China Singapore Jingwei, May 22 – On May 22, Shenzhen Stock Exchange issued an inquiry letter to Zhang Xiaoquan on the annual report, requesting him to explain the reasons and rationality of the year-on-year growth of 3323.56% in net profit in the fourth quarter of 2023.
During the 2023 annual report period, Zhang Xiaoquan realized an operating income of 811480800 yuan, down 1.82% year on year; The net profit was 25.1183 million yuan, down 39.48% year on year; Non net profit deducted was 20.2666 million yuan, a year-on-year decrease of 42.69%; The company's net profit and net profit after deducting non net profit have declined sharply for two consecutive years. Zhang Xiaoquan's quarterly operating income was 191400100 yuan, 182108900 yuan, 192302200 yuan, 245673600 yuan, net profit was 8474200 yuan, -2126200 yuan, 2923500 yuan, 15846500 yuan, and net cash flow from operating activities was 7677400 yuan, 31091400 yuan, -9485400 yuan, 74891000 yuan, of which, In the fourth quarter, the operating revenue increased by 44.27% year on year, and the net profit increased by 3323.56% year on year.
In this regard, SZSE requires Zhang Xiaoquan to (1) quantitatively analyze the company's net profit The reason and rationality of the sharp decline in non net profit deduction for two consecutive years, and whether the relevant trend will continue, if so, fully prompt the risk.
(2) The analysis shows the reason and rationality of the substantial growth of operating income and net profit in the fourth quarter year on year and month on month.
(3) Explain whether the change trend of net cash flow generated by operating activities in each quarter is consistent with the change trend of operating income and net profit in the current quarter. In case of inconsistency, analyze and explain the specific reasons and rationality.
During the reporting period, Zhang Xiaoquan's sales model realized a revenue of 49.10148 million yuan, a year-on-year increase of 7.80%, and a gross margin increase of 1.84%. The direct sales model realized a revenue of 230.2469 million yuan, a year-on-year decrease of 16.38%, and a gross margin decline of 4.17%. The sales model realized a revenue of 82.4385 million yuan, a year-on-year decrease of 4.87%, and a gross margin increase of 4.42%.
In this regard, SZSE requires Zhang Xiaoquan to explain the direct sales, average order amount, per capita purchase amount, and the purchase of major customers under the distribution mode in combination with the product composition of the direct sales, distribution and consignment modes in this period, the purchase of customers under different modes (such as the total number of orders under the direct sales mode, average order amount, per capita purchase amount, and the purchase of major customers under the distribution mode) and the changes in the previous period The reason and rationality of the decrease of sales revenue on commission and the increase of sales revenue on distribution mode. In combination with the differences in product composition, average sales price, and operating cost composition under the distribution, direct, and consignment modes, explain the reasons why the gross profit rate of the direct sales mode declines while the gross profit rate of the distribution and consignment mode increases.
According to the annual report, the ending book balance of Zhang Xiaoquan's inventory was 165012300 yuan, including 112445300 yuan of goods in stock and 5809100 yuan of inventory falling price reserves at the end of the period.
In this regard, SZSE requires Zhang Xiaoquan to describe the amount and stock age of various inventories according to the classification of product types corresponding to inventories, and explain whether the provision for falling price reserves is sufficient in combination with the current gross profit rate level and the calculation process of the provision for falling price of inventories.
The annual report shows that the closing book value of Zhang Xiaoquan's investment real estate is 37.1348 million yuan, including 15.0354 million yuan of fixed assets and intangible assets transferred into investment real estate, and 8.5584 million yuan of investment real estate transferred into fixed assets and intangible assets.
In this regard, the Shenzhen Stock Exchange asked Zhang Xiaoquan to provide additional information about the transfer of fixed assets and intangible assets into investment real estate, and the transfer of investment real estate into fixed assets and intangible assets, including the time of transfer, the amount involved, the reason for transfer, the main purpose, the current use of investment real estate, and whether it meets the recognition conditions for investment real estate, Whether the relevant accounting treatment is reasonable and whether depreciation and impairment are fully accrued.
The annual report shows that as of March 20, 2024, Zhang Xiaoquan Group, the controlling shareholder of Zhang Xiaoquan, has pledged 99.90% of its shares in the company. Zhang Xiaoquan Group has borrowed 127875000 yuan from Xi'an Daming Palace Yanta Shopping Plaza. Since Zhang Xiaoquan Group has not repaid its debts, Zhang Xiaoquan Group and its controlling shareholder Fuchun Holding Group, Zhang Guobiao, the actual controller of Zhang Xiaoquan Zhang Zhangsheng was listed as the person to be executed by the court. On May 10, Zhang Xiaoquan disclosed the Announcement on Some Actual Controllers Being Listed as Executees and Issued Consumption Restriction Orders, stating that Fuchun Holding Group, Zhang Guobiao and Zhang Zhangsheng were listed as Executees by the court because they provided guarantees for the debts of Yangling Company of Internet Business IOT, and because Internet Business IOT Yangling Company had not repaid its debts, Fuchun Holding Group, Zhang Guobiao and Zhang Zhangsheng were listed as Executees by the court, At the same time, Zhang Guobiao, Zhang Zhangsheng and others were issued with the "Consumption Restriction Order". Zhang Xiaoquan's sponsor issued a special opinion that if the above creditor and debtor parties cannot reach a settlement, the credit situation of the actual controller further deteriorates or causes other lawsuits, Zhang Xiaoquan may face the risk of instability or change of control in the future.
In this regard, SZSE requires Zhang Xiaoquan to: (1) check and explain whether the company has provided loans, guarantees for its debts and funds occupied by the actual controller's related parties for Zhang Xiaoquan Group, Fuchun Holding Group, Zhang Guobiao, Zhang Zhangsheng and their related parties (hereinafter referred to as the actual controller's related parties). If yes, describe the details and whether the corresponding review procedures and disclosure obligations have been fulfilled.
(2) Check and explain the progress of the above two items listed by the court as the persons to be executed as of the date of reply, including but not limited to whether the debt liability of Zhang Xiaoquan Group, Fuchun Holding Group, Zhang Guobiao and Zhang Zhangsheng has been relieved, whether the controlling shareholders and actual controllers of the company have taken or intend to take relevant measures, and whether they are still the persons to be executed, Whether it is listed as a dishonest executor, whether the shares of the company held by Zhang Xiaoquan Group are at risk of being executed, and whether the company still faces the risk of instability or change of control.
In addition, SZSE also asked Zhang Xiaoquan to explain the specific reasons for the continuous growth of administrative expenses since 2021, the reasons and rationality of the continuous growth of depreciation and amortization amount of administrative expenses since 2021, the specific reasons for the continuous losses of raised investment projects, and the reasons and rationality of new short-term loans when monetary funds are sufficient.
According to public data, Zhang Xiaoquan is a modern life hardware enterprise integrating design, research and development, production, sales and service. Its main products include scissors, knives, knife and scissors sets and other household goods.
On the secondary market, Zhang Xiaoquan closed up 0.53% at 13.26 yuan/share on the 22nd. (Zhongxin Jingwei APP)
