Leju Finance Li Lan On May 23, Huawei Design (833427. BJ) received the inquiry letter on the annual report of Beijing Stock Exchange, involving issues such as sand and gravel trade business, accounts receivable, management fees, etc.

The annual report shows that in 2023, the revenue of sandstone trade business will be 5.9105 million yuan, up 1175.33% year on year, and the gross profit rate of sandstone trade business will be 100%.

The ending balance of advance payment of Huawei Design in 2023 was 105 million yuan, with a year-on-year increase of 1843.51%, mainly due to the advance payment of 81.7398 million yuan for sand and gravel materials to Tuanfeng Xinsheng Sand and Stone Co., Ltd. and the advance payment of 21.5175 million yuan for sand and gravel services to Jiangxi Zhongzuo Construction Engineering Co., Ltd. The two companies are not the top five suppliers of Huawei design.

Huawei Design is required to specify the business entity, business model, trade settlement method, its obligations and risks in trade, as well as the accounting method of sand and gravel trade business, and explain the reason and rationality of 100% gross profit rate of sand and gravel trade business based on the situation of comparable companies in the contract industry.

In addition, in 2023, Huawei Design incurred 15.7667 million yuan of administrative expenses, a year-on-year increase of 19.12%, including 8.2443 million yuan of salary expenses, a year-on-year increase of 16.57%, 1.465 million yuan of travel and entertainment expenses, a year-on-year increase of 50.23%, and 1.3602 million yuan of office expenses and other expenses, a year-on-year increase of 32.88%. Huawei Design has 45 management personnel at the beginning of the period and 41 at the end of the period.

Huawei Design was required to explain the reason and rationality of the inconsistency between the change of employee compensation and the change of the number of management personnel in the management expenses; Explain the reason and rationality of the sharp increase in travel entertainment expenses and office expenses.

According to the official website, Huawei Design Group Co., Ltd. was founded in 2000 with a registered capital of 100 million yuan. In 2015, it completed the joint-stock reform and was listed. In 2021, it will become the first listed enterprise in the Beijing Stock Exchange and the first A-share listed company in the survey and design industry in Jiangxi Province.

As of 10:36 on May 23, the share price of Huawei Design (833427.BJ) had dropped 5.49% to 8.96 yuan, with a total market value of 924 million yuan.