock Exchange issued a letter of inquiry on the annual report to Mengjie Shares on May 22, requesting to explain the reason and rationality of the large difference between the net profit and the operating income change range, and to explain whether directors Chen Jie, Luo Gengbao and the company have major differences in operation.
Screenshot of annual report inquiry letter The two directors cannot guarantee the authenticity of the annual report
The annual report shows that Chen Jie and Luo Gengbao, the directors of Mengjie, cannot guarantee the authenticity, accuracy, integrity, and absence of false records, misleading statements or major omissions of the company's 2023 annual report 12 proposals related to the 2023 annual report were voted against. The main reason is that the proposal passed at the annual general meeting reconvened on December 26, 2023 was passed when Changsha Jinsen New Energy Co., Ltd. (hereinafter referred to as "Jinsen New Energy") could not vote, and the problems raised by Chen Jie and Luo Gengbao on the 2022 annual report were not solved. Therefore, Vote against some proposals of the 2023 annual report considered at the sixth meeting of the seventh board of directors of Mengjie Shares.
Shenzhen Stock Exchange requires Mengjie Shares to, on the basis of inquiring Chen Jie and Luo Gengbao by letter: Explain whether Chen Jie, Luo Gengbao and the Company have major differences in 2023 annual report and operation, If yes, specify the matters, reasons and impact on the normal operation of the company.
Chen Jie and Luo Gengbao, the directors, abstained from voting on proposals related to the 2022 annual report, 2023 semi annual report and 2023 third quarter report. Shenzhen Stock Exchange has sent letters of concern for many times. Up to now, the dispute has not been resolved. The above-mentioned directors still voted against proposals related to the 2023 annual report. Shenzhen Stock Exchange proposed to explain whether the company has fully communicated with Chen Jie and Luo Gengbao on the issues they questioned, whether the above disputes will affect the normal operation and standardized governance of the company, and the proposed solutions of the company.
The annual report shows that Mengjie will achieve an operating revenue of 2.156 billion yuan in 2023, a year-on-year increase of 6.08%, of which the operating revenue of each quarter will be 462 million yuan, 537 million yuan, 463 million yuan and 694 million yuan respectively (accounting for 32.18% of the annual operating revenue). In 2023, the net profit attributable to shareholders of the listed company (hereinafter referred to as "net profit") will be 22.4142 million yuan, with a year-on-year increase of 105%, of which the quarterly net profit will be 10.8968 million yuan, 10.3327 million yuan, 10.0282 million yuan and -8.8435 million yuan respectively. In 2023, the net cash flow from operating activities will be 357 million yuan, up 7.29% year on year, including 92.6602 million yuan, 41.9458 million yuan, 35.3667 million yuan and 187 million yuan in each quarter (accounting for 52.32% of the net cash flow from operating activities throughout the year).
Based on this, SZSE said that, in combination with the industry situation, the company's business model, business development, income composition and cost changes, gross profit margin, and period expenses, Explain the reason and rationality of the large difference between the net profit and the operating revenue, Whether there are significant differences with comparable companies in the same industry.
In combination with business characteristics, operating arrangements, recognition time points and policies of operating revenue and expenses, explain the reasons for the inconsistency between the net profit of each quarter and the change trend of operating revenue and net cash flow of operating activities. Explain the business and product content, customer name and scale corresponding to the revenue recognized in the fourth quarter, whether the company's related parties, whether the contract amount matches the customer's scale and operation, whether there are returns and refunds after the period, and whether there are abnormalities in gross profit margin; In combination with the sales mode, purchase payment, sales collection, etc., explain the reason and rationality of the substantial increase in the operating income and net cash flow generated by operating activities in the fourth quarter, which accounts for a large proportion in the whole year, and whether it is consistent with the situation in historical years.
Are directors, supervisors and senior executives diligent and responsible in collecting?
According to the annual report, the closing book balance of accounts receivable of Mengjie Shares is 286 million yuan, and the provision for bad debts is 163 million yuan. Among them, the ending book balance of accounts receivable with single provision for bad debt reserves is 137 million yuan, and the provision for bad debt reserves is 137 million yuan; The ending book balance of accounts receivable for which bad debt reserves are accrued in combination is 149 million yuan, and the proportion of provision increased from 14.23% at the beginning of the period to 17.20% at the end of the period. The annual auditor identified the "provision for bad debts of accounts receivable" as a key audit event.
Shenzhen Stock Exchange requires to explain the specific situation of the top five accounts receivable with the ending balance collected by the debtor, including but not limited to the debtor's name, business background, occurrence time, amount and aging, the reason and rationality of failing to recover in time, the collection measures taken or proposed to be taken by the company and the effect (if any), and whether the debtor is in contact with the company Directors, supervisors, senior managers, more than 5% shareholders, actual controllers, etc. of the Company are related or may cause interest tilt.
