China Singapore Jingwei, May 23 – On May 23, Shenzhen Stock Exchange issued a letter of inquiry on the annual report of 2023 to Shenzhen Hemei Group Co., Ltd. (hereinafter referred to as "Hemei Group"), in which the company was required to explain whether there were major uncertainties in its ability to continue as a going concern.
According to the annual report, Hemei Group is mainly engaged in the retail business of international brand clothing, shoes, hats, bags and other goods. Its operating brands include MCM, Fular, Pinko, Radley, Aspinal Of London, etc., as well as its own brand Oblu. Its business types include brand franchised stores and Aolai stores. In 2023, Hemei Group will achieve an operating revenue of 165 million yuan, with a year-on-year growth of 1.61%. The deduction amount of operating revenue will be 4.319 million yuan, which is other business income except normal operation; Net profit attributable to shareholders of the listed company (hereinafter referred to as "net profit") is -47.2035 million yuan. The annual auditor listed "recognition of commercial retail income" as a key audit matter.
In this regard, Shenzhen Stock Exchange requires Hemei Group to:
everything In combination with the composition of operating revenue, industry characteristics, business model, etc., self check and explain whether the items of operating revenue deduction are complete, whether they comply with the provisions of "related matters of operating revenue deduction" in the Self regulatory Guidelines for Listed Companies No. 1 - Business Handling of the Exchange, and whether they actually touch the delisting risk warning situation of "operating revenue is less than 100 million yuan and net profit is negative".
Second In combination with the development of commercial retail business of brand clothing, downstream demand for related products or services, changes in gross profit margin, period expenses and other factors during the reporting period, and the operation of comparable companies in the same industry, analyze and explain the specific reasons and rationality of your company's substantial loss in performance.
SZSE also requires the annual auditor to explain the contents of the audit procedures implemented for revenue recognition, and express clear opinions on the authenticity and accuracy of operating revenue and the completeness of operating revenue deduction.
From 2017 to 2023, the operating revenue of Hemei Group continued to decline, and the net profits attributable to shareholders of listed companies after deducting non recurring profits and losses were negative.
In this regard, Shenzhen Stock Exchange asked Hermes Group to explain the specific reasons for the continuous decline of operating revenue and the continuous negative net profit after deducting non profits in the past five years, and combined with the above situation Explain whether the company is faced with major operational risks and whether there is significant uncertainty in its ability to continue as a going concern , and the measures the company plans to take to improve its ability to continue as a going concern.
Shenzhen Stock Exchange also requires the annual auditor to explain whether there is any uncertainty in the company's ability to continue as a going concern, and asks Hemei Group to make a self inspection and explain whether it touches the situation of other risk warnings for stock trading as stipulated in Article 9.8.1 of the Stock Listing Rules of Shenzhen Stock Exchange.
According to the annual report, the sales volume of Hemei Group's clothing in 2023 will be 108067 pieces, a year-on-year decrease of 29.88%, and the inventory will be 401763 pieces. Among them, the unit sales cost and unit sales price calculated by sales volume have continued to grow since 2020, with the unit sales price of clothing being 631 yuan in 2020 and 1486 yuan in 2023; The unit sales cost of clothing will be 292 yuan in 2020 and 791 yuan in 2023. Hemei Group said that it organized special sales or wholesale sales through wholesale channels for out of season and unsalable inventories.
In this regard, Shenzhen Stock Exchange asked Hermes Group to explain whether there have been major changes in the brand and product structure sold since 2020, and whether the trend of changes in purchase and sales prices is consistent with market changes in combination with the high inventory of the company; State whether the Company has adjusted its income.
According to the annual report, Hemei Group held a meeting of the Board of Directors on May 31, 2023 to review and approve the Proposal on Selling the Equity of a Wholly owned Subsidiary, and proposed to transfer 100% of the equity of the wholly-owned subsidiary Huizhou Haoningda to Sunlight Energy (Guangdong) Co., Ltd. (hereinafter referred to as "Sunlight Energy") at a transaction price of 112 million yuan. As the results of the relevant judicial execution of Huizhou Haoningda may have a greater impact on the scope and value of the equity transfer assessment, in order to ensure the fairness of the transaction, the parties to the transaction agreed to sign a Supplementary Agreement and agreed to delay the implementation of the Equity Transfer Agreement signed on the sale of 100% of Huizhou Haoningda's equity for 12 months, According to the legal results or progress of the implementation of the turnaround procedure initiated by Huizhou Haoningda, the equity value of 100% of Huizhou Haoningda's equity will be re evaluated and the transaction price of the underlying equity will be determined through negotiation within the delay period or after the expiration of the delay period, and then the parties will sign a specific supplementary agreement.
In this regard, Shenzhen Stock Exchange requires Hemei Group to explain whether Sunlight Energy has the ability to pay the equity transfer price in combination with Sunlight Energy's registered capital and its paid in situation, main business operations, transaction price capital sources, etc; Combined with the losses of Huizhou Haoningda for consecutive years and its own operating conditions, the transaction valuation pricing is reasonable.
According to the annual report, the closing book balance of other receivables of Hemei Group was 30.2193 million yuan, and the provision for bad debts was 19.5642 million yuan, of which the related party transactions and other transactions totaled 14.7598 million yuan. According to the aging, 66% of the accounts are aged more than 2 years.
In this regard, Shenzhen Stock Exchange asked Hermes Group to explain the specific contents of other receivables with the top five ending balances collected by the debtor, including but not limited to the relationship with the counterparty, transaction matters, occurrence reasons, occurrence time, specific amount, reasons for long-term non recovery, whether there is fund occupation or external financial assistance.
According to the annual report, Hemei Group generated a non operating expenditure of 47.1451 million yuan during the reporting period, mainly for the accrued litigation compensation expenses. Shenzhen Stock Exchange required Hermit Group to explain the specific situation of accrued estimated liabilities and non operating expenses in the form of a list in combination with the progress of relevant litigation, and to explain whether the relevant provision is sufficient, reasonable and prudent, and whether it complies with the provisions of the Accounting Standards for Business Enterprises.
According to the annual report, Hemei Group recognized an investment income of 20026500 yuan during the reporting period, including 17.3076 million yuan from debt restructuring. Shenzhen Stock Exchange asked Hermes Group to explain the specific composition, calculation process and determination basis of the above debt restructuring income, and whether it conforms to the relevant provisions of the Accounting Standards for Business Enterprises.
On the secondary market, as of press release, Hermes Group fell 2.58% to 3.4 yuan/share, with a total market value of 4.5 billion yuan. (Zhongxin Jingwei APP)