Explain whether the company's directors, supervisors and senior managers are diligent and responsible in collecting accounts receivable, and whether there is any situation that damages the interests of the listed company. Ask the annual auditor to check the problem (1) and express clear opinions.
According to the annual report, the construction progress of the "200000 mattresses per year project" among the projects committed to be invested by the raised funds is not as expected, because the changes in the market environment have put forward higher requirements for the equipment comparison and construction of the project, and in addition, the impact of the macro environment has also caused some delays in the construction work in some periods of time, The company will extend the construction period of the project to September 2024. By the end of 2023, the investment progress of the project will be 58.18%. The project with an annual output of 600000 quilt cores, 800000 pillow cores, 100000 Japanese mattresses and smart store projects did not reach the expected income.
Shenzhen Stock Exchange said that it would describe the project construction progress as of the reply date, and state whether the progress is less than expected and the obstacles, the follow-up implementation plan, and the countermeasures and effects (if any) taken by the company in combination with the contents of the project completed and to be completed.
In combination with the project progress, explain whether the project initiation and feasibility analysis report of the raised investment project in the early stage are prudent, whether the feasibility of the raised investment project has undergone major adverse changes, whether there is a risk of further delay, and whether there is a possibility of changing the use of the raised funds that have not been put into use.
The adequacy and rationality of the provision for impairment of related assets shall be explained in combination with the investment orientation and asset formation of the project invested with raised funds. The recommendation institution is requested to check the above issues and give clear opinions, and the annual auditor is requested to check the above issues and give clear opinions.
The annual report shows that the book value of fixed assets of Mengjie shares at the end of the reporting period was 982 million yuan, and no provision for asset impairment was made in 2022 and 2023, of which the book value of houses and buildings was 882 million yuan. The fixed assets for which the property right certificate has not been completed at the end of the period are the third and fourth floors of the Golden Roof Building property of the Company and the Houshan steel structure plant of Fujian Dafang Sleeping Technology Co., Ltd., a subsidiary of the Company. Among them, the third and fourth floors of the Golden Roof Building property will be handled after the property maintenance fund is split. The same statement will be made in the 2022 annual report.
Shenzhen Stock Exchange requires to explain the situation and reasons of the house with the property right certificate not yet completed, including but not limited to the initial recognition time of the above fixed assets, whether they have been actually used, whether they have started to accrue depreciation, and the estimated time of completing the property right certificate, and please explain whether there are risks in the ownership of the company's fixed assets and risk prevention measures.
Explain the calculation process and main parameters of fixed assets impairment during the reporting period, and further verify the adequacy of the provision for fixed assets impairment during the reporting period. The annual auditor is requested to check the above issues and give clear opinions.
Are raw materials decreasing and material payables increasing reasonably?
According to the annual report, the book value of other receivables of Mengjie shares at the end of the reporting period was 32.928 million yuan, up 21.71% year on year.
SZSE said that it would explain the specific situation of the top five other accounts receivable related parties with the ending balance collected by the debtor, the reasons for the formation of the accounts Whether it constitutes capital occupation and whether it is disclosed; State whether the details of recovery of bad debt reserves mentioned in other accounts receivable during the reporting period conform to the relevant provisions of the Accounting Standards for Business Enterprises. The annual auditor is requested to check the above issues and give clear opinions.
According to the annual report, the book value of accounts payable of Mengjie Shares at the end of the reporting period was 479 million yuan, up 16.55% year on year, including 478 million yuan of materials payable, up 16.58% year on year. The book value of the company's inventory was 523 million yuan, a year-on-year decrease of 14.38%, of which the book value of raw materials was 61.9778 million yuan, a year-on-year decrease of 14.02%.
SZSE pointed out that the list of the top five accounts payable at the end of the period includes but is not limited to the name of the unit, the type of purchase in the current period, the amount of purchase, the payment and whether it is a related party. In combination with the payment terms and future payment conditions agreed in the purchase contract, explain the reason and rationality of the increase of material payables when raw materials decline.
In addition, the ending balance of employee compensation payable of Mengjie Shares was 21.9118 million yuan, a year-on-year increase of 362.71%. Shenzhen Stock Exchange proposed to analyze the reasons and rationality of the change of per capita salary of the unit compared with 2021 and 2022 by sector in combination with the company's salary policy, changes in the number of people in each department, changes in performance, salary levels in the same industry, etc.
Wind shows that Mengjie Co., Ltd. is a modern enterprise group focusing on the home textile industry. Its products include more than 2000 varieties in 10 categories, including bedroom suites, quilts, pillow cushions, small home decorations, children's home textiles, blankets, hotel supplies, cotton products, spring mattresses, sofas, etc.
On the secondary market, on May 22, Mengjie shares rose by 0.76% to 2.65 yuan, with the latest market value of 2 billion yuan. (Zhongxin Jingwei APP)
